Sabre Corp (SABR) 2020 Q3 法說會逐字稿

Good morning, and welcome to the Sabre Third Quarter 2020 Earnings Conference Call. My name is Victor, and I will be your operator. As a reminder, please note today's call is being recorded. I will now turn the call over to the Vice President of Investor Relations, Kevin Crissey. Please go ahead, sir.

早上好，歡迎來到 Sabre 2020 年第三季度收益電話會議。我叫維克多，我將是你的接線員。提醒一下，請注意今天的通話正在錄音中。我現在將把電話轉給投資者關係副總裁 Kevin Crissey。請繼續，先生。

Thanks, Victor, and good morning, everyone. Thanks for joining us for our third quarter 2020 earnings call. This morning, we issued an earnings press release, which is available on our website at investors.sabre.com. A slide presentation, which accompanies today's prepared remarks, is also available during this call on the Sabre Investor Relations web page. A replay of today's call will be available on our website later this morning.

謝謝，維克多，大家早上好。感謝您參加我們 2020 年第三季度的財報電話會議。今天上午，我們發布了收益新聞稿，可在我們的網站 investors.sabre.com 上獲取。本次電話會議期間，在 Sabre 投資者關係網頁上還提供了幻燈片演示，其中包含今天準備好的評論。今天上午晚些時候將在我們的網站上重播今天的電話會議。

We would like to advise you that our comments contain forward-looking statements that represent our beliefs or expectations about future events, including the duration and effects of COVID-19, industry trends, expected advancements, cost savings and liquidity, among others. All forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those statements made on today's conference call. More information on these risks and uncertainties is contained in our earnings release issued this morning and our SEC filings, including our Form 10-Q filed on August 10, 2020, and our 2019 Form 10-K.

我們想告知您，我們的評論包含前瞻性陳述，代表我們對未來事件的信念或預期，包括 COVID-19 的持續時間和影響、行業趨勢、預期進步、成本節約和流動性等。所有前瞻性陳述都涉及風險和不確定性，可能導致實際結果與今天電話會議上的陳述存在重大差異。有關這些風險和不確定性的更多信息包含在我們今天上午發布的收益報告和我們向美國證券交易委員會提交的文件中，包括我們於 2020 年 8 月 10 日提交的 10-Q 表格和 2019 年的 10-K 表格。

Throughout today's call, we will also be presenting certain non-GAAP financial measures. All references during today's call to EBITDA, operating loss and EPS have been adjusted to exclude certain items. The most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted on our website at investors.sabre.com.

在今天的電話會議中，我們還將介紹某些非 GAAP 財務指標。在今天的電話會議中，對 EBITDA、營業虧損和每股收益的所有參考均已調整，以排除某些項目。收益發布和我們網站 investors.sabre.com 上發布的其他文件中提供了最直接可比的 GAAP 指標和非 GAAP 指標的對賬。

Participating with me are Sean Menke, our Chief Executive Officer; and Doug Barnett, our Chief Financial Officer. Dave Shirk, our President of Travel Solutions; and Scott Wilson, our President of Hospitality Solutions, will be available for Q&A after the prepared remarks. And with that, I'll turn the call over to Sean.

與我一起參加的是我們的首席執行官 Sean Menke；和我們的首席財務官 Doug Barnett。我們的旅行解決方案總裁 Dave Shirk；我們的酒店解決方案總裁 Scott Wilson 將在準備好的發言後進行問答。有了這個，我會把電話轉給肖恩。

Thanks, Kevin. Good morning, everyone, and thank you for joining us today. Before we get into the details of the quarter, I would like to first thank my team members around the world for their sacrifices and ongoing endless effort. I am humbled and very proud of what they have done for our customers and our company.

謝謝，凱文。大家早上好，感謝您今天加入我們。在我們進入本季度的細節之前，我想首先感謝我在世界各地的團隊成員所做的犧牲和不懈的努力。我為他們為我們的客戶和公司所做的一切感到謙卑和自豪。

During today's call, we will focus on a few specific areas, including comments on the ongoing response to the COVID-19 pandemic and customer engagement, the continued progress with our technology transformation and product enhancements, and finally, an update on our financial and balance sheet focus.

在今天的電話會議中，我們將重點關注幾個特定領域，包括對 COVID-19 大流行的持續反應和客戶參與的評論、我們技術轉型和產品改進的持續進展，最後是我們財務和余額的更新工作表焦點。

Early on in the course of the pandemic, we took swift and decisive actions to protect our people, our company and our balance sheet to give us additional runway to help weather this pandemic. Those actions have allowed us -- allowed our team to focus on controlling what we can and using the unprecedented time to challenge traditional thinking, advance innovations and position Sabre for the future.

