Sabre (SABR) 6 Nov 202020 Q3 Earnings call transcript

Good morning, and welcome to the Sabre Third Quarter 2020 Earnings Conference Call. My name is Victor, 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. Please go ahead, sir.

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

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

I our ongoing effort. my our customers first Before for around we endless get what company. into humbled the sacrifices the they quarter, proud I team of members thank and done for details like to and the and would have of world very their am

pandemic, what sheet on COVID-XX our progress our and additional the took comments of future. time our our few finally, us a demand engagement, technology transformation specific unprecedented the this we people, protect sheet ongoing COVID-XX course and financial have swift and, innovations using continues continued and advance the focus focus. of team Those including an to with actions our balance to challenge today’s course, enhancements, During product decisive company, runway and to will customer can pandemic in give on the actions traditional Early Sabre and call, financial response allowed update the to pandemic. and we on and pandemic suppress controlling on thinking, our weather this to balance our our to we on The and partners, travel help focus results. for and customers, position impact the areas, to

these have signs showed second to business win optimism trends continue commitments from of customers. largest tough times, with we in and lock for quarter, booking QX Even new and improvements. Importantly, cautious of the we in improvement ongoing our some long-term

continues be well Our the as X,XXX to year-to-date. evidenced and agency value by deals travel in industry the we known, have signed airline

and other We Our and burn, our the which customers deployment. costs development be now our side to add technology our for We've our took and on cost them, debt for continued to in invest further of actions us and migration this to pandemic. to manage position. reduce reduce cash efficient more allow to Cloud, extend maturities Google our decisive and also liquidity will there trust transformation structure, product

past As with announced partnership beyond deal. our well a just detail I’ll more have extends just In major advancements. a few discuss two in Google in the cloud weeks, minutes, two we

Sabre as technology capabilities. technology advanced machine- state-of-the-art by Intelligence Artificial pioneering and are for The Google’s Travel powered AI, we AI is travel. First, technology, known learning

engine. first we with availability partnership in scalable travel the retail Google, smart, Second, of be accelerating will industry’s

be it Google next actions we Framework. steps Sabre will our technology in our the Innovation continuing Smart rebound pandemic and and execute capabilities to pandemic transformation the We global through on manage decisive that the first are Putting impact to all deliver customers the Travel recedes. excel Sabre by product launch year. once for of retail These advancements engine, while powered AI, have necessary next and our together, to expect early COVID-XX taken the to product

a North Turning continued gross third in point slowly industry American bookings July, XX% net was In XX were steadily. industry has XX%. America. air to the market, versus July improved both XX%, Improvement growth our most down down pronounced recovery quarter, Slide and regional net The rates. been Sabre’s North September recover industry mix outperform net relative in strength helped GDS bookings in quarter. the of our bookings but X, the to and August largest October air air bookings demonstrated down in and percentage

regions, continued to also Latin other the has shown improvement. America Turning signs of

slowest been in recover, has has right Pacific but the trended Asia to direction.

the regions COVID-XX While Sabre key this, But impact as metrics improvement October, metrics greater. EMEA. pandemic. all October, On you moderated the bookings booking in stabilize driven positive in the to were Despite X, XX% continued in down and approximately months. begun April, in all other down cancellations cancellations passengers down exiting in have can stalled showed shown industry transactions third October. from were The or in approximately declines total down XX% XX%. bookings the improvements down negative were CRS XX%, since see past In slide XX% record boarded by global improvement few trends all gross gross quarter, have

improve. see on net you can data continued trends a weekly industry GDS the to through have October, at Looking booking basis

As our mentioned, signs demonstrates the continued boarded most also improvement. have pronounced largest passengers America, is that North region. I of shown X previously improvement Slide in

volume clear in an positive is the about On air just Slide significantly It to we and bookings provide transactions October, remain reimplemented in boarded improvements outpace XX% has Hospitality resurgence for the COVID-XX effectively COVID-XX travel can recovery bookings and continue that airlines in unprecedented. industry of to passengers boarded. zero how perspective Excluding our passengers restrictions, approached to due pandemic the you see unprecedented. carriers reversed hotel down a XX, for travel third see Slide April. the region cases quarter. The were we EMEA X, by trend been government in in XX flattened in top beginning new restrictions and region. XX% On environment were impacted versus a

