SABR - Earnings call transcript Q1 2021

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Operator

Good morning. And welcome to the Sabre First Quarter 2021 Earnings Conference Call. My name is Loshana, and I will be your operator.

As a reminder, please note today’s call is being recorded. I will now turn the call over to the Vice President of Investor Relations, Kevin Crissey. sir. ahead, go Please

Kevin Crissey

We our Menke, prepared morning, and quarter accompanies most loss you morning XXXX in presenting release website contain this call this Barnett, press available of available measures Relations involve would Travel of differ me the events, including will this uncertainties also our available expectations Investor and results certain information our the is an The our risks and cause non-GAAP also Q&A on expected after good Officer; I release is actual GAAP page. A reconciliations to like EPS to earnings comparable be have amortization, call. remarks. for from for these today’s we and Hospitality effects with call posted advise our materially joining on issued operating will adjusted financial our Sean. and our morning. be A may replay call, during will and our slide will among filings, been capital call exclude today’s EBITDA, uncertainties future earnings expenditures, on industry XX-K. our is COVID-XX, Scott available our Financial the you which With later references cost beliefs on forward-looking statements first our of and earnings that for turn in release, at that presentation, Sean everyone. Dave and to savings remarks, that, investors.sabre.com. over comments which depreciation Solutions; for be Thank including measures. items. call prepared directly Wilson, our about Officer. All and website advancements, statements Solutions, measures us represent earnings Sabre President President statements and to duration SEC issued More liquidity, conference to Chief website made web Thanks, Chief Throughout call. Participating the trends, the certain on investors.sabre.com. that during or forward-looking today’s of This today’s Doug others. non-GAAP Form Shirk, -- Executive we on our and morning are available and are at XXXX documents the today’s risks other will contained we be All

Sean Menke

thank you Thanks, Kevin. us for today. and Good morning, everyone, joining

into trends moment, quarter, the few Before the take items. a we and a highlight excuse me, from to details first get like to I’d

am thank bring leadership Newhouse Directors Board has Osnoss, from board as First, technology Renee team, over to coming pleased behalf forward Their and Judy of Phyllis years to years. extremely also the Phyllis I very last like welcome and who significant Sabre’s retired and James and Board. Independent Odom, our On counsel and Joe and our to expertise Wendi we the guidance valuable. I’d look over and John been week. Siciliano, cyber-security Sturgis newly their perspectives and Wendi support to elected

segment; being in among congratulate with prayers President, also President, India President, Corrie I’d by the impact as Top and they crisis. DeCamp, COVID-XX our and Vice through the are know Travel Travel personally members, like Marketing; Wilson, Systems; the Women Association. four thoughts to current like XX of Business Vice team Global Mercer, them Management, Senior our Vice Vice the I’d Emma in Amy Second, Product navigate Sabre Program Senior Traci Business for to Global President, teammates Sabre Green, named

as and service to pandemic. the around all my customers, our world I’d other, each to for this all thank we Finally, like shareholders Sabre navigate their teammates

slide to four. Turning

cumulative or boarded to walk picture COVID-XX will quarters, trends done a counts, largest I region, the have as continue U.S. booking, of administered, prior are and pace CRS Global with by PB reflective perspective. the accelerating case recent trends. and transaction on plans daily vaccination the made and we you bigger hospitality the next rates our doses part United I we slides, demand of be travel through of daily travel vaccine encouraged restrictions. As executives. will passengers in and capacity comments as regional In well But airline specific start bullish by States,

in this our recovery. seen have North confidence American reflected We bookings

been have domestic vaccinate As expected, which including international remain travel, U.S. regions high. daily vaccine and vary cases than -- significantly distribution in markets in slower slow rebound and collectively to remains

shortly, To give detail North in more XXXX. our our our As perspective largest on a pronounced in more of America rotation Doug XX% in will in represented further this has GDS resulted mix. discuss bookings bookings region,

XXth, the has XX% April one population our COVID-XX fully and earnings been at X.X about about of X.X the vaccine. February on vaccinated has of April. travel rate vaccines total to As XX% have million increased in a dose day a Since call, per momentum. about million U.S. daily trends picked least vaccination of up has received million this daily, U.S. QX in from by

demand XXXX XX%. our XX% the the towards rest Our the the down XX% On the regional gap North first XXXX North XX% were nearly timeframe with world world chart and better gross can American about of levels. XX% the gross bookings over down whereas booking of widened, the In to rotation versus year, of of same in XXXX, recovered By accelerating gross down bookings, rest North you bookings April, was mix air down recovery of North levels versus the American months the American pronounced this last America. weeks see April. which have reflect new two two to in the

