Hainan Airlines selects Sabre's fares optimization technology to maximize revenue from international sales

Rhea-AI Summary

Sabre (NASDAQ: SABR) has announced a new long-term agreement with Hainan Airlines, one of China's largest carriers. The airline will implement Sabre's Fares Manager and Contract Manager solutions to optimize international fares management and enhance competitiveness in the global market.

Hainan Airlines, a SKYTRAX 5-Star Airline recipient for 13 consecutive years since 2011, will utilize Sabre's advanced technology to support its international expansion plans. The technology will enable dynamic fare monitoring and adjustment to maximize revenue opportunities across new, existing, and resumed routes.

The partnership aims to bring integrated end-to-end automation and intelligence to Hainan Airlines' pricing strategy. Established in 1993, the airline has recently expanded its fleet with new aircraft and added new routes to its network.

Positive

• Long-term agreement secured with major Chinese airline
• Implementation of advanced fare optimization technology
• Potential revenue enhancement through dynamic pricing capabilities
• Strategic expansion of international routes supported by new technology

Negative

• None.

Insights

Revenue Technology Analyst

The implementation of Sabre's Fares Manager and Contract Manager represents a strategic technological advancement for Hainan Airlines' revenue optimization capabilities. These tools will enable sophisticated fare management across international routes through dynamic pricing algorithms and automated decision-making processes.

The timing is particularly important as Chinese carriers are aggressively expanding their international presence post-pandemic. For context, airline revenue management systems typically drive a 3-7% increase in revenue when properly implemented. For an airline of Hainan's size, this could translate to tens of millions in additional annual revenue.

The technology stack will provide Hainan Airlines with real-time competitive intelligence and automated fare adjustments - essential capabilities for maximizing yield in today's volatile international aviation market. This is especially valuable for their expansion strategy, as new routes typically require 12-18 months to reach optimal profitability.

Aviation Market Analyst

This partnership signals Hainan Airlines' commitment to international expansion amid China's aviation market recovery. The airline's status as a SKYTRAX 5-Star carrier for 13 consecutive years positions it well for premium international routes, where sophisticated fare management is important for maintaining yield.

The recent aircraft deliveries and network expansion suggest a calculated push into high-yield international markets. Sabre's technology will be instrumental in optimizing revenue across these new routes, particularly important given the current competitive landscape where Chinese carriers are racing to recapture market share.

For investors, this indicates Hainan Airlines' focus on revenue quality over pure volume growth - a strategy that typically leads to better long-term profitability. The ability to dynamically adjust fares across international routes will be particularly valuable as travel patterns continue to evolve post-pandemic.

SINGAPORE and HAINAN, China, Jan. 16, 2025 /PRNewswire/ -- Sabre Corporation (NASDAQ: SABR), a leading software and technology provider powering the global travel industry, today announced a new long-term agreement with Hainan Airlines. The carrier, which is one of the largest in China, will use Sabre's Fares Manager and Contract Manager to efficiently manage and optimize international fares, helping to ensure competitiveness in the global market.

As a prominent Chinese airline, which has been awarded the SKYTRAX 5-Star Airline for 13 consecutive years since 2011, Hainan Airlines is expanding its international footprint. Sabre's advanced technology will play a pivotal role in supporting these growth plans by enhancing the airline's ability to monitor and adjust fares dynamically to maximize revenue opportunities.

"As we resume routes and launch new ones, having the right fare structure across our global network is crucial to our growth strategy," said Zhu Li, General Manager of the International Department, Hainan Airlines Marketing Committee. "We're pleased to expand our partnership with Sabre, whose advanced technology solutions are supporting our growth strategy and helping us to effectively manage and optimize our fares. This collaboration is a key component of our commitment to providing competitive and high-quality value to our passengers worldwide."

Hainan Airlines flies routes across China and the world.  Established in 1993, it has recently taken delivery of new aircraft and added new routes to its network. Fares Manager will bring integrated end-to-end automation and intelligence to its pricing strategy across new, existing, and resumed routes.

"We're delighted to strengthen our relationship with Hainan Airlines with this new agreement," said Rakesh Narayanan, Vice President, Regional General Manager, Asia Pacific, Travel Solutions, Airline Sales. "This partnership will enable Hainan Airlines to navigate the complexities of global fare structures with greater agility and precision, reinforcing our commitment to driving innovation and success through leading technology for our airline customers."

About Sabre Corporation     

Sabre Corporation is a software and technology company that takes on the biggest opportunities and solves the most complex challenges in travel. The Company connects travel suppliers and buyers around the globe and across the ecosystem through innovative products and next-generation technology solutions. Sabre harnesses speed, scale and insights to build tomorrow's technology today – empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world. For more information visit www.sabre.com.  

About Hainan Airlines

Hainan Airlines Holding Co., Ltd. (hereafter referred to as "Hainan Airlines") was established in January, 1993 in Hainan Province, China's largest special economic zone and free trade port. Hainan Airlines is committed to providing passengers with comprehensive and seamless airline services and creating a safe and comfortable travel experience. In the first half of 2024, Hainan Airlines and its subsidiaries operated more than 1,400 domestic and international routes, including nearly 1,300 domestic routes, covering all provinces, autonomous regions and municipalities directly under the central government in the Chinese mainland, as well as 100 international and regional routes to 39 overseas cities, including scheduled passenger flights, passenger charter flights, and passenger-to-cargo flights, covering Asia, Europe, Africa, North America and Oceania regions. Hainan Airlines has also actively responded to The Belt and Road Initiative by focusing on building a world-class airline network. Hainan Airlines and its subsidiaries have established operational bases and branches in 22 cities including Haikou, Beijing, Guangzhou, and Shenzhen. From 1993 until now, Hainan Airlines has been operating safely for 31 years and maintains an excellent operational record. In February 2024, Hainan Airlines was awarded the "One Star Flight Safety Diamond Award" by the Civil Aviation Administration of China for achieving 10 million consecutive hours of safe flight which is a great achievement. Hainan Airlines is the first and only SKYTRAX 5-Star airline in the Chinese Mainland, who has been awarded the SKYTRAX 5-Star Airline for 13 consecutive years since 2011.This honor is Hainan Airlines highest level of recognition for our outstanding service, and also represents praise from the passengers for our high quality services.

SABR-F

Media Contacts:

Kristin Hays
Kristin.hays@sabre.com

Elizabeth Hands 
Liz.Hands@sabre.com

Investors
Brian Evans
sabre.investorrelations@sabre.com

 

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SOURCE Sabre Corporation

FAQ

What technology solutions did Hainan Airlines acquire from Sabre (SABR)?

Hainan Airlines acquired Sabre's Fares Manager and Contract Manager solutions to efficiently manage and optimize international fares.

How will the Sabre (SABR) fare optimization technology benefit Hainan Airlines?

The technology will enable Hainan Airlines to monitor and adjust fares dynamically, maximize revenue opportunities, and enhance competitiveness in the global market.

When did Hainan Airlines sign the new agreement with Sabre (SABR)?

Hainan Airlines signed the new long-term agreement with Sabre in January 2025.

What is the significance of this partnership for Sabre (SABR) in the Asian market?

This partnership strengthens Sabre's presence in Asia by providing technology solutions to one of China's largest carriers, supporting their international expansion plans.

How will Sabre's (SABR) Fares Manager impact Hainan Airlines' operations?

Fares Manager will provide integrated end-to-end automation and intelligence to Hainan Airlines' pricing strategy across new, existing, and resumed routes.