Latest news with #KurtEkert
Skift
12-05-2025
- Business
- Skift
After Sabre's $1.1 Billion Hotel Tech Sale: CEO Explains What's Next
The sale further shrinks Sabre compared to its larger competitor, Amadeus. But it will benefit from less debt and more focus on its distribution business. Sabre will be slimmed down and more focused after the sale of its hotel tech unit to TPG for $1.1 billion. About 1,000 employees are moving along with it, Sabre CEO Kurt Ekert told Skift. That business 'will largely move intact,' he said. That includes Scott Wilson, president of Sabre Hospitality, and the other executives, and brings Sabre's workforce to about 5,500. Ekert had put a lot of effort into building the hotel tech unit since he started as CEO in 2023. But Sabre had over $5 billion in debt, and reducing that level has been one of Ekert's top goals. Most of the sale proceeds – about $960 million after taxes and fees – will go toward debt reduction. 'On one hand, this business has tremend
Travel Weekly
08-05-2025
- Business
- Travel Weekly
Sabre's Q1 air bookings decline, but 2025 growth is projected
Sabre reported a 3% decline year over year in air bookings during the first quarter, below prior expectations, but the travel technology company is holding on to its projection for double-digit percentage growth in bookings full the full year. The decline in air bookings was three to four percentage points lower than Sabre's previous expectations of flat to nominal growth for air bookings in the first quarter, Sabre CEO Kurt Ekert said in an earnings call on May 7. He said the decline stemmed from "a broad softness globally" that "spanned corporate, leisure, pretty much all channels." In particular, inbound travel to the U.S. from Canada and certain European markets was down, as were group bookings from North Asia. U.S. military and government bookings were down about 30% year over year, he said. Ekert said Sabre is seeing "recent improvements in general market trends," and the company projects low-single-digit percentage growth in air bookings for the second quarter. For the full year, Sabre projects double-digit growth, but that won't stem from growth in legacy GDS bookings, which Sabre projects will be down 1-2% year over year industrywide. "When we speak about the double-digit air distribution volume growth, the vast majority of that is business that we signed and will be implementing," Ekert said. "The addition of new content will drive that as well." Ekert said Sabre will build off "notable" travel agency wins in 2024, which include World Travel Inc., and the company recently was selected by Gray Dawes to serve as its sole GDS partner. Sabre CFO Mike Randolfi said he expects 20% growth in air bookings in the second half of the year, the majority of which will come from agency agreements that are already signed and not yet implemented. Sabre also continues to expand its New Distribution Capability content, with 38 NDC integrations live. Low-cost carrier volume via the Sabre AirConnect platform, set for the third quarter, also will contribute to growth, Ekert said. Sabre's lodging, ground and sea bookings were up 5% in Q1, and total distribution revenue declined 1%, to $569.1 million. IT solutions revenue declined 6%, to $133 million, as Sabre reported an impact from "previously de-migrated carriers." Sabre Hospitality Solutions revenue increased 8%, to $85.2 million. Sabre is selling that unit to private equity and investment firm TPG for $1.1 billion, which Ekert said "enables us to strengthen our balance sheet by reducing leverage nearly a full turn and sharpen our focus on core growth areas." Sabre reported net income of $35.3 million in the first quarter, compared with a loss of $71.5 million in the first quarter of 2024. Source: Business Travel News
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Business Standard
05-05-2025
- Business
- Business Standard
Sabre's Bengaluru hub leads next-gen AI and retail innovation in travel
What began two decades ago as a back-office delivery centre in Bengaluru has grown into a core pillar of Sabre Corp.'s global technology strategy. The Texas-based travel technology firm now counts its India Global Capability Centre (GCC) among its key innovation hubs, contributing to flagship platforms such as SabreMosaic, Sabre Travel AI (developed with Google), and Revenue Optimizer. Engineers and data scientists at the Bengaluru site help drive the company's AI-powered forecasting, dynamic pricing, and personalised retailing tools — capabilities that serve leading airlines, travel agencies, and hotel chains worldwide. 'The Sabre Bengaluru team's 20-year journey demonstrates their innovative spirit, unwavering collaboration, and relentless drive to push the boundaries of what's possible,' said Kurt Ekert, President and Chief Executive Officer, Sabre. 'They have consistently led from the front in pioneering the next generation of travel technology.' Driving the centre's expansion is an integrated operating model that brings together product development, engineering, design, operations, and customer support under one roof. In recent years, Sabre's Bengaluru GCC has taken on greater ownership of customer-facing products and mission-critical systems, with its work increasingly shaping the company's global technology roadmap. The site plays a key role in platform modernisation, cloud migration, and the development of AI-powered travel solutions. 'Sabre Bengaluru GCC's ability to turn challenges into opportunities has set a new benchmark for excellence,' said Shawn Williams, Chief Administrative Officer, Sabre. 