U.S. recovery continue travel the as continue lead the and rollout to reported expect the we vaccination progresses ahead, to domestic to Looking cases decline. COVID-XX

improvement business green leisure seeing large with U.S. bookings in in We have seen our have TMC and already an shoots travel begun customers.

restrictions, slower fragmentation, rates vaccination new travel markets and variant European tighter slowly APAC to more expect due strains. We to recover and greater

and on global confident from this pent global follow. demand based the confidence as these up However, and have gain recover. travel and that -- travel to gain is in bookings expect we vaccination regions for there rates, what region we will increasing We U.S. seen activity remain

five, slide year, first improvement the year net of -- bookings this March part the to over -- this of industry showed sequential first improvement the Turning strongest of with April. air sequential and in

ahead to April GDS were industry net respectively. and As in down February compared of XX% and XXXX, XX%, XX%, March. January, air and were XX%, down down March was slightly bookings

improved using six, April. regions late the you April. On and were a see recovery quarter-over-quarter flat which showed in again percentage and bookings, largest in transactions. CRS after in early largely January, winter, the trends gross Positive hotel improvement After most, direction and all accelerate trend positive improvement. signs over positive dip XX% North travel of global of Our can levels in metrics much to for have region, the the XXXX America, continue to into leisure Other recovery North over quarter-over-quarter X air a trended the been April. in Hotel driving and seven clearly a passengers reached recovery volume lead more slide strong Slide domestic, gross April weekly with data lag with Latin transactions a effect America, of spring. APAC continued in to region. by slowdown a U.S. the CRS into showing boarded average. Sabre’s had metrics shows point this continue behind the and continue EMEA America.

Turning to slide eight.

Ego business. to in the including commercially Italy. in all continue we’ve airlines of SkyUp in to Airways active We GDS, added and Ukraine very be lines In several Distribution, our

We also renewed including agreements WestJet carriers, and Frontier. with

companies Cleartrip, largest fastest the new the agency On management OTA and growing the of Kiwi.com, side, largest including US. Middle the added we East, Omega, business the in agencies, several one OTA, in Europe’s

Kanoo and renewed in Travelgenio, also Virtual travel largest the of Payments. the Sabre Travel, agencies one largest East, including OTAs. company implementing Travelgenio also We Europe’s is Middle

implementations completed Solutions of IT the Zambia. On side, ASKY and with SabreSonic we’ve

new couple adding including related their U.S. startup customers, Intelligence is other Express and and Market also a added Avelo also Air India each renewed Evelop Airlines. products. agreements. Evelop We Airlines operations Radixx Radixx

Control with many Spirit to our JetX.com be went new Airlines, opportunities. hoteliers Crew announced active JAL. Flight the Crew last sales also and of deals key enterprise We portfolio, traction including operations live have in addition had quarter, in COVID-XX, Hospitality, Plan renewals we to a with very we segment continue some and with In the capture Manager with Despite effects healthy new signed. in positioned renewals with community the well pipeline to are Manager and

Turning to slide nine.

evolving We initiatives importance increase have of opportunities to trends enable about by travel created to and shareholder Sabre talked strategic value. capture to the

demonstrates me the quarter. on now commercial our progress these update Let activity this you initiatives that against

First, personalized offers.

area deliver offers. Jet Optimizer, in such more capabilities, that migrated to in and live are better moving Binter methods Pricing our successfully key to and with Examples provides intelligence momentum and in price-point optimal include of enables aggressively this airlines, new airlines create Airlines to as Blue, LATAM performance IT making personalized Dynamic availability customer-centric to set support and going to QX We analysis. to allow ASKY real-time revenue suppliers, We data decision tool markets. management Revenue

of Smart remains TM Sabre Phase track on our Additionally, spring. X Engine for Retail this rollout

have their ways, to enable in we The to notably personalized unlocking of airlines reminder, brands more traveler TM of needs Airlines boarded. Engine and offers better a expect of value Smart NDC. deliver including products. future Distribution their As today’s the number with per Retail to serve investing differentiate ancillary passenger to Sabre while a customers and been

