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Sabre: agent incentives should grow
Thursday, 31 Oct, 2003
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Sabre Holdings says it expects incentives it pays agencies to grow by as much as $50 million in 2004.
Sabre will be renegotiating between 30% and 40% of its agency contracts in 2004 that are expiring, according to chairman and president Bill Hannigan. “Our expectation is that the market rate for incentives can improve,” he added.
He said Sabre is providing more of what was previously called “web fares”. Carriers are beginning to differentiate between high and low-cost GDSs.
Sabre is arguing for reduced incentives, in common with competitors, in part because it is getting less revenue from carriers with the spread of discount deals of GDS’s.
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