Sabre (SABR) 2 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the Sabre Third Quarter 2023 Earnings Conference Call. My name is Felicia [indiscernible], 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 Senior Director of Investor Relations, Brian Roberts. Brian, please go ahead.

morning, good and you, everyone. Thank Third Welcome Earnings XXXX to Sabre's Call. Quarter press we investors.sabre.com. is issued morning, release, an at This website earnings which our available on slide page. also remarks on today's which Sabre during the web this call A is Relations Investor presentation, accompanies available prepared today's be available of this website on will call replay our later A morning.

the involve differ contained uncertainties our industry of forward-looking about costs quarter results earnings you information statements risks targets, cause XX-Q. and this benefits expenses, including actual cost call. from events, We free the future today's and EBITDA, technology materially and our third may recovery impact uncertainties represent transformation, and is Form cash COVID-XX, in outlook revenue, that filings, including expected among strategic priorities, the savings advise and reductions, statements and extent that to effects margins that statements these from our our risks XXXX comments More arrangements, liquidity, flow, adjusted morning conference SEC our contain made the and on and on and trends, our ongoing our from expectations of issued beliefs forward-looking commercial or others. release financial strategic All

EPS comparable the reconciliations investors.sabre.com. GAAP at posted have been Throughout earnings our documents adjusted and adjusted other References available certain and to today's non-GAAP adjusted free net adjusted will and on flow to presenting adjusted measures income, margin, exclude directly non-GAAP most financial be cash during certain call, we also measures release measures operating call EBITDA, The today's for items. are in income, EBITDA adjusted website

CEO; Scott available EVP are of Solutions, and Wilson, Financial Randolfi, be the me Chief Mike Kurt and Participating will remarks. Ekert after President Hospitality President Q&A prepared for and with Officer;

will turn to Kurt. I over the call With that,

today. Thank joining you, thank morning, everyone, you Good us Brian. and for

exceeded successes, well expectations, third with our commercial accomplishments today's strategic our including new recent continued that partnership successful and the to execution have developments a Google, had call, as We development financial as quarter on of articulate results in a and important number transformation. of technology wins

expectations sustainable operation quarter, In confidence drive momentum a exceeded the this more growth to that our earlier performance delivering us continued. with strategy that our and results. The is in efficient third year gives saw are we the positive has we financial

X strategic the and are foundation shortly, strategic I resource and which review allocation will form Our priorities, of decision-making. unchanged

Before customers. the allow sharing members work for jumping Sabre's into of our possible The commend the our employees commitment would me the around hard the all not all results of needs call, their of we strong meeting without team be today's to dedication details of morning are of to world. and this

walk overview topics through you and On will the the cover. for Slide I agenda see of will I X, today's Now an can call. Mike

will from ability I give business the describe quarter, highlights in Sabre's deliver will priorities. review and First, fundamentals trends that the us our our business third of our I and on then to confidence

progress innovation on successes provide technology third then the our during the and on willl I Next, quarter customer and transformation. update details our achievements

will through an quarter for financial Mike to Finally, update third results XXXX take the the you outlook. and our provide

Turning Slide to X.

for X in mentioned priorities the drive have quarters, these the key long-term the are strategic recent that we direction As company.

these refer progress objectives. our will I achieving that I towards As each highlight to accomplishments our discuss priority, of each

First, objectives. financial most sheet remain generating delevering important the our free balance cash and positive flow

to revenue anticipated. cost Solid combined we growth QX actions meaningful better than results and had deliver

Sabre of future growth leverage flow-through quarter. to XXX% translated tied which potential growth. operating the flow-through top of deliver to free revenue into nearly adjusted a solid of helped This EBITDA, the illustrative cash flow performance Our in is line strong

vast derisking describe will taken our of majority also XXXX toward have our detail and to beyond. extending steps significant the XXXX we Mike later, out maturities by in more as balance And sheet

our industry a distribution increased of Sabre's second long-term share third sustainable we achieved quarter. again on is which year-over-year bookings to basis air growth, priority, On during the

We third as agencies expand results. with show to and efforts share the second continue positive airlines quarter saw from reach our to the our sequential also to both gains

In achieved addition, a topics I quarter, am details announcements our customer I and pleased wins and product will on new with these that more recent we in this provide moment.

