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Sabre Reports ‘Strong’ Corporate Travel Growth in Q1

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Corporate travel growth helped push Sabre’s revenue up 5
percent year over year to $783 million in the first quarter, with Sabre’s share
of corporate travel bookings also on the rise during the quarter, executives
said during an earnings call on Thursday.

Corporate bookings through global distributions systems in
the first quarter were up 1.9 percent on a volume basis, Sabre CEO Kurt Ekert
said in the call. For Sabre, that increase was in the 4.5 to 5 percent range,
he said.

The increase in corporate business in the bookings mix
contributed to a 7 percent increase in the average booking fee during the
quarter, according to Sabre. Corporate
travel growth trends in the second quarter are continuing “at relatively
the same pace,” Ekert said.

That marked a turnaround from the fourth quarter of 2023,
when Sabre reported a slowdown in corporate travel. Ekert in the fourth quarter
also said there has been an increase in airline direct-connect bookings with
online travel agencies, and that continued into the first quarter. As such,
the “strong” corporate growth was “a bit offset by leisure”
during the quarter, he said.

Ekert noted that New Distribution Capability bookings still
account only for about 1 percent of total global distribution system bookings,
but he said that share should increase this year.

“We are very well positioned in terms of content
connectivity and all the business logic and functionality we built for
buyers,” Ekert said. “There is work that buyers, such as [travel
management companies], need to do from a downstream perspective on their
end…but there is certainly a big focus on that from all those buyers, so we
think that number will grow substantially, albeit off a low base.”

Across Sabre’s Travel Solutions business during the first
quarter, total bookings were up 2 percent year over year. Air bookings were up
1 percent year over year, while lodging, ground and sea bookings were up 8
percent. Distribution revenue was up 9 percent year over year to $572.3
million.

Revenue for Sabre’s Hospitality Solutions increased 7
percent year over year to $79 million. That increase was due to an increase in
central reservation system transactions, which were up 5 percent year over
year, according to Sabre.

Sabre reported a net loss of $71.5 million in the first
quarter, compared with a $104.3 million loss in the first quarter of 2023. The
company noted that the loss narrowed as operating income for the quarter
improved to $98 million from “essentially break-even” the previous
year, an improvement due in part to last
year’s cost-reduction plan
and lower technology costs.

RELATED:
Sabre Q4 results



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Youth agency Kilroy develops slow travel range for solo holidaymakers

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Tripmates features nature-based adventures for clients aged 23-31



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AMG survey reveals consensus on importance of training but not on how to develop new advisor talent

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Results highlight need for comprehensive advisor curriculum such as KORE.

OYSTER BAY, NY – While a near-unanimous majority of travel advisors affiliated with American Marketing Group networks agree training new consultants is important, the current mix of approaches to do so may not empower recruits with the most critical skills.  

To alleviate the current advisor shortage, agencies are prioritizing the recruitment and onboarding of new consultants. A recent survey of Travelsavers and Nest advisors sheds light on the qualities agencies are looking for in recruits and how they train them.

Varied Training

An overwhelming number of advisors – 95 percent – say that training is essential or important for new entrants to the profession. However, agencies rely on diverse methods of developing their new consultants. Fifty-four percent offer a job shadow with colleagues and 53 percent use supplier training programs. Almost one-third employ industry webinars.

Programs that provide training in a range of crucial advisor skills are less common. Twenty-six percent say their agency offers a specialized program for new advisors. Twenty-three percent use an industry program such as The Travel Institute. Fifteen percent depend on KORE, American Marketing Group’s comprehensive advisor education curriculum.

“The industry has had a patchwork approach to training new advisors,” said AMG Chief Sales Officer Kathryn Mazza-Burney. “Many agencies are still using one-off webinars or very focused supplier programs. This is exactly why we invested in creating KORE. We wanted to attract new talent to the profession and provide them with the strong foundation that travel advisors need to succeed in today’s marketplace.”

Critical Skills

When asked about the most important elements advisor training should cover, 43 percent named booking travel. Forty-two percent said advisors should have a grounding in different supplier types such as air, hotels and cruise lines. Forty-one percent opted for customer service and one-third selected sales training.

