Sabre’s latest strategy is to emphasize price more than value and become a sales and marketing partner for its suppliers.
Why?
“The customer revolution is a déjà vu nightmare for Sabre,” writes the Star-Telegram in Fort Worth.
US airlines are going after Sabre’s most visible income source, the travel network that accounts for two-thirds of its $2.1 billion in annual revenue.
The airlines last month pledged to shift at least eight million reservations to start up G2 SwitchWorks. The rationale: save 75% on booking fees.
American started Sabre in 1962 as an internal reservations system and spun it off as a public company in 2000.
“Rather than simply distributes goods, it (Sabre) wants to demonstrate that its network can produce more revenue and profits — and justify a higher price for the middleman,” said the Star-Telegram.
“We do believe we should get a premium for our product, based on our breadth, our reach and our relationships,” said Sam Gilliland, chairman and chief executive.
Report by David Wilkening
