Sabre (SABR) 3 Aug 212021 Q2 Earnings call transcript

Good morning and welcome to the Sabre Second Quarter 2021 Earnings Conference Call. My name is Josh, 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 Josh, everyone. Thanks, joining Thank XXXX our quarter for call. you for earnings second us This an we our morning, issued website available which at on is investors.sabre.com. earnings press release, also Sabre Investor web which prepared accompanies A Relations this slide the remarks, page. presentation, is on call available today's during A replay available will call on this later website of today's morning. be our industry future and forward-looking and expected effects our beliefs represent We to you advise that from and benefits would trends, revenue, others. savings, duration that expectations recovery statements and events, about commercial like of arrangements, the liquidity, among COVID-XX, our expenses, comments contain strategic margins including or and cost cost call. risks materially All involve and forward-looking differ that results from may statements made cause statements to conference actual the uncertainties today's on and our XXXX quarter these contained and is morning this on XX-K. earnings issued and SEC information filings, our in our XXXX Form More risks including release XX-Q first uncertainties be non-GAAP we call, certain financial presenting today's measures. will Throughout also been and today's All call during have references exclude operating to loss certain items. EPS adjusted EBITDA, to most non-GAAP the measures and other investors.sabre.com. are reconciliations website directly for documents at in release and earnings measures available comparable The on posted our GAAP Financial with Officer; and Chief Chief me our Officer. Executive are our Barnett, Participating Doug Sean Menke, Scott our the available Wilson, Dave Solutions; will remarks. President Travel President Solutions, Shirk, for of Hospitality of prepared our after and be Q&A I'll With call over turn the that, to Sean.

been I'd a accomplish. couldn't the us what This our Thanks, by my customers, thank around prouder one and Kevin. challenging another. and Good serving teammates to like have period, I their for world has to start today. ongoing everyone, and for they joining of you all Sabre dedication shareholders able our been be morning, thanking to

continue to as colleagues despite India and like from in COVID-XX. they offices across I'd our work my challenges ongoing resiliently Singapore acknowledge to Specifically,

certified job a India Great that done. In Congratulations by fact, to High-Performance as Institute organization High-Trust, well Bangalore Sabre on was Place a builds an Work the Culture. recently office our to

or the on beginning trends. walk takeaway by at in in impact a CRS improve winter prior pace the on through our have the COVID-XX we spring, next and is quarters, of is travel you boarded, led will early transaction slides, As and growth versus environment to done PBs, passengers hospitality I largest the bookings, region. that faster The specific

the we or our and recovery. important transformation to in recovery, the PSS, pivotal well and the As travel reach service related the passenger benefit also progress we turning systems, positioned feel we continued We commercial technology major from point expect anticipated wins. gained new announced momentum as competitively on work to

across trends Slide to X. Hospitality Distribution, Travel Turning to continued and Solutions. volume improve IT Solutions

sequential significantly XXXX. In fact, the since quarter and strongest of showed the recovery accelerated improvement second the in QX

of bookings has XXXX. XX%, gross respectively, Passenger in July been the July Solutions, recovery, versus hotel XX% CRS the stronger, the XX% IT case As down versus leading, also are in since are Distribution and Boarded down transactions start XXXX. and

July variants see, As you world. the parts other in strong in of the of some of can and Delta trends June to due regressed the in COVID-XX recovery impact the some

is counts recovery promising remain trends travel case case near-term and with COVID-XX have The have impact believe encouraging, in we As correlated the we on underlying remains demand that travel increases and bookings. news the subside, learned, overall positive. a restrictions counts as arc

in data, websites is reflective primarily directly Boarded in sometimes booked Distribution our percentage on for that's answer recovery corporate leisure the that asked is it SabreSonic our fastest, Consequently, leisure recovering travel. passengers of of PB but and rate leisure Airline.com travel these do customers. differences in bookings. the Passengers higher the travelers are than The A not and captured Radixx Distribution and reason type of the bookings. are We of about between

the of in customer change a reflection Importantly, recovering a faster. does not travel this it merely type reflect of behavior, is