在大流行病的早期，我們採取了迅速果斷的行動來保護我們的員工、公司和資產負債表，為我們提供額外的跑道來幫助度過這場大流行病。這些行動讓我們——讓我們的團隊能夠專注於控制我們能做的事情，並利用前所未有的時間來挑戰傳統思維、推進創新並為 Sabre 定位未來。

The COVID-19 pandemic continues to suppress travel demand and impact our customers, partners and, of course, our financial results. Importantly, Q3 booking trends showed signs of improvement from the second quarter, and we have cautious optimism for ongoing improvements.

COVID-19 大流行繼續抑制旅行需求並影響我們的客戶、合作夥伴，當然還有我們的財務業績。重要的是，第三季度的預訂趨勢顯示出第二季度有所改善的跡象，我們對持續改善持謹慎樂觀態度。

Even in these tough times, we continue to win new business and lock in long-term commitments with some of our largest customers. Our value in the travel industry continues to be well known as evidenced by the 1,400 airline and agency deals we have signed year-to-date. Our customers trust us to be there for them now and on the other side of this pandemic.

即使在這些艱難時期，我們仍繼續贏得新業務，並與一些最大的客戶簽訂長期承諾。我們在旅遊業中的價值繼續為人所熟知，今年迄今我們簽署的 1,400 份航空公司和代理協議證明了這一點。我們的客戶相信我們現在和在這場大流行病的另一端為他們服務。

We took decisive actions to reduce our cost structure, manage cash burn, extend our debt maturities and add to our liquidity position. We've also continued to invest in our technology transformation and migration to Google Cloud, which will further reduce our cost and allow for more efficient product development and deployment.

我們採取了果斷行動來降低成本結構、控制現金消耗、延長債務期限並增加流動性頭寸。我們還繼續投資於我們的技術轉型和向 Google Cloud 的遷移，這將進一步降低我們的成本並允許更高效的產品開發和部署。

As I'll discuss in more detail in a few minutes, our partnership with Google extends well beyond just the Cloud deal. In just the past 2 weeks, we have announced 2 major advancements. First, we are pioneering artificial intelligence technology for travel. The technology known as Sabre Travel AI is powered by Google's state-of-the-art AI technology and advanced machine learning capabilities. Second, in partnership with Google, we will be accelerating availability of the travel industry's first smart, scalable retail engine. We expect to launch Sabre Smart retail engine, the first product powered by Sabre Travel AI, early next year. These advancements are the next step in our Google innovation framework.

正如我在幾分鐘後更詳細地討論的那樣，我們與穀歌的合作夥伴關係將遠遠超出雲交易。在過去的 2 週內，我們宣布了 2 項重大進展。首先，我們正在開創旅遊人工智能技術。這項名為 Sabre Travel AI 的技術由谷歌最先進的人工智能技術和先進的機器學習能力提供支持。其次，我們將與穀歌合作，加快旅遊業首個智能、可擴展零售引擎的可用性。我們預計將於明年初推出 Sabre Smart 零售引擎，這是第一款由 Sabre Travel AI 提供支持的產品。這些進步是我們 Google 創新框架的下一步。

Putting it all together, we have taken decisive actions to manage through the COVID-19 global pandemic, while continuing to execute and deliver on our technology transformation and product capabilities that will be necessary for our customers to rebound and excel once the impact of the pandemic recedes.

綜上所述，我們已採取果斷行動應對 COVID-19 全球大流行，同時繼續執行和交付我們的技術轉型和產品能力，這對於我們的客戶在大流行的影響後反彈和超越是必要的後退。

Turning to Slide 5. Industry air net bookings improved in the third quarter, slowly but steadily. In July, GDS industry net air bookings were down 94%. August was down 88% and September down 82%. Improvement has been most pronounced in our largest market, North America. The relative strength of the regional mix helped both Sabre's gross and net air bookings outperform the industry in the quarter. North American bookings continued to recover in October and demonstrated a 20 percentage point recovery versus July growth rates.

轉到幻燈片 5。第三季度行業航空淨預訂量緩慢但穩定地改善。 7 月份，GDS 行業淨航空預訂量下降了 94%。 8 月下降了 88%，9 月下降了 82%。在我們最大的市場北美，改善最為明顯。區域組合的相對優勢幫助 Sabre 在本季度的航空總預訂量和淨預訂量均優於行業。北美的預訂量在 10 月份繼續回升，與 7 月份的增長率相比回升了 20 個百分點。

Turning to other regions. Latin America has also shown continued signs of improvement. Asia Pacific has been the slowest to recover, but has trended in the right direction. While all other regions showed continued positive improvements in October, the improvements in booking trends stalled in EMEA. Despite this, total industry global bookings were down 80% in October.

轉向其他地區。拉丁美洲也顯示出持續改善的跡象。亞太地區的複蘇速度最慢，但趨勢是正確的。儘管所有其他地區在 10 月份都顯示出持續的積極改善，但歐洲、中東和非洲地區預訂趨勢的改善停滯不前。儘管如此，10 月份行業全球總預訂量下降了 80%。

On Slide 6, you can see all Sabre key metrics have shown improvement since record declines driven by the COVID-19 pandemic. In April, all metrics were down approximately 90% or greater. But exiting October, gross bookings were down approximately 80%, passengers boarded down 70% and gross CRS transactions down 50%.

