Sabre Holdings - The Quest for New Business Models |
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EXCERPTS Contd...The Online StrategySabre Holding's online strategy was beneficial in generating additional revenues for the company. Travelocity registered a steady growth in revenues from $192.6 million in the fiscal 2000 to $394.5 million in fiscal 2003 (Refer Table II for Travelocity's yearly revenues) constituting 18% of Sabre Holdings' total revenues in 2003.
Looking AheadTravel agents, through GDSs like Sabre, offered airlines a wider reach especially when an airline depended on international traffic for the main part of its revenues. For instance, KLM, a Dutch airline had a small domestic market and depended heavily on international flights for revenues, and would therefore continue depending upon GDSs for distribution.
Exhibits
Exhibit I: Airline Companies - Operating and Distribution Costs
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