Sabre reports 5% growth in hotel bookings in Q1

Global surge in the GDS' hotel demand signals resilience amid air travel weakness and strategic shift toward core travel segments

Sabre reported a 3% year-over-year decline in air bookings for the first quarter of 2025 - underperforming expectations - but remains optimistic about the rest of the year. Despite current market softness across all travel segments, the company projects double-digit growth in air distribution bookings for the full year, largely driven by new agency partnerships and content expansion.

Key takeaways

• Q1 air bookings decline: Air bookings fell 3% year over year, 3–4 points below Sabre’s prior forecast of flat to nominal growth.
• Broad market softness: CEO Kurt Ekert cited global softness in corporate and leisure travel, including declines in inbound U.S. travel, North Asian group bookings, and U.S. military/government travel.
• Optimistic outlook: Despite Q1 results, Sabre expects low single-digit growth in Q2 and double-digit growth for full-year 2025, driven by newly signed agency deals and expanded content.
• Other segments: Lodging, ground, and sea bookings grew 5%; total distribution revenue dropped 1%; IT solutions revenue declined 6%; but Hospitality Solutions revenue rose 8%.
• Strategic sale: Sabre is selling its Hospitality Solutions unit to TPG for $1.1 billion to reduce debt and sharpen strategic focus.

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