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Lotte Hotels adopts Sabre tech to boost guest experience

Published 10/14/2024, 08:37 AM
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SEOUL - South Korea's largest hotel group, LOTTE HOTELS & RESORTS, has partnered with Sabre (NASDAQ:SABR) Hospitality to enhance its reservation and distribution systems, as well as guest experience. The hotel group is integrating Sabre's SynXis Central Reservation System (CRS) across its brands, aiming to improve operational efficiency and expand its international presence.

The migration to SynXis CRS is a strategic move for LOTTE HOTELS & RESORTS, enabling the company to streamline its reservation process and distribution capabilities. This collaboration with Sabre Hospitality is expected to facilitate more efficient and seamless reservation experiences for guests and support the hotel group's growth ambitions both in South Korea and globally.

Jaehwan Kim, Chief DX Officer of LOTTE HOTELS & RESORTS, emphasized the company's commitment to enhancing the end-to-end experience for guests, which led to the decision to deepen its alliance with Sabre Hospitality. The integration with SynXis CRS positions the hotel group to better serve its customers and deliver exceptional luxury experiences worldwide.

As part of this enhanced alliance, LOTTE HOTELS & RESORTS will utilize advanced Sabre Hospitality solutions such as SynXis Retailing, SynXis Booking (NASDAQ:BKNG) Engine, Corporate Booking Tool, Voice Agent, Meta (NASDAQ:META) Search, and Channel Connect. These tools are designed to elevate the guest experience, improve online visibility, and ensure real-time distribution across multiple platforms.

Currently operating 35 hotels in seven countries, LOTTE HOTELS & RESORTS has a diverse brand portfolio catering to various guest needs, from premium landmark hotels to business and family-oriented accommodations, as well as premium residences for seniors.

Frank Trampert, Senior Vice President, Global Managing Director of Sabre Hospitality, expressed delight in amplifying the alliance with LOTTE HOTELS & RESORTS. He highlighted that the migration to the cloud-based SynXis CRS will empower the hotel group with the technology to optimize operations, reach new markets, and enhance guest experiences.

Sabre Corporation, headquartered in Southlake, Texas, connects travel suppliers and buyers globally, offering innovative products and technology solutions to the travel industry.

This strategic technology adoption by LOTTE HOTELS & RESORTS is based on a press release statement and represents a significant step in the hotel group's efforts to improve service quality and expand its global brand presence.

In other recent news, Sabre Corporation has seen notable developments. The company reported strong financial results for the second quarter of 2024, surpassing its revenue and adjusted EBITDA guidance. This marks the first time in five years that Sabre has generated positive free cash flow, prompting an increase in its full-year 2024 revenue and adjusted EBITDA outlook.

In a significant move towards sustainability, Sabre partnered with Google (NASDAQ:GOOGL) to utilize the Travel Impact Model for analyzing historical business travel emissions. This collaboration aims to reduce future emissions, with strategies targeting the most polluting routes. Sabre also announced a multi-year distribution agreement with PLAY airlines, enhancing its marketplace with more low-cost carrier content.

In executive shifts, Rochelle Boas was appointed as the new Executive Vice President and Chief Legal Officer, following the departure of Ann Bruder. Additionally, board member Gregg Saretsky resigned due to a conflict of interest, reducing the board size from ten to nine directors. These are among the recent developments at Sabre Corporation.

InvestingPro Insights

As LOTTE HOTELS & RESORTS partners with Sabre Corporation (SABR) to enhance its reservation systems, it's worth examining Sabre's financial position. According to InvestingPro data, Sabre's market capitalization stands at $1.3 billion, reflecting its significant presence in the travel technology sector.

Sabre has shown resilience in its revenue growth, with a 7.31% increase over the last twelve months as of Q2 2023, reaching $2.98 billion. This growth aligns with the company's ability to secure partnerships with major hotel chains like LOTTE HOTELS & RESORTS, potentially driving further revenue expansion.

One of the InvestingPro Tips highlights Sabre's impressive gross profit margins, which is evident in the data showing a gross profit margin of 59.47% for the same period. This strong margin suggests that Sabre's technology solutions, such as the SynXis CRS being adopted by LOTTE HOTELS & RESORTS, are likely high-value offerings in the market.

Despite these positive indicators, it's important to note that Sabre faces some challenges. Another InvestingPro Tip indicates that analysts do not anticipate the company to be profitable this year. This is reflected in the negative P/E ratio of -5.51 and the basic EPS of -$1.21 USD for the last twelve months as of Q2 2023.

For investors interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into Sabre's financial health and market position. There are 6 more InvestingPro Tips available for Sabre, which could be valuable for understanding the company's prospects as it continues to expand its partnerships in the hospitality industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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