9 unchanged sentences
The pandemic and these measures have significantly adversely affected, and may further affect, consumer sentiment and discretionary spending patterns, economies and financial markets, and our workforce, operations and customers.
−Removed: See “— Our Travel Network, Airline Solutions and Hospitality Solutions businesses depend on maintaining and renewing contracts with their customers and other counterparties .”
+Added: See “—Our Travel Solutions and Hospitality Solutions businesses depend on maintaining and renewing contracts with their customers and other counterparties.”
To the extent the COVID-19 pandemic adversely affects our business, operations, and financial condition and results, it may also have the effect of heightening many of the other risks described in this ‘‘Risk Factors’’ section, such as those relating to our high level of indebtedness, our need to generate sufficient cash flows to service our indebtedness, and our ability to comply with the covenants contained in the agreements that govern our indebtedness.
2 unchanged sentences
Our financial results and prospects are largely dependent on these transaction volumes.
−Removed: Although it is impossible to accurately predict the ultimate impact of these developments on our business, our financial results for the quarter ended June 30, 2020 have been significantly and negatively impacted, with a material decline in total revenues, net income, cash flow from operations and Adjusted EBITDA as compared to the corresponding period in 2019.
+Added: Although it is impossible to accurately predict the ultimate impact of these developments on our business, our financial results for the quarter ended September 30, 2020 have been significantly and negatively impacted, with a material decline in total revenues, net income, cash flow from operations and Adjusted EBITDA as compared to the corresponding period in 2019.
This downward trend could continue for an unpredictable period.
9 unchanged sentences
We are continuing to closely monitor positions with travel agencies, to identify situations in which cancelled bookings exceed new bookings, resulting in refunds due to us and creating possible additional bad debt exposure.
−Removed: Moreover, due to the high level of cancellations of existing bookings, we have incurred, and expect to continue to incur, higher than normal cash outlays to refund travel service providers for cancelled bookings.
+Added: Moreover, due to the high level of cancellations of existing bookings, we have incurred, and may continue to incur, higher than normal cash outlays to refund travel service providers for cancelled bookings.
Any material increase in our provisions for bad debt, and any material increase in cash outlays to travel suppliers would have a corresponding effect on our results of operations, liquidity and related cash flows.
23 unchanged sentences
Our revenue is highly dependent on transaction volumes in the global travel industry, particularly air travel transaction volumes.
−Removed: Our Travel Network, Airline Solutions and Hospitality Solutions revenue is largely tied to travel suppliers’ transaction volumes rather than to their unit pricing for an airplane ticket, hotel room or other travel products.
+Added: Our Travel Solutions and Hospitality Solutions revenue is largely tied to travel suppliers’ transaction volumes rather than to their unit pricing for an airplane ticket, hotel room or other travel products.
This revenue is generally not contractually committed to recur annually under our agreements with our travel suppliers.
16 unchanged sentences
These constraints can also lead to the deterioration of our services or impair our ability to process transactions.
−Removed: We occasionally experience system interruptions that make certain of our systems unavailable including, but not limited to, our GDS and the services that our Airline Solutions and Hospitality Solutions businesses provide to airlines and hotels.
+Added: We occasionally experience system interruptions that make certain of our systems unavailable including, but not limited to, our GDS and the services that our Travel Solutions and Hospitality Solutions businesses provide to airlines and hotels.
In addition, we may occasionally experience system interruptions as we execute our technology strategy, including our cloud migration and mainframe offload activities.
30 unchanged sentences
As a result, we must continue to invest significant resources in research and development in order to continually improve the speed, accuracy and comprehensiveness of our services and we may be required to make changes to our technology platforms or increase our investment in technology, increase marketing, adjust prices or business models and take other actions, which could affect our financial performance and liquidity.
−Removed: Travel suppliers’ use of alternative distribution models, such as direct distribution models, could adversely affect our Travel Network business.
−Removed: Some travel suppliers that provide content to Travel Network, including some of Travel Network’s largest airline customers, have sought to increase usage of direct distribution channels.
+Added: Travel suppliers’ use of alternative distribution models, such as direct distribution models, could adversely affect our Travel Solutions business.
+Added: Some travel suppliers that provide content to Travel Solutions, including some of Travel Solutions' largest airline customers, have sought to increase usage of direct distribution channels.
For example, these travel suppliers are trying to move more consumer traffic to their proprietary websites, and some travel suppliers have explored direct connect initiatives linking their internal reservations systems directly with travel agencies or travel management companies ("TMCs"), thereby bypassing the GDSs.
