A technology leader

A technology pioneer for the travel industry, American Airlines created the first computerized reservation system in the early 1950s. The "Magnetronic Reservisor," equipped with random access memory and arithmetic capabilities, allowed reservationists to keep track of seat inventory and to add or cancel seats. Subsequently, a collaborative effort between American Airlines' president C.R. Smith and IBM senior sales representative Blair Smith led to the development of a nationwide data processing system called the Semi-Automated Business Research Environment - or SABRE. By the early 1960s, the database spanned both coasts and reached into Canada and Mexico. In terms of size, SABRE was second only to the data processing system owned by the U.S. government.

Reaching out

Travel agencies began linking into the SABRE system in 1976. Nine years later, the company introduced easy SABRE, which allowed individual consumers to link into the system with their personal computers. SABRE eventually expanded into a one-stop shop for airline, car rental, and hotel reservations - with each company paying SABRE a percentage of its sales. Each company that offers a service through the system pays SABRE a percentage of its sales. Basic Booking Request, aimed at low-fare airlines, was introduced in 1995. In 1996 the company introduced SABRE Business Travel Solutions (for corporate customers), and signed a deal to share its global data network with SITA, the world's leading provider of telecommunications services to the transportation industry. When SABRE was spun off and taken public that year, American Airlines' CFO Michael Durham took the helm.

In 1997, SABRE introduced Planet SABRE, a Windows-based interface for travel agents, and Travelocity, a web-based reservations service for consumers. Also that year, the company secured an outsourcing deal with US Airways, which brought in millions of dollars in annual revenues. In 1998 the company expanded its reach in the Asia/Pacific Rim region through a joint venture with Singapore's Abacus International Holdings, which produces computerized reservations systems. An early 2000 deal with China South Airlines had SABRE creating a centralized operation control center system for China's largest airline. Today 150,000 travel agencies worldwide link into the SABRE system. Worldwide, 38 percent of all reservations made by travel agents are processed through SABRE, which handles about 440 million bookings a year. The company now offers reservations capabilities for 95 percent of all airline seats sold, over 40,000 hotels, and 50 car companies. SABRE also offers cruise packages, theater tickets, flowers, and other gifts through its various outlets. SABRE also sells software and consulting services to travel suppliers. For travellers, Sabre now creates personalized web sites containing trip itineraries, gate and flight information, and destination weather and maps. This service is available to everyone who books a trip through Sabre, is available in English, French, or Spanish, and is instantly updated with changes.

Bonus bonanza

In celebration of its record revenues for 1998, SABRE paid out more than $40 million in bonuses in March 1999 - its largest payout since the company launched its performance-based bonus program in 1995. Close to 11,000 employees received bonus checks - some of which were worth more than three weeks' pay. Later that month the company announced a restructuring plan, which would integrate sales, marketing, and technology functions for its IT Solutions and electronic travel distribution businesses. The company has also been renamed Sabre Inc., and now sports a new corporate logo.