Sabre SABR has launched several APIs that are backed by a Model Context Protocol (MCP) server, which will enable AI agents to talk travel language, shop, book, service and optimize trips autonomously.
These APIs are integrated into Sabre’s existing SabreMosaic platform, making it easier for airlines, travel agencies, and developers to adopt AI-driven workflows without reengineering from scratch. The system is powered by Sabre IQ AI layer and Sabre’s travel data cloud.
Sabre’s new offerings include an AI call-centre agent that rebooks flights automatically during disruptions, a hotel agent that confirms bookings late at night or arranges special requests and a visa & compliance agent that fills applications and attaches documents.
Sabre Gains From Expanding Customer Base
These new offerings will enable Sabre to serve and expand its customer base in a better way. Sabre’s customer base includes the world’s largest airlines like Delta Airlines DAL, United Airlines UAL and American Airlines AAL.
United Airlines and American Airlines have partnered with SABR to offer their new distribution capability (NDC) content in the Sabre Global Distribution System. Delta Airlines concluded the renewal of its multi-year distribution agreement in 2024.
Furthermore, United Airlines and American Airlines introduced their NDC offers on Sabre’s GDS, allowing travel buyers to access their pricing content on multiple platforms, including Sabre Red 360, Sabre APIs and GetThere.
Key Challenges Faced by Sabre
Sabre suffers from the seasonality of the travel industry. Revenues from travel bookings decline massively during the fourth quarter of the year, especially in December. Holiday-related bookings are made in the earlier part of the year. Additionally, since business travel declines during December, overall revenues tend to decline.
Sabre is part of the highly competitive travel distribution market, which requires the company to make regular enhancements, additions and upgrades to its product portfolio that involve substantial investments. Additionally, the company has to comply with the new regulations of the industry as well as the NDC standard introduced by the International Air Transport Association (IATA). These tend to increase costs.
Sabre’s Travel Network segment is prone to pricing pressure from travel suppliers. The stiff competition in the industry increases pricing pressure, given the availability of several alternative solution providers. Additionally, the use of direct distribution models by travel suppliers remains a concern for Sabre as well.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Sabre Corporation (SABR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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