Sabre and IAG expand partnership with multi-year distribution agreement including NDC content

Rhea-AI Summary

Sabre Corporation (SABR) has entered into a multi-year distribution agreement with International Airlines Group (IAG) to expand their partnership and promote modern travel retailing practices. The agreement will provide Sabre-connected travel buyers and agencies with access to traditional EDIFACT content as well as NDC offers from British Airways, Iberia, Aer Lingus, and Vueling, enhancing the travel marketplace globally. This partnership signifies the industry's shift towards modern travel retailing, aiming to provide more personalized experiences to travelers.

Insights

Market Research Analyst

The enhanced distribution agreement between Sabre Corporation and International Airlines Group (IAG) signals a significant shift in the travel industry's approach to retailing. By integrating New Distribution Capability (NDC) offers from IAG's airlines into the Sabre travel marketplace, the partnership is expected to create a more dynamic and competitive environment for travel agencies and consumers alike.

The adoption of NDC is a strategic move to modernize the distribution of travel services, allowing airlines to offer a broader array of services and personalized experiences. From a market perspective, this could potentially increase customer satisfaction and loyalty, which in turn may lead to higher revenue streams for both Sabre and IAG. However, the success of this initiative largely depends on the seamless integration and adoption of NDC content by travel agencies.

Moreover, this agreement could potentially impact Sabre's market share positively by attracting more travel agencies and buyers seeking advanced retailing capabilities. As the travel industry continues to recover and evolve post-pandemic, such partnerships could be pivotal in determining the competitive landscape.

Financial Analyst

The announcement of Sabre's multi-year distribution agreement with IAG is poised to have financial implications for both entities. For Sabre, the integration of NDC content could enhance their service offering, potentially leading to increased transaction volumes through their platform. This, in turn, could drive revenue growth and improve the company's financial performance in the medium to long term.

Investors should monitor the implementation progress and uptake rate of the NDC content by travel agencies, as these factors will be critical in assessing the financial impact of the agreement. It is also important to consider the costs associated with the development and support of the NDC platform and whether these costs will offset the anticipated revenue gains.

For IAG, the partnership could result in broader distribution and potentially higher ancillary sales. However, the financial benefits for IAG will depend on the effectiveness of the NDC content in attracting customers and the subsequent impact on ticket sales and ancillary revenues.

Travel Industry Consultant

The strategic partnership between Sabre and IAG reflects a broader industry trend towards enhanced travel retailing practices. NDC is a critical component in this evolution, enabling airlines to distribute their content more effectively and offer personalized services. The successful rollout of NDC content could set a precedent for other airlines and travel technology providers, potentially reshaping the industry's distribution landscape.

Travel agencies and buyers will need to adapt to these new capabilities, which may require training and adjustments to their sales strategies. Those who capitalize on the enhanced content and retailing options may gain a competitive edge. Conversely, agencies that are slow to adapt could find themselves at a disadvantage.

Long-term, the shift towards NDC could lead to a more customer-centric travel industry, with implications for customer retention and brand loyalty. The key challenge for Sabre and IAG will be to ensure that the benefits of NDC are effectively communicated and realized by all stakeholders in the travel ecosystem.

LONDON and SOUTHLAKE, Texas, Jan. 9, 2024 /PRNewswire/ -- Sabre Corporation (NASDAQ: SABR), a leading software and technology provider to the global travel industry, has entered into a multi-year distribution agreement with International Airlines Group (IAG) that will expand their existing partnership and further promote modern travel retailing practices.

The agreement will allow Sabre-connected travel buyers and agencies to sell traditional EDIFACT content as well as having competitive access to NDC offers from British Airways, Iberia, Aer Lingus and Vueling – including Additional Price Points and ancillaries – through the Sabre travel marketplace globally. This enhanced content will provide travel agencies with a wider range of options to compare and shop for, while travelers will benefit from an improved experience with more choice and transparency. Sabre and IAG's airlines are working closely together and will communicate as NDC content is rolled out to Sabre-connected travel agencies on a carrier-by-carrier basis.

The agreement between Sabre and IAG underscores the industry's shift towards modern travel retailing, where airlines can differentiate their offerings and provide more personalized experiences to travelers. Both Sabre and IAG are committed to advancing the NDC standard as a key component in the industry's evolution towards modern airline retailing enabled by offers and orders.

