Articles tagged “sabre”

Is Sabre worried about Booking.com getting into the hotel B2B game? Not overly, but in acquiring Genares, Sabre is proving that the best defense is a good offense.

Sabre couldn't get the pricing it wanted in its debut and now we'll get a chance to see if Travelport does any better.

Orbitz Worldwide paid $10 million to acquire the Travelocity Partner Network in late February 2014 and would pay an additional $10 million if the affiliate network hits certain performance targets this year and in 2015. This is a nice acquisition for Orbitz Worldwide because the private label sector was already an important part of its business.

Claims of an unyielding network effect are often so much hot air such as when Expedia claims that it has "mutually beneficial supply agreements" that reinforce its global marketplace. Still, when companies such as TripAdvisor, which attracts more than 100 user reviews and ratings per minute, truly achieve a network effect, their growth can be exponential.

To some extent, the shift in geographic focus of the travel IPO market from the U.S. in 2013 toward Europe and Asia Pacific so far in 2014 reflects where the burgeoning investment and market opportunities are opening up, although it is somewhat surprising that Latin America has yet to be heard from in a very meaningful way.

When Expedia gets around to talking about acquiring Travelocity outright, the relationship between Travelocity parent Sabre and Expedia is already so close they will have no problem getting their phone calls answered. Sabre is counting on such a sale, telling investors that it is guaranteed to increase shareholder value.

Travelocity was once the darling in Sabre's portfolio, and now the fastest-rising star is its hospitality solutions business. It has plenty of room to grow, particularly in EMEA and APAC, where chains do not dominate and there is so much need for advanced technology solutions.

Sabre layed off several hundred Travelocity employees last year, but the pain at Sabre is not over as the company intends to eliminate 350 positions in 2014. The spin is that the cuts will better enable the company to focus on product development. Yes, less is obviously more.

It is too soon to tell how the Sabre-Expedia agreement on Travelocity is working out for Sabre. We have to get past the initial implementation to see if Sabre's profitability promises will be valid.

Was TripAdvisor's CEO Stephen Kaufer worth $39 million in 2013? That amount is a bit of an anomaly as it includes $38 million in stock options, and he won't be eligible for more until the Summer of 2017. Although there are complaints that TripAdvisor gives geographic growth a higher priority than short-term shareholder return, we don't see anyone complaining.