This direct distribution trend enables them to apply pricing pressure on intermediaries and negotiate travel distribution arrangements that are less favorable to intermediaries.
−Removed: With travel suppliers’ adoption of certain technology solutions over the last decade, including those offered by our Airline Solutions business, air travel suppliers have increased the proportion of direct bookings relative to indirect bookings.
+Added: With travel suppliers’ adoption of certain technology solutions over the last decade, including those offered by our Travel Solutions business, air travel suppliers have increased the proportion of direct bookings relative to indirect bookings.
In the future, airlines may increase their use of direct distribution, which may cause a material decrease in their use of our GDS.
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Companies with close relationships with end consumers, like Facebook, as well as new entrants introducing new paradigms into the travel industry, such as metasearch engines, like Google, may promote alternative distribution channels to our GDS by diverting consumer traffic away from intermediaries, which may adversely affect our GDS business.
−Removed: Additionally, technological advancements may allow airlines and hotels to facilitate broader connectivity to and integration with large travel buyers, such that certain airline and hotel offerings could be made available directly to such travel buyers without the involvement of intermediaries such as Travel Network and its competitors.
+Added: Additionally, technological advancements may allow airlines and hotels to facilitate broader connectivity to and integration with large travel buyers, such that certain airline and hotel offerings could be made available directly to such travel buyers without the involvement of intermediaries such as Travel Solutions and its competitors.
We rely on the availability and performance of information technology services provided by third parties, including DXC, which manages a significant portion of our systems.
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For example, in 2013, we experienced a significant outage of the Sabre platform due to a failure on the part of one of our service providers.
−Removed: This outage, which affected both our Travel Network business and our Airline Solutions business, lasted several hours and caused significant problems for our customers.
+Added: This outage, which affected our Travel Solutions business, lasted several hours and caused significant problems for our customers.
Any such future outages could cause damage to our reputation, customer loss and require us to pay compensation to affected customers for which we may not be indemnified or compensated.
1 unchanged sentence
For example, our substantial dependence on DXC for many of our systems makes it difficult for us to switch vendors and makes us more sensitive to changes in DXC's pricing for its services.
−Removed: Our Travel Network business is exposed to pricing pressure from travel suppliers.
+Added: Our Travel Solutions business is exposed to pricing pressure from travel suppliers.
Travel suppliers continue to look for ways to decrease their costs and to increase their control over distribution.
−Removed: For example, consolidation in the airline industry, the growth of low-cost carries and hybrid carries ("LCC/hybrids") and macroeconomic factors, among other things, have driven some airlines to negotiate for lower fees during contract renegotiations, thereby exerting increased pricing pressure on our Travel Network business, which, in turn, negatively affects our revenues and margins.
+Added: For example, consolidation in the airline industry, the growth of low-cost carries and hybrid carries ("LCC/hybrids") and macroeconomic factors, among other things, have driven some airlines to negotiate for lower fees during contract renegotiations, thereby exerting increased pricing pressure on our Travel Solutions business, which, in turn, negatively affects our revenues and margins.
In addition, travel suppliers’ use of alternative distribution channels, such as direct distribution through supplier-operated websites, may also adversely affect our contract renegotiations with these suppliers and negatively impact our transaction fee revenue.
1 unchanged sentence
As a result of these sources of negotiating pressure, we may have to decrease our prices to retain their business.
−Removed: If we are unable to renew our contracts with these travel suppliers on similar economic terms or at all, or if our ability to provide this content is similarly impeded, this would also adversely affect the value of our Travel Network business as a marketplace due to our more limited content.
−Removed: See “—Travel suppliers’ use of alternative distribution models, such as direct distribution models, could adversely affect our Travel Network business.”
+Added: If we are unable to renew our contracts with these travel suppliers on similar economic terms or at all, or if our ability to provide this content is similarly impeded, this would also adversely affect the value of our Travel Solutions business as a marketplace due to our more limited content.
+Added: See “—Travel suppliers’ use of alternative distribution models, such as direct distribution models, could adversely affect our Travel Solutions business.”
Security breaches could expose us to liability and damage our reputation and our business.
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We took successful measures to ensure this unauthorized access to the HS Central Reservation System was stopped and is no longer possible.
−Removed: There is no indication that any of our systems beyond the HS Central Reservation System, such as Sabre’s Airline Solutions and Travel Network platforms, were affected or accessed by the unauthorized party.
+Added: There is no indication that any of our systems beyond the HS Central Reservation System, such as Sabre’s Travel Solutions platforms, were affected or accessed by the unauthorized party.
We notified law enforcement and the payment card brands and engaged a PCI forensic investigator at the payment card brands' request to investigate this incident.
