Sabre has reported gains across both its travel and hospitality solutions business units in the third quarter of 2024.
Travel solutions revenue increased 3% to $691 million with the rise attributed to an increase in air, hotel and other travel bookings. Distribution revenue was up 5% to $551 million due to the increase in bookings as well as an increase in average booking fees from $5.87 in Q3 2023 to $5.94 in Q3 2024.
During an analyst call, president and CEO Kurt Ekert said Sabre expects year over year air distribution bookings growth to continue “building momentum” as the company enters 2025. He said the growth would be driven by the company’s strategies which include the launch of SabreMosaic and further development of Sabre’s multi-source platform.
Revenue for the IT solutions business was down 5% to $140 million attributed to the impact of de-migrations although Sabre said this was partially offset by an increase in passengers boarded as well as other revenue.
Hospitality solutions revenue increased $5 million to $84 million, attributed to a “favorable mix within our customer base and an increase in central reservation system transactions driven by new customer deployments.” Transactions across the central reservation system increased 2% to $35 million.
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“In the third quarter, Sabre delivered solid financial results across both segments of our business,” said Ekert.
“We reported continued revenue growth and margin expansion that drove double-digit improvements in adjusted EBITDA when compared to last year, as well as positive free cash flow. These results reflect the progress we are making against our strategic and financial priorities. I commend our team members for their dedication to our customers, and for making impressive progress against our six growth strategies."
He went on to describe Sabre as a “different company today.”
“We are delivering innovative products such as SabreMosaic, designed to replace and modernize the traditional PSS, and Retail Studio, the next generation of hotel retailing. I am excited about the momentum we are building in our business and am confident in our ability to achieve long-term success,” he said.
Revenue for Q3 increased 3% to $765 million year over year while operating income increased to $70 million, up from $52 million year over year. Net loss attributable to shareholders was $63 million while adjusted EBITDA came in at $131 million, up from $110 million year over year.
Guidance for Q4 2024 was reported as $715 million in revenue and adjusted EBITDA of $115 million.