The sale further shrinks Sabre compared to its larger competitor, Amadeus. But it will benefit from less debt and more focus on its distribution business.
Sabre's sale of its hotel reservations tech should help the travel tech company focus on its core airline business. It's notable that a PE firm rather than a rival player, such as Oracle or Cendyn, chose to buy.
Sluggish recovery in the air distribution business, despite record travel demand, signals a disturbing trend for global distribution systems (GDSs). Without a one-size-fits-all strategy, GDSs should look again at their business models as airlines continue to push for direct bookings.
Sabre has had trouble fully recovering from the pandemic. But with a reorganization in the books and continued investment in new tech, the company's new-ish CEO is focused on what's next.
If Sabre sells its hospitality unit this time around, it can use some of the proceeds to pay off debt, and then refocus on its core airline and travel agency business.
Turkish Airlines is ruffling feathers as it pushes for direct bookings starting in October. American Airlines failed an attempt for a similar strategy this year, which surely will inform the execution for Turkish.
Cirium is a for-profit company, selling its data to corporations and the airline industry to more accurately measure flight emissions. Could its reluctance at this early stage to share that data with Google and Travalyst be out of self-interest?