Over the grown have last of a at XX global GDP. multiple travel volumes years,

during have global in fact, was less there this X%. which In decline calendar six volumes years than maximum passenger and only time, the declined, been

five Over growth average decades, lowest X.X% the has been its last annual at highest. at X.X% its and

We from in this benefitted directly have steady volume. global travel growth

model or business volume-based tickets noise the resilient, in price air Our filters room from fluctuations out hotel nights. of

early put stimulate recovery a for believe transaction-based the data to strongly and for our to demand we this travel is the $XXX this customers ticket Because there feel time. we have shared, stream. have While $XXX enjoy We extraordinary we that demand, COVID-XX will of and be we well-positioned may on pent-up will a an continue sale industry recovery. from for recover to revenue

Let key a business to renewals. new now win and Despite me update. the commercial challenges turn to sign continue by presented we COVID-XX,

individual airline mentioned, signed I X,XXX far hospitality deals year. signed we’ve so agency and this in several year-to-date. are also As These deals to addition thousand

second our Let in were very quarter. highlight and the that of closed distribution American third announce customers, with a me In one happy Airlines. a renewal few largest take a to Distribution, we

list SAS added of South top and in we the low-cost addition, a to year. carrier, Korea In this have Jeju renewed marquis Air, airlines we Scandinavia

seats distribution in United, renewals inventory Emirates GDS, historic turning wide recall channels, to Copa as fill distribute environment. are low we far quarter. and our last may efficient, and such to and demand Airlines highlighted their You robust this with established,

win of agreements proof Airways, Airways, Korea, South Belgium, further Air and Smile this, As QX, Voyage and We’ve distribution progress Thai we Air of Thai signed also with a largest points Premia, subsidiary a a Travel, Southern takeaway Gangwon in Air new Fly travel also new with both in agency Africa. Bulgaria. made strong in Bid and including agencies, network the in competitive with

incremental Royal Norway Travel in Berg-Hansen UK, conversions the signed also Middle with We the in AlFursan East. and in

TMC the signed Travelstore, other Italy; Travel such management California; an we quarter, travel in online largest in company; key Travelmatic Tandem in TripActions, in Finally, New and as Zealand. renewals the

Vietnam the Proration seat reassignment partnership rely COVID-XX, at complete, we based for customer’s implemented data a each which already Recommendation helps no IT norm seeing solution schedule airlines rules. new which operations. Etihad, signed the of we later with This smart Dynamic integration check-in of Radixx implemented on equipment even a Engine we launched Air major navigate rollup. which earnings process in implemented Southwest Turning the product for a segment or its agreement that a a a boarding, segment versus bag multi-legged historical crisis with Vietnam movement third IT and improvement despite to from positive We Pricing And own couple on. using in Airlines, through China COVID. accounting algorithms XX segment. Ops a Radixx and this services family, Engine significant operator Seat without Manager help X assists in delivered passenger quarters our TouchlessGo, capabilities. phone. to in historical a after We portfolio, optimal in airlines American profitability business finally, Airlines, days touch we To Vietravel Radixx launched QX, enables In for of to revenue through customers operations, tour our to with see is we real-time changes China after Solutions allows Eastern. that tags all Sabre other navigate with airline In is only and seeing Vietravel, are flight Recovery

Southwest to airline this product. innovative is the first implement

progress the making with we pleased be Transformation. to continue in are I mentioned, Technology As our

greater and with the operating and a availability, many enhancements, higher ability faster move deployments, reminder, recovery, reduced many the all to security to the other industry at Cloud has with scale quickly. advantages, right-sized unit up stability, As costs, down and Google including leading

our annual in tech reduction we represents us over and Oklahoma, across nearly already. Year-to-date, major X,XXX XX% of has savings. Our reduced and resulted is our significantly data servers physical a reduced helping which in centers of of dollars footprint. We've millions have migration Texas infrastructure