Hospitality Solutions. Turning to

well agreement strong in to line keep QX. with team incremental top execute Our delivered include bottom the by growth in team not mind yet this the Hyatt. business And our recently year, results excellent continues announced please and delivered and do that from

strategic recent developments about excited enhance and with customers. third propositions value is I to that our new which existing support the priority, am our drive innovation and

the mainframe our AI other technology key and this powerful pace another transformation been moving of announcements strategic Several Cloud state-of-the-art the years, past Google Sabre show migrate our machine capabilities. and engineers to of of over and from at has products team solutions, Google's recent partnerships. results been to has While utilizing learning codeveloping few

and this Under unique from of powered static and For with example, Virgin airfare to IQ market rules more Google's insights to learning Ancillary our machine technology. Air real-time harnessing solutions capabilities retail Virgin IQ that by level in revenue utilize to takes agreement, Price part the deploy our carrier's pricing AI-driven to will of Australia intelligence management offers. and ancillary Sabre's dynamic power next our suite, Australia the agreement flight new next-generation move solution,

in addition, product we airline combines Hopper. and will management bidding bidding tailored process Google customers premium to and IQ, communicate PSS-agnostic is cabin Sabre personalized seat with inventory. advanced launched premium travelers solution both the Google's languages. to help to better powerful revenue In recently offers our manage This by AI enabling in real-time multiple airlines a that more the with deliver with partnerships of Upgrade facilitate Upgrade platform technology Hopper's solution IQ strategic our

preferences new Sabre where segmentation capabilities we hotel the significant marks our new which technology to AI services property AI This better offering and lodging suite Also, align customer introduction Google's personalized retailing embeds opportunities deliver machine sector, distribution. learning of our see to launched more solution offerings. intelligent into advanced with we Lodging to expand hotel the of to attributes Travel trip

our technology continues cloud transformation the Last, on to schedule.

are cloud both realizing infrastructure our strategic partnership. go-to-market and and Google gains efficiency advantages cost We from

addition, and are annual track that costs reduction have discussed. we are significant our financial previously XXXX, we In reduced of benefits realize efforts, full on from million cost in to seeing the $XXX we

focused In summary, our employees value during customers, remain the shareholders. creating these on and long-term our priorities we third our quarter, team delivered our and for on

turn X. Now Slide let's to

cash cost efforts As expansion in generated and growth. meaningful I our resulted and margin adjusted EBITDA flow to drive mentioned revenue previously, lower a free growth structure with sustainable strong

the As to our and EBITDA of see adjusted accelerated improvement further the third chart trajectory for shows quarter, ahead. this opportunities growth in we continue

Slide X. to Turning

we our table QX on to again calls, industry of increasing quarter. can sequential share year-over-year used bookings 'XX During versus 'XX, our recent most you a GDS highlight that expanded we basis both have in share QX as X see, this the versus on basis achieved. earnings last a And and

pleased us gains to but deals, a date with that not position signed strong continued results and and distribution for these We and robust offering future share yet competitive our well growth. expect are pipeline implemented GDS

you successful X. I am Travel a and both Solutions. business Slide today Solutions Hospitality with pleased to that product of offerings turn wins number span review and differentiated Please to

SynXis Most we Hyatt our with in reservation our We notably, implementation to are well continue work advanced to system Hospitality see them in Solutions. technology. significant with central provide momentum

Our that platform allow will improve of its will Hyatt experience guests. offer enhanced the to capabilities

to begin in We the Hyatt with expect XXXX. of to live go starting first half

recently hospitality Hyatt, work In the addition our improve provider, and enhance to Australian infrastructure. Staywell, with selected IT large SynXis platform to our their

a tailor to NDC-sourced deliver provide with France-KLM to greater and This France pleased offers personalized and content with with sophisticated were while to includes that choice increasingly In continuous KLM agreement transparency customized ability Distribution, Air modern Air by NDC offer new with bundles. edifact the global we pricing sign offers technology. agreement reselling and along travelers distribute powered content will travel enriched enabling to

This top In second industry, complements Air week addition, platform. a within GDS for with bring to global Sabre's that India's existing the our international domestic a that airline we this April. carrier's in earlier announced to Air content XX announced content agreement we India, agreement