America, X. bookings the air standout on by are to region. The Turning North America. United shows Slide positive States, net regions the left industry GDS by led chart weekly Latin The and

Asia Pacific significantly depressed. bookings remain

we but from world. there this chart Today, pent-up the believe correlation destinations. travel the to global safety conditions on safe calls, believe demand had evidenced is be as As the is we at be bookings, to and met and moving are higher ongoing United vaccination and travel, greatest throughout on Passengers to recovery discussed in need traveler we the need changing demand with as of confidence levels planes travel past trends realized convenience. onboard Vaccination to have restrictions a feel shown States. in booking right. notably by to This their the inhibitor direct the have the

removed, or been improvement. As see relaxed have travel have significant we begun to restrictions

For U.S. revenue down quarter, period the in to improved announcement Canadian Similar travel following Distribution leading negative loosen GDS restrictions, same XXXX. booking. to versus our recovery to Canada the XX recent in points last from XX% travel government domestic by booking percentage in on July per down had XX% total example, in the the leisure a by recovery impact April

international vaccination would our and distribution travel which towards back revenue catalyst recent by improvement we illustrated be of by increasing will the per travel, move global removal as expect changes for levels. the rates Canadian a the booking restrictions, We in believe in corporate XXXX or government, reduction and

United Industries been seeing gain recovery These financials. percentage to is seen we XX improvements green and recover, starting in consulting, particularly XX% estate to have utilities most are In government, versus but signs. are points begun top levels. IT States. of Globally, improved shoots American our all in at encouraging We the materials, by and momentum the have nearly now corporate April North travel, July, in are meaningful slower sectors. TMCs the real and XXXX already bookings that have

vaccinated on X. and we the countries from Canada, markets are fully international X are outlined trends travelers for starting for to beginning United We it opening September nonessential travel As States to which we some seeing international other see relates open. travel, positive the additional in is August

are bookings, advance days. to reflecting travel it X purchase The has window variants. puts days also these restrictions we travel trends also average APAC leisure several in we over and to think U.S. EMEA is and and relates about at lengthened the takes, Europe likely put we XX exiting This domestic APAC a American to X North healthy of recovery seeing impacted to response the in compared in in next June believe The traveler actually Because months. across trends. place some volatility other advance are recent faster purchase months and and the Delta recovery confidence. However, change sign over leisure COVID-XX and has XXXX,

to XXXX. normal purchase advance APAC versus the where to advance return yet was days see in purchase region, June trends have days XX We exiting XX in average the

X. June, March. down bookings Turning a In were to XX versus Sabre's air XXXX, XX% sequential improvement net Slide points versus percentage of

points outpaced GDS down which recovery, X quarter industry the bit variant. In bookings COVID-XX July, levels, North largest percentage because the overall June shown Our in has the XX% weaker the versus strongest XXXX the of were to the total by impact due a industry recovery Bookings America, is our region. results than

Solutions many agreements active lines. We in X. commercially Slide business IT and in in or XXX of more Solutions. Distribution our and to nearly Hospitality signed the renewed very We quarter across each Turning remain

added Some Windrose Vietnam, including depicted Bamboo to of are we in logos the in Ukraine. several In airlines GDS, on our notable the this slide. Distribution,

business management behalf Virgin carriers, it Airlines launched agreements system, productivity within the that not and full the with easier through from of and and and July, of for cost savings agency We making travelers. business several come agency also corporations Sabre segment, air booking only companies greatly their corporate Southwest efficiency, the content solution, Southwest This and corporate expand renewed Southwest's announced we booking shop, Sabre's Aegean on and reach including our milestone travel the service that In flights our point-of-sale, integration increased travel travel Red to will experience book XXX, Australia, GetThere. customers Icelandair. into Southwest Airlines' Sabre we

our the the companies On Travel of leading Polani one footprint Group, we expanded agency the travel with in U.K. side,

segment, consolidator, also at agreements Sweden and with In many in travel U.S.-based Etraveli other agencies GTT. agency notable the across and both We renewals and online leisure renewed customer travel number a France also IT our corporate SCAT certain full-service important MisterFly Airlines with reservation we and carrier wins Kazakhstan. in wins large had system, includes unnamed for This airline renewals. SabreSonic, a new in and Solutions, of