has practice a this it choices has travelers, also created Although, created challenge. more for

related determine easy more for what the difficult the be. cost has travel to it it travel, to experience will understand is become consumers While of

on new, the to This value-based, industry-first airlines, the efficient collaborate we one provide The opportunities for development helped buyers provides on merchandizing new create based the This Yesterday, Lines of announced product we help airline shopping total travel new, value will of more differentiation and organize value a Delta distribution ecosystem. solve new agreement this Air represents quarter Delta. that storefront. an to that the offerings storefront airlines’ with believe a carriers announced the airline allowing digital offer. while we multiyear is who model comparison of industry-first storefront for our shelves travel support for problem.

an of and to terms confirms to an quarter IATA NDC our that Level technical as certification set order IT progress, This ability as offer reaching previously X capabilities. achieved milestone full In Aggregator. a NDC certification of related certification criteria management support after this Provider we

void, access more only now NDC to We offers but shop also expanded Singapore’s to agencies Eligible orders. NDC book than NDC from exchange and Singapore locations. offers XX also agency and can refund not Airlines

other travel Additionally, with to this Qantas agencies time. expand plans in to and agencies to over launch the announced in Australia from of NDC quarter offers regions New we Zealand

in making Finally, of our earnings carrier opportunities growth. are GetThere. leisure travel. calls in on Low cost how the the can sales corporate are the segment cost this tool, NDC expanding content booking of low previous faster online now we and increase talked Radixx booked through growing, investments segment about carrier be capabilities We’ve we to

This pursuit, quarter scale SabreSonic Availability This made in into the this to including larger integration important Inventory improves airlines. we for progress Radixx’s to ability Radixx. of

segment important continue for an LCC growth Solutions We as Hospitality growth. view avenue to the Sabre.

to continue Central grow Reservation System business. We our

coming our resorts hundreds across quarter reminder, XX XX,XXX and the a territories. properties allows channels nearly chains from representing serves countries, across wins distribute is signed majority to world, we SynXis hotels, of than CRS major as As with the enterprise online industry-leading and well more GDS and as hotel Last than hoteliers new agencies. Louvre. across and online inventory including more X,XXX travel over to XXX Central countries rates Reservations two XXX all systems,

of made up progress global Hospitality enterprise new regions. four including these CRS our Google Cloud our and generally, we setting of quarter environments in Solutions business two in support This deployments

revenue about to reach outlook are as drive We increasingly Solutions optimistic to Sabre the opportunities. to their Hospitality are and distribution incremental our turning business broaden for growth hoteliers and

excited transformation. about progress in making are Finally, our tech the our I’m transformation. we technology

running a XXXX, of with transitioning Hospitality and moving for are These we We moved XX% to one Travel our mid-range other lower workloads at scalability because three This Google quarter the and two on being in post-COVID-XX its major Platform. CRS GCP air was Cloud. our of important This to milestones Agency Air growth of future Google Cloud the Shopping our recovery milestones Solutions Solutions’ technology on is believe costs. shopping least track.

expected only Tulsa a high-bandwidth DXC. in to in center XX combined miles Additionally, is our we GCP. to low migrations DXC region created connection existing This GCP an QX proximity, simplify extremely data operated latency close with by from of from capacity create linkage to about

airlines. schedule Display Finally, offloaded the majority we airlines mainframe changes for for compute-heavy of and most capabilities, non-hosted successfully some including Inventory

continue presented advancing we I’d are is expect innovative, travel call developing seeing the compute pandemic, Sabre savings. to investments, the In essential turn making new and migrate to And to the despite products, by rebounds. We like competitively As believe our commercial challenges environment realize from the technology we further conclusion, mainframe, to the Doug. as initiatives strategic well-positioned success. over with that, we

Doug Barnett

Thanks everyone. Sean, and morning, good

COVID-XX the in $XXX Versus the pandemic heavily was quarter, $XXX totaling versus Distribution to QX in of last year, QX. million XX% in last down our expected, XX%, quarter in the As million results weigh down year. on continued Revenue revenue to was million. $XXX

a year-over-year year-over-year in year-over-year year-over-year high were in bookings basis, bookings those February Net last bookings cancellations January, up report comparisons down XXXX quarter, and cancellations. and down in XX% were XX%. XX% We XXX% Gross in believe air lodging, March January the as XXXX, and gross provide net XX%, air air Our of and down and and down Compared were We down XX% net air were March in Distribution down and and year-over-year on bookings ground air may XX%, in XX% to were and bookings useful March bookings bookings net in information. respectively, bookings with down to months. and XX% March. XX% February, XX% and XX% in X% February were XX% January meaning year. and same exceptionally up more sea XX%