GDS exclusively customers the our scale only the highlights our content and rate domestic Importantly, one agreement new Air to this was of of reach outpace and to global India's previously potential Sabre's and value industry. offered growth by our in

of with network Group, it America's enable services. We products Airlines experience that will also Latin as agreement range enhanced new content of to thousands agencies. agencies buyers LATAM to as airline to the distribute an goes hundreds carriers even richer Once have its NDC and well NDC signed of Sabre-connected recently and largest of LATAM's an traditional broader with travel edifact Sabre-connected a live, offers this global connection

content agreements content. expanded leading at and technology are ancillary including signed with also agencies ecosystem Sabre. leading these seamlessly incorporate addition these to further continue are Virgin offers and important airlines to carriers, from significantly new These Airlines building In evidence seeking we modern NDC multisource to provide hard fares priced with personalized alongside Australia agreements, that to work to next-generation solutions Scandinavian and access travel we And choose the offers travel services. other dynamically

and agreements with the a front, number Chinese top announced. Lastminute, European deepening with growing renewal Tide of some Examples based a Unififi, a large the America, cash QX, Square, and with packaging, our high-growth new both OTAs North specializing and into of we signed growing a of customers On of dynamic which Korea. win in our with in we include agency new a have agency business in relationship existing one

This intelligent Australia bring Ancillary all the to AI. mentioned earlier, help and solutions. Sabre's solutions Solutions, to by real-time dynamic IT more move IQ as Australia In will Price selected intelligent Virgin power offers, partnership pricing IQ powered our retailing of Virgin Travel and Sabre Air

quarter, a to Saudia's with SaaS. agreement network with an to also SabreSonic a and migrate Air we the signed Safair Serbia, contract Raddix optimization extension and planning During renewal

us number summary, third wins quarter commercial will the during achieved help of In deliver a Sabre our on strategic priorities. that

now will X. turn transformation. to technology Please Slide on I move to our

deliver savings on Our previously our technology operational transformation articulated cost track and targets. continues to

basis. of see the a overall off technology Google our the significant decrease that the As year-over-year helped unit the in decline. gains reported efficiency on in at our cost third have we adjusted from drive you to XX% the costs can of we moving Cloud continues The in table to compute quarter seen right, mainframe

the operational year-end of milestones, on are communicated previously. by server track we as we complete to have mid-range terms Tulsa In exit

our and our to capabilities, competitive travel to of leverage both our and within better and continue to expect experiences buyers and offerings suppliers innovation Overall, we cornerstones marketplace. technology overall transformation important deliver strategic partnerships are the global to

utilize priorities and strong expansion delivered margin flow, the generated customer Now best-in-class XX. in to key an significant strategic the third In of we that agreements capabilities free Slide compelling on important partners. again our technology on closing, and quarter. launch cash products We our signed

am strategic delivering results delivering financial Sabre is of to well our coming confident on that the for am and proud priorities our quarters. in I team these and continue I positioned

will the our through our I over now Mike full hand expectations. year to to quarter XXXX and performance walk call you third

good everyone. Kurt, Thanks, morning, and

XX. Slide to turn Please

number you mentioned, As work of of the Sabre we highlight share Kurt to members. hard have that a with team accomplishments our

in quarter was third key strong Sabre an point strategic our several of and a financials The and for quarter important metrics. inflection

We quarter revenue cost generation. on strong flow significant in that exceeded to guidance the and led actions and free margin growth cash expansion solid

incremental nearly Our technology costs steady a cost a falling and The XXX% revenue dollars drive growth flow-through year-over-year announced on reductions EBITDA. basis. led of powerful operating costs combination of helped to to adjusted transformation previously revenue and down

year-over-year from results to faster is year EBITDA than As million cash operations and in flow. this year. versus year on an drive and improvement Hospitality you we adjusted now this in approximate strong on this Sabre improvement can had free continues better generated last track slide, produce to Solutions see earlier financial anticipated cash $XX

out our maturities our recent cash XXXX, prospective future aligns free better to to maturity flow exchange with extend schedule. debt Additionally, offer debt XXXX our debt

an inflection third Overall, the point. quarter represents

potential forward. are on a the generating shift of years out the Sabre's meaningful to and few represent financial from We delivering the strong trajectory results are path that set last actions achieve and we highlight

to turn Slide Please XX.

are exceeded third for adjusted our expectations As seeing the see and in free you table, revenue, and flow, we we we EBITDA encouraged results. cash are our momentum financial by can from quarter the

our margin and revenue flow has with generation. Strong base our coupled cash lower increased have actions generation, to taken driven we expansion free the cost

free quarter's high at is flow approximately This years. X cash generation

million, ] versus XX. an or $XX Turning to Slide Full last $XXX [ was million year. of revenue QX increase XX%

to revenue $XXX a million Distribution or million, QX increase in XXXX. totaled $XX XX% $XXX compared million

