Worldspan and Sabre sold! How will this impact the industry?
What a dramatic period of change! This past week has seen the online travel industry rocked by two major industry buy outs, during an unprecedented phase of transformation. Seemingly, in the short time it takes for the page of an online travel newsletter to load, another major GDS acquisition has taken place.
The recent purchase of Worldspan by Travelport Ltd. for $1.4 billion in cash, came as the first big industry shock. Rumors have been circulating for some time that it was in fact Amadeus who were in acquisition discussions with the troubled GDS.
Perhaps the writing was on the wall following Travelport CEO Jeff Clarke, and Worldspan Chairman, President and CEO Rakesh Gangwal’s comments at a recent conference in California. Both men seemed comfortable with the notion that consolidation amongst the industry is to be expected. Now Travelport will comprise Worldspan, Orbitz and Cheaptickets under their umbrella, further solidifying their position as the only GDS in all three main regions.
Coupled with this comes the latest news that Sabre Holdings have just yesterday been sold, for US$4.45 billion. Private equity firms Silver Lake Partners and Texas Pacific Group, are now the proud owners of Travelocity and lastminute.com’s parent company. As the major US competitors of the now merged Worldspan and Galileo, expect to see some jostling for position over the coming months.
Major industry shifts like this are a rarity, and two within a week are a complete anomaly. Is this the mark of an industry slowly losing its grip on a once grand position, or as suggested by Jeff Clarke, are consolidations like this just par for the course? Is the increasing popularity of direct bookings gradually trivializing the need for traditional GDS’s? Why are many major industry players reporting record loses lately…
Here more debate from featured companies Travelport Ltd. and Sabre Holdings, during the opening keynote session at the 2007 Travel Distribution Summit Asia in Singapore www.eyefortravel.com/tdsasia2007
SAVE UP TO US$300. BOOK BEFORE DECEMBER 15th!
EyeforTravel
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
In Italy, the Meloni government congratulates itself for its tourism achievements