workspace, boarded wins these that to in the Sabre intelligence for unnamed plans. products, optimization, over our new offer and This million to excited nearly of strategic also the XX others. The we leverage multiyear revenue digital management, passengers passenger XXXX. is boarded including is advance expected agreement XXX are to base other incremental million airline will large service next-generation signed passengers XXXX on are carrier for help This on key a growth We its have bring SabreSonic our levels full-service customer expected exchange based platform. system

expand with partnership to the excited to and really our are airline partner. its technology be trusted We proud

We these our believe resonating the are solutions in will are soon. competitive additional around points takeaways detail is now. world. We is marketplace share technology strategy have winning you a Clearly, Sabre active with very to with right proof that that and airlines

areas other solutions IT gaining momentum portfolio. are commercial We our of also across

I'm our gain agreement some in Reservations recovery. the long-term has to and Central SabreSonic I to highlight House the largest pleased with Hotels, At including we solutions. hotel remains Alaska both We & Resort signed outlook Onomo new traction, of Oriental, of provider led Hospitality continues with agreements and a African In new largest strong. Hotels renewals, Mandarin mid-range in Curator Lion Availability Air of Dynamic our footprint example, renewals share Hospitality, and others. Air, with reservation And The pricing For Alaska Noble expanded Serbia. including segment. as SynXis with Systems customers, and revenue noted, number Collection, growth the signed PSS

project America the for America. future. sets higher primarily work the is XXXX above volumes foundation by work incoming now This North levels, and in driven implementation transaction Our Latin

identified to XXXX. technology key for milestones We X Turning previously technology.

transition Travel Google GCP finally, reminder, a to Platform. I'm say Platform; CRS and schedule. a to to As of all air the these deploy Cloud mid-range milestones workloads shopping in are second to global is on into the Cloud pleased Solutions our XX% Solutions footprint; are: with migrate Hospitality milestones Google

Texas are me shopping have and the running used in Hospitality, of all in Let and GCP public centers. CRS is SynXis GCP our In for this GCP provide service European air for announced Louvre, hardware production take airlines We cloud At in the for enterprise for decommissioning briefly We more regions. production agencies previously in one running a in is our process shopping that wins running previously details. shopping XXX% new our of is Sabre production. moment now in point, hotel this data environments. in air of

GCP cutovers fall. for planned SynXis to further the have We

continuing in Finally, support to we our are workload Google building foundation Cloud make migration. of mid-range progress

with already full regions GCP availability in several and We with Europe. limited North regions availability have in America have

have partnership completed advantage. to about Sabre integration Google We're respect AI also to remain and Sabre across an platform innovation our Kubernetes competitive of results Google Travel provides database. our engine important with it We other the with seeing are customer-like AI Google initiatives under Travel and With already simulations. continuing strategic us believe promising partnership excited and many develop Spanner with We early we framework. including in Google services, specifically,

better enables Retail initial offer run points reduction at Sabre us improve enables footprint. with cost price; increases which market accuracy significant while the and right produce personalized improvements to crew management, have generated Some future be to seen proof compute travel Engine, of to time demand; Smart forecast reducing we include: conversion intelligence and results with with which

operate. Finally, agencies. would airline defend incentive travel vigorously release of like the and plan We lawsuit in of we marketplace contract lawsuit we the Doug. to which of includes new Airlines ourselves the travel, solutions I to how way one address American before related other the against we a we marketplace new is to travel to I'd with storefront next-generation Doug the a stifle filed it needs our align at We strategic create the turning Sabre model with partners. like shift purpose, value-based remain a customers To marketplace. to create to innovation the and this to with view our topic with lawsuit. in deliver will travel future believe June, initiatives evolve the committed merit and fulfill to personalized new And better a without remain a our our our vision over business call this to breach on And our hand that, one innovation designed and and over that future point. to path for of is and there In to in that want,