XX to increase Our quarter, XX Distribution QX in bookings totaled XXXX. compared the million a million in XX%

in $X.XX profitable of third into fees. booking was more and quarter favorable higher regions XXXX resulting travel, the booking realize average we continue QX up as in types Our fee X% mix from to

totaled driven versus in majority revenue This law. the IT which prior million a was comparable by of Russian Solutions order. decline the of $XXX vast de-migrations, result is $XXX the $XX million revenue million of changes year period, in

totaled revenue $XX points revenue an year of Central million million of improvement year-to-date higher adjusted $X.X XXXX. growth per points tracking approximate generated was and X to quarter $X.X and million, this XX% improvement the growth transaction. Solutions Solutions approximately by Transaction basis points of adjusted is XX versus revenue QX EBITDA of The in in Reservation rate and $XX million million a an EBITDA million Hospitality $XX of Hospitality on versus or $XX 'XX. X Systems driven third

expect live should Hospitality Solutions. already CRS recently our we momentum to to addition, in In contribute go we the which are with XXXX Hyatt, in seeing deal announced

EBITDA adjusted improvement a QX XXXX QX XXXX in million million versus of $XX million in Sabre's $XX $XXX year-over-year. represented

QX move I virtually quarter, our that flow on, the million EBITDA million year-over-year in $XX increase will of of including which in revenue flow-through the we million million. significant I in same the our XXX% the million. adjusted free XXXX cash positive quarter approximately a $XX that than charges, better represents achieved Free prior increase impact Free flow was cost Sabre than of year-over-year Before in prior QX highlight of restructuring, third $XX The period. program $XX which the was was $XX cash financial having the our impact on over performance. is cash excluding million, of guidance third the was better guidance flow, delivered first flow. has This our free impact was since for cash restructuring $XX reduction

third a the balance ended cash $XXX with million. of We quarter

in recent sheet cash During million most connection the with financing. balance in used $XXX the quarter, we our from

address Before actions let's took XXXX our guidance, moving the to to maturities. discuss during the we third quarter

debt cannot thank enough for to hard the their our which XX. Turning trajectory, work maturities. our facilitated I Slide shifting of the on team financial actions

offer recent nearest of Our vast majority executed have term debt XXXX debt in facility and exchange June our addressed maturities. we the the private

the the balance at end of the exceeds on cash have we the the the maturities debt Importantly, end XXXX. sheet of cumulative third through quarter

our Moving Slide discuss to to XX guidance.

for billion we for our of last revenue But $X the full For revenue of year, $X.X $X.X higher XXXX from we at $X that billion, provided February billion and between expect the still between quarter. end unchanged billion. in initial expectations and

improve is we revenue generation $XXX and continued for to adjusted EBITDA February guidance of adjusted Moving to adjusted we significant $XXX We our between have taken EBITDA. growth, $XXX our We and now expect adjusted EBITDA about for of adjusted the EBITDA $XXX million, full with approximately prior midpoint year initial the moving above of approximately coupled believe improving provided EBITDA the quarter million and XX% in cost for actions guidance XXXX million. last our of forward. the margins above efficiency expand supportive million

we for in approximately the cash includes to cash our our flow restructuring. XXXX, million excluding of in interest noted XXXX expenditures full free million $XXX year as and call, XXXX. be And year $XX cash prior approximately This on earnings full positive costs expect for the assumption for an flow, of free capital impact

XXXX and are earnings XXXX we long-term details in more in and and planning We call process, targets expect outlook provide to on QX our currently our annual our during February.

points growth for have included to targets quarter. In come million free industry air sequentially levels. assumption $XXX million recent X air industry and quarters, XXXX in growth our these we of reminder, for seen volume below a As in volume per EBITDA cash adjusted an in $XXX flow X

discuss and call, each bookings when between targets, of point air we earnings $XX long-term our is basis. indicated our XXXX an worth As approximately on annual XXXX EBITDA X on million growth adjusted May in

generation. with offer on of outlined our free operating that conjunction maturities In an represented important step call. closing, cash XXXX In adjusted in and for meaningful performance items, debt these this steady and the in exchange on and flow extension growth nearly earlier flow-through delivering expansion revenue XXX% strategic significant priorities EBITDA, our drove resulted our margin quarter Kurt which of revenue to

that, line questions. please open for with the And operator,

from Kelly of Your [Operator comes Instructions] the question first of Openheimer. Jed line

if I Nice Just may. two, job.