'The team's creativity and commitment to a vibrant and inclusive environment has driven growth throughout its 20-year journey, and I look forward to what they achieve in the next 20 years and beyond.' Sabre's Bengaluru GCC is aligning its strategy around three core pillars. First, it aims to deepen its technological edge by advancing AI, machine learning, cloud-native architectures, and platform modernisation to support intelligent retailing and dynamic pricing. Second, the centre is ramping up investments in talent — expanding skilling initiatives, leadership development, and inclusive hiring. Finally, it is focusing on innovation enablement through rapid prototyping labs and cross-functional collaboration to co-create solutions with customers and partners. 'Our vision for the next decade is to fortify Bengaluru GCC not just as a centre of excellence for delivery, but as a key driver for strategic growth and innovation for Sabre globally,' said Rency Mathew, Managing Director, Sabre Bengaluru and People Leader, South Asia. 'By investing in advanced AI, cloud, data science, and our people, we will continue to deliver measurable, strategic value that drives both top-line growth and operational efficiency.' Since launching in 2005, Sabre's Bengaluru GCC has played a central role in helping the company scale efficiently and compete in a fast-evolving global market. Its work has supported cost optimisation and enabled reinvestment in high-growth areas such as AI, cloud, and next-generation platforms. The company said the centre has also been critical in developing revenue-generating solutions, firmly positioning Bengaluru as a key hub for innovation and strategic growth. India's global capability centres (GCCs) are projected to become a $100 billion industry by 2030, employing over 2.5 million professionals, according to a report.
Yahoo
29-04-2025
- Business
- Yahoo
Sabre to cut debt with $1.1 billion sale of hospitality software to TPG, shares jump
By Aatreyee Dasgupta (Reuters) -Sabre Corp said on Monday it will sell its hospitality software platform to asset manager TPG for $1.1 billion and use the cash to pare its debt, lifting the travel technology provider's shares nearly 26% in early trading. The stock is now up 13.5%. The company had a market capitalization of $845 million as of last close, according to data compiled by LSEG. In contrast, its total debt stood at about $4.5 billion, net of cash, as of the end of December, according to its annual filing. Sabre has made several moves to pare its debt, including a refinancing in December and the repayment of debt maturities earlier this month, the company said. Monday's deal comes a month after Reuters reported that Sabre was exploring a sale of its hospitality software SynXis to help pare its debt. TPG will invest in the unit through its U.S. and European private equity platform, with the transaction expected to close by the end of the third quarter 2025. Sabre's SynXis serves as an integrated system of record for reservation and guest information for hotels. The company's customers include top airlines, travel agencies, hotels, tour operators, car rental brands and rail carriers. "This divestiture positions Sabre to focus on our core airline IT and travel marketplace platforms," said CEO Kurt Ekert. The deal also comes at a time of uncertainty for the travel industry due to fears of an economic recession stemming from U.S. President Donald Trump's sweeping import tariffs. Many airlines, including legacy carriers Delta, Southwest and American, have withdrawn their full-year financial forecasts in view of the ambiguity. "Amid uncertain near-term travel demand and enduring elevated financing costs, the sale should alleviate investor concerns about Sabre's ability to meet its debt obligations and continue financing its core distribution business, given its 2024 debt/adjusted EBITDA ratio of 10 times," analyst Dan Wasiolek said in a Morningstar note. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Sabre (SABR) to Sell Hospitality Solutions Unit to TPG for $1.1 Billion
Sabre (SABR, Financials) surged 15.5% to $2.53 as of market close Monday, April 29, after agreeing to sell its Hospitality Solutions business to TPG (TPG, Financials) for $1.1 billion in cash. Warning! GuruFocus has detected 6 Warning Signs with SABR. Sabre expects about $960 million in net proceeds, which it plans to use primarily to reduce debt and strengthen its balance sheet. The divestiture will establish Hospitality Solutions as a standalone provider of software for the global hotel industry, serving more than 40% of major hotel brands. Sabre said the sale aligns with its strategic focus on airline IT and travel marketplace platforms. CEO Kurt Ekert said the transaction reflects the transformation driven by the Hospitality Solutions team in recent years. TPG is making the investment through its U.S. and European private equity arm. The firm cited strong growth prospects and its track record in scaling enterprise software businesses. The deal supports Sabre's ongoing efforts to simplify its portfolio, reduce leverage, and invest in higher-growth operations. The company has also refinanced debt and repaid April 2025 maturities. Sabre expects to close the transaction by the end of the third quarter, subject to regulatory approvals and customary closing conditions. See insider trades for SABR. Explore Peter Lynch chart. This article first appeared on GuruFocus.
