Yahoo Finance Sabre (SABR) Boosts Hospitality Retailing With SynXis Platform
Sabre Corporation SABR, a prominent software and technology provider in the global travel industry, has unveiled a significant upgrade to its hospitality retailing solutions with the launch of the SynXis Retailing platform.
This new platform is poised to revolutionize how hoteliers manage and sell their offerings, ultimately enhancing guest experiences and driving additional revenue streams. The launch of SynXis Retailing will help Sabre add new hoteliers to its client list, thereby boosting investors’ confidence in the stock.
Sabre's year-to-date (YTD) share price performance has been marked by significant volatility. The stock has plunged 39.6% YTD compared with the Zacks Internet – Software and Services industry’s decrease of 0.7%.
YTD Price Performance
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A Comprehensive Retailing Solution
The SynXis Retailing platform marks a significant advancement in hospitality retailing by enabling hoteliers to sell standalone offers that are not tied to room reservations. This capability allows hotels to create virtual storefronts, offering a wider array of services and experiences to a broader audience. Whether it's spa services, dining experiences or other on-site activities, hoteliers can now market and sell these independently of room bookings, thereby unlocking new revenue opportunities.
A notable feature of the new SynXis Retailing platform is its integration with Nuvola, Sabre's task management solution. This integration automates the fulfillment process for ancillary offers, streamlining operations and reducing the likelihood of errors. Through automated ticket creation, scheduling and notifications, hoteliers can ensure that guest orders are fulfilled promptly and accurately, enhancing overall guest satisfaction.
The SynXis Retailing platform also leverages predictive analytics powered by machine learning through its Retailing Recommendation Engine. This technology allows hoteliers to offer tailored recommendations to guests, increasing the likelihood of conversions.
Sabre's customers have already experienced tangible benefits from the SynXis Retailing platform. According to the company, hoteliers using the platform have seen an average order value of $300 per ancillary booking in addition to room value. Furthermore, those who have upgraded to SynXis Retailing have reported up to a threefold year-over-year increase in average ancillary revenues.
With predictive analytics and a proven track record of increasing ancillary revenues, SynXis Retailing positions Sabre as a leader in the hospitality technology space.
Portfolio Strength Aids Sabre’s Growth
Sabre operates in a highly competitive travel distribution space that requires the company to continuously innovate and inject its offerings into other products to expand its market reach.
The company’s SynXis platform has been adopted by major hotel chains, including Hyatt Hotels Corporation H, Staywell, SunSiyam Resort, Cinnamon Hotels and Resort, Fraser Hospitality and Habitas Group, in the past year.
The Sabre SynXis central reservation system, which became the main central reservation system for Hyatt Hotels at the beginning of 2024, has a history of improving reservation capabilities, including a faster search and booking process.
Moreover, Sabre’s airline solutions, such as the SabreSonic passenger service system, AirCenter and AirVision, and other products like Sabre Red Workspace, have witnessed strong growth. At present, 17 airlines all over the world, including United Airlines UAL and American Airlines AAL, have partnered with Sabre to offer their New Distribution Capability (“NDC”) content in the Sabre Global Distribution System.
United Airlines and American Airlines introduced their NDC offers on Sabre’s GDS to allow travel buyers to access their pricing content on multiple platforms like 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 SABR but also lowers customer concentration risk.
The Zacks Consensus Estimate for Sabre’s 2024 revenues is pegged at $3.04 billion, which indicates year-over-year growth of 4.6%. The consensus mark for the bottom line is pegged at a loss of 17 cents per share, 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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