an your in any comments, outlook? you costs annual basis. change mentioned airline costs [indiscernible] think industry slowed that mean right to down I growth highlighted. similar Mike, there of EBITDA incremental tech adjusted previous you forward? is going EBITDA your on the down kind Your on then growth to $XX were those And are 'XX And about you 'XX? velocity expecting million XX% way about the Is going back, following just of

the question. progress we would May. significant we made way quarter there. highlighted in is program SG&A. What of Yes. expenses trends and for or reduction and someone our costs, tech articulated the is The cost had resource what back Thanks when taking we've and talked in about revenue obviously, first highlight expect beginning, tech should realignment On expenses I for cost the a

those, the then million would annualize in -- revenue. apply you costs you what would drive About to to -- of that would mean year. That it would terms of If would about that's those and this subtracted the the reduction tech SG&A cost $XXX that and million, of and our cost annualize about apply I $XXX cost occur be would XX% apply and costs. you reduction resulting trend XX% of to XX%

expenses. are So expect on trends we to the are seeing trends would sustain you

other would of of it next and Close costs technology costs, the in the that reductions that to of million target our back in in build may we $XXX reductions the toward at May, part in guidance would XXXX from couple out recall 'XX provided years. be improvement technology articulated the costs. that of you as come we the looked both X/X Jed, and we

further, about also to of just I X bill, talked approximately EBITDA then that really $XXX components. May highlight So $XXX component, we about that approximately talked are first we as XXXX. call, million. The million in to And Kurt XXXX. and million our of mentioned, there bill highlighted EBITDA adjusted what $XXX And in on adjusted that very would from XXXX from also going is

we from at cost around million for $XXX just the this and we and about be expect cost of realignment resource XXXX it, much bucket remainder being you non-tech the benefit and to bucket. savings which program transformation rigor today. With generate the the on technology saw 'XX cost $XXX then that of and comprised year, million would costs, very, track, which our that of here nonlabor reduction million least $XXX those also to very the That are see of

The second our initiatives. growth strategic was bucket

was recall, you million, at that $XXX Solutions. Of Hospitality $XXX that least million, at from or least bucket. to $XX would If that million expect you X/X attributable

we year-over-year seen second $XX we've which that then retailing, you share. a is part next You sequentially see things and business. payments, really be well. gained And part all airline the And million in significant both the shift or like share basis. of are the on that then And could would this third it of that really, trajectory market the quarter, growing really, see increased

point volume. piece, is The And as the highlight, third $XX you approximately each million. bucket, is volume

upper telegraphing, to it, Also, airlines offset have there's -- as mid some the third I'd been forward we and highlight generally to telegraphing call in are that volume. in recent what we look with able noted revenue we has has To GDSs. cost. X we the to capacity flattening with that -- favorable skew is as date, look at accrued volume. seen growth different mid-single at period, international the In the quarter, components historically as look in to digits and more historically Now what the we've they're

And what moment. at so that's we this

XXXX what and February update and our respect in Beyond going years. is would XXXX that, right we're to process a you come fulsome We're X I planning more now. with the on next that our planning say working through process back process to

Yes.

follow-up. one Just

didn't -- the unit Air incentives from heard just because contract. you was prior to to Can go I've the Just on perspective. prior India management want speak management team, market at into you that to? they tough your historically India a from agreed economic

the distribution Yes. India Thanks, one in markets of is largest the GDSs world. Jed.

in had the India As prepared there. the with of indicated we Air our ], of exclusive content one which [ larger competitors one is remarks, carriers

the us. GDS addressable largest in largely So us, to this markets not was previously which or world unlocks one the for of available

think as and the So customers we share Commercially, think gain share in technically, world, sense for this. makes and as of the about the we agency encouraged really we're the for and deal great our gain there to done parts we've about us opportunity well. emerging

Stanley. [Operator from Instructions] comes Baer The of Josh next of line question Morgan the

wanted to ask I NDC. around

in think NDC announcements were press several releases you. months couple there I the of last for about

still like what's ask product think the as your as sort you a solutions standpoint, compare investment offerings Just momentum Are or of wanted looking now of driving around like your NDC and standpoint? NDC a how areas far competitive ahead? to from there from investment

