Sabre Travel Network Launches Efficient Access Solution As Foundation for New Corporate and Leisure Agent Portfolios; New Solut
07 June 2006 - 8:30PM
Business Wire
Sabre Travel Network, the world's largest and most rewarding
marketplace for the buying and selling of travel, today announced
the launch of the Efficient Access Solution as a foundation for the
company's new portfolio of customizable end-to-end solutions for
travel agents serving the corporate and leisure travel segments.
The Efficient Access Solution provides a balanced approach for
addressing travel agents' requirements for full content and
airlines' desire to reduce costs. Program carriers receive a
discounted booking fee for reservations made by agencies enrolled
in the program. In return the airline agrees to provide key
benefits and protections to travel agencies participating in the
program. Travel agencies participating in the Efficient Access
Solution agree to certain financial terms in exchange for the
significant benefits and protections afforded by the new
agreements, which include full content and protection from airline
service fees that may be levied by airlines in the program. In
addition, the program provides for continuing agency incentives for
all program members. The Efficient Access Solution also sets the
stage for the next phase of Sabre's Efficient Marketplace with
end-to-end solutions that during the next 18 months will bring
together travel reservation and client management tools, training
resources, and community interaction into easily configurable and
innovative new options to manage and grow business for corporate
and leisure agencies. To date, the carriers covered under the
Efficient Access Solution include: Delta Air Lines, United
Airlines, Continental Airlines, US Airways, Northwest Airlines and
AirTran Airways. Each of these agreements includes a minimum
five-year commitment to providing full content, helping to assure
stability for the travel marketplace. Beginning August 1, full
benefits of the Efficient Access Solution will be made available to
travel agency customers in the United States, Bermuda and the
Caribbean. "As a travel management company, access to comprehensive
air content via the most efficient methods possible is critical,"
said Jean McDonnell Covelli, president, The Travel Team, Inc. "We
understand the economics for long-term full content commitments
have changed, and we believe Sabre's new program represents a
balanced solution." One of the primary goals of the Efficient
Access Solution is to combat travel content fragmentation. A recent
Sabre study reveals that disaggregating a small portion of today's
travel distribution model would cost the entire travel industry a
staggering $1.5 billion or more per year. "The assurance of full
content for the long term is in the best interests of our
customers, and doing so through an economic contribution without
implementing additional systems throughout our organization is
certainly preferable," said Bob Chaiken, chief operating officer of
Adelman Travel Group. "Fragmentation and service fees from the
airlines would significantly increase costs and impair our ability
to provide the high level of service our customers expect." In
addition to ensuring full content, the Efficient Access Solution
protects agencies from any service fees program carriers may
introduce into the marketplace. According to a recent survey
conducted by the American Society of Travel Agents (ASTA) research
department on behalf of Sabre Holdings: -- 84% of agents are "very
concerned" about the introduction of service fees by airlines --
83% are "very concerned" about airlines withholding content -- 69%
noted that their customers are best served with full content
through a single source "Sabre worked hard to develop a
multilateral approach that balances the needs of all industry
players," said Chris Kroeger, Sabre Travel Network senior vice
president, North America. "Our goal has always been to provide
agents a one-stop-shop for full travel content while accommodating
the cost pressures experienced by airlines in today's market. Full
content is just the foundation, however. What we are announcing
today is a clear pathway to new end-to-end suites tailored
specifically to the needs of both the corporate and leisure travel
community. Bottom line: we're not just preserving the Efficient
Marketplace - we're providing new tools and services for agents so
they can get the most out of this marketplace to enhance their
value as marketers and travel counselors." The enhanced offerings
for the corporate and leisure travel segments include programs that
are targeted to create new revenue-generation opportunities from
dynamic travel products, improve customer service through advanced
customer data management, and streamline operations through new
mid-office workflow automation capabilities. Also included are
opportunities for travel agents to expand their knowledge base with
new ways to gain insight on destinations or vendors. "It's not just
about ensuring content," said Kroeger. "It's also about what we can
do to help agents make maximum use of that content to their full
advantage. We've had a team of people working to make sure
connectivity to full content and protection from service fees is a
given. But while this team was focused on content - what we see as
the foundation of doing business in the travel industry - we have
dedicated even more significant resources to developing entirely
new ways to make the most of this content. The result is an
incredibly dynamic way of doing business that benefits everyone -
travel agencies, airlines, corporations, the GDS, and the ultimate
customer -- the travel consumer." About Sabre Travel Network Sabre
Travel Network, a Sabre Holdings company, provides access to the
world's leading global distribution system (GDS). The Sabre GDS is
a ready-built efficient marketplace that connects suppliers,
including hundreds of airlines and thousands of hotels, with more
than 50,000 travel agency locations. Suppliers get access through
one single connection; travel agents get real time access to
thousands of travel products from multiple suppliers through one
source integrated into their businesses; consumers get access to a
global supermarket of the world's greatest travel possibilities.
Key brands of Sabre Travel Network include GetThere, the leading
Web-based corporate travel reservation technology, and Jurni
Network, the unique leisure travel agency consortium that enables
members to sell more products from preferred travel suppliers using
sophisticated market intelligence. Sabre Holdings (NYSE:TSG)
connects people with the world's greatest travel possibilities by
retailing travel products and providing distribution and technology
solutions for the travel industry. More information about Sabre
Holdings is available at http://www.sabre-holdings.com. Sabre
Travel Network and Efficient Access Solution are trademarks and/or
service marks of an affiliate of Sabre Holdings Corporation. All
other trademarks, service marks, and trade names are the property
of their respective owners. Statements in this release which are
not purely historical facts or which necessarily depend upon future
events, including statements about future benefits, protections and
offerings of the Efficient Access Solution, airline participation
in the program, or Sabre Travel Network's statements about
anticipations, beliefs, expectations, hopes, intentions or
strategies for the future, may be forward looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended. Readers are cautioned not to place undue reliance on
forward looking statements. All forward looking statements are
based upon information available to Sabre Holdings Corporation on
the date this release was issued. Sabre Holdings Corporation
undertakes no obligation to publicly update or revise any forward
looking statements, whether as a result of new information, future
events or otherwise. Any forward looking statements involve risks
and uncertainties that could cause actual events or results to
differ materially from the events or results described in the
forward looking statements, including risks or uncertainties
related to Sabre Holdings Corporation revenues being subject to
adverse changes to our relationships with travel supplier and
travel agencies. Sabre Holdings Corporation may not succeed in
addressing these and other risks. Further information regarding
factors that could affect our financial and other results can be
found in the risk factors section of Sabre Holdings Corporation's
most recent filing on Form 10-K with the Securities and Exchange
Commission.
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