SOUTHLAKE, Texas -- Something's got to give, said Sabre chief
executive William Hannigan, and that something is agency
Calling for a new booking fee and agency model, Hannigan said
agency inducements will be trimmed when subscribers renew their GDS
The backdrop for the statement was Sabre's estimates that it
will lose $19 million to $23 million in revenue this year from
United, Delta, Northwest and Continental because of their joining
the Sabre Direct Connect Availability Three-Year Option booking-fee
discount program. [Another participant, US Airways, wasn't included
in the revenue-impact projection because the airline joined DCA
last year, Sabre said].
The growth in agency incentives per booking is in the low- to
mid-teens at Sabre, and although that's down from about 30% growth
two years ago, it's still not low enough, Hannigan said.
"The model has to change, not only on the [segment pricing] side
but also on the incentive side," he said. "It'll take time to
change pricing in the marketplace, as contracts come due."