DXC the later, explain end of and in we new contract move Cloud costs by the will than million Doug to operating As Google XXXX, reduce per our more more year. expect by our detail $XXX to the

migrate with have other Cloud, the our Beyond to to of we Google parts discussed work partnership important Google.

travel. the of future transform to co-innovation Specifically,

technology. is state-of-the-art of machine-learning are is travel. advancement execute on this advanced aspect Sabre October, TM. Framework Travel in Google's This beginning first is AI and partnership. we and of the In Travel industry an We with Sabre AI now Google AI infused our introduced Innovation part to

and Sabre Cloud solutions sophisticated behaviors capitalizes shopping Travel AI and using tools predict and AI sense, on that business machine learning travel-specific analyze insights. information Specifically, consumer real-time automated Google

across We Sabre products enrich businesses agencies using next-generation advancements. AI Travel airlines, we expect support – can all and technology hotels

industry's connect Sabre’s new priced to integrates to AI- innovation available. use most and travel support seats dynamically Travel first technology. this retail with by Sabre such powered week, and and planned smart, and capabilities as Google decision business opportunities. AI proven eventually These from of can personalized are AI satisfaction baggage provide we minds plans Ultimately, will we launch – content, into first offer integrating with product we as third-party airlines customer Travel and real-time some to the content of dynamic techniques, offer certain in segmentation our XXXX. Sabre bringing right to segmentation the products these data, in bring accelerating powerful the to first rental Google, include availability are in the and We traveler market existing offers to with Sabre and bundles models will to generate increase right the airline and and scalable by the and kind Earlier their the ancillaries drive the retail opportunity regardless the engine, shopping portfolio, XXXX. new its of quarter unveiled AI first current engine travel. available management Sabre to customer and of engine solution state-of-the-art stays. Sabre to hotel both we is with business ML-based PSS cars advanced technology right together and at future capabilities, be include and are traveler, and test-and-learn model, and both be using PSS machine-learning the offer build Smart channel optimal expect Smart retail retail to be brightest Powered the that agnostic, available such or a are merchandising Smart time in engine to of Google's Designed creative Sabre customers, GDS. Partnering

travel. announced We strategic of These and Sabre retail step are a as our bring of personalized one XXXX towards initiatives thinking year how part beginning are achieving to of delivering the offer vision strategy, about of our engine Smart we excited future. examples our this management at the of are truly

it We I’ll that turn the are now best over we post-COVID With that, for recovery. will making position investments expect Doug. to us success

our hurt of XX% in was XX% pandemic totaling impact down quarter. in case. significantly million is last not revenue certainly net of approximately The or how are described second figure. travel This quarter, quarter, versus the our Sean. Thanks, than $XXX though volumes. results less again the per $XXX remains the positive, million We've tied year. in $XXX Revenue QX, revenue, our million now surpassed our this to bookings the Because

Our million. XX%, meaning in bookings the in Distribution revenue XX% We XX%, our $XXX bookings respectively. cancellations. in Consequently, on bookings in a net Distribution of down September, was July, Gross to net August down and bookings quarter down were quarter. report were XX% XX% months. and down basis, the XX%, were Net XX% XX%, those same and

reserve. cancellation revenue In bookings exposure, terms a of future million not in cancellations from departed have have and million recognized yet $XX $XX we

have percentage XX% travel decline in with operating income QX, not of all executed, COVID-XX in income pandemic. fared Our CRS lower EBITDA, negative net initiatives better, due and was cost headcount volume reflecting of higher transactions. due environment. Hospitality in expenses The expenses IT year-over-year XX% Solutions the we technology savings volumes. and already to the transaction revenue down revenue a year-over-year, XX%, decline revenue due to expense, partially the to in to tied by decline a revenue impact a were incentives offset down was

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

note available and burn in million uses cancellations. we monthly two carriers Cash rather of itemized cash these As existing reductions specifically items Free our expected, outflows guidance, as our balance to from than net was resulting by gave our previously cash severance Flow cash addressed $XX expected reduced million previous Please to booking payments were as cash. $XX when future