在幻燈片 6 上，您可以看到自 COVID-19 大流行導致創紀錄的下降以來，所有 Sabre 關鍵指標都有所改善。 4 月份，所有指標都下降了約 90% 或更多。但截至 10 月，總預訂量下降了約 80%，乘客登機量下降了 70%，CRS 總交易量下降了 50%。

The negative impact from cancellations moderated in the third quarter as cancellations have begun to stabilize in the past few months. Looking at the GDS industry data on a weekly basis through October, you can see net booking trends have continued to improve. As I previously mentioned, the improvement is most pronounced in North America, our largest region.

隨著取消在過去幾個月開始趨於穩定，取消的負面影響在第三季度有所緩和。查看截至 10 月份的每週 GDS 行業數據，您可以看到淨預訂趨勢持續改善。正如我之前提到的，這種改善在我們最大的地區北美最為明顯。

Slide 8 demonstrates the passengers boarded have also shown continued signs of improvement. Excluding airlines that remain significantly impacted by government travel restrictions, passengers boarded for our top 20 carriers approached a 40% recovery in October versus an effectively 0 volume environment in April.

幻燈片 8 顯示登機乘客也顯示出持續改善的跡象。排除仍受政府旅行限制嚴重影響的航空公司，我們前 20 大航空公司的登機乘客在 10 月份恢復了 40%，而 4 月份實際上是零客運量環境。

On Slide 9, you can see hotel transactions continue to outpace improvements in our air bookings and passengers boarded. Hospitality industry bookings were down about 50% in the third quarter. The positive trend we were beginning to see in the EMEA region flattened and reversed due to new resurgence of COVID-19 cases and reimplemented travel restrictions in the region.

在幻燈片 9 上，您可以看到酒店交易繼續超過我們的機票預訂和登機乘客的增長。酒店業預訂量在第三季度下降了約 50%。由於 COVID-19 病例的新捲土重來以及該地區重新實施的旅行限制，我們開始在歐洲、中東和非洲地區看到的積極趨勢趨於平緩和逆轉。

It is clear that COVID-19 pandemic has been unprecedented. On Slide 10, we provide perspective for just how unprecedented. Over the last 50 years, global travel volumes have grown at a multiple of GDP. In fact, during this time, there have only been 6 calendar years in which global passenger volumes declined, and the maximum decline was less than 2%. Over the last 5 decades, average annual growth has been 3.8% at its lowest and 8.6% at its highest.

很明顯，COVID-19 大流行是前所未有的。在幻燈片 10 上，我們提供了前所未有的視角。在過去的 50 年裡，全球旅行量以 GDP 的倍數增長。事實上，這段時間裡，全球客運量下降的歷年只有6個日曆年，最大降幅不到2%。在過去 5 年中，平均年增長率最低時為 3.8%，最高時為 8.6%。

We have directly benefited from the steady growth in global travel volume. Our resilient, volume-based business model filters out noise from fluctuations in the price of air tickets or hotel room nights. While our customers may have to put a $500 ticket on sale for $200 to stimulate demand, we enjoy a transaction-based revenue stream.

我們直接受益於全球旅行量的穩定增長。我們具有彈性的、基於數量的商業模式過濾掉了機票或酒店間夜價格波動的噪音。雖然我們的客戶可能不得不以 200 美元的價格出售 500 美元的門票以刺激需求，但我們享受基於交易的收入流。

Because of this and the recovery data we have shared, we feel we will be well positioned for an early COVID-19 recovery. We strongly believe there is pent-up demand for travel and that the industry will continue to recover from this extraordinary time.

由於這一點以及我們共享的恢復數據，我們認為我們將做好準備，早日恢復 COVID-19。我們堅信，旅遊需求已被壓抑，該行業將繼續從這個非同尋常的時期復蘇。

Let me now turn to a commercial update. Despite the challenges presented by COVID-19, we continue to win new business and sign key renewals. As I mentioned, we signed 1,400 individual airline and agency deals so far this year. These are in addition to several thousand hospitality deals also signed year-to-date. Let me take a second and highlight a few that closed in the third quarter.

現在讓我談談商業更新。儘管 COVID-19 帶來了挑戰，但我們繼續贏得新業務並簽署密鑰續約。正如我所提到的，今年到目前為止，我們簽署了 1,400 份單獨的航空公司和代理協議。此外，今年迄今還簽署了數千筆酒店交易。讓我花點時間強調一下第三季度結束的一些事情。

In Distribution, we were very happy to announce a distribution renewal with one of our largest customers, American Airlines. In addition, we added SAS in Scandinavia; and Jeju Air, a top South Korea low-cost carrier to the list of marquee airlines we have renewed this year. You may recall, we highlighted renewals with United, Emirates and Copa last quarter.

