Sabre and Hawaiian Airlines sign new distribution agreement that will provide NDC content to Sabre-connected agencies
- Multi-year distribution agreement signed between Sabre Corporation and Hawaiian Airlines
- Access to HA Connect™ NDC and traditional EDIFACT content through Sabre travel marketplace
- Integration of HA Connect™ NDC content in the Sabre GDS by the end of 2024
- Resolution of litigation between Sabre Corporation and Hawaiian Airlines
- None.
Insights
The recent distribution agreement between Sabre Corporation and Hawaiian Airlines marks a significant development in the travel industry's adoption of New Distribution Capability (NDC) standards. NDC, a travel industry-supported program launched by the International Air Transport Association (IATA), is designed to enhance the capability of communications between airlines and travel agents. The integration of NDC with traditional EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport) systems in Sabre's GDS (Global Distribution System) is expected to streamline the distribution of airline content, potentially leading to more personalized travel offerings and improved efficiency in booking processes.
From a market perspective, this agreement could enhance Sabre's competitive position by expanding its content offerings and attracting travel agencies seeking advanced distribution solutions. For Hawaiian Airlines, the partnership may open new revenue streams through the distribution of a broader range of products, potentially increasing market share and customer loyalty. The long-term nature of the agreement suggests a stable revenue forecast for Sabre from this partnership.
Additionally, the resolution of litigation between both companies as a result of this agreement could be seen as a positive signal to investors, indicating a focus on strategic partnerships over legal disputes. Overall, this collaboration could be a catalyst for further innovation and adoption of NDC across the industry, which may have ripple effects on other airline and GDS partnerships.
Investors in the travel technology sector should note the potential financial implications of the Sabre-Hawaiian Airlines agreement. By incorporating NDC content, Sabre may reduce reliance on traditional distribution methods, potentially lowering transaction costs and improving margins over time. The ability to offer a more diverse range of airline products could translate into higher transaction volumes, positively impacting Sabre's top-line growth.
For Hawaiian Airlines, enhanced distribution capabilities through Sabre's GDS could lead to increased ticket sales and ancillary revenues, as travel agencies gain access to a more comprehensive selection of fares and services. This could improve Hawaiian Airlines' revenue diversification and reduce its dependence on direct sales channels.
The agreement might also serve as a benchmark for future airline-GDS negotiations, potentially influencing contract terms and pricing structures within the industry. As the implementation is set for completion by the end of 2024, investors should monitor the progress of integration and early performance indicators as part of their due diligence.
The technical aspects of integrating NDC with Sabre's existing systems are non-trivial and represent a significant advancement in travel technology. The use of Offer and Order APIs to manage NDC and EDIFACT offers reflects an industry shift towards more agile and modular software architectures in travel systems. Sabre's point-of-sale tool, Sabre Red 360 and the corporate booking solution, GetThere, are set to benefit from enhanced content and functionality, potentially increasing user satisfaction and platform stickiness.
For the broader industry, the adoption of NDC standards necessitates investments in IT infrastructure and systems compatibility. Airlines and travel agencies that are slow to adapt may find themselves at a competitive disadvantage. Conversely, early adopters like Sabre and Hawaiian Airlines could set a precedent, encouraging others to follow suit and thereby accelerating the digital transformation within the travel sector.
Stakeholders should consider the implications of this technological shift, including the need for continuous investment in system upgrades and the potential for disruptions during the integration phase. The successful deployment of NDC content in Sabre's GDS by the end of 2024 will be a key milestone to watch, as it may serve as a proof of concept for the industry's digital evolution.
The multi-year deal will give travel agencies connected to Sabre access to both NDC and traditional EDIFACT content through the Sabre global distribution system (GDS)
Hawaiian Airlines and Sabre will be working closely together on the integration of HA Connect™ NDC content in the Sabre GDS, which is expected to be available by the end of 2024. Once live, it will enable hundreds of thousands of Sabre-connected agencies and travel buyers to have even richer access to the carrier's broad range of products and offers, as travel agents will be able to shop, book, and manage Hawaiian Airlines' NDC and EDIFACT offers through Sabre's Offer and Order APIs, the point-of-sale tool, Sabre Red 360, and the corporate booking solution, GetThere.
"We are very pleased to have reached an agreement with Sabre to expand our long-standing distribution partnership to not only EDIFACT but also HA Connect™ content once the technical connectivity has been implemented," said Brent Overbeek, Executive Vice President and Chief Revenue Officer, Hawaiian Airlines. "Hawaiian Airlines is continuously expanding the distribution options and content available to the travel agency community, and NDC is one of the key enablers of that. This agreement will enable Sabre's travel agents across the globe to access our rich HA Connect™ NDC content."
Sabre powers a constantly expanding marketplace of travel content. Through its network of agencies and corporations worldwide, Sabre enables airlines to market their fares and offers in a highly efficient way.
"We are happy to support Hawaiian Airlines in their NDC journey and help them unlock new revenue streams while adding even more value for the traveler," said Roshan Mendis, Chief Commercial Officer, Sabre Travel Solutions. "This agreement is another proof point of our commitment to powering travel retailing, while meeting the unique needs of our airline customers and our travel buyer partners."
This new agreement also provides closure to the litigation between both companies.
About Sabre Corporation
Sabre Corporation is a leading software and technology company that powers the global travel industry, serving a wide range of travel companies including airlines, hoteliers, travel agencies and other suppliers. The company provides retailing, distribution and fulfilment solutions that help its customers operate more efficiently, drive revenue and offer personalized traveler experiences. Through its leading travel marketplace, Sabre connects travel suppliers with buyers from around the globe. Headquartered in
About Hawaiian Airlines
Now in its 95th year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 150 daily flights within the Hawaiian Islands, and nonstop flights between Hawaiʻi and 15 U.S. gateway cities – more than any other airline – as well as service connecting
Consumer surveys by Condé Nast Traveler and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawaiʻi. The carrier was named Hawaiʻi's best employer by Forbes in 2022 and has topped Travel + Leisure's World's Best list as the No. 1 U.S. airline for the past two years. Hawaiian has also led all
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow Hawaiian's Twitter updates (@HawaiianAir), become a fan on Facebook (Hawaiian Airlines), and follow us on Instagram (hawaiianairlines). For career postings and updates, follow Hawaiian's LinkedIn page.
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Investor Contact:
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SOURCE Sabre Corporation
FAQ
What is the nature of the agreement between Sabre Corporation and Hawaiian Airlines?
When is the integration of HA Connect™ NDC content in the Sabre GDS expected to be available?
How will travel agents be able to manage Hawaiian Airlines' NDC and EDIFACT offers?
What additional value does the agreement provide?