17 unchanged sentences
Implementation of software solutions often involves a significant commitment of resources, and any failure to deliver as promised on a significant implementation could adversely affect our business.
−Removed: In our Travel Network, Airline Solutions and Hospitality Solutions businesses, the implementation of software solutions often involves a significant commitment of resources and is subject to a number of significant risks over which we may or may not have control.
+Added: In our Travel Solutions and Hospitality Solutions businesses, the implementation of software solutions often involves a significant commitment of resources and is subject to a number of significant risks over which we may or may not have control.
These risks include:
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If we fail to overcome these competitive pressures, we may lose market share and our business may otherwise be negatively affected.
−Removed: Our ability to maintain and grow our Airline Solutions and Hospitality Solutions businesses may be negatively affected by competition from other third-party solutions providers and new participants that seek to enter the solutions market.
−Removed: Our Airline Solutions and Hospitality Solutions businesses principally face competition from existing third-party solutions providers.
+Added: Our ability to maintain and grow our Travel Solutions and Hospitality Solutions businesses may be negatively affected by competition from other third-party solutions providers and new participants that seek to enter the solutions market.
+Added: Our Travel Solutions and Hospitality Solutions businesses principally face competition from existing third-party solutions providers.
We also compete with various point solutions providers on a more limited basis in several discrete functional areas.
For our Hospitality Solutions business, we face competition across many aspects of our business, but our primary competitors are in the hospitality central reservation system and property management system ("PMS") fields.
−Removed: Factors that may affect the competitive success of our Airline Solutions and Hospitality Solutions businesses include our pricing structure, our ability to keep pace with technological developments, the effectiveness and reliability of our implementation and system migration processes, our ability to meet a variety of customer specifications, the effectiveness and reliability of our systems, the cost and efficiency of our system upgrades and our customer support services.
−Removed: Our failure to compete effectively on these and other factors could decrease our market share, adversely impact our pricing or otherwise negatively affect our Airline Solutions and Hospitality Solutions businesses.
+Added: Factors that may affect the competitive success of our Travel Solutions and Hospitality Solutions businesses include our pricing structure, our ability to keep pace with technological developments, the effectiveness and reliability of our implementation and system migration processes, our ability to meet a variety of customer specifications, the effectiveness and reliability of our systems, the cost and efficiency of our system upgrades and our customer support services.
+Added: Our failure to compete effectively on these and other factors could decrease our market share, adversely impact our pricing or otherwise negatively affect our Travel Solutions and Hospitality Solutions businesses.
Our ability to recruit, train and retain employees, including our key executive officers and technical employees, is critical to our results of operations and future growth.
9 unchanged sentences
If we fail to attract well-qualified employees or to retain or motivate existing employees, our business could be materially hindered by, for example, a delay in our ability to deliver products and services under contract, bring new products and services to market or respond swiftly to customer demands or new offerings from competitors.
−Removed: Our Travel Network, Airline Solutions and Hospitality Solutions businesses depend on maintaining and renewing contracts with their customers and other counterparties .
−Removed: In our Travel Network business, we enter into participating carrier distribution and services agreements with airlines.
+Added: Our Travel Solutions and Hospitality Solutions businesses depend on maintaining and renewing contracts with their customers and other counterparties .
+Added: In our Travel Solutions business, we enter into participating carrier distribution and services agreements with airlines.
Our contracts with major carriers typically last for three- to five-year terms and are generally subject to automatic renewal at the end of the term, unless terminated by either party with the required advance notice.
2 unchanged sentences
We cannot guarantee that we will be able to renew our airline contracts in the future on favorable economic terms or at all.
−Removed: See “—Our Travel Network business is exposed to pricing pressure from travel suppliers."
+Added: See “—Our Travel Solutions business is exposed to pricing pressure from travel suppliers."
We also enter into contracts with travel buyers.
3 unchanged sentences
We cannot guarantee that we will be able to renew our travel buyer agreements in the future on favorable economic terms or at all.
−Removed: Similarly, our Airline Solutions and Hospitality Solutions businesses are based on contracts with travel suppliers for a typical duration of three to seven years for airlines and one to five years for hotels, respectively.
+Added: Similarly, our Travel Solutions and Hospitality Solutions businesses are based on contracts with travel suppliers for a typical duration of three to seven years for airlines and one to five years for hotels, respectively.
We cannot guarantee that we will be able to renew our solutions contracts in the future on favorable economic terms or at all.
Additionally, we use several third-party distributor partners and equity method investments to extend our GDS services in EMEA and APAC.