在分銷方面，我們非常高興地宣布與我們最大的客戶之一美國航空公司續簽分銷協議。此外，我們在斯堪的納維亞增加了 SAS；和濟州航空，這是我們今年更新的大型航空公司名單中的韓國頂級低成本航空公司。您可能還記得，上個季度我們強調了與聯合航空、阿聯酋航空和 Copa 的續約。

Airlines are turning to established, efficient, robust distribution channels such as our GDS to fill seats and distribute their inventory far and wide in this historic low-demand environment. As further proof points of this, in Q3, we also signed new distribution agreements with Fly Gangwon and Air Premia, both in South Korea; Thai Smile Airways, a subsidiary of Thai Airways; Air Belgium; and Voyage Air in Bulgaria.

航空公司正在轉向建立、高效、強大的分銷渠道，例如我們的 GDS，以在這個歷史性的低需求環境中填補座位並廣泛分發他們的庫存。作為進一步的證明，在第三季度，我們還與韓國的 Fly Gangwon 和 Air Premia 簽署了新的分銷協議；泰國微笑航空公司，泰國航空公司的子公司；比利時航空；和保加利亞的 Voyage Air。

We also made strong progress with agencies, including a new win and a competitive takeaway with Bid Travel, the largest travel agency network in Southern Africa. We also signed incremental conversions with Royal Travel in the U.K., Berg-Hansen in Norway and AlFursan in the Middle East. Finally, we signed other key renewals in the quarter, such as Travelstore, the largest TMC in California; TripActions, an online travel management company; Travelmatic in Italy; and Tandem Travel in New Zealand.

我們還與代理機構取得了長足進展，包括與南部非洲最大的旅行社網絡 Bid Travel 的新勝利和有競爭力的外賣。我們還與英國的 Royal Travel、挪威的 Berg-Hansen 和中東的 AlFursan 簽署了增量轉換協議。最後，我們在本季度簽署了其他重要的續約協議，例如加州最大的 TMC Travelstore； TripActions，一家在線旅遊管理公司；意大利的Travelmatic；和新西蘭的 Tandem Travel。

Turning to our IT Solutions portfolio. After only a couple of quarters of integration with the Radixx product family, we are already seeing positive movement even despite COVID. In Q3, we signed a new Radixx agreement with Vietravel, a major tour operator in Vietnam that launched its own flight operations. Vietravel is the third airline in Vietnam using Sabre capabilities.

轉向我們的 IT 解決方案組合。在與 Radixx 產品系列集成僅幾個季度後，我們已經看到了積極的進展，即使在 COVID 的情況下也是如此。在第三季度，我們與 Vietravel 簽署了新的 Radixx 協議，Vietravel 是越南的一家主要旅遊運營商，推出了自己的航班業務。 Vietravel 是越南第三家使用 Sabre 功能的航空公司。

To help our customers navigate through COVID-19, we launched Radixx TouchlessGo, a complete no-touch check-in process that assists with boarding, bag tags and other services, all from a customer's smartphone.

為了幫助我們的客戶應對 COVID-19，我們推出了 Radixx TouchlessGo，這是一個完整的非接觸式值機流程，可協助登機、行李標籤和其他服務，所有這些都可以通過客戶的智能手機完成。

In IT operations, we implemented Recovery Manager Ops at Air China and China Eastern. We implemented Dynamic Pricing Engine for Etihad, which helps airlines navigate through this crisis without historic data to rely on. We delivered a Seat Recommendation solution in partnership with American Airlines, which enables optimal passenger seat reassignment after schedule or equipment changes based on algorithms and business rules. And finally, we implemented Proration Engine for Southwest Airlines, which allows airlines to see real-time revenue earnings for each segment in a multi-legged segment. This is a significant improvement versus the historical norm of seeing segment profitability 7 to 30 days later in accounting rollup. Southwest is the first airline to implement this innovative product.

在 IT 運營方面，我們在國航和東航實施了 Recovery Manager Ops。我們為 Etihad 實施了動態定價引擎，它可以幫助航空公司度過這場危機，而無需依賴歷史數據。我們與美國航空公司合作提供了一個座位推薦解決方案，該解決方案可以根據算法和業務規則在時間表或設備更改後實現最佳的乘客座位重新分配。最後，我們為西南航空公司實施了 Proration Engine，它允許航空公司查看多分支航段中每個航段的實時收入。與在會計匯總中 7 到 30 天后看到分部盈利能力的歷史規範相比，這是一個重大改進。西南航空公司是第一家實施這一創新產品的航空公司。

As I mentioned, I continue to be pleased with the progress we are making on our technology transformation. As a reminder, the move to the Google Cloud has many advantages, including greater stability with higher availability, faster recovery, industry-leading security and many other enhancements, all at reduced unit operating costs, with rightsized deployments and the ability to scale up and down quickly.