Cash was the Free Excluding million, these environment. rate million in "zero a discussed compared cash PB" monthly monthly $XX to zero two our booking, Flow we negative items, burn $XX

mention Free to Looking QX, three our impact I’d by to like negatively expected items ahead Flow are to million. that Cash QX $XX approximately

seasonality cash our interest payments. the of is First

cash employee of timing the is Second benefits.

what quarter While now QX paid typically is XXXX. the see first of XXXX. the QX historically benefit paid will been first has so paid will This be year, they each in offsetting the quarter, acceleration in in we in an

the year. payments to cost to this we additional Third, make measures severance expect related reductions implemented earlier

our we our to a as We bulk our association the realignment, expect in the include changes Last and business to structure the financial and XXXX. of with payments results talked actions reporting conclude this to that taken our of severance we expected changes about Accordingly, a QX financials quarter, recast two results. result. historical

implemented to segments. have our we a change business First, reported

reporting two We Travel Solutions be Hospitality will and now segments: Solutions.

our of Network Solutions businesses one Airline combined Solutions part and As segment. into reorganization, we Travel the Travel

as Travel We combined. been separate Airline longer these no will teams reporting Network as have and activities Solutions segments, be and

called accustomed We and will detail. This key are GDS continue bookings report seeing modeling. the and to includes metrics revenue you our revenue, transactional now revenue, to and "Distribution"

reporting or now Network revenue, Solutions" will revenue of "IT Travel operations continue the "Other" IT what Solutions. generated Boarded. recognized was as and Passengers report reservations commercial also and will and products, revenue note systems reported is majority under formerly our from We airline Please

continue As mentioned, Hospitality to separate segment. Solutions as we will a report

our continue Costs "Technology Second, are separate main clarity provide in on our an Technology are to line Revenue, now technology spend; Costs" of as presenting effort buckets and to a P&L. we Cost now Therefore, cost SG&A. our on

variable of closer result Adjusted reported these costs. tech previously Profit of gross technology direct drive productivity no now of to impact transparent a benchmarking as more peer it margin, expected Gross to ratios and favorable companies. is than This more to accountability changes, is and other measures, expenses is provide a there to excludes financial While our expense-to-revenue view as

changes and materials in that IR & our excel posted these XXXX reflect the for earnings in XXXX our QX financials website investors.sabre.com. YTD at We have and "Sabre disclosed Historical" our reclassified file on

for XXXX results we We FY expect XXXX XXXX release our to provide February. QX reclassified financials quarterly and when in through

environment we savings to reductions this new have from vs. cost costs cost with $XXX go-forward hosting with savings lower are Approximately NOT already compared place, and to of per DXC per expect and million savings the is We XXXX, in contract. from already fixed once technology are actions cost technology million non-volume-related our by a $XXX cost completed in expenses our technology an benefits incentives prior XXXX. impacts contract savings to are migration $XXX by DXC To a million $XXX realized and minimum technology savings partnership as work, largely financial are fixed These XXXX the driven Natural Please year expect expenses tech expect expenses incremental. by starting these some supported and executed. transformation savings implemented DXC. new that partial by and transformation total savings, XXXX. may million caused and Remember, of that renegotiated cost incremental we our savings in XXXX. lower of savings factors year savings in XXXX. the Google is of we strategic note achieve we is these execute expected versus on furloughs. the $XX the Cloud approximately By have this, the Platform. of million contract. track year headcount our driven Google be Ultimately, cost driven temporary of a of basis, we by XXXX On this incremental savings staff savings in in non-volume-related technology volume our cost transformation, our annual be with Of of from primarily been headcount-related $XX million portion clear, like the to

unit figures to these the expect has as are beyond. on XXXX be we which the savings majority to economics. cloud, anticipated to in volumes migrate lower favorable from transaction However, and costs Incremental we realized

closed additional case took no the pandemic doubt hope event in we isn’t are raise liquidity the continue in modest improvement quick $XXX persists three our million the see We expected, common than stock to and As to important although we third action the longer aware, signs bookings. COVID-XX offerings this you in and preferred of on We mandatory offerings. convertible generated proceeds net in quarter. from

out We of used XXXX down we senior portion a $XXX maturing extended new secured the and We the debt, in also to proceeds issued notes million and schedule. earlier pushed facility. our on pay bank debt maturity maturity our due in

a the and have subject XXXX until until on do As springing see maturity the quarter debt maturity you not beyond, slide majority and of can does mature conditions. not we XX, material to XXXX, fourth