Thanks, good everyone. and Sean, morning,

As expected, the heavily in COVID-XX QX. pandemic continued on our results to weigh

X-K. the our at revenue expectation EBITDA recently exceeded However, expectation our in results came our filed of Form and provided end in top the

hotel The versus in versus in to travel. resulted QX the and Distribution COVID-XX QX $XXX $XX that was versus improvement second million, quarter bookings. year, gross million due bookings. XXXX, continued an revenue disruption million revenue when gradual air, we a unprecedented X an revenue QX improvement $XX other global were Recall million, activity XXXX environment had in global and significant negative in of travel cancellations in showed pandemic QX recovery negative totaled operating in significant financial of a of revenue last XXXX. caused $XXX bookings that of significant in net improvement Total

down than useful $XX XX% the and June whole. in were Net compared totaled quarter a quarter which in XX% and as May bookings and million down the second April, in comparison Our more believe XXXX, to XX%, air Distribution we a is XXXX. XX% bookings

domestic and lowest XX% noted, both the bookings than international fee bookings segment. recovered second booking bookings and bookings corporate in our leisure of As faster total leisure are quarter. our leisure Domestic represented

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

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

totaled Passengers improvement revenue XX% million, totaled of IT $XXX last quarter, the the Our versus an million of Solutions XXXX. $XXX XXX versus in quarter million down second revenue boarded year.

business. reduction this partially of service year-over-year the Solutions contract furloughs, cost volumes. temporary XX% mitigate income, actions such and in income offset fees top in this totaled the versus to revenue is we longer-term place end for of live went quarter. came ahead guidance. second expenses the labor completed environment. improvement reflecting Recall Reservation Solutions in In of QX. XXXX year-over-year partially impact on in pandemic. Solutions This IT at DXC System EBITDA, to and reductions incentives versus the the significant And year our count in and Hospitality million of of EPS an revenue improvement quarter increased Because of to the of of in $XX XXXX. from revenue magnified by our the unprecedented exceeded compared quarter, benefited quarter of this versus down QX improvement revenue previous EBITDA employee also also was were COVID-XX in renegotiation we measures suspension of installation The do expense Solutions prior lower impact XXXX. is $XX cost-saving the net previous was was to Central versus professional June, our new down that of certain put of the licenses year-end. Travel second year upfront to as XXXX, prior nothing recognition implementations our in increased the quarter but in the but because in of Accordingly, guidance. and were transaction pandemic were all business, revenue negative Hospitality not quarter. expect XX volume improvement, revenue quarter, in XXXX, place, including due about meaningful head The salary third higher it due put benefit similar high showed to has the our We the our Operating our approximately workforce. XX% quarter. the customers and COVID-XX a in benefit schedule, million transactions totaled some EBITDA the continued flow-through Exiting quarter showed new XX% million, benefits

was Free cash versus cash the flow quarter rate As burn in free of expected, quarter. improved $XXX million second sequentially versus million our last $XXX flow QX. negative negative cash

with volumes Looking expect The the expected revenue structure, our ahead be cost line bookings to our incentives, of a largely volumes. third travel quarter, to in we move of mix. are including variable function to components and

systems; labor to in shopping; and selling third capitalization due increased quarter, primarily technology We hosting costs from expect general in costs inflation. including increase rate; higher business lower our and administrative investments to and volumes, the sequentially

X. turning Now Slide to

maturity As on refinancing you of flexibility. our bolster liquidity COVID-XX a maintain the and over this months liquidity July in After transactions the of X beyond. aware, are profile our actions pandemic. quick no eliminated the raise debt annual weighted $XXX our debt expect XX matures certain average Most XXXX took series last remain our to We decisive at expense million. unchanged a closed debt interest to forma onset with of covenants keeping we doubt cost additional extended over and financial at recently, further pro refinancing restrictive did We and now this our flat, maturity therefore while effort, of average and all to years.