正如我所提到的，我仍然對我們在技術轉型方面取得的進展感到高興。提醒一下，遷移到谷歌云有很多優勢，包括更高的穩定性和更高的可用性、更快的恢復、行業領先的安全性和許多其他增強功能，所有這些都以降低的單位運營成本、適當規模的部署以及擴展和擴展的能力為代價。快下來。

Our tech migration is helping us already. We significantly reduced our infrastructure footprint. Year-to-date, we have reduced over 2,500 physical servers across our major data centers in Texas and Oklahoma, which represents a reduction of nearly 30% and has resulted in millions of dollars of annual savings. As Doug will explain in more detail later, by the end of 2023, we expect the move to the Google Cloud and our new DXC contract to reduce our operating cost by more than $100 million per year.

我們的技術遷移已經在幫助我們。我們顯著減少了我們的基礎設施足跡。年初至今，我們在德克薩斯州和俄克拉荷馬州的主要數據中心減少了 2,500 多台物理服務器，減少了近 30%，每年節省了數百萬美元。正如 Doug 稍後將更詳細地解釋的那樣，到 2023 年底，我們預計遷移到 Google Cloud 和我們新的 DXC 合同將使我們的運營成本每年減少超過 1 億美元。

Beyond the work to migrate to Google Cloud, we have discussed other important parts of our partnership with Google, specifically co-innovation to transform the future of travel. We are now beginning to execute on this aspect of our partnership.

除了遷移到谷歌云的工作之外，我們還討論了我們與穀歌合作夥伴關係的其他重要部分，特別是共同創新以改變旅行的未來。我們現在開始執行我們夥伴關係的這一方面。

In October, we introduced Sabre Travel AI. This advancement is part of our Google innovation framework and is an industry first in travel. Sabre Travel AI is infused with Google's state-of-the-art AI and advanced machine learning technology. Specifically, Sabre Travel AI capitalizes on Google Cloud AI solutions and automated machine learning tools that sense, analyze and predict consumer behavior using real-time shopping information and sophisticated travel specific business insights. We expect Travel AI can enrich products across all businesses we support, airlines, hotels and agencies, using next-generation technology advancements. We are integrating Sabre Travel AI into certain products in our existing portfolio with plans to bring these to market in 2021.

10 月，我們推出了 Sabre Travel AI。這一進步是我們谷歌創新框架的一部分，是旅遊行業的首創。 Sabre Travel AI 融入了谷歌最先進的人工智能和先進的機器學習技術。具體來說，Sabre Travel AI 利用谷歌云 AI 解決方案和自動化機器學習工具，使用實時購物信息和復雜的旅遊特定業務洞察來感知、分析和預測消費者行為。我們希望 Travel AI 能夠利用下一代技術進步，豐富我們支持的所有企業、航空公司、酒店和代理機構的產品。我們正在將 Sabre Travel AI 集成到我們現有產品組合中的某些產品中，併計劃在 2021 年將這些產品推向市場。

Earlier this week, we unveiled the first product powered by Sabre Travel AI technology. Partnering with Google, we are accelerating availability of the travel industry's first smart scalable retail engine, with launch planned in the first quarter of 2021. Powered by state-of-the-art AI technology and advanced machine learning capability, Sabre Smart retail engine will be the first of its kind in travel, designed to both -- to be both PSS and channel agnostic. We expect the Sabre Smart retail engine to be available to both current and future airline customers regardless of their business model, PSS or GDS.

本週早些時候，我們推出了首款採用 Sabre Travel AI 技術的產品。我們與穀歌合作，加速推出旅遊行業首個智能可擴展零售引擎，計劃於 2021 年第一季度推出。在最先進的人工智能技術和先進的機器學習能力的支持下，Sabre 智能零售引擎將成為旅行中同類產品中的第一個，旨在同時與 PSS 和渠道無關。我們希望 Sabre Smart 零售引擎可供當前和未來的航空公司客戶使用，無論他們的業務模式是 PSS 還是 GDS。

Sabre Smart retail engine is a new innovation that integrates Sabre's dynamic offer management and customer segmentation capabilities with Google's proven and powerful merchandising solution to use real-time shopping data, available content and AI and ML-based decision support models to test and learn and generate the most optimal offers available. These personalized offer bundles are dynamically priced using customer segmentation techniques, can include ancillaries such as seats and baggage and will eventually include third-party content such as rental cars and hotel stays.

