Air bookings through Sabre's global distribution system slowed in the fourth quarter of 2023 due in part to a decline in corporate travel, though executives said that trend has reversed in the first weeks of 2024.
Sabre's GDS air bookings for the quarter totalled 65.3 million, up 1 per cent compared with the fourth quarter of 2022. By comparison, third-quarter air bookings were up 11 per cent year over year.
Sabre's share of industry air bookings for the quarter was also down slightly, at 33.2 per cent compared with 34.1 per cent in the third quarter.
In an earnings call, Sabre CEO Kurt Ekert said the drop came largely from a "temporary slowdown in corporate travel" in the quarter combined with the usual seasonal corporate lull.
"Corporate travel comprises a larger proportion of our client footprint and bookings relative to the GDS industry," Ekert said. "We have seen a rebound of corporate bookings and resultant strong GDS marketshare performance trends as we start 2024."
Besides a corporate travel rebound, Ekert said he was optimistic about other growth opportunities, including the continued return of longer-haul international capacity, which has been slower to recover post-pandemic compared with short-haul international and domestic capacity.
Ekert said that there has been a post-pandemic increase in airline direct-connect bookings with online travel agencies that "might be characterised as [New Distribution Capability]," which has had a "negative volume impact" for Sabre.
He added, though, that there could be an opportunity to recapture that "as OTAs are seeking our help with automation, shopping and caching solutions to deal with their content, retailing and operational needs."
Non-air bookings through Sabre's GDS in the fourth quarter grew 14 per cent year over year to 12.9 million. Total Travel Solutions revenue was up 8 per cent year over year to $621.9 million in the quarter, and Sabre's average booking fee for the quarter was $6.09, up 11 per cent year over year.