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

of Sean, believe Sabre is long-term I turn to Travel back Before meaningful continue it Sabre's We you trends positioned improvement. to let strength. remind show booking and for investment case.

strategic progress are achieving initiatives. continuing measurable to We our make in

have customer We relationships. long-standing

travel after is We during high covered. expect incremental recovery fixed cost margins the base the

We expect operating the term. medium over leverage

uses an let the We we cash extended me opportunity important that, the have debt transformation, significant With and no lower of are to turn call revenue Sean. and maturities. costs. technology near-term our finally, larger our back with expected for company positioning And

and new major we In Thank wins, you, PSS are bookings has commercial conclusion, Doug. with the deals. new gaining environment improved, traction including

our along Google We are partnership. transformation progressing and technology

with to take product I'll my and and ahead larger once sales that, operator, the around As travel addressable products their world thanking like returns, faster cycle questions. by expect we more And positioned their for again demand dedication opportunities, go development teammates deployments. hard and end Sabre advanced, to innovative with be work. we'd and --

[Operator Instructions].

Mark comes question Bernstein from with Moerdler first Research. Our

beat. good the of quarter on a bit and Congratulations a

don't with Doug. cost So prior and having appreciate, costs you cut then of a X update Can you you permanent. would for the tracking if color mind. how significantly more? line? us on many year, Last more, Any Are to cuts retire tracking follow-up you in Are expectations? give you you're I to questions, being the an spend

I as count. count. originally running No, our head remarks, mentioned in Sure. of XX% my we our prepared We're now head below Mark, XX% cut

savings So are in. all cost those locked still

impact we we've cash? line instead easy. in certain there past. the of hit some Are or as anything trajectory That's advance? payments Should is expenses that we different any of the improve in costs expected with improving Doug, that Excellent. the there's in would components? variability seen specific be Or there travel that revenue in in will with model cash should cognizant QX

There's nothing that unusual I outflow highlight, from standpoint QX would a cash no. in

Matthew with comes Our Securities. Broome from next Mizuho question

So the just of terms revenue in booking firstly, per average metric. segment

on been in relatively about seeing, the to of recent based expected remain Or sort the near that that mix term? should you've is mean, we stable how Just think that? I

Doug try can off why I'll Yes. to It's on. kick add talk think I about. and we

being how sort recovery back As we look U.S.-led. at we've happened, the has of really highlighted it

articulated, we've on we'd basis. transaction essentially, a get that's As that the revenue lowest,

we we the it sort to tried was know... the the fee, place, taking and provide why of market see you the the going to see to you're Canadian highlighted international As and Doug, improvement don't on relative I to regions the relative we that's comments my as to breakdown have open bookings. -- and place you opening begin booking in marketplace up,

see know, XX% as but QX fee and been recovered, leisure saw you as is consistent being we in why that's as bookings QX, North exactly be QX the also normally, because No, our I so mean, it's -- you'll QX well. of booking fairly you between Yes. said. America leisure,

bookings to as rate mentioned, back, as and rise. we international as continue So to that Sean corporate expect come

normal a remember, you XXXX, $X.XX. about As mix is back in

average at we look at from the look get the because worst you as a recovery would mean look that mix, is you the at I Yes. you a we it's booking perspective mix fee. mix, hope relates it for balanced more way it to if when the probably could

improvement move will booking see and we level. fee the is a again, expectation throughout So higher world, progress as to our that

on wins. that, PSS competitive about of process the terms talk then pipeline current what congrats just Okay. And SabreSonic, sort on you Solutions then the deal for little your IT bit And how enough. maybe Fair SabreSonic? of there? Could just factors looks following sort just just more into in broadly. from of played a wins And for the