Sabre 智能零售引擎是一項新的創新，它將 Sabre 的動態報價管理和客戶細分功能與 Google 久經考驗且功能強大的營銷解決方案相集成，以使用實時購物數據、可用內容以及基於 AI 和 ML 的決策支持模型來測試、學習和生成可用的最佳優惠。這些個性化的套餐使用客戶細分技術進行動態定價，可以包括座位和行李等輔助服務，最終將包括租車和酒店住宿等第三方內容。

Ultimately, we are bringing together some of the brightest minds from Google and Sabre to build and connect the right offer to the right traveler at the right time, to increase traveler satisfaction and provide airlines the opportunity to drive new and creative business opportunities. We are excited to bring Sabre Smart retail engine as part of our offer management strategy, one of our strategic initiatives announced at the beginning of this year and a step towards achieving our 2025 vision of delivering truly personalized travel.

最終，我們將匯集 Google 和 Sabre 的一些最聰明的頭腦，以在正確的時間為正確的旅行者提供正確的服務，並提供正確的服務，以提高旅行者的滿意度，並為航空公司提供推動新的和創造性的商業機會的機會。我們很高興將 Sabre 智能零售引擎納入我們的報價管理戰略，這是我們今年年初宣布的戰略舉措之一，也是實現我們提供真正個性化旅行的 2025 年願景的一步。

These are examples of how we are thinking about the future. We are making the investments now that we expect will be position us for success post-COVID recovery. And with that, I would like to turn the call over to Doug.

這些是我們如何思考未來的例子。我們現在正在進行投資，我們預計這將使我們在 COVID 後恢復成功。有了這個，我想把電話轉給道格。

Thanks, Sean. The impact of the pandemic hurt our results significantly again in Q3, though certainly less than in the second quarter. Revenue was down 72% in the quarter, totaling $278 million, versus $984 million last year. We described how 15% of our revenue or approximately $150 million per quarter is not tied to travel volumes. This remains the case. Because our net bookings are now positive, our revenues surpassed this figure. Our Distribution bookings were down 86% in the quarter. Gross bookings were down 84%, 83% and 81% in July, August and September, respectively.

謝謝，肖恩。大流行的影響在第三季度再次嚴重損害了我們的業績，儘管肯定低於第二季度。本季度收入下降 72%，總計 2.78 億美元，而去年同期為 9.84 億美元。我們描述了我們 15% 的收入或每季度約 1.5 億美元與旅行量無關。情況仍然如此。由於我們的淨預訂量現在為正，我們的收入超過了這個數字。我們的分銷預訂在本季度下降了 86%。 7 月、8 月和 9 月的總預訂量分別下降了 84%、83% 和 81%。

We report bookings on a net basis, meaning net of cancellations. Net bookings were down 91%, 87% and 81% in those same months. Consequently, our distribution revenue in the quarter was down 84% to $105 million.

我們按淨額報告預訂，即扣除取消。同月，淨預訂量分別下降了 91%、87% 和 81%。因此，我們本季度的分銷收入下降了 84% 至 1.05 億美元。

In terms of future cancellations exposure, we have recognized $30 million in revenue from bookings not yet departed and have a $33 million cancellation reserve.

就未來取消風險而言，我們已確認尚未離開的預訂收入為 3000 萬美元，並有 3300 萬美元的取消準備金。

Our IT Solutions revenue fared better, down 46% year-over-year due to a higher percentage of our revenue not tied to travel volumes. Hospitality revenue was down 40% with a 37% decline in CRS transactions.

我們的 IT 解決方案收入表現更好，同比下降 46%，這是因為我們的收入中與旅行量無關的比例更高。酒店收入下降了 40%，CRS 交易下降了 37%。

EBITDA, operating income and net income were all negative in Q3, reflecting the impact of the COVID-19 pandemic. The year-over-year revenue -- excuse me, the year-over-year decline in revenue was partially offset by a decline in incentive expense, headcount expenses due to cost savings initiatives we have already executed and technology expenses due to the lower transaction volume environment. In addition, free cash flow was negative $201 million in the quarter. As expected, our free cash flow was reduced by $20 million in severance payments and $13 million net cash outflows to carriers resulting from previous booking cancellations.

第三季度的 EBITDA、營業收入和淨收入均為負值，反映了 COVID-19 大流行的影響。同比收入——不好意思，收入的同比下降部分被激勵費用的下降、我們已經執行的成本節約舉措導致的員工費用以及交易量減少導致的技術費用的下降所抵消卷環境。此外，本季度自由現金流為負 2.01 億美元。正如預期的那樣，我們的自由現金流減少了 2000 萬美元的遣散費和 1300 萬美元的淨現金流出，這是由於之前的預訂取消而導致的。

Please note, when we previously gave our monthly cash burn guidance, these 2 items were addressed as reductions to our existing available cash balance rather than specifically itemized as expected future uses of cash. Excluding these 2 items, our monthly free cash flow was negative $56 million compared to the $80 million monthly cash burn rate we discussed in a zero booking, zero PB environment.