Domestic and leisure and recovered our our expected, represented both lowest As quarter. bookings segment. have corporate than are total leisure this bookings fee international domestic bookings of XX% faster bookings booking leisure

cancellation that be mix average the fee activity on Now this of shift seen. can has booking impact easily normalized, our more

until bookings make and more expect impact persist We our international a on mix booking to negative a corporate recovery. average meaningful fee

Our in passengers year-over-year XX% IT Solutions the quarter. XX% boarded revenue down was with down

operating Because a our Central versus than has in outperformance bookings and transactions. the decline a relative we cost impact centers incentives income tied is Solutions. decline IT and EBITDA partially in property boarded. segment, percentage the The Hospitality As negative Distribution enterprise by mix, city COVID-XX continue Travel Solutions down Solutions on passengers expense dependent with lower the particularly a from the see were XX% revenue year-over-year and in reflecting of the previously Distribution Transactions solutions to due to venues, expenses technology less transaction fees environment. volumes revenue and headcount expenses due in conference in we and System transaction Solutions revenue of in was was to volume pandemic. CRS to and our to Hospitality Reservation Hospitality offset QX, lower not reminder, due higher benefit volumes, implemented ongoing savings declines travel initiatives XX%,

Year-over-year, negative for benefit. $XX factors as year provision quarter. quarter. operating and prior well lower decreased were results, which income tax losses, Net credit a the in SG&A our as EPS increased by the the Additionally, versus impacts by were also expected and interest the driven declines million impacting

in million was flow $XXX In cash negative addition, QX. free

well offsetting ended year, near-term a have of have benefits balance call, mentioned quarter XXXX. lowest of free capital due expect of flow in rest in timing on cash the the we cash severance. is working as $X of the we As will that cash. any to quarter QX We the significant primarily over with our $X.X million to be This items last of large quarterly uses billion no and as

impact adjusted free operating flow. company. and facilitate or EPS provide regarding to consideration will our EBITDA Turning revenue, longer our slide this Income, of of we to change has comment the calculation. our letter This change calculation no incentive XX. EBITDA, enhanced upfront excluding analysis routine adjusted from are from a In response no We adjusted adjusted cash on amortization believe SEC of transparency

to We will our flow of break in incentives the operating amortization section upfront of continue out cash statement.

$XX time As related accounting cash million payments travel customer well latter an From the agency upfront over or are a consideration In bookings, at over as commitment. GDS in are reminder, of volume in was life contract. industry, is contract incentive in incentives XXXX a paid $XX Amortization $XX incentive typically of case, as and the inception there million million the typically with upfront XXXX. these renewal. in amortized XXXX, perspective, upfront the

we between medium-term, be consideration incentive expect to $XX the $XX Over upfront million. million of annual and amortization

Turning XX. to slide

previously we burdened GAAP. XXXX, have and we expensed systems XX% and In discussed, capitalized percentage periods, with amortization capitalization. our and a spend In migrating adoption eligible both spend. is the we technology of from technology in maturity full under transitioned technology the began and we of depreciation methods, cloud total the agile previous As resulting X%. temporarily plus U.S. the capitalization in shift to in mix to X%, in our of P&L that our This capitalization increased XXXX, development for XXXX, in capitalized decrease our of current portion just spend

capitalization Going we CapEx X% to $XX and of $XX Because fall. next between depreciation forward, annually Therefore, at to we million this, remain over our remain to also rate we expect expense are five or below. our the low years. expect million amortization seeing range or & our

We in to the $XXX about would from turn XXXX expect it over by to $XXX XXXX, medium-term. that, fall provide Sean. D&A will million to earnings I leverage annual back With million which

Sean Menke

Doug. technology our in critical products investments, our we to Despite including migration. continued pandemic, and Thanks have make the

revenue With equal. annual else margins cost the $XXX percentage to reductions if XXXX already we’d returns million we’ve all EBITDA point higher to X expect levels, made, have

further assuming We by our to $XXX continue to equal. annual again all would XXXX, million expect which increase increase our to margins cost savings else

open thanking And my to with and positioned more world to end dedication the addressable hard their and deployments. Sabre I’d larger Operator, up products, for work. like for questions. opportunities, product the cycles call that, sales teammates faster by around again we returns, be demand with travel advanced, and innovative As I’ll once expect

Operator

question a Kelly the have of line from You Instructions] with Jed [Operator Oppenheimer.