Dave. Sure. This is

we expect. competitive-based competitive and But So the into a landscape, again, specifics you it highly go that. can't would detailed situation was as any environment around

that, pipeline has addition our our In key all about look we're to couple vis-a-vis advancements and forward years has that been our move orientation analytics, continued competitive-based systems, to drive really well And of transformation, that in. focus our the talked we inventory involved us data are continue that, cloud, the to around and in system retailing-based those last airline pricing the pieces that dynamic-based we've a technology and and positioned some then over And actively transformation. situations to digital we situations with at more think today. our the

next Our Oppenheimer. with Jed from comes question Kelly

not for How be, recovery, guess the XX, your are foreseeable you to of efficacy I going primarily if this about back like recovery pushed come flow we multitude XX the should managing out. think How to keeps flow? restrictions, it APAC question first the of is that, your with seems domestic at it getting months. to cash international travel thinking cash future? ability the Just least different going the manage Great. government would vaccine, free for like a is looks about be the

now, Doug period balance it going as on cash we off, because we to then Jed, be organization, the for to I'll to as I'll related was sheet Yes. also the the there it go comments. cost that some relates what doing knew related didn't a is actually to me environment, cutting steps uncertainty kick measures, are going we the in but to XXXX rightsizing we we're do to what to because time. of let putting work in did and pass the of we it relative as if be. seeing was as And what at outside are come it, to we the and -- starts I to glasses look as you pent-up come to and to this at if finding are the of but United we to those restrictions demand But rosy-colored States. sort is fits regions still the we relates recovery, look that know, of is going for there's travel States. Europe restrictions United sort example, Canada, there's it right into in some you it back there's recovery -- we aggressive happening. inbound as very of look took with to and that When And come What into that

there be to up. to of our Doug cost. beginning slower. volumes of savings. we've the APAC out see at look been going you're that I why XXXX one COVID-XX good is is, we relates at into the it's it as So those about think was it's I pick asked and managing this where region, over When But cost all comfortable period the to feel I relates question factored in to XXXX, put the to I how through time. that end be in, a sit going feel a that's really targets as process it the we it we

this doing job. manage it, I to that and marathon not team Jed, right it's that we're sprint. just at we're great and So a in It's now, sort this is sort a look it's of of -- the way, continuing

future now think the like, Okay. more What's That's getting your that's that your you GCP? talk wins? wins. going. some And you're in mention helpful. having -- you're PSS what update Do about opening you conversations remarks How there? any Can did the looks pipeline then the you

Dave. the Jed, to this Yes, GCP continues. is move

make our past. now in it the is of and air of about These cloud. important about are set. important changes, fully We've continue it to and the When to to comes when piece relationship As Google talking distribution innovation very about talked retailing, general milestones the progress all progress our our more got piece. that talking make some in on I in there. to said, comes parts got conversation GCP we the we've more to shopping continued we've -- We've that good

makes and go test with Some of that we where really we the the highlighted which and is and apply now focus forward as to in we his to just stuff situations, Sean learn, right and engineering and in remarks, the portfolio, to the those at competitive upsell more continue that's existing and structure. cross-sell continue teams the it

add. would I Yes.

think and the what Dave a little relative he modest actually the balance have team done. has I of been to

GCP the look at focus what was it was of you that's volumes capabilities place, of from and it one I essentially able having happening. and mean, with If also a global part perspective, is, latency reducing but being actually was it taking

that coming a us those allowing on to been years the present that portfolio ability go and portfolio, to layer on of incremental it all when these important the mean, what's think then capabilities and as you important. about those really it's team The the If really find and look aspects and that's example, to really really at and working airlines positioning the as you improvements some the to that's over run and I we comments products, forecasting as I how relates these our different you together opportunity, made top crew are that done management have have back happening. tools of and And revenue relates it have capabilities. to ability relates taking past and to is to generation Sabre times to we're AI reduced, sort sort to what several of Sabre really of beginning for it with them Dave

good them. really feel I So about

comes Morgan from next Baer Our Stanley. with question Josh

I the wanted double-click on investments. to

systems could seeing and I on in some you the around labor again that of think it's inflation you're out, clear ahead looking just hoping called on you're of then kind I what what QX for QX. the think, head business count also was side questions. from and expand the I investing in to you you mentioned that earlier

business, to will a our just those the work current else obviously create Workday. of inflation variability to have a pricing right the new system I'm bit be to we're everybody because -- watch we've doing seeing right labor and system it I little on sure more company, the a think do forward. systems. something, we're real now. our SAP We're it's going new we we're be than say the And in It bit to some multiyear going putting little some just now, take increases, company enable to can HRIS going regards by be seeing seeing of on. little to talked us called much right will for I like also With is, a going BRIM about it, I market slight called just I'd Yes. eye Obviously, in benefits keep billing for with investments bit seems the but will labor. now for to some forward, tighter we're think, a but out going called

