Two large U.S. carriers are "putting energy behind" Sabre's Corporate Connect program, which allows participating agencies and clients to cut global distribution system segment costs to suppliers on bookings made through the GetThere tool, said Sabre chairman, president and CEO William Hannigan.
Speaking today on a conference call with analysts, Hannigan said the program
(BTNOnline, July 18) is complex "by definition" and noted that one complicating factor is the concept that suppliers would share with their accounts a portion of the savings. "We've learned that some didn't understand it when we rolled it out," Hannigan said of the yet-to-be adopted initiative. Hannigan also referred generally to Sabre's thinking as it approaches the traditional time of year when it announces the following year's segment pricing. "It's different from any other year when you think about pricing," he said, noting that for 2003 "we're not saying we're not going to increase prices." Hannigan said factors that will influence the decision include actions by such competitors as airline-owned Worldspan, federal regulations and the airlines' difficult financial position, particularly in the United States. He said the portion of those fees that Sabre pays to travel agencies is increasing at a rate of between 4 percent and 5 percent, but hinted that lower fees could mean "there is less money to be spent."
Sabre today announced $58 million in net earnings for the quarter ending in September, up slightly from a year earlier, on 2.7 percent lower revenues of $511 million. The GetThere subsidiary generated 23 percent higher revenues at $14 million, thanks largely to doubled year-over-year sales in its corporate business. GetThere's corporate self-booking adoption rate was 17.5 percent, an increase of 50 percent.