For under repayments. excluded debt language immaterial note ease of ratio Agreement end Event Travel presentation, covenant Disruption have mandatory we current suspended, to and this based the the of volume that leverage at through our Restated Consequently, remains. has also It’s possibly important the least through covenant Amended leverage on IATA we been ratio continue Material our XXXX projections. expect and Credit waiver and to XXXX

to strengthened and position, maturities summarize, reduced we improving debt booking So are have liquidity our extended our seeing our costs, trends.

quarter the you. of back uses have ended a significant near-term and to cash billion we cash. with no balance $X.X Finally, of Sean,

Doug. customers, for difficult future, up the on other Sabre open are dedication and I'd around this our And rebound confident feel for like time. to thank post-COVID-XX. the my shareholders once questions. focused world go and and teammates ahead will that Victor, call travel each serving Thanks with I during remain again to summary, to the In we their want well-positioned competitively

from question our Thank Research. first Bernstein from Mark of [Operator And you. line will Moerdler come Instructions] the

begin. may You

in you $XX if in and now see mind. two I been slog questions another much the a Doug, got so to you steady Obviously, items but forward. I cash improvement. had nice QX. impacting items of Thank don't one-time there's apologize, you any million And slow then it's sense items of terms currently now QX. see I a what timing XXXX follow-up. impacts impact of you other obviously terms for one-time Can cash beyond? or in in have and you us changes in And give

we the Yes, of those the continue. the to prior a we'll so versus quarter primarily lot all I XXXX, end obviously the than is the interest costs place normal seeing and because reason in commonize financings payments, severance only be April, in items saw of we're Mark. by and fourth year, beyond. you through variability took will they Once two why had of from we've that the do don't which expect burned less so XXXX cancellations And of and earlier throughout impact the the a quarters in

at expect So items specialty we point, shouldn't right. specific one-time any this

That's correct.

can on agency then And color travel you give any Okay. failure us rates?

the seen in we travel consider globe, have large Yes, mean, But consolidation most a taken transport I'm gotten the failure out. them would what what a that Mark, There have place. going failure a we number M&A taken lot of have seen rates, of expense of been we around of U.S. we've Australia so haven't seen place. have CTM, With some lot the seen out not far, at I is of level part, a to acquired of lot for I many of this furloughs have What the here TMC point. and go

Perfect. questions. you. I appreciate. lots really Thank sure, do of there's I'm other

Mark. thank you, Yes,

you. Thank

come will from question line Bank. the Sabadra of next Deutsche Our Ashish from

begin. may You

taking let the seeing Thanks the echo strong sorry bookings the me for that – here. question. improvement And in we're my

conferencing, positive managed is side, care. specifically of heard debates that the Zoom on One the key or bookings, video investors around disintermediation increased also around the the but corporate from the from we've

maybe your corporate the the managed think Sean, care and was bookings past, travel, the corporate duty do what But the potentially on crystal the GDS? more about post particularly the to if research you any you've Thanks. thoughts So, and the give could disintermediation can what talking volume you take in if how pandemic percentage of also ball front. of done about shift in your emphasis

for Ashish, question. Thanks, Yes. that

business at we that and in took call really relative years that economic not recession go that number essentially history the did. it way the just my for and during me was period go the corporate X/XX a a at I through roughly. a XXXX let down again, to to There this. upon go slowing the look rebounding just place travel in XXXX way bit touch little back back And So the of

it, place. significant that more place. at in Now, look There did. taking doubt if was what's seeing rebound a you that in No we're impact it took of a

