12/15/2023 0 Comments Amadeus stock![]() ![]() Sabre's global distribution system (GDS) is an immensely complex web of technologies that facilitates transactions between service providers in the travel industry. Because Sabre's revenues follow transaction data, its data foreshadows a what's-to-come-in-travel, a bellwether, so to speak, of the travel and hospitality industry. The company recently received upgrades from both Morgan Stanley and Mizuho (See: Sabre shares gain 4.7% after Morgan Stanley's bullish upgrade and doubled price target by Brandy Betz, Dec. Sabre currently trades at half its 2019 value, and I think there is more to come. (See: Sabre shares gain after busiest air travel weekend since Marchby Brandy Betz, Dec. ![]() This process of recovery has already begun. ![]() Given that 2020 will go down in history as the worst travel year of the modern era, it is not a stretch to envision a return to normalcy in 2021-22, and with it, positive growth for Sabre. Thus when transactions escalate in an economic recovery, Sabre's revenues increase commensurately. Sabre's revenue is based on the volume (number) of transactions it processes, not the dollar value of those transactions. Google ( GOOG) ( GOOGL) Flights and Hotels.Booking ( BKNG): Kayak, Agoda, Priceline, CheapFlights, Momondo, OpenTable, RentalCars.Expedia ( EXPE): Orbitz, Travelocity,, ,,.57,000 travel agencies around the world log into a Sabre desktop each day.Processes more than 42,000 transactions a second.An investment in Sabre places an investor squarely at the center of global travel sales. Together, these three companies comprise 97% of all travel bookings worldwide. Sabre is one of the travel industry's largest global distributions systems (GDS), alongside Amadeus ( OTCPK:AMADY) and Travelport (private). Amidst all the bearishness in the travel industry this year, Sabre wisely plowed its resources into technology upgrades for 2019-20 by transitioning its platform to the cloud, and now this cost-cutting and upgrading will go straight to its-bottom line as volume transactions rise in 2021-22. Sabre ( SABR) has been a great recent discovery for me. ![]()
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