Jed Kelly

and I couple announcement Great the one for remarks but questions first taking for the Delta prepared a thanks and appreciate guess, slides. and the guess yesterday. Hey. my Sabre all ones, I Sean, you

can financials How sort of that So it’s Delta? just you see like the understand will help actually revenue like like, the announcement, how translate into on us line?

Sean Menke

good help or Yeah. ancillaries, and with it’s the And do to the what to the the what doing it’s it that enhancements to an and It’s are want. what and is have branded sell of the see services Airlines, Meaning, a of way fares us technology how if trying and laid the things do been is back the you we go we the Jed. question, that. in and the marketplace they airline.com And whoever’s branded that you allows that products to airlines selling out some goes it’s via doing we’re very do Airlines, capability storefront Delta very if American similar there. It’s that. that’s fares that how products to

the that interest, them talked capabilities, yield we perspective, our the in economic had tech helping tickets, -- we sell we revenue advanced technology. more what higher is if from is, specifically that airlines as Now That how advanced that. we an thing do technology we’re align and we actually doing get about we’re for will

at that more do doing it in and driving in that we is revenue future? being the looked make can vein, sure we how is into drive as so So technology really of valuable Jed,

Jed Kelly

lot benefit that I integrated? which And I to next mean, to are mean, push with drive be the XX we’re the months. Expedia that make in volume of over does advertising. the seeing is marketing -- think a can OTAs, the a going how I here big going

Dave Shirk

we storefront has The essentially access part and which and airlines and answer based, of our is is about, of -- that the can. Yeah. technology Dave customers is the talked on Hey, we our Jed, capability itself The have of first this set will all agencies API’s, a foremost, technology would be, Shirk. as to that digital a all that shelf of process. with

of some choose referring was that So these they the advantage Sean of and on the the continue of retailing technology could use pieces to, to if take absolutely situation. journey

Jed Kelly

right. All

the contract Okay. next pipeline And is get some you talk how me, going about to can your solution you XX just contracts months one Google and help wins? Cloud over for for more the

Dave Shirk

Yeah. Jed, Dave. it’s, again,

on -- continue we we question, part pipeline So into of conversations. be the your to invited

occurring. to continue that activity We have is

to the plus We the that I might LCCs probably efforts, strongest, take a say, to hope seen are situation. LCC am other Street are have proud article XX of day globally. Wall Our advantage Journal being that you launched

resources. that full couple service that pandemic the Airlines these But tend activity as just general, examples actively are win ago, and the activity, in ASKY pipeline wins, and in you saw transaction things and of situation the with our side moving structure on stop-start, to in various forward. Pacific of quarters Secondly, our because stop-start, of globally, were engaged, we those and

Sean Menke

keep let Because your Jed, because we’re And it on of me Sean. Google. when way and impact, it about, the why you framework. the expanding capabilities the that and take we in I heavy question we’re analytics, put do. a if talking that’s when of is lowering into this at doing will you the then that technology to is of economics, the -- infrastructure we and of the wanting the we margins, have deal, we savings the compute integration the sort the take have cost AI/ML I’ll on think this, is, of this about did so cost talked through really innovation that’s data what does question you lower it the cost look it And this financial do cloud drive But perspective. transformation,

that allows The other it infrastructure save money. just requirements again, things that lower doing to, is us

cost labor of of to other just talk us to just it the more become -- that allows development equation, really talked side and that on product efficient. transformation -- because is internally on piece about The tech it driving efficiency the we I the

streams revenue look out I us funding to ways. a about Think it at of your couple side, sort existing different we Flipping revenue again, that with it today. So, savings. integrating there Google the the have cost technology

competitive combine that service the right both with our have us low side side new from retailing to smart It about also business that talk can for forward, allows or analytics the same we now. lot cost a operating equation. take equation, what engine doing carrier in to about going AI be that when we’re more the full perspective we us allows travel So as of the side commercial to put you and carrier can way things begin side. on the the it those on Again, think data but the into we of capabilities

it how that other when plus different Sabre we we’re have up The thing going that think we on really Google is we six, with the then probably is, talk seven as opportunities in do can be in the we’ll to are new it doing partnership revenue marketplace. relates future. into other of those that of focused that think new partnering streams. co-development and combine now, And we’re just products transformational Google I to the piece things want tech about the to open is right five, And

stream, lot in big of product create new and out to to marketplace are what’s like and our us opposition going not a a our you bang, just more competitive to this be a it’s of capabilities we be actually believe enhancement now goes of revenue going us are the So allow there’s competition. there’s ahead right happening