Yes, Josh, very question. thank for you the much

airline the So a distribution part of everything and intermediary I see very today, BXB And help sell small a is their XX launch BXC. many of about range this accomplish X% as is and we're dynamically we in to from this said, that. more from a after that to world NDC you've NDC And a approximately, can -- construct. experiencing. had years as desire heard the a inventory in what mechanism that do carriers represents in That seen around is they

become and rationale to at airlines it. we help as they sell intermediary, and strategic as want better their So product to is as And sell better retailing. differentiate an want there airlines

into X efficiency that example, to them things plugged and happen in things node and without to be the the buyers, for building things you it's API, user drives one simply the very the not do is so, degrading their content is existing important, manner that for but infrastructures. corporations about those drives is this if changing that more plugging functionality for the as the agencies, a just NDC What's of able in that works airline and ecosystem in of experience would into is required

I will time able So are have out [indiscernible] use for to so new tell to to cases are are of can year, full the that XXX the required that. the ecosystem built unique that use example, are that we able about the balance of you, customers, by make that sure end cases and there XX% by we're the

that We've is what talked the seamlessly both to that in about the believe EDIFACT enables and suppliers both then any we're for distribute NDC the community. producing and consume be a term sense to we're again, what us use We for onward will the normalized long industry and platform multisource makes buyers the a but building in best and that in a that content through it support buyer the fashion content platform in world. of the do way,

future very about go NDC is going feel good years. we in So where to

continues Yes. an forward-looking I our add NDC forward-looking that grow that is only forward-looking to commentary on And the that commentary thing expectation and would is reflects discuss incorporated as in we that. commentary

flow. the one sort in ask Perfect. of the million free to EBITDA $XXX And just if cash could I in plus on million going XXXX $XXX

numbers, working You working some through could bridge thinking cash of taxes, the assumptions in on that but to flow. just capital in then interest, talk through capital also those free just

XXXX. 'XX. is and in 'XX beyond But just into I to on working we'll Josh. on that many provide time, more that, too at not You're say fulsome assuming February would impact a not going go negatively significant are in What on update capital, a this positively either we or specifics

Wasiolek The of next comes question the Instructions] of [Operator from line Dan Morningstar.

you kind provide coming going how the much million said in Any just you guys the at back think what that then this begin color gets to in quarter can would from frame X/X? So hospitality. half growth have I it on X/X XXXX implementation the year. that it is of high guidance, that first of the $XXX would will And guys Hyatt? time you next anticipate you for on said to know you be I least

Thank Good Yes. you. question.

at we from EBITDA see once of Solutions, now What growth Hospitality them again. hotel an we looked attachment. GS between of just the So that at growth expect X/X from to we when And color payments, articulated X/X to of amalgam from X/X share $XXX we look and million initiatives, and strategic retailing airline was accretion XXXX.

Specific the CRS been details which not the we're getting to this at demonstrates our traction with out to leading CRS provider. mid-market ] of But has going but agreement the basically we're break in [ Hyatt, win is of with indicative SynXis, to it Solutions space. compete the enterprise hotel Hospitality traditionally ability the Hyatt that and

and value it And lead what so I about detail to could Wilson, he Scott do to to give if we're the HS, is more want there. turn over implementation the that bringing

Thanks, Kurt. Thank -- yes.

continued we end is So with year. we'll you in The by mentioned, to half But the as important are and it of implementation, going really with a that actually here. be be vastly by couple things year we cure believe of that let's start piece. starting next first the the of

great revenue Hyatt. partner expect we by next contract we of that through accomplishment So be is most think fully year, that which the is our team a end realized the that and gain by in of to going just

platform. SynXis this to the continues enterprise outside areas strong rates fact win they've renewal been talked the very space Overall and of the The of some market. We as within at continue the business second have since actually highest the pandemic, in the about to in we be new highest Kurt ever year well.