請注意，當我們之前給出每月現金消耗指導時，這兩項被視為我們現有可用現金餘額的減少，而不是具體列為預期的未來現金用途。排除這兩項，我們每月的自由現金流為負 5600 萬美元，而我們在零預訂、零 PB 環境中討論的每月現金消耗率為 8000 萬美元。

Looking ahead to Q4, I'd like to mention 3 items that are expected to negatively impact our Q4 free cash flow by approximately $90 million. First is the seasonality of our cash interest payments. Second is the timing of employee cash benefits. While typically paid in the first quarter each year, they will now be paid in Q4 2020. This is an acceleration of what has historically been paid in the first quarter, so we will see the offsetting benefit in Q1 2021. Third, we expect to make additional severance payments related to the cost reduction measures implemented earlier this year. We expect this to conclude the bulk of the severance payments associated with the actions taken in 2020.

展望第四季度，我想提一下預計會對我們第四季度的自由現金流產生約 9000 萬美元負面影響的 3 個項目。首先是我們現金利息支付的季節性。其次是員工現金福利的發放時間。雖然通常在每年第一季度支付，但他們現在將在 2020 年第四季度支付。這是對歷史上第一季度支付的加速，因此我們將在 2021 年第一季度看到抵消收益。第三，我們預計支付與今年早些時候實施的成本削減措施相關的額外遣散費。我們預計這將結束與 2020 年採取的行動相關的大部分遣散費。

Last quarter, we talked about our business realignment and that we expect the changes to our financials as a result. Accordingly, our Q3 results include 2 changes to our financial reporting structure and a recast of historical results.

上個季度，我們談到了我們的業務調整，我們預計我們的財務狀況會因此發生變化。因此，我們的第三季度業績包括 2 項財務報告結構變更和歷史業績重鑄。

First, We have implemented a change to our reported business segments. We will now be reporting 2 segments: Travel Solutions and Hospitality Solutions. As part of our Travel Solutions reorganization, we combined the Travel Network and Airline Solutions businesses into one segment. We will no longer be reporting Travel Network and Airline Solutions as separate segments as these teams and activities have been combined. We will continue to report the revenue and key metrics you are accustomed to seeing and modeling. This includes our GDS transactional revenue, now called distribution revenue and bookings details. We will also report IT Solutions revenue or revenue generated from our airline reservation systems and commercial and operations products, and we'll continue reporting passengers boarded. Please note the majority of what was formerly reported as Travel Network Other revenue is now recognized under IT solutions. As mentioned, we will continue to report Hospitality Solutions as a separate segment.

首先，我們對報告的業務部門進行了更改。我們現在將報告 2 個部分：旅遊解決方案和酒店解決方案。作為我們旅行解決方案重組的一部分，我們將旅行網絡和航空公司解決方案業務合併為一個部門。我們將不再將 Travel Network 和 Airline Solutions 作為單獨的部門進行報告，因為這些團隊和活動已經合併。我們將繼續報告您習慣於看到和建模的收入和關鍵指標。這包括我們的 GDS 交易收入，現在稱為分銷收入和預訂明細。我們還將報告 IT 解決方案收入或我們的航空公司預訂系統以及商業和運營產品產生的收入，我們將繼續報告登機乘客。請注意，以前報告為 Travel Network 其他收入的大部分現在都在 IT 解決方案下確認。如前所述，我們將繼續將酒店解決方案作為一個單獨的部分進行報告。

Second, in an effort to continue to provide clarity on our technology spend, we are now presenting technology costs as a separate line on our P&L. Therefore, our main cost buckets are now cost of revenue, technology costs and SG&A. While there was no impact to other financial measures, as a result of these changes, our adjusted gross profit is more favorable than previously reported as it now excludes technology costs. This is expected to provide a more transparent view of variable expenses and gross margin, direct accountability of expense to revenue ratios to drive productivity and closer benchmarking to peer tech companies.

其次，為了繼續明確我們的技術支出，我們現在將技術成本列為損益表中的單獨一行。因此，我們的主要成本桶現在是收入成本、技術成本和 SG&A。由於這些變化，雖然對其他財務指標沒有影響，但我們調整後的毛利比之前報告的更有利，因為它現在不包括技術成本。預計這將提供更透明的可變費用和毛利率視圖，直接問責費用與收入比率以提高生產力，並更接近同行科技公司的基準。

We have disclosed reclassified financials that reflect these changes for Q3 and year-to-date 2019 and 2020 in our earnings materials and in the Sabre Historical Excel file posted on our IR website at investors.sabre.com. We expect to provide reclassified quarterly financials for 2018 through 2020 when we release our Q4 and full year 2020 results in February.

我們已經在我們的收益材料和我們的 IR 網站 investors.sabre.com 上發布的 Sabre Historical Excel 文件中披露了反映 2019 年第三季度和 2020 年年初至今這些變化的重新分類財務數據。我們預計在 2 月份發布第四季度和 2020 年全年業績時，將提供 2018 年至 2020 年重新分類的季度財務數據。

We are on track to achieve $275 million of non-volume-related cost savings in 2020 versus 2019. Remember, this is primarily headcount-related expenses and partial savings from our renegotiated DXC contract. Natural savings in incentives and technology hosting expenses caused by the lower volume environment are incremental.