−Removed: The termination of our contractual arrangements with any of these third-party distributor partners and equity method investments could adversely impact our Travel Network business in the relevant markets.
+Added: The termination of our contractual arrangements with any of these third-party distributor partners and equity method investments could adversely impact our Travel Solutions business in the relevant markets.
See “—We rely on third-party distributor partners and equity method investments to extend our GDS services to certain regions, which exposes us to risks associated with lack of direct management control and potential conflicts of interest” for more information on our relationships with our third-party distributor partners and equity method investments.
−Removed: Our failure to renew some or all of these agreements on economically favorable terms or at all, or the early termination of these existing contracts, would adversely affect the value of our Travel Network business as a marketplace due to our limited content and distribution reach, which could cause some of our subscribers to move to a competing GDS or use other travel technology providers for the solutions we provide and would materially harm our business, reputation and brand.
+Added: Our failure to renew some or all of these agreements on economically favorable terms or at all, or the early termination of these existing contracts, would adversely affect the value of our Travel Solutions business as a marketplace due to our limited content and distribution reach, which could cause some of our subscribers to move to a competing GDS or use other travel technology providers for the solutions we provide and would materially harm our business, reputation and brand.
Our business therefore relies on our ability to renew our agreements with our travel buyers, travel suppliers, third-party distributor partners and equity method investments or developing relationships with new travel buyers and travel suppliers to offset any customer losses.
10 unchanged sentences
Furthermore, supplier consolidation, particularly in the airline industry, could harm our business.
−Removed: Our Travel Network business depends on a relatively small number of airlines for a substantial portion of its revenue, and all of our businesses are highly dependent on airline ticket volumes.
+Added: Our Travel Solutions business depends on a relatively small number of airlines for a substantial portion of its revenue, and all of our businesses are highly dependent on airline ticket volumes.
Consolidation among airlines could result in the loss of an existing customer and the related fee revenue, decreased airline ticket volumes due to capacity restrictions implemented concurrently with the consolidation, and increased airline concentration and bargaining power to negotiate lower transaction fees.
−Removed: See "—Our Travel Network business is exposed to pricing pressure from travel suppliers." In addition, consolidation among travel suppliers may result in one or more suppliers refusing to provide certain content to Sabre but rather making it exclusively available on the suppliers’ proprietary websites, hurting the competitive position of our GDS relative to those websites.
−Removed: See “—Travel suppliers’ use of alternative distribution models, such as direct distribution models, could adversely affect our Travel Network business.”
−Removed: Our Travel Network business depends on relationships with travel buyers.
−Removed: Our Travel Network business relies on relationships with several large travel buyers, including TMCs and OTAs, to generate a large portion of its revenue through bookings made by these travel companies.
+Added: See "—Our Travel Solutions business is exposed to pricing pressure from travel suppliers." In addition, consolidation among travel suppliers may result in one or more suppliers refusing to provide certain content to Sabre but rather making it exclusively available on the suppliers’ proprietary websites, hurting the competitive position of our GDS relative to those websites.
+Added: See “—Travel suppliers’ use of alternative distribution models, such as direct distribution models, could adversely affect our Travel Solutions business.”
+Added: Our Travel Solutions business depends on relationships with travel buyers.
+Added: Our Travel Solutions business relies on relationships with several large travel buyers, including TMCs and OTAs, to generate a large portion of its revenue through bookings made by these travel companies.
This revenue concentration in a relatively small number of travel buyers makes us particularly dependent on factors affecting those companies.
9 unchanged sentences
Travel expenditures are sensitive to personal and business discretionary spending levels and grow more slowly or decline during economic downturns.
−Removed: We derive the majority of our revenue from the United States and Europe, and we have expanded Travel Network's presence in APAC.
+Added: We derive the majority of our revenue from the United States and Europe, and we have expanded Travel Solutions' presence in APAC.
Our geographic concentration in the United States and Europe, as well as our expanded focus in APAC, makes our business potentially vulnerable to economic and political conditions that adversely affect business and leisure travel originating in or traveling to these regions.
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Competition Appeal Tribunal.
−Removed: We are also subject to a DOJ antitrust investigation from 2011 relating to the pricing and conduct of the airline distribution industry.
+Added: We are also subject to a U.S.
+Added: Department of Justice ("DOJ") antitrust investigation from 2011 relating to the pricing and conduct of the airline distribution industry.
We received a civil investigation demand ("CID") from the DOJ and we are fully cooperating.
159 unchanged sentences
We rely on third-party distributor partners and equity method investments to extend our GDS services to certain regions, which exposes us to risks associated with lack of direct management control and potential conflicts of interest.
