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Sabre (SABR) Expands Its Clientele With Fraser Hospitality

Sabre Corporation SABR has been witnessing the growing adoption of its solutions across the airlines and hospitality industries. Most recently, its SynXis Retailing platform has been selected by Fraser Hospitality to streamline its retail merchandising business.

SynXis Retailing uses machine learning-based predictive analytics to improve hospitality experiences through offers based on guests’ room and non-room requirements. The solution goes beyond room booking functionality.

Fraser Hospitality, which has been a partner of Sabre since 2009, has been using SABR’s Booking Engine. The expansion of collaboration on SynXis Retailing will enable Fraser Hospitality to enhance the overall service by offering guests a more personalized experience.

Sabre Corporation Price and Consensus

Sabre Corporation Price and Consensus
Sabre Corporation Price and Consensus

Sabre Corporation price-consensus-chart | Sabre Corporation Quote

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Frasers Hospitality has also enrolled one of its properties in the Preferred Launch Partnership program to pilot Sabre Hospitality's Retail Studio and leverage SynXis Retailing to enhance the guest experience.

Sabre's year-to-date (YTD) share price performance has been marked by significant volatility. The stock has plunged 34.1% YTD against the Zacks Internet – Software and Services industry’s growth of 4.6%.

Sabre Benefits From Its Broad Portfolio

Sabre operates in a highly competitive travel distribution space that requires the company to continuously launch or enhance its product portfolio. Its software-as-a-service offerings contribute to a major portion of its revenues.

Its solution, the SynXis platform, has been adopted by major hotel chains, including Hyatt Hotels Corporation H, Staywell, Cinnamon Hotels and Resort and Habitas Group, in the past year. Sabre’s SynXis Central Reservation System has become the main central reservation system for Hyatt Hotels beginning in 2024.

Additionally, its airline solutions offerings, such as Sabresonic Reservation system, AirCenter and AirVision, as well as other products like Sabre Red Workspace, have witnessed robust growth. Currently, 17 airlines all over the world, including United Airlines UAL and American Airlines AAL, have collaborated with Sabre to offer their New Distribution Capability (NDC) content in the market.

United Airlines introduced its NDC offers on Sabre’s GDS in April 2023. This enabled travel buyers to access enhanced options, including UAL's continuous pricing content, featuring the most competitive fares available through Sabre Red 360, Sabre APIs and GetThere. American Airlines’ partnership provides Sabre-connected travel buyers, agencies and developer partners access to the air carriers’ NDC content through Sabre Red 360, Sabre APIs and GetThere.

The range of product offerings has helped the company boast a strong and diverse customer base. This not only adds to the top line of the company but also lowers customer concentration risk.

The Zacks Consensus Estimate for Sabre’s 2024 revenues is pegged at $3.04 billion, indicating year-over-year growth of 4.6%. The consensus mark is pegged at a loss of 17 cents per share, significantly narrower than the loss of 52 cents reported in the year-ago quarter.

Conclusion

Sabre’s diversified product portfolio, strong partner base and expanding clientele make it an important player in this sphere. These strengths, coupled with its improving financial performance, position Sabre as a promising opportunity for long-term growth.

However, investors should wait for a better entry point for Sabre, which currently has a Zacks Rank #3 (Hold), given the stretched valuation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

Hyatt Hotels Corporation (H) : Free Stock Analysis Report

American Airlines Group Inc. (AAL) : Free Stock Analysis Report

Sabre Corporation (SABR) : Free Stock Analysis Report

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