If than at you leisure the that was and it corporate it was probably we down XXX%, But we're actually seeing XX% essentially of the when so We recover XX%, at really until peak data range in corporate breakdown bookings. do bookings a recovering points. trough, give are Ashish, I closely. think look down thing down, do very look at XXXX. see what see with we We're looking you the take couple bookings XX%. that And to the the one about or of or a starting is bookings don't that's corporate clear faster

they have that of the and The organization we duty care. it's thing of and are travel world, and importance around thousands mentioned an duty of very I this and is of the other care that you that employees the are important employees the are are their to there that is the sure doing being that relative and for And thing things safest to worked that allow world. make around best corporations to going on the thing additional technology

as do technology, think done but at that essentially continuing calls have But I for relates focusing I future. us one, see believe Zoom to I recover to It again, Teams everything that corporate it us be have back we to back, well over products improve to the So period be it's well a going my raising this it don't no have have snap will calls a through in the different in as just couple seen of have times, liquidity to marketplace, our be recovery we taking we is we efficient. on sheet, as we balance the position I travel that mind And goes to that living place. doubt patient, look time. patient. think there's to allowed of just

that's developing Google helpful And So you they those helping is on That have or forward you change the then still any would new how on And Google with Thanks, early Do I third, if wondering market? with Thanks. going And one people there. know conversations their launches with remind these part question or but customers it how products you of days, then your products? the of does to the any new competitive on in any just on talk was was initial the it's Sean. question. actively just have second just these product partnership, congrats in be then moving you out about feedback? development? had can us positioning the very of those color. helping front modules very engineers I your

so for Sorry many questions.

to and think this going Yes, no, our continue into even of I to with wins it's foremost, the great I is pull future so needs Ashish. because mean, I do. aligning accelerate doing we're think, opportunities already to to things products, just thanks, the all first what us really marketplace further in to

savings the As Doug talked that a reminder, get. there's about cloud is sort the we One and of that four aspects relationship. of the deal Google

With with on the that is about that helping Google second gives agreement how of DXC then are transformation. us a think and that really transformation, really new that we a also Google number of technology lot engineers of The the flexibility are part transformation. there is tech and that the

is to of this AI about and part third this machine it's really of how the side and be now. we learning, The the taking talked it place equation integrated is the going and

to we really offers. it the X, Gen marketplace doing we The again, there. this is it other believe a what we're able Farelogix into is the does is really place And what We'll on and which consider share because really what dynamic more side. get was innovation merchandising it essentially with to the but framework. not in into is this replacement piece be of this, And be taking does get

the at that beginning industry to us look of transform be come it continue That's position to you in. to the we're components able really to when are So Ashish, the to it's together. relationship ourselves allowing all

Thanks again.

your just interested customer continuing are on that of Ashish, add sessions, these question have And a customer. interaction. We've that. had multiple backlog ourselves, to with customer to sessions, in folks already Yes, joint we announcements and very the Google,

over the busy course of So topics. months next the our on teams several pretty we've got the

Good results Thank again. That's great. you. once

Thanks, Ashish.

Kelly question Instructions] the next from of line will from Jed [Operator Our come Oppenheimer.

begin. may You

Great. Thanks for question. my taking

an flow needed be flow can neutral. mix you you getting reach then? neutral way there Just it to booking and update on could still XX% Is become the a free XXXX when cash levels? before cash Or is of

as now time that we leisure seeing two last I call, right XX% domestic, at what we have between be the we're mix you were the would gave tell to mix conference and recovery. more would – recall end to XX%. in and those historical seeing a and then the stay unfavorable today's last we environment the in international now had would of for got Jed, corporate same of you. need The as of It right kind Yes. what if to categories. We we're goalposts, back

So a have somewhere XX%. goalpost XX% and between they

partnership And your your OTAs? that relationship with I mean we or it. the them competing be with with Google, then Got that? just going how is on does to how that should impact view

agencies also I way that about to Yes, what they them Jed, look are the to in airlines, think on same vast those providing. this how through majority create equation. hoteliers And a other – through at the as we new it what offers what to on a and want have and really sell do sit look because of pushed of on the is part sure the sell. And mortar new have hear of how OTA's we about side well and just that we we and make focus brick TMC's we can we continue technology is thinking walked a And this, to goes that big are what a we're to facilitating that back have at time, that products to position I essentially of helping be best we and lot the them. as at thinking to we have the

providing looking and So facilitate and the to end as a focused and seeing the I've capabilities that I that technology of our on along, of change number capable we're the said look technology people are we're at it for. the all to of required customers are end we're to sort company

leisure going first that leading of into lead understood next domestic accommodation then, year. and is And Got half to well it. the the it's recovery pretty

in kind you into next in hospitality your are those that demand in around business, of your how alternative single do unit probably at summer? to high types inventory hotel going business, look Just even strategy accommodations be