−Removed: Our Travel Network business utilizes third-party distributor partners and equity method investments to extend our GDS services in EMEA and APAC.
+Added: Our Travel Solutions business utilizes third-party distributor partners and equity method investments to extend our GDS services in EMEA and APAC.
We work with these partners to establish and maintain commercial and customer service relationships with both travel suppliers and travel buyers.
21 unchanged sentences
The interpretation of tax laws and the determination of any potential liability under those laws are complex, and the amount of our liability may exceed our established reserves.
−Removed: We consider the undistributed capital investments in our foreign subsidiaries to be indefinitely reinvested as of June 30, 2020 and, accordingly, have not provided deferred taxes on any outside basis differences.
+Added: We consider the undistributed capital investments in our foreign subsidiaries to be indefinitely reinvested as of September 30, 2020 and, accordingly, have not provided deferred taxes on any outside basis differences.
New tax laws, statutes, rules, regulations or ordinances could be enacted at any time and existing tax laws, statutes, rules, regulations and ordinances could be interpreted, changed, modified or applied adversely to us.
21 unchanged sentences
We may recognize impairments on long-lived assets, including goodwill and other intangible assets, or recognize impairments on our equity method investments.
−Removed: Our consolidated balance sheet at June 30, 2020 contained goodwill and intangible assets, net totaling $3.2 billion.
+Added: Our consolidated balance sheet at September 30, 2020 contained goodwill and intangible assets, net totaling $3.2 billion.
Future acquisitions that result in the recognition of additional goodwill and intangible assets would cause an increase in these types of assets.
25 unchanged sentences
We have a significant amount of indebtedness.
−Removed: As of June 30, 2020, we had $4.7 billion of indebtedness outstanding.
+Added: As of September 30, 2020, we had $4.7 billion of indebtedness outstanding.
Our substantial level of indebtedness increases the possibility that we may not generate enough cash flow from operations to pay, when due, the principal of, interest on or other amounts due in respect of, these obligations.
18 unchanged sentences
Depending on the size of the exposures and the relative movements of interest rates, if we choose not to hedge or fail to effectively hedge our exposure, we could experience a material adverse effect on our results of operations and financial condition.
−Removed: As of June 30, 2020, we had outstanding approximately $2.7 billion of variable debt that is indexed to the London Interbank Offered Rate ("LIBOR").
+Added: As of September 30, 2020, we had outstanding approximately $2.3 billion of variable debt that is indexed to the London Interbank Offered Rate ("LIBOR").
In July 2017, the Financial Conduct Authority announced its intention to phase out LIBOR by the end of 2021.
10 unchanged sentences
We conduct various operations outside the United States, primarily in APAC, Europe and Latin America.
−Removed: During the six months ended June 30, 2020, foreign currency operations included $52 million of revenue and $168 million of operating expenses, representing approximately 7% and 13% of our total revenue and operating expenses, respectively.
+Added: During the nine months ended September 30, 2020, foreign currency operations included $69 million of revenue and $287 million of operating expenses, representing approximately 7% and 16% of our total revenue and operating expenses, respectively.
During the year ended December 31, 2019, foreign currency operations included $246 million of revenue and $572 million of operating expenses, representing approximately 6% and 16% of our total revenue and operating expenses, respectively.
−Removed: Our most significant foreign currency operating expenses has historically been in the Euro, representing approximately 1% and 7% of our operating expenses for the six months ended June 30, 2020 and the year ended December 31, 2019, respectively.
+Added: Our most significant foreign currency operating expenses has historically been in the Euro, representing approximately 4% and 7% of our operating expenses for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively.
As a result, we face exposure to movements in currency exchange rates.
11 unchanged sentences
Moreover, we make a number of estimates in conducting hedging activities, including in some cases the level of future bookings, cancellations, refunds, customer stay patterns and payments in foreign currencies, and the effect of the COVID-19 outbreak on our business has significantly increased the difficulty presented in estimating these items.
−Removed: See "—The COVID-19 pandemic has had and is expected to continue to have a significant adverse impact on our business and the travel suppliers on whom our business relies." This is especially true now due to the impact of COVID-19 on our operations and the difficulty presented in estimating our future bookings, cancellations, and other relevant performance metrics.
+Added: See "—The COVID-19 pandemic has had and is expected to continue to have a significant adverse impact on our business and the travel suppliers on whom our business relies." This is especially true now due to the impact of the COVID-19 pandemic on our operations and the difficulty presented in estimating our future bookings, cancellations etc.
In the event those estimates differ significantly from actual results, we could experience greater volatility as a result of our hedging activities.
29 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.