Sabre announces over $330 million in cost-saving actions to minimise COVID-19 impact
Travel tech giant Sabre is taking significant measures to strengthen its financial position in response to current industry conditions impacted by the COVID-19 pandemic.
Sean Menke, president and CEO of Sabre, said that while the global travel industry is facing challenges beyond what it has experienced before, he believes the company is well-positioned to navigate its way through the turbulent environment.
“We are fortunate that significant aspects of our cost structure are variable and are taking steps to help align our other costs with the current demand environment,” he said.
“We have identified and are in the process of removing over US$200 million ($338 million) in cash costs from the business in 2020.
“Given the magnitude of travel decline and the unknown duration of the COVID-19 impact, we will continue to monitor travel activity and take additional steps should we determine they are necessary.”
As part of these cost reductions, Sabre has begun implementing several immediate actions with regard to its workforce and other costs during this difficult business climate.
These actions include a temporary reduction in base compensation pay for its US-based salaried workforce, including a 25 per cent reduction for its CEO, and Sabre will work with international employees on a country-by-country basis.
Additionally, there will be reduction in the cash retainer for members of its board, and Sabre’s 401(k) match program will be temporarily suspended for US-based employees who contribute to this.
On a global basis, Sabre is offering voluntary unpaid time off, voluntary severance and a voluntary early retirement program for staff. The company is also reducing third-party contracting, vendor costs and other discretionary spending.
Sabre noted the decline in global travel driven by the COVID-19 outbreak is expected to result in a proportional decline in Sabre Travel Network’s incentive expense, and a reduction in Sabre’s approximately $250 million semi-variable technology hosting costs.
In addition to the cost reductions, Sabre’s board of directors voted to suspend the payment of quarterly cash dividends on the company’s common stock, effective with respect to the dividends occurring after the March 30 payment.
Sabre has also suspended its share repurchase program and withdrawn its FY20 earnings guidance provided in February.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
coronavirus cost savings COVID-19 sabre Sabre Corporation travel tech travel technologyLatest News
Celebrity Ascent makes its European debut
Choosing to cruise this northern summer? Celebrity Ascent promises to raise the bar.
NCL opens sales for Norwegian Sun’s APAC debut, announces 14 new voyages
It was to be 13 new voyages we heard, but given the numbers unlucky nature, an extra had to be thought up.
Inside Travel Group appoints Tom Welland Global Trade Marketing Manager
Heidi's Tom Welland heads to Inside Travel Group as its new Global Trade Marketing Manager.
Federal Government rolls out $1.4m program to promote careers in tourism across regional NSW
The Government taking a break from some of its pointier issues with some work in our incredible industry!
Australian visitors to South Korea surge
Japanned out? Aussies are adding South Korea to their bucket list.
G Adventures celebrates Dr. Jane Goodall’s 90th with new wildlife-focused trips
Fancy yourself as a bit of a conservationist? Put your skills to the test on the Jane Goodall collection.
Virgin Australia says suspended flights to Bali result of Boeing MAX delays
If only we had a company like Boeing to blame our mistakes on. Any takers? Get in touch!
Airline Review: Singapore Airlines Business Class – A380-800
The iconic Singapore Airlines' A380-800 is in a class of its own - business class that is.
South African Airways to relaunch Joburg – Perth flights as economic ties strengthen
Bringing two of the world's most distinctive accents closer together, for good or for bad is yet to be determined.
My journey: Before becoming a travel agent I was… a palliative care nurse
Australind Travel & Cruise, Travellers Choice member Saibra Twigg reveals her life as paediatric nurse then to palliative care before a career leap to travel agent. How did you become a palliative care nurse? ST I went straight from school in nursing and initially specialised in paediatrics, working at Perth’s Princess Margaret Hospital for Children. […]
Emirates unveils future plans with new hub at Al Maktoum International Airport
We've also been looking into our future. It involves plenty of famils, we hope.
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit
Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]
Sydney named 17th best place to work remotely
If you struggle to get a seat within Sydney's coffee shops, you now know why.