Yes.

for think I are especially a places. – of as number think that the wanted to you a areas home. of sector, because place mean, people looking move out that has have the cover I People you are working people that, urban this from Jed, now I and taken and well, know it's been part of big growth

a you driver So that's big as that. look at been

content to The the as lodging our other back to we've that through specifically to with goes done that of does that. relates channel? distribution get our how it is, is had some pushed important being do and And services It thing capabilities, we've conversations distribution. that things able

guys of think have I balance Dave have but we it, now. new who our a remote Hospitality, you So or Scott have there's if a I President Who's comment? is right associated with

Yes.

question the comment not we would on that air and with are initiatives on from stay I on I sure We've other asked things about we're space, mean, also one of side perspective, Sean it's hospitality our help everything services active which, with the hospitality distribution along met. to side. a initiative some bit measurements been duty little earlier was certain the just the of care. the and pointing to make lodging make, piece that safe requirements certain is to that but bring pretty the just think, doing can that It's within Jed and side, content the was I a

the add think So you And to and then anything corporate want on Scott, CRS in side? to will and add leisure that both to also the assist balance. it help I

well. like Actually, Yes. set course there's the think CRS the execution for at I as makes that Dave as on of it way IT sense, for with IT Sean We as solutions. lot down us commercial mentioned, to in and just if another our look go operations market both of capability side, of but capabilities addition then there's distribution broke a

So to to have capability reach. for it's new market extending we with us our great think about some a IP – conversations

you. Thank

Thank you.

comes Baer question from the line next Morgan Our Stanley. Josh of

begin. may You

and course was start customers would talk adoption about COVID. could over the question. I little maybe you're the bit a Great. Thanks having Is on hoping conversations you how the with Travel it of mode? that Any talking about kind able innovations? still for touch they've Sabre interesting? smart you AI and new survival context and to of of Are retail these partly will be shifted

more the conversation. of this Yes. details of get then Dave maybe the just off have and I'll kick some into,

place. are around relative definitely there what's balance I in look there's we're to are to we more work been liquidity, a we time they're of looking – we carriers though with their at carriers improve future. bookings that the slowly, marketplace, at the the of American good European seen If data that sheet, but as you, definitely some certain continuing goes, have that the increased and COVID, taking have actually world, their shared to improve. I to mean, North that there to seen marketplace, and lot the continuing pivoting I Those a seeing see cases the fall-off. listen, So, continue are even how the still think done In of they're are we've

interests about different it really we're In in what what as So different a to the relates focus up lot doing doing that Google. well carriers are the of we're reason options to things. opportunities say think have bring carriers I what, we're a on about seeing would is or I what lot the really future. technology, of There's the for the thinking

So you want some that. on Dave, to maybe color provide

carrier a probably easier LCC it's down to I'll little follow full-service Maybe it bit Josh. to Yes. and break

been terms LCC has and positive very not in the side, in the the is On conversation activity changed, interaction. interest of is frankly aligned

So not the to and we faster continues And the around down in continue see service from wins continue regions knock The data are to full than each LCCs much globe. that. there. change progress of the recovering to say again, steady

but advantage continue our to of the Radixx portfolio, our with with only we'll of that, rest take not So capability set.

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a question of Broome Matthew from from Mizuho line Securities. will come Our next

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Could maybe airlines the pricing terms very as you Thanks, with on agencies of renewed contracts? comment travel much. negotiations in environment and your you

Yes.

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Yes.

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Yes.

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Dave Thanks, Sean. Thanks. and Okay.

Thank you.

to turn for Menke Thank you. not time. And any Mr. at closing further it showing this questions back actually over months. any to like I'd

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like us thank you I look to everybody today to with forward So talking in would future. the that to and joining for

conference today's concludes this Thank gentlemen, and call. Ladies participating. for you

disconnect. You may now