Sabre Corporation SABR recently collaborated with Singapore Airlines to enable select Sabre-connected travel agents in Singapore to book unique NDC (New Distribution Capability) content from Singapore Airlines. The provision takes effect from November 2019.
Singapore Airlines has been part of Sabre’s Beyond NDC program since 2018. Notably, this partnership extends the NDC program, KrisConnect, expanding digital distribution capabilities of both companies.
With this partnership, Sabre agencies will gain access to a wider range of fares and improved shopping experience.
Partnerships to Boost Airline Solutions Business
Sabre is banking on key partnerships to enhance its Airlines segment. It is taking a collaborative approach to deliver next-generation retailing experience through its airline clients.
Notably, in June, the company announced that it has collaborated with marketing technology company, Cheetah Digital, to add loyalty management capabilities to its comprehensive offerings.
In the preceding month, Sabre announced a long-term agreement with Vietnam Airlines, which adopted the Sabre AirVision In-Flight solution. In the same month, the company also renewed its partnership with Polish carrier, LOT.
Moreover, in April, the company launched its first set of NDC APIs with United Airlines and next-generation shopping solutions, which are expected to be key growth drivers in the long haul.
Also, Delta Air Lines joined Sabre’s Beyond NDC program this March and is working with the company on its newly-announced Next Generation Storefront.
Such initiatives helped Sabre become a certified IATA ONE Order Capable for air flight transaction as an order management system and delivery provider, making it the first passenger service system to receive this certification.
Notably, the company’s customer centricity and continued efforts to enhance client experience have helped it witness consistent revenue growth since its initial public offering in 2014. We, therefore, believe that continued collaborations and extended partnerships will help the company boost its profitable Airline Solutions business.
Notably, in the last reported quarter, the company’s Airline Solutions revenues came in at $211.8 million, increasing 3.4% from the year-ago quarter.
Booming Travel Industry Bodes Well
The global tourism industry is thriving on the back of technological progress, which is allowing greater exposure and access to previously inaccessible destinations. More efficient worldwide communication links, such as motorways, railways and air travel, are leading to faster and cheaper travel.
Per Research Nester, the global tourism industry is anticipated to hit $11.38 trillion (10% of global GDP) by 2025. Moreover, total spending on the global travel and tourism sector is anticipated to surge to $1.34 trillion in 2025.
This projection spells good news for Sabre, which is constantly boosting its efforts in this space.
Zacks Rank & Key Picks
Sabre currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are LogMeIn LOGM, Anixter International and Perficient PRFT, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for LogMeIn, Anixter and Perficient is currently pegged at 5%, 8% and 10.8%, respectively.
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