Skift Take

Hospitality solutions is a significant yet still relatively small portion of Sabre's business but it will trend upwards in coming years with acquisitions such as the one for Trust International. The travel agent business is still where Sabre makes 70 percent of its dough.

Chalk up another hotel-tech acquisition for one of the large global distribution system companies, Sabre.

Sabre agreed to acquire the Trust Group of Companies, including Trust International, InnLink and Nexus, from Battery Ventures for $154 million using cash on hand and proceeds from notes that Sabre recently issued. The deal, which would add some $40 million in revenue in 2016 to Sabre’s coffers, is expected to close in the first quarter of 2016.

The Trust Group, based in Frankfurt, Germany, offers central reservations services — an area that Sabre Hospitality is already focused on — as well as revenue management and hotel marketing products, particularly in Europe, the Middle East, Africa and Asia-Pacific.

Once known for offering primarily flight services to airlines and travel agents, global distribution system companies such as Sabre, Amadeus and Travelport have been building out their hotel-tech businesses. Sabre and Amadeus, in particular, have been active in making hotel-tech acquisitions in recent years.

“The technology needs of the hospitality industry are evolving at a rapid pace. Hoteliers want a global technology provider that anticipates their needs and delivers broad, integrated solutions, including data and analytics, retailing and guest engagement,” said Alex Alt, president of Sabre Hospitality Solutions. “By bringing together Sabre and the Trust Group, we will immediately expand our capabilities and increase the pace of innovation we deliver to the industry. We look forward to welcoming the talented Trust team to Sabre and our journey to deliver unprecedented value to our customers.”

In 2014, Sabre generated $786.5 million, or 30 percent, of its $2.63 billion in revenue from airline and hospitality solutions. The other 70 percent of Sabre’s revenue came from its travel agent business.

Another facet of the acquisition is that Trust International has been active in integrating hotels into Google’s Hotel Ads advertising program and this will give Sabre additional clout  in that area,  particularly in Europe and Asia Pacific.

Sabre Hospitality is also a partner of Google’s in the Google Hotel Ads Commission program.


The Daily Newsletter

Our daily coverage of the global travel industry. Written by editors and analysts from across Skift’s brands.

Have a confidential tip for Skift? Get in touch

Tags: gds, hotels, sabre

Photo credit: Sabre agreed to acquire Trust International, a deal that will enhance Sabre Hospitality's central reservations and revenue management capabilities. Trust International

Up Next

Loading next stories