Sabre Holdings - The Quest for New Business Models


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR175 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Business Models | Growth factors and Challenges
Case Length : 15 Pages
Period : 1995-2005
Organization : Sabre Holdings
Pub Date : 2005
Teaching Note : Not Available
Countries : India
Industry : Travel and Tourism

Abstract:

The case discusses how Sabre, a computer reservation system developed by American Airlines, evolved into a Global Distribution System (GDS) that became the primary channel for travel suppliers like airlines, railways, car rental companies and tour operators to distribute their travel offerings to customers. The case describes the role played by deregulation in the US airline industry in Sabre's evolution. It presents the changes brought about by the internet in Sabre's operating environment and examines the strategies adopted by the company to remain competitive. The case describes in detail Sabre's online strategy that aimed at generating additional revenues through Travelocity.com, Virtually There and GetThere. It examines the efficacy of this strategy for Sabre in the fast changing external business environment.

Issues:

Role played by the Global Distribution System (GDS) as one of the channels for distribution of airline tickets
Impact of the Internet on travel industry intermediaries like Sabre
Advantages and disadvantages of using the Internet as a distribution channel

Contents:

  Page No.
Introduction 1
Background Note 2
The Global Distribution System 3
Impact of the Internet 6
The Online Strategy 8
Looking Ahead 10
Exhibits 11

Keywords:

Sabre Travel Network, Global Distribution System, Travelocity.com, Virtually There, GetThere, US Airline Industry, E-Commerce in Air Travel Industry, Distribution Costs of Airline, Business Environment

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