Sabr stock: My study | Earnings date with a drop over 15%

Nov. 9, 2021

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Sabre Corporation SABR recently signed a strategic partnership with the Japan-based Hotel Keihan Chain. Per the deal, the travel tech company will enable the Asian hotelier in creating tourism opportunities within Japan.

Utilizing Sabre’s Global Distribution System (“GDS”) platform along with a wide range of other technology solutions (including Sabre’s Consortia Services), the Osaka-headquartered hotel chain intends to expand its global reach and accelerate recovery of the Japanese tourism industry post pandemic.

With Sabre’s SynXis hospitality platform, which powers over 40% of the world’s leading hotel brands, Hotel Keihan will get access to exclusive international business opportunities. It will allow the hotel chain to connect with major corporations worldwide and commence Request For Proposal (“RFP”) contracting.

This, in turn, will aid Hotel Keihan by bringing in increased domestic and international bookings for both corporate and leisure trips. This will also help the hotelier in improving Average Daily Rate (“ADR”) and occupancy levels.

Meanwhile, the partnership is likely to aid the leading travel-related software and technology provider in expanding its customer share and boosting its Hospitality Solutions segment revenues. Sabre has its customer base spread over 160 nations with more than 425,000 agency partners globally. It is one of the largest marketplaces in the world that manages approximately $260 billion worth of global travel spending annually.

With a rise in vaccination efforts and lifting of restrictions worldwide, the global travel industry is gradually recovering from the pandemic blues. Sabre is well-poised to capitalize on the travel industry's improving market scenario. The hospitality industry (part of the broader travel industry) is rebounding from the pandemic induced woes. The company’s Hospitality Solutions segment revenues totaled $55 million in third quarter compared with $51 million in second quarter and year-ago quarter’s $45 million.