-- think that we're unique situation. in think don't I I

pressure. a think labor to people starting lot I see are of some

Josh, add if to probably I pieces. been just place. the taking in the what's would Those plan to have that, investment back to relative going

ramp of we of the we steam up. what's second that's part brand to in really been got has in ramping say As into began the and the full really quarter up on mid taking this place. sort work when I'd year, specifically

that have of as part increase side, takes it the well On is normal labor we merit place.

Doug job on we're where within I and landing good that focus managing really doing So on trajectory, team are it. planning it's and a always again, and of

around services type on or business is the And helpful. it that R&D like like systems, integration, That's of... professional

that going are helping mainly to to projects, be be yes. do professional to third-party going us services those It's

if Got And could ask I another. it.

today's you're GDS -- versus leisure delta on if and just between Airline.com corporate. you wondering mix, I'm going boarded and mentioned that's leisure wondering XXXX, is as the the far the at the through caused domestically booking bookings by the domestic leisure, in more you're look there as if Airline.com And how or any behavior Just versus domestic to that seeing passengers group domestic through that within flights as you environment they're change GDS? within

very haven't the No. go mix And that's more unbalanced. you I out of goes that sort direct, again, see you led as when trying come And the what as it of relates look GDS-related. this we're what also leisure business to and sort to that's international the is back you be back -- of going going just if and layering to on see point of you the is back, at you recovery recovery, -- mentioned to the part --

So the Airline.com. improvement just to travel really up TMCs. don't seen with I U.S. we anything back to in picked business the international have looking everybody the it, and as on business layering relates what's happening it the for like on really the the I traffic with and hope see is outside the We're mentioned, And we ordinary travel.

perspective, something is as important of is vaccination a are that's points I not definitely are marks think from and meaning COVID, in seeing think open, are out a there. what I is as we enough to we about early have lot there's markets when demand there, really is recovery. the question on concerned comfortable, demand. we this data relative And I'm people

when about demand. concerned I've I international as does If of actually concerned you'd business is year demand, and the more about up a good marketplace just ask I as ago, back. opening it about mix feel and to back? not that come come was probably It's me back. going seeing come I'm demand been

Our next with Neil Redburn. Steer question comes from

disagreement can the the I that but think to fully of Just that what to when quick as the would know couple seem NDC-compliant? time, solution not limited very NDC-based you're solution. on think say, crux really actually probably lawsuit, do Airlines you have that happened last Is that? an spoke we a the Delta it's you American ones. of I been had

know, Yes, been you've of at When and the of sort And story. am a following mean, I -- this. say. bigger I I it way you I Neil, into thinking about as we look can go in what limited

structure the we're the to years, feedback. model And several perspective, numerous from evolving strategy, moving today offers or if NDC same commercial our and acquisitions, customer And acquisitions that want it sure airline is what do are with to and airlines around all engaged the their in we world past different about be on this the and want how our creating an they evolving want response how we it the way. understanding we of desired them help and essentially is in Doug ways. different make Dave that evolve to or the evolve is sort to investments Over business, technology. offers forward, And airlines talked really focused

really to is I agencies through same we travel think the side, as going to and when about, which thing at you that other NDC, talk you always it's the the don't about the to relative think the we brought think about The really airline time. enabling lot the have offers what's forefront a GDS, think happening about

So to comments, be in again, limited few. those a Neil, are our but have we

Okay.

any sort you follow-up. SabreSonic win. of Obviously, in were the forward? the to already over the customer bear customers modeling the Just all retain or year one be Did the there half the congratulations of able going significant first lost mind SabreSonic to new quick on SabreSonic of ongoing

is We've first change. retained Dave. customers No the through year. this the Neil, of all the half

Cheng Our Victor Bank next question of comes from with America.