space hotel something around introduction space, is seeing upside third hotel we're retail the as more a new retailing TAM And bit good for mature a of lot but us is and the in in the really traction growth the space, airline key this studio that in of that's little unlocks the which which on year, well. a piece has

about things $XX You combined, that take by and will million of contribute those the we end that very time. good X feel

one. more been then color quick Okay. on just can trends And just in one give helpful. how you can your Great. your have booking Very regions? Any I squeeze over if that trending key

in part, just I you it America What North in XXXX. that like a still the to that's Latin mean, is we've probably Europe recovery terms seen. Asia is terms little more last little talk the months, a but recovered. relative trended about we're versus the most bit, seeing bit the one of in say We've I'll know, trend would mean, seen few I notable. XXs. what actually seen Sure. we've the over seen that's recovered fully XXXX you've as in I generally is and up back what mid-XXs. back is that's a of little for America

of comes the [Operator Cheng Bank next of Victor line Instructions] America. from question The of

A couple, if I may.

over this volumes a booking, point you X% -- very you it United pricing coming per Just there's about couple color? on I'm Obviously, is asked that are I us in the have going back improvement more to Airlines give seems into often assumption to the improving. mix some can American some book. sure carriers, solid. And revenue element talk business for per the down on off? or question And depending question associated has I bit last what leisure right the region ] want to on well. way revenue and the presumably one the as mix, months, Tier a of am does is, mix. tier moving with? it Or bookings is about seen revenue I we to of on and NDC, But the NBC [ as think? that that booking Is which X lower the -- per maybe are airlines home matter it ask a The year-on-year tailwind mix moving

you. thank Victor,

me and to then Mike. turn start Let over it

only marketplace. all, the GDS today X% of about of represents first So NDC

on per average booking impact small. So fee is the the relatively

That's important a thanks. Yes. very part. No,

seen the -- So our the favorable. seen favorable. it's mix, And driver been that within primary pretty we've mix regionally, be within is really we've really, carrier the mix

globally. the to is from from our see, on X% average NDC of at fee. intermediary maybe represents X point, of has booking But is been due really average stage to the we that have to a where everything industry. small minimis Kurt's carriers We part is de very the [indiscernible] X% NBC higher. very, booking impact this distribution very, fee And

percentage of And is Yes. some shifted bookings. of GDS NDC -- they GES about opportunity? if data get Got as ] capturing bookings that Kings, a talking the is to of -- was from about as XX-plus that roughly think percent not that ARC I U.S. some still you. a at just NDC as U.S. that indirect looking talk mean [ does I bookings whole It's said

question. you for thank Victor, the

X where they inflated started One GDSs. NDC. things XX have in without get the Direct back done Connect airlines, ago. is there's And use industry. of the called other think that Direct this basically years XX is have OTAs and is Connect, I the larger connected with that to direct typically

represented industry. that for nothing ] airline of example. distribution. line So [ will be new about United, And in while, think that's the with that, intermediary XX% we That global a has for price

you albeit within structure basis. XXXX, of forms though, pipes. all versus through been in that, if is you, what either. We of construct terms know basis that unit of in think recovered marketplace. that was the leisure don't us believe know, And those the substantially XX% distribution tell on that traditional to look it of I dollar has the to through on NDC of in seeing other much a is in business and there's I look not of Corporate, sector the change what outside of don't as our we're higher flow is continues What any can all XX% you a about change a we

that change. for within new calling there which certain are time has again, you activity So within the I a channel, carriers quite there think direct have is see we the been COVID, intermediary marketplace, preceding be net technology. there of But any period that that may long true what don't that

significant Yes. NDC similar look Europe would impact, where and a the economics we're that highest to little of NDC think maybe some has bit agreements to But you what about XX% the expect booking you with see for the what you our economics, of most a so today as around seeing is of globe. wouldn't more know, the that generally, only thing about One that and exception Victor, have the represents you think pretty of highlight, Europe, other around we and Sabre, is of nearly in bookings as I region. fees globe the transition,

you the I clear. also if one to if tad IT [indiscernible] bit there? a in what's I squeeze provide of lower XXXX. appears can side trending of Got be can in last [indiscernible] that to note quarter-on-quarter kind Airline it. as Very passengers maybe And one. a color

the is be of On the IT, Yes. going which impact I a on year-over-year vast to is Airline impact demigrations, is Russia. That mean, primary majority basis the attributable to $XX about million.

for by have passenger higher Airline If in obviously IT you you'd driven that, boarded. adjust growth

comes from of line [indiscernible]. Instructions] [Operator [indiscernible] the next of question The

this on been lines just to into wanted one new level potentially appears else? [indiscernible] headlined deep considering going dive How Could that air the commented this recovery QX again. me. has for into bookings whether you has recovery that the that you going still on comment see I from also do Just you everywhere on [indiscernible] quarter. the It reached? always