Colm Lacy, British Airways' Chief Commercial Officer, said: "We are on a journey to A Better BA and we continue to invest across the business as part of that commitment. Not only are we improving the experience of those customers who fly with us, but also the way we work with our valued travel agent and travel buyer partners. We understand how valuable retailing is to them, and IAG's partnership with Sabre allows us to make a wide range of attractable offers available even further across the globe."

This agreement is another milestone in the IAG strategy to embrace digital retailing practices and offer more opportunities for customers to access NDC content. The partnership with IAG demonstrates Sabre's continued commitment to driving value and serving the diverse interests of the global travel ecosystem.

"We are very excited about what's ahead. The travel industry is entering a new era of personalized retailing that will bring better experiences for travelers and new revenue opportunities for airlines and travel agencies," said Roshan Mendis, Chief Commercial Officer, Sabre Travel Solutions. "It's fantastic to work with a strong, forward-thinking partner like IAG that is just as committed as we are to driving the industry forwards."

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 traveller experiences. Through its leading travel marketplace, Sabre connects travel suppliers with buyers from around the globe. Sabre's technology platform manages more than $260B worth of global travel spend annually. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world. For more information visit www.sabre.com.    

About IAG
International Airlines Group (IAG) is one of the world's largest airline groups with 558 aircraft, directly connecting the UK to 334 destinations in 81 countries. Its leading airlines in Spain, the UK and Ireland include Aer Lingus, British Airways, Iberia, Vueling and LEVEL.

In the UK and Europe IAG supports 618,000 jobs directly or indirectly and through the spending of the travellers carried. This activity contributes a total of €72.5bn to the UK and EU economy combined. (source: IAG PwC report 2023).

About British Airways
As a global airline and the UK's flag carrier, British Airways has been flying its customers to where they need to be for more than 100 years. The airline connects Britain with the world and the world with Britain, operating one of the most extensive international scheduled airline route networks together with its joint business, codeshare and franchise partners.

In September 2021, British Airways launched its sustainability programme, BA Better World, committing to put sustainability at the heart of everything it does and with a clear roadmap to achieve net zero carbon emissions by 2050. British Airways is a founding member of the airline alliance oneworld, which serves around 1,000 destinations across the globe.

British Airways flies to destinations in more than 65 countries. Its principal place of business is London, with its main home at Heathrow Terminal 5.

About Iberia
Iberia has been flying from Spain for more than 96 years, with the purpose of generating prosperity, connecting people with the world. It is part of International Airline Group, the first airline group worldwide to commit to achieving net zero carbon emissions by 2050 and the first European one to powering 10 per cent of its flights with sustainable aviation fuel by 2030. Iberia is the leading airline between Europe and Latin America, was one of the first members of oneworld and, alongside with Iberia Express and Iberia Regional Air Nostrum, offers flights to fifty countries from Madrid airport, where it has developed its hub. In addition to the airline business, its activity is diversified into air freight, aircraft maintenance, and airport handling services business. 

SABR-F

Sabre Contacts:

Media
Kristin Hays
Kristin.hays@sabre.com

Heidi Castle
heidi.castle@sabre.com

Investors
Brian Roberts
sabre.investorrelations@sabre.com

 

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SOURCE Sabre Corporation

FAQ

What is the multi-year distribution agreement about between Sabre Corporation and International Airlines Group (IAG)?

The agreement aims to expand their partnership and promote modern travel retailing practices, providing Sabre-connected travel buyers and agencies with access to traditional EDIFACT content as well as NDC offers from British Airways, Iberia, Aer Lingus, and Vueling.

What does the agreement offer to travel agencies and travelers?

The agreement will provide travel agencies with a wider range of options to compare and shop for, while travelers will benefit from an improved experience with more choice and transparency.

What does the partnership signify for the industry?

The partnership signifies the industry's shift towards modern travel retailing, aiming to provide more personalized experiences to travelers.

Who is the Chief Commercial Officer of British Airways?

Colm Lacy is the Chief Commercial Officer of British Airways.

What does Colm Lacy say about the partnership with Sabre?

Colm Lacy mentioned that the partnership with Sabre allows British Airways to make a wide range of attractable offers available further across the globe.

What does the agreement demonstrate about Sabre's commitment?

The agreement demonstrates Sabre's continued commitment to driving value and serving the diverse interests of the global travel ecosystem.