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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 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.

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