Sabre Increases Share in Q2
by Michele McDonald /Sabre’s global market share increased 1.2 percentage points, to 36.8%, in the second quarter while total bookings increased by 8.7%. The total does not include bookings made through Abacus International, whose acquisition by Sabre closed on July 1.
All regions reported solid growth, CEO Tom Klein said. The stars were the EMEA region, up 20%, boosting Sabre’s regional share by two percentage points, and North America, up 6.9%%.
The U.S. market is picking up after three or four years of sluggishness, although some sectors, such as energy and financial services, are still “dampened.”
Airlines’ capacity growth has helped to give the leisure market a boost, Klein said.
“We are increasing our full-year expectations for Sabre Travel Network,” CFO Rick Simonson said. The company previously expected the year to come in 3% higher over 2014 in terms of bookings; it now expects 6% growth, not counting Abacus bookings.
Expected growth
Including bookings transacted in the Asian GDS, Sabre expects Travel Network revenue to grow by 13% and bookings to increase by 17%.
The solutions side of the business also performed well.
Sabre is the world’s second-largest provider of passenger services systems after Amadeus, and US Airways is expected to join its merger partner, American Airlines, on the Sabre system in October.
Sabre’s hospitality solutions business will get a big boost late this year when Wyndham Worldwide, the largest hotel company in the world by number of rooms, will begin the migration of 4,500 of its properties to the Sabre SynXis central reservations system.
Sabre reported net income of $32.2 million for the second quarter, compared to a net loss of $13.1 million in second quarter 2014. Revenues grew 9.4%, to $707 million.
Sabre Travel Network revenue grew 7% during the quarter, to $495 million.