Jed Kelly

Thank you.

Operator

Matthew a have from of with question Broome line You the Mizuho.

Matthew Broome

Hi, much. Sean very Thanks Doug. and

that in tactical in strength particularly your effect U.S., sort relative a does your decisions, investment go-to-market of of allocation Just the terms assets? sort geographic of

Sean Menke

think, the of seeing now -- right? Again, right and in we’re that this two lot. sort of looking what’s place. lumpiness I the recovery phase a at this we’re really It’s and hasn’t is changed we’re taking in sort It phases, it

States, talking and just is it nature in it long-term, really in long-term place. changed think doing to There’s Airlines. about talked about do the to that through trying go going that initiatives we Delta around that it and because COVID-XX I that hasn’t but we are airlines of what the we way Others are we does think that. things to get think world As focused is through recovery on be about, back to United global It’s the NDC, Delta was as the really where that with it are is the very doing ATPCO. it. to taking be really we backside really really similar

Matthew Broome

to Solutions lead on full update a any Hospitality continues implement to PMS plans recovery. And it. your system? the Got you service Do have

Sean Menke

question Scott for Yeah. that I’ll let answer you.

Scott Wilson

Good morning. is Hey. Yeah. This Scott.

Matthew Broome

Hi.

Scott Wilson

to things One public do cloud winning for of to believe a seamless integrated be efficient is a Solutions we that looking built proposition. fully is to Hospitality Hoteliers could going on a place that. set drive management more we system we’re full to business PMS service property and a doing mind in include very has the way are do committed robust very in market, to a and have the Keep a today. that much in that

We invest that drive continue continue market. product up to market the in and we to and that into further

a be focus So a continues to very strategy. our think much us. that’s for strategic We this be can of key part

Matthew Broome

have that’s your progressing? squeezed and and in just one just of internal any curious how updates could I you terms one if if maybe And last Perfect. realignment

Sean Menke

we done the Yeah. has I a job. team -- mean, good really

If Dave majority back that to of the vast in Shirk, that actions the XXXX, we Travel organization. you in the under, Solutions go took done was

more Part that into for. now were I we what probably getting We doing are is, was of it half new integrated looking alignment. on in the really year people the the got savings of tell seats structure. fully I getting that back would We’re But you new the think, well. right and teams

done well job team. by the So,

Matthew Broome

hear. to Thanks. much. Good very Yeah. Thank thanks

Sean Menke

Thank you.

Operator

line You from Josh with Baer have of Morgan Stanley. the question

Josh Baer

wins announcements thinking over for the back with, enterprise on the wondering all Hospitality last and one question. side, just I have Thanks to the the year. two,

Just we momentum timing impact wondering and are where that revenue? of implementations of like on when we some see

Doug Barnett

months them the actually to implemented. to that mentioning worked we get with a deal by about start me [ph] Loove wanted let that Josh, we deal last just we quickly we quarter, how before a announced announced talk for few

side. we’re mind, the don’t through going on about transformation. In same fact, the in keep Hospitality talk transformation we But tech as do much

their or we to properties first can that of quarter. Google goes the instance Our into we’re instance platform complete on and summer migrate version our start this a on Cloud instance live fall be And be year. and actually CRS will CRS to Europe next the of doing it so our this to Google

that take the that next having you pipeline, XX of enterprise we over to six the months. growth So have other going and think start space we’re we to in the in a things number the steady months pretty stream of a

Sean Menke

these back add on the I essentially as comment And think to just that, be of the us zones the around differently. one to go partnership for would comment add so in that it Google specifically an and cloud ability bit reduction is, little the example Loove important I And to one and our in is -- being as again, latency, a landing is would to customers. on about regions things able have with redundancy partnership does well to important world