side. my from two Just

expect to are able wins best the are there any seeing that wins them whether of more new you know And the rationale relates couple Is announced, question functionality? competitive but in the you're changes distribution On the the the should call, asked you you you it it -- second I airlines we to that in the PSS, comment in then migrate for particularly was to comment or on current the come? are similar better just earlier to on for on environment? able dynamics side. to deals And economics the

share in particularly on early happens, recovery your gains any are domestic, you As seeing U.S. versus the signs competitors?

is this Victor, -- the Dave. on So

on is seen what very me we've competitive before. I the made Again, the comment in to Let similar very past. It to dynamic. comments similar what

always imagine, these can are you competitive very As situations.

on to around, has of in focus We've and our lot been distribution thing put it we differentiate the Our these continue and technology that pursuits, is confidence retailing our a instill really transformation. in and into capabilities. energy

through transformation to been the pricing, the a the in of management to Helping assisting solutions, more discussion put the in and nature that data of show of that the and effort And activity and nature a retailing digital with and continued we've a have our set. also then the analytics, we've around we has of of undergone. moved As and data advancements up big some settings and the of airline that, kind situations, revenue the there's we always significant well into to comments. of and we as movement some a availability pros over last very dynamic in product technology years. our we've Sean that very It's but into been inventory as and transformation have that in capabilities capabilities the highlighted underway as continue couple positives his of large that number of the get some advanced terms in system differentiator cons, part these

So resourcing carrier no cycles that a showed right the bit just little the more given nothing would -- now from is different elongated up in say and that we're environment past, from I probably dramatically that the perspective. just

to And take on thing going it as region don't looking then because on down as relates a recovery recovery, I'll you at broadly. be one think up it and more your U.S. away be basis the -- domestic happening. the just be lumpiness it sort share. at leisure of and be look of business, the thing you a more question and it's to sort we of I'll to global see backed -- for we because appropriate at just second really The while or Victor, recovery focused and were if looking We've it's of -- it's speak share versus

sign wins. just solutions comments around or deal IT of in in? more appetite of the coming timing terms that's Is one the And airlines then on a that increasingly PSS have follow-up kind for quick the sorry, that

have I think to it carriers break between carriers. and down full-service I low-cost

we've aren't happen full-service carrier stated side, past, frequently. these the as that in things On the

no quarters. different there's in what that than again, characteristic we've that's on So commented past

changed just are isn't the marketplace. but as in are that perspective, you that would smaller activity, So basket there opportunities of from a clear see, the massively appetite

the to continues pipeline side, On this grow. LCC

We continue that to opportunity. see

to cycles. to see advantage recovery first take trying continue the environment, We of the especially LCC domestic from carriers

And that Radixx well, and space so particular so with portfolio. as we've been do to we'll very active our in continue

Instructions]. [Operator

Wasiolek question Our from Dan next comes with Morningstar.

the and quick on evolve. model question a it longer how So potentially business could term

percent the economics? longer-term specifically, And you versus if on envision how tied of So booking increasing mix value fee? to of so, contracts impact might do that flat

Yes.

part that is this landscape we've focused evolving the I on. think been of

over incremental value-based Several from something our think set is to with retailing, to fulfillment, of on to so to we'll receiving more be needs it. both forward marketplace. sets it's going very continue the so agency again, the goals us, of that. the that that benefit focused our we changing is channel well of something drive go want try the certainly been change much, will much it particular that's product the make our and around and a I we've value that distribution path things we that. to that that, try to it carriers and been already lend will not more very align clear percentage And focusing as very, around to themselves overnight, in and industry, with time distribution evolve That's customer really but

change to XX% at to, I quick of pre-pandemic then one prior XX% Great. Okay. Any breakeven follow-up. And just flow believe, cash guidance levels? free for

No change.

this to further for further showing call any over turn the to I Mr. questions back time. remarks. not I'm would like at any And now Menke

have to quarter hear would to all who Once Thank again, second of results. participated like thank XXXX Great. you, I those Josh. our

of can see, future. very the pleased forward good As made. and have I'm that the with progress a talking you in I'm day. to look organization the Have proud we to very you

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

You disconnect. may now