Tobias been of thank Traditionally, here, GDS comprised or talking you. corporate marketplace about ], look about XX% XX% we're the at what [ leisure. you of CMC Yes, which When bookings is that has marketplace, about

As we've a basis of indicated, corporate XXXX has levels. recovered to unit about on XX%

yields Hotel higher. are much and Air Now

recovery dollar is the or norms. closer higher actually So historical much to much

trillion news things the of as governor, travel year-on-year. [indiscernible] corporate procurement only saying, are The corporate annual you travel the corporation a so X% good XX-year think on corporate CAGR. particularly we grow is by much the can budgeting had to COVID you historically, is, and X% One financial they sector a of including is that $X.X ], before where the believe it over history, crisis [ closer impact was the and about and X/XX to

part that the to we expect business as So it grown of certainly, grow has traditionally.

don't size but been that there is of some possible. that point, relative at We know sector? impairment this the Has to

GDS look much the the we you the think simple travel, when of airline leisure complex, It sector. Leisure sort then that's travel at of domestic is is where point-to-point other case. toward long-haul recovery. more And to direct historically, distribution, leaves more international to half accrue headed

substantially has that what's negatively not short impacted disproportionately so has on as been think put happened on haul. put national is We back been back long-haul has And it capacity business. the GDS

came are debt be X% the we had February build toward or again May, assumption going target the than market say trend of believe indicated come X% in what had with back XXXX, we'll quarters. with updated the sequential than size. that been to prospectively guidance. a is X said, X.X% in which let in We're not slower the We're couple quarterly anticipated has for the right Mike other the to So to and back growth the $XXX me just years, you -- -- next in the of going million assessing over comment we EBITDA recovery we in what we is past

is Yes. the to other incorporated with expectations. quarter in our assumptions trends, thing which closer we've And regards as our current what seen and quarter. would into add I in only say, QX And I the we if fourth flat would assumed that to XXXX third you are back

in You free could see be it's the in cash quarter EBITDA amongst best the adjusted We to best would performance expect generative it flow years. years.

really And pleased we those which with on seeing can so and we delivering. we're really our actions, performance, we're control, are

Redburn of line the from Atlantic. from comes Goodall James question final The

winter European business And in positively spend follow-up just into U.S. managed Just of current heard of one talking in terms we've many travel airlines a and about pickup the period. a bookings. -- sort

to of to wondering have I'm you QX flat QX that's if So going QX? just sequential scope saw that booking into sort increase

the question, out be for We've on we've trends Josh. there our the of guide -- One seen reasons XXXX. coming are to Thanks based optimistic. framed Yes. really

QX. say I would is, out I what So of mean,

So like obviously would took assumption. the flatter our are assumptions into that saw but mean, than in booking I trends those we QX we I QX,

we recovers as that. we should handle from the benefit that that part very of the -- of given with our I say well much feel net business, feel positioned travel footprint TMCs to market

I including of that on maybe IT impression customer legacy just got transition systems. away PSS guess from your architecture already PSS largest Airline I the order-based then towards side. sort more towards airlines, themselves and many question I've And mean a very the long-term the offload

transition? just developed to I for if how you're set could date great. So wondering was you well think that to up you would you've be talk What

you. James, thank

the technology. this As order offer which new everybody we've of PNRs IATA's is one pursuing agenda term [ indicated, ] order, is

we're of going invested have tip capabilities. offer beginning where suite doesn't market buying traction both to We to is and wholesale now retail because and intelligence the operating their spear this solutions. in market changes great the up order on with customers of leading implement to aggressively capabilities. require it signing We're get right and side The on

structure. systems, around One processes is PSS traditional challenges are of with lot offer built and a order the organizations and that airline the the PNR of

as most journey, a this carriers years. And multiyear see X, maybe so more XX, long-term

working non-Sabre journey number with this a and So of we're them and with Sabre about technology. customers on in both our conversation PSS providing

us think we aggressively to marketplace and for disrupt opportunity very there's we believe So we're in opportunity. is an leaning a to what the great

remarks. like to it Kurt back to Thank over you. I would now Ekert closing turn for

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

concludes that call. today's And

conference. your today's conclude participation in Thank this you This does program. for

disconnect. now may You