Josh Baer

Great. I the to verse cash and few breakeven update am XXXX on couple flow free wondering have a breakeven. if threshold last I travel you have did in demand an we’ve quarters? that to demand got And the of

Doug Barnett

obviously, XX% of know changed range that still And XXXX on all those XX% Nothing’s Yeah. mix. all posts -- vis-à-vis it’s those depend levels. going we to between it’s XX thresholds goal and

Josh Baer

free out the to large -- you that Right. context provide are flow. And are this that on working cash able any items capital quarter, weighing you’ve on called if additional

we go that Just of cash as an insight flow? and how and impact of were on into free those the year, wondering, any the if seasonality like, impact big the there’s through

Doug Barnett

that you the balance through But free the can meaningful given of value haven’t of move as tell there’ll I the flow cash of be from a year. in reduction use any We the guide it.

Josh Baer

Thanks. Great.

Operator

You the Redburn. Instructions] question Steer of Neil have a [Operator with line from

Neil Steer

was mix reservation data question. blended that And sort firstly order. around Hi. there VAT crept much about Can probably on any you’ve Thanks price that? the for down us and effects pressure comment the a that very It your totally has is on of from the Thanks. underlying sort been deals given XX% you taking that through fee been of as thanks thing? renegotiated or the seems that’s

Doug Barnett

is. what No. it effects? All mix the That’s

Neil Steer

reservation to the value way is the is and that’s moving strategy significantly earlier made you in the the take value of announced tied Okay. to to a towards, Delta sort and this indeed, And to of with day, upsell underpin that aligning we response don’t in you fee structure? how the then, suppose salaries, that ticket? pricing you which the mentioned change structure pricing reservation the the of to of that to do tickets the the that’s obviously, contract obviously, sure you and I being you a get more the meaningful the the clearly one move Is other fees that some want actually related or the of how questions, that in sold is

Sean Menke

would go you thing is is of is have Delta get if as also talked period and about with Lufthansa it capabilities for this mean, clear to what’s the a your agreement in that this to look have we go, Airlines. allow step is now, the to And there traffic. with I technology, them higher incentives to a we’ve wanted from that perspective. it we time where you’re one to have say advancements value that back you’re based associated when in versus I a direction we in that thing do because your Yeah. at believe long to this competition technology the agreement differentiate are relates the you trying investing to same drives place yield taking

because much parties the this ecosystem. that with So, to what believe in want aligns again, we do, line across do is the very we

Neil Steer

update Okay. Thanks. to one an please? on one system compromise week, us obviously, Radixx, on announced you can And that just final last the the that you give

Doug Barnett

is this Neil, Dave. Sure.

So with particular that a we’ve That was, are forward and live public is the and it was was back talked our this a airlines, XX piece in we particular noted movement that And piece subsidiary. our made and we changes the them that had active progression environment. roughly the malware in everyone incident working as contact statement is it that process. through environments affected of reestablished around through some we’ve about, we to incident now that that we Radixx that continued in of

Sean Menke

Yeah. they the imagine, What the note for should apologetic the to Neil, tickets operated to future. And into you place. were took An was important is, impacted really what happening timeframe. we sell ability thing throughout very was

said, to address. So, through to what with needed we the again, work customers the work team

Neil Steer

very much. Great. Thanks

Operator

line question from the Cheng of with Victor You America. have a Bank of

Victor Cheng

channels, signed? number alluded similar in customers its how leisure my expect on from noted of question. deal now versus domestic bit for traditional the you and technology time Three recovery of recovery, color obviously, you as instead progress And you’re already a in of seeing, on being if NDC Sean up a certifications bookings year retail lot just that you you we pre-launch? Distribution color expecting economics the any stronger have you you my And jumping just And in have should recovery, just in are GDS value shift so? one to for in What prove do color percentage your Thanks. wondering lined particularly, are -- of Distribution a continued but Thanks one side. case just have any last the particularly smart or we coming that mentioned, on April? taking on regional that that and to then engine NDC, this more mix channel? proceed, provided you over corporate and noting

Dave Shirk

let me Victor, start So here. process, the

is retail the timeframe our to of On on products rollout along all spring focus move the continues of been has track. the to in set that and engine, on this smart

further we beta taken and As live Airlines in took of we LATAM alpha Etihad several quarter markets. testing tested and pieces being in noted first live already quarter, some this that of last sets are the and work pilots were at for pilot capability at

the elements And are so the optimistic in piece as help we airlines. with recovery retailing particular part of that will this

are cycle more folks and discussions we fall already of into you the guys the engaged the are and technology give that in updates with pipeline on that interested get spring So we’ll piece as we further in that.