Knowledge in demand for today’s advisors finished further down in the survey, including technology (27 percent), compliance and fraud protection (12 percent) and marketing (5 percent).

Advisor Traits

Training that covers a range of skills is essential, especially given that many agencies are looking for potential among prospects rather than advisor experience. Forty-four percent are seeking candidates with a travel industry background and 33 percent are looking for people with client service experience.

Other desirable qualities include a passion for travel (30 percent), detail orientation (29 percent) and communication skills (26 percent).

Career Benefits

Once recruits are on board, they will enjoy multiple benefits in their new profession. The survey found 52 percent of respondents treasure the flexibility to work as much as they like from wherever they like. Forty-one percent delight in making people’s travel dreams come true. One-third appreciate the choice of niches to fit their passions and interests. Thirty-one percent love travel discounts and perks.

“Travel advising is a wonderful career with so many advantages,” said Mazza-Burney. “We need fresh ways to get out the word, recruit promising new talent, and provide wide-ranging training that empowers them to be successful in their new field. We need to innovate now on all these fronts to ensure a healthy future for the travel advisor profession.”

Survey results are as follows:

Importance of training for new advisors

  • 83% essential
  • 12% important but not mandatory
  • 1% may or may not help
  • 1% not important

 How agencies train new advisors

  • 54% job shadow with colleagues
  • 53% supplier programs
  • 31% industry webinars
  • 26% agency program
  • 23% industry program
  • 15% KORE

 Most important training elements

  • 43% booking travel
  • 42% supplier types
  • 41% customer service
  • 34% sales
  • 27% technology

 Top traits for new advisors

  • 44% travel industry experience
  • 33% client service experience
  • 30% personal passion for travel
  • 29% detail orientation
  • 26% communication skills

 Top career benefits

  • 52% flexibility to work as much as you like from wherever you like
  • 41% help make people’s dreams come true
  • 33% specializations to fit your passions and interests
  • 31% travel discounts and perks
  • 27% own your own business/be your own boss

Advisors from Travelsavers, Nest and Affluent Traveler Collection affiliate agencies in the US and Canada took the survey from March 21 to April 14, 2024.


Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor’s degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.






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FCM: ‘Steady’ Q1 Booking Volume Amid Strong Pricing

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Business travel demand has had “gradual, consistent growth” in the first quarter as pricing remains elevated across several categories, according to FCM Consulting’s Global Quarterly Trend Report, released Thursday.

The report, based on FCM’s corporate booking data in the first quarter, showed global economy airfares in January were up $45, or 11 percent, compared with pre-pandemic levels in January 2019, and business class tickets were up $224, or 12 percent, over the same period. In North America, that increase was 15 percent for economy fares and 9 percent from business class fares.

Even as fares remain comparatively high, there are signs of moderation. Compared with January 2021, for example, global economy ticket prices were down 16 percent, according to FCM.

Year-over-year comparisons for airfares were not provided in the report.

In lodging, rate performance was mixed across global regions in the first quarter, FCM reported. The $244 average room rate in North America for the quarter was the highest of global regions reported, and the rate was up $5 year over year. Rates in Latin America increased $12 year over year to $140 during the quarter, and rates in Asia were up $2 to $174.

Rates in the rest of the regions were down year over year in the quarter, including a $17 drop to $197 in the Middle East and Africa, a $10 drop to $169 in Europe and a $9 drop to $154 in Australia and New Zealand.

Car rental rates on a global level, meanwhile, were down $22 year over year to an average daily rate of $51. Suppliers are cutting rates to stimulate demand, according to FCM.

The report noted booking volume in the first volume was “steady,” and “we’re looking forward to seeing the business travel momentum carry through into the rest of the year,” Ashley Gutermuth, Head of FCM Consulting for the Americas, said in a statement. “Given the increased demand and positive economic outlook, it’s been an encouraging sign to see companies start to increase their corporate travel budgets and further embrace the return to the air.”

FCM highlighted slight changes in traveler behavior over the past year in the report. Advanced booking has increased by 1.5 days year over year to 23.3 days in the first quarter. Average rip length also has increased by 0.3 days to 4.4 days, according to the report.



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