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Travelocity Becomes a Travel Retailer

Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092
Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092
Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092
Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092
Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092
Sabre Holdings, 3 Campus Circle-Westlake, Suite 100-500, Westlake, Texas 76262
barry.smith{at}sabre.com
ross.darrow{at}sabre.com
john.elieson{at}travelocity.com
dirk.guenther{at}sabre.com
beju.rao{at}sabre.com
faker.zouaoui{at}sabre.com

In 2002, Travelocity lost revenue and market share to competition as the business environment changed. Travelocity and Sabre collaborated to develop the enterprise network model (ENM). The ENM combines discrete choice customer modeling with simulation and large-scale optimization to improve Travelocity’s management supplier agreements, customer marketing, and product pricing. The ENM has helped Travelocity become a more effective retailer and has contributed over $54 million to Travelocity earnings, at a current rate of $43 million per year.

Key Words: industries; transportation; shipping; marketing; buyer behavior

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