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Sabre (SABR), LATAM Partner to Integrate NDC Content Into GDC

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Sabre Corporation (SABR - Free Report) has entered into a new distribution agreement with the largest carrier in Latin America, LATAM Airlines Group. Per the latest agreement, LATAM’s New Distribution Capability (“NDC”) Content will be integrated into Sabre’s Global Distribution System (“GDS”), with a probable rollout planned for the first half of 2024.

SABR’s GDS is a NDC-enabled consistent end-to-end workflow solution, which works like a marketplace connecting travel suppliers with buyers. With this enhanced distribution agreement, Sabre-connected agencies, travel buyers and agents will be able to access LATAM’s NDC and EDIFACT offers. The companies will leverage SABR's Offer and Order APIs and solutions like Sabre Red 360 and Sabre GetThere.

In addition to the improved access to LATAM’s offers, the travel agents will also be able to compare and shop these while benefiting from increased choice and transparency. This will be executed across Latin American Region and Intercontinental destinations like the United States, Europe, Australasia and the Caribbean.

LATAM is set to become the latest addition to a group of 15 airlines collaborating with Sabre to offer its NDC content in the market. This list of airlines includes Aeromexico, Scandinavian Airlines, Finnair, United Airlines (UAL - Free Report) and American Airlines (AAL - Free Report) . All of these companies have partnered or renewed the partnership with Sabre in 2023.

In Mar 2023, the company announced that Sabre-connected travel buyers, agencies and developer partners will be able to access American Airlines’ NDC content through Sabre Red 360, Sabre APIs and GetThere. The new partnership allowed travel buyers on Sabre’s GDS to access AAL’s offers, including Main Select and Flagship Business Plus fares.

In April 2023, United Airlines introduced its NDC offers into Sabre’s GDS. This enabled travel buyers to access enhanced options, including UAL's continuous pricing content, featuring the most competitive fares available through Sabre Red 360, Sabre APIs and GetThere.

Sabre has reported that in second-quarter 2023, the share of its Global Distribution System industry volumes has improved in comparison to the second quarter of 2022 as well as 2019, which is the year before the pandemic-led lockdowns disrupted the entire global travel and hospitality business. The Travel Solution revenues increased to $670.8 million in second-quarter 2023 compared with $599.1 million in the year-ago quarter, reflecting year-over-year growth of 12%.

Zacks Rank

Currently, Sabre carries a Zacks Rank #2 (Buy), while American Airlines and United Airlines carry a Zacks Rank #3 (Hold) each. Shares of SABR have plunged 37.9% year to date, while shares of AAL and UAL have gained 1% and 9.6%, respectively.

Another Stock to Consider

A top-ranked stock from the broader technology sector, worth considering, is NVIDIA (NVDA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NVIDIA's third-quarter fiscal 2024 earnings has been revised upward by 2 cents to $3.34 per share in the past seven days. For fiscal 2024, earnings estimates have increased by 21 cents to $10.67 per share in the past 30 days.

NVIDIA’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, the average surprise being 9.8%. Shares of NVDA have soared 205.9% year to date.

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