Sabre is first GDS to power NDC for SAP Concur and the corporate travelers it serves
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Insights
The integration of New Distribution Capability (NDC) content by Sabre Corporation into SAP Concur's platform represents a significant shift in the travel industry's distribution model. The traditional model, based on EDIFACT standards, is being challenged by NDC, which enables more dynamic and personalized content. This could lead to a diversification of revenue streams for airlines and potentially lower distribution costs. Moreover, the enhanced capability to offer personalized travel experiences can drive customer loyalty and satisfaction, which are critical competitive factors in the travel industry.
From a market perspective, Sabre's position as the first GDS to implement NDC with SAP Concur could provide it with a competitive advantage, attracting more corporate clients who are seeking enhanced travel management solutions. This move may also signal a broader adoption of NDC across the industry, which could impact the business models of travel agencies and airlines, as well as GDS providers like Sabre.
The announcement regarding Sabre's NDC content availability through SAP Concur could have financial implications for all stakeholders involved. For Sabre, the early adoption of NDC may lead to an increase in market share among corporate travel management companies (TMCs), potentially improving revenue. Furthermore, the ability to offer more tailored and potentially premium services could result in higher average transaction values. Investors should monitor Sabre's future financial statements to assess the impact of this integration on the company's performance.
For airlines, the adoption of NDC can lead to a reduction in distribution costs and an increase in ancillary revenues as they leverage the ability to sell more personalized travel options. This could improve airlines' profitability in the long term, which is of particular interest to investors in the airline sector.
The technical aspect of Sabre's NDC integration represents an advancement in the digital transformation of the travel industry. NDC is a travel industry-supported program launched by IATA that enables the travel industry to transform the way air products are retailed to corporations, leisure and business travelers. By allowing a richer set of product offerings and the ability to differentiate and personalize offerings, NDC is a key enabler of innovation.
The successful implementation of Offer and Order APIs by Sabre suggests a robust technological infrastructure that could be leveraged for future innovations. As the industry continues to evolve, the scalability and flexibility of such systems will be crucial. This technological leap may also set a precedent for other industry players to follow, potentially leading to widespread technological upgrades and an increased pace of innovation within the travel sector.
Since SAP Concur integrated Sabre's Offer and Order APIs in the fourth quarter of 2023, TMCs and corporations using Concur® Travel are able to shop, book, fulfil and service NDC content from a growing number of carriers via the Sabre GDS.
"To make NDC scale, all links in the travel value chain have to evolve if the industry is to achieve the full potential of NDC. At Sabre, we have the privilege of collaborating across the travel ecosystem," said Kathy Morgan, Vice President, Distribution Experience Product Management at Sabre Travel Solutions. "We're excited to be the first GDS that powers NDC for SAP Concur and the corporate travelers they serve."
By making Sabre-sourced NDC content available to its customers and users, SAP Concur can help accelerate the industry's shift from traditional EDIFACT to NDC distribution. In turn, corporations will gain access to more personalized offers to deliver a better travel experience to their employees.
Morgan continued, "Now that the technical foundations of NDC are largely complete, attention will turn back to airlines to see what types of innovative offers they will create and distribute via NDC connections. We expect wide-spread adoption of the new standards to incentivize changing processes and procedures across the industry."
About Sabre Corporation
Sabre Corporation is a leading software and technology company that powers the global travel industry, serving a wide range of companies, including airlines, hoteliers, travel agencies and other suppliers. The company provides sales, distribution and fulfilment solutions that help its customers operate more efficiently, increase revenue and deliver personalized experiences to travelers. Through its leading marketplace, Sabre connects travel suppliers and buyers around the world. Headquartered in
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in
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Sabre Contacts:
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SOURCE Sabre Corporation
FAQ
What is the significance of Sabre Corporation's partnership with SAP Concur?
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