29 June 2011
Sabre AND Travelport Take Big Steps Outside Air with New Hubs
While Amadeus has been retreating to focus on the air business - the other guys seem to be going the other way.
Sabre announced the major acquisition of Softhotels which will beef up their Hospitality business - already a vibrant component of Sabre and a major force in hospitality.
Travelport - free of the GTA boat anchor business - has now started a new Agent based leisure service for non-air.
Both of these announcements demonstrate the need of the core business to expand. As the GDS component of the Big 3 GDS companies declines and the market moves to a more open model - we can expect this form of behaviour.
However - for those of you who watch the space carefully - will this be a worthy replacement for the standard GDS business?
Well in my view the GDS yields will be hard to find replication for Travelport unless the former sink below 20% which seems to be on the cards. For Sabre this is a complimentary business and looks to help them in their quest to edge Pegasus out of the nest as the central player in Hospitality distribution.