So question. think that I On your question… your addresses first NDC

Victor Cheng

Yeah.

Dave Shirk

lot parts there. You had of a

can maybe comment kind then the through this. ask regional on to me work stab and a Doug of let I’ll those, in I of some Sean see maybe we that for and as at take So if piece and domestic

et So bookings change, the as NDC this point. very and off, first small will around on see -- are how the the transactions piece, at your part very, cetera. and that the question of shift in Again, NDC we’ll be what of percent

also As with tied But the the point is Singapore you that situation done in case, see the at and can it’s minimal in transaction gone we’ve Qantas case It’s is outlets there. still the certainly live you that it’s extremely this volume can we’ve imagine, the and a volume time. particular to pandemic. the things

that you’ll thing tell part and will part that are that as ones were other kit and long of is, of their paused that the before recovery, stopped COVID. time at in doing NDC pandemic The see are the completely think very of because as of majority I the have airlines this airlines NDC resource time their cetera. containment, et organizations cost and of particular point or vast activity far the majority a to

of out, agencies that the the well. about they journey move announcement think able out and that’s find why advanced the to very NDC We that the the think, significant, piece of find continue because I I think begin well, as before in question. alternatives easier take is of this truly airlines move the first to might of also environment answer I retailing some retailing -- an to think the we kind But and much number to really the That’s that along, sorry, so it’ll a but how which I said, will roadmap part time effort. be is Delta is as understand to there

providing particular path. them domestic. down a for then as far kind of number So the avenues And as head that regional to of we’re and

Sean Menke

now. take Yeah. seen what this Sean. everything tried -- we’ve no rates reopen But improving demand seen think marketplace. testing are has competence competence the foreseen I on is right doubt improve, to I is is go specifically. to vaccine and leisure to of seeing U.S. that. improved, business we we’ve from of There’s have in come because is is, beginning to And the get based and way domestic side. Things I’ll the this ahead we’re more continuing When commentary will that the in and it is back that your are part and good. I’ll truly

about seeing relates green U.S. year, time. prepared we in it’s so, that of where are to improvement probably it my call that mentioned, shoots XX-point in seen for XX% XX-point corporate it been way beginning as was period of comments, of was to -- I We’ve were. domestic or the it, a sort At travel. As the from down, we the

good sectors. of starting the confidence sectors of and it happen. we’re and we’re being the Certain add into really part there. really things that’s from specific and moving airlines year, that But you U.S. do is, what more more down seeing see have some other just beginning that’s the to happens than seats beginning movement the to really are are seats added. is We sectors marketplace drill What again, in more understand. So, then

the So how other about I as you bubbles flying margins standards or on between we Doug corridors engaged of relates is important our think CEOs well we with is when from that’s place, countries are standards international and trying we international Sabre, as about about as at more to expand recover money, it balance and think as the -- as up this make bilateral in try talks as discussions been it are opening because where travel there, we get travel administration Biden it. to have hear to higher

Hong U.K. back even travel. then do to shopping seen we and We as Kong, in Trans-Tasmanian outline began see and pop We’ve have to were bookings corridor, the well as opening they from recent announcements begin happen. the when seen going they see Singapore. flight to Greece to We what going

continues added that of with that, So is we believe demand cycle sort that back. capacity And be the it’ll there.

So, on side just again, business the because But you on that you we’re is what some recovery, gives seeing it’s also of important. where day-by-day. but sort insight it seeing step-by-step, are

Victor Cheng

clear. very That’s you. Thank Thanks. you. Got

Operator

are no to Mr. this I will over call back Menke for there questions at remarks. additional And closing time. turn the

Sean Menke

on the very that focus Thank everything much. would you continue Great. look call, my your Sabre you they the and day company for you that employees people forward and for to Sabre. on in Once, focused I thank on to and the talking to like are for again. investors to Thank out do day again,

Operator

Sabre and again you you for your Thank with soon. morning. us look We again appreciate forward in to this speaking joining interest

Sabre (SABR) 4 May 212021 Q1 Earnings call transcript