North America and Middle East Travel Sector Booms as Sabre Achieves Eight Per Cent Operating Margin Growth in 2024

Published on February 20, 2025

Sabre Corporation, a leading force in travel technology, has delivered remarkable financial results for 2024, reinforcing its position as a crucial player in the global travel ecosystem. The company reported a total revenue of $3.03 billion, marking a 4% year-over-year (YoY) increase, driven by strong performance in Travel Solutions and Hospitality Solutions, major commercial wins, and strategic technological advancements.

This financial success, coupled with the refinancing of $1.9 billion in debt, positions Sabre for double-digit YoY growth in distribution bookings and CRS (Central Reservation System) transactions in 2025. As the company expands its partnerships with airlines and travel agencies, travelers worldwide can expect smoother booking experiences, better pricing structures, and enhanced digital transformation in the industry.

Sabre’s 2024 Business Achievements and Growth Milestones

Sabre has strengthened its business foundation with several key milestones, further solidifying its role in the travel industry’s recovery and expansion. Some of the notable highlights from 2024 include:

• Achieved revenue and Adjusted EBITDA targets for Q4 and the full year.
• Increased operating margin by 8 percentage points YoY, driven by higher revenues and cost reductions.
• Launched SabreMosaic™, a next-generation offer-and-order platform transforming travel booking processes.
• Signed major airline agreements, including partnerships with Virgin Australia and Riyadh Air, expanding its influence in global airline distribution.
• Won large-scale contracts with travel agencies and airlines, setting the stage for future growth.
• Refinanced $1.9 billion in debt maturities, improving financial stability and enabling long-term investments.
• Hospitality Solutions achieved its Adjusted EBITDA targets, reflecting strong demand for Sabre’s CRS services among hotels.

These achievements highlight Sabre’s evolving role in modernizing global travel connectivity, benefitting airlines, hotels, agencies, and travelers alike.

Financial Performance: Q4 and Full-Year 2024

Sabre’s Q4 and full-year 2024 financial results demonstrate resilience and steady growth, supported by an increase in global air and hotel bookings, cost optimizations, and successful technology migrations.

Q4 2024 Performance

• Revenue: $715 million (+4% YoY, up from $687 million in Q4 2023).
• Operating Income: $57 million (+53% YoY, up from $37 million in Q4 2023).
• Net Loss (Common Stockholders): $75 million (vs. $96 million loss in Q4 2023).
• Adjusted EBITDA: $115 million (+20% YoY, up from $96 million in Q4 2023).
• Free Cash Flow: $67 million (vs. $77 million in Q4 2023).
• Total Bookings: 81 million, reflecting a 4% YoY growth.

Full-Year 2024 Performance

• Revenue: $3.03 billion (+4% YoY, up from $2.91 billion in 2023).
• Operating Income: $286 million (+507% YoY, up from $47 million in 2023).
• Net Loss (Common Stockholders): $279 million (vs. $542 million loss in 2023).
• Adjusted EBITDA: $517 million (+53% YoY, up from $337 million in 2023).
• Free Cash Flow: Negative $14 million (vs. negative $31 million in 2023).
• Cash Balance: $746 million (up from $648 million in 2023).

The substantial improvement in operating income and adjusted EBITDA growth indicate a strong financial rebound, which is expected to drive further advancements in travel distribution and hospitality solutions in 2025.

Breakdown of Sabre’s Travel Segments

Travel Solutions Performance

Q4 2024 (YoY Growth vs. Q4 2023)

• Revenue: $645 million (+4% YoY).
• Distribution Revenue: $500 million (+5% YoY).
• IT Solutions Revenue: $145 million (-1% YoY).
• Total Bookings: 81 million (+4% YoY).
• Adjusted EBITDA: $156 million (+8% YoY).

The increase in distribution revenue resulted from higher airline and hotel bookings, an improved supplier mix, and increased booking fees.

Full-Year 2024 (YoY Growth vs. 2023)

• Revenue: $2.74 billion (+4% YoY).
• Distribution Revenue: $2.17 billion (+6% YoY).
• IT Solutions Revenue: $571 million (-2% YoY).
• Total Bookings: 363 million (+2% YoY).
• Passengers Boarded: 684 million (-1% YoY).
• Adjusted EBITDA: $705 million (+26% YoY).

The marginal decline in IT Solutions revenue was primarily due to de-migrations, but it was offset by a rise in air and hotel bookings and increased revenue from distribution services.

Hospitality Solutions Performance

Q4 2024 (YoY Growth vs. Q4 2023)

• Revenue: $81 million (+8% YoY).
• CRS Transactions: 31 million (+8% YoY).
• Adjusted EBITDA: $9 million (+67% YoY).

The increase in CRS transactions highlights growing demand for Sabre’s hotel booking solutions, driven by new partnerships and customer expansions.

Full-Year 2024 (YoY Growth vs. 2023)

• Revenue: $327 million (+7% YoY).
• CRS Transactions: 128 million (+5% YoY).
• Adjusted EBITDA: $38 million (+188% YoY).

The sharp rise in adjusted EBITDA for Hospitality Solutions signifies higher efficiency in hotel booking systems and a favorable market shift towards digital reservation tools.

How Sabre’s Growth Will Reshape Travel in 2025

With double-digit growth expected in 2025, Sabre’s progress will accelerate major shifts in travel technology, pricing models, and connectivity.

1. Enhanced Booking Efficiency for Airlines and Hotels

• SabreMosaic™ will introduce faster, more precise booking capabilities, streamlining ticketing and reservations for airlines and hotels.
• New airline partnerships with Virgin Australia and Riyadh Air will expand global travel connectivity, particularly in Asia-Pacific and the Middle East.

2. Personalized Travel Retailing for Consumers

• AI-driven travel platforms will enable dynamic pricing and hyper-personalized offers, improving the customer experience in booking flights and accommodations.
• Loyalty programs and reward integrations will become more efficient, maximizing traveler benefits across various brands.

3. Potential Cost Reductions for Travelers

• As Sabre optimizes operational costs, airlines and hotels using its distribution services may lower fees, resulting in more competitive pricing for travelers.

4. Expanding Travel Markets in the Middle East and Asia

• The Saudi Arabian market is poised for significant growth, as Riyadh Air’s expansion drives higher demand for air connectivity.
• Asia-Pacific destinations will experience increased inbound and outbound travel, strengthening business and leisure tourism.

Looking Ahead: Sabre’s 2025 Financial Outlook

Sabre’s strategic restructuring, technological investments, and market expansion suggest a promising trajectory for 2025 and beyond.

Projected 2025 Key Metrics

• Revenue: Expected high single-digit YoY growth.
• Adjusted EBITDA: Forecasted above $700 million.
• Free Cash Flow: Expected to exceed $200 million.

As the global travel industry continues its recovery, Sabre’s advancements in intelligent retailing, digital connectivity, and financial restructuring will shape the future of seamless and efficient travel experiences worldwide.