與 2019 年相比，我們有望在 2020 年實現 2.75 億美元的非數量相關成本節省。請記住，這主要是與員工人數相關的費用和我們重新談判的 DXC 合同的部分節省。較低容量環境導致的激勵和技術託管費用的自然節省是增量的。

On a go-forward basis, we expect a minimum of $200 million of non-volume-related cost savings per year compared to 2019. Of this, approximately $175 million in savings is driven by lower headcount expenses from reductions that have already been executed. To be clear, these cost savings are not driven by temporary factors like staff furloughs. Approximately $25 million impacts the fixed portion of our technology costs and is driven by savings from our new DXC contract.

在未來的基礎上，我們預計與 2019 年相比，每年至少可節省 2 億美元的非數量相關成本。其中，約 1.75 億美元的節省是由已經執行的裁員帶來的員工費用減少推動的。需要明確的是，這些成本節約並不是由員工休假等臨時因素驅動的。大約 2500 萬美元影響了我們技術成本的固定部分，這是由我們新的 DXC 合同節省下來的。

By 2024, we expect an incremental $75 million per year of fixed technology cost savings, once we have largely completed the technology transformation and our migration to Google Cloud Platform. These expected savings are already in place, supported by our strategic partnership with Google and our new contract with DXC. Ultimately, with the cost saving actions implemented this year and financial benefits of technology transformation work, we expect a total of $275 million in annual cost savings starting in 2024 versus 2019. Please note that as we execute the tech transformation, some of these incremental cost savings may be realized prior to 2024. However, we expect majority to be realized in 2024 and beyond.

到 2024 年，一旦我們基本完成技術轉型和向 Google Cloud Platform 的遷移，我們預計每年可節省 7500 萬美元的固定技術成本。在我們與 Google 的戰略合作夥伴關係以及我們與 DXC 的新合同的支持下，這些預期的節省已經到位。最終，隨著今年實施的成本節約行動和技術轉型工作的經濟效益，我們預計從 2024 年開始每年將比 2019 年節省總計 2.75 億美元的成本。請注意，在我們執行技術轉型時，其中一些增量成本節省可能在 2024 年之前實現。但是，我們預計大部分將在 2024 年及以後實現。

Incremental to these figures are anticipated savings from lower unit costs on transaction volumes as we migrate to the cloud, which has favorable economics.

隨著我們遷移到具有良好經濟效益的雲，交易量的單位成本降低，預計這些數字將有所增加。

As you are no doubt aware, we took quick action to raise additional liquidity in the event the COVID-19 pandemic persists longer than expected, although we hope this isn't the case and continue to see signs of modest improvement in bookings.

眾所周知，如果 COVID-19 大流行的持續時間超過預期，我們會迅速採取行動籌集額外的流動性，但我們希望情況並非如此，並繼續看到預訂量略有改善的跡象。

We closed on 3 important offerings in the third quarter. We generated $598 million in net proceeds from our common stock and mandatory convertible preferred offerings. We also pushed out our debt maturity schedule. We issued $850 million in new senior secured notes due in 2025 and used the proceeds to pay down earlier maturing debt, and we extended the maturity on a portion of our bank facility.

我們在第三季度完成了 3 項重要的發行。我們從普通股和強制性可轉換優先股發行中獲得了 5.98 億美元的淨收益。我們還推遲了債務到期時間表。我們發行了 8.5 億美元的 2025 年到期的新優先擔保票據，並將所得款項用於償還提前到期的債務，並延長了部分銀行貸款的到期日。

As you can see on Slide 16, we do not have a material debt maturity until the fourth quarter of 2023, and the majority does not mature until 2024 and beyond, subject to springing maturity conditions. For ease of presentations, we have excluded the immaterial mandatory debt repayments. It's also important to note the Material Travel Event Disruption leverage ratio covenant waiver language remains. Consequently, our leverage ratio covenant under our Amended and Restated Credit Agreement has been suspended. We expect this to continue through at least the end of 2020 and possibly through 2021 based on current IATA volume projections.

正如您在幻燈片 16 中看到的那樣，我們在 2023 年第四季度之前沒有實質性債務到期，並且大部分要到 2024 年及以後才到期，具體取決於是否出現到期條件。為了便於介紹，我們排除了非實質性的強制性債務償還。同樣重要的是要注意重大旅行事件中斷槓桿率契約豁免語言仍然存在。因此，我們經修訂和重述的信貸協議下的槓桿率契約已被暫停。根據目前的 IATA 運輸量預測，我們預計這種情況至少會持續到 2020 年底，並可能持續到 2021 年。

So to summarize. We have strengthened our liquidity position, reduced our costs, extended our debt maturities and are seeing improving booking trends. Finally, we ended the quarter with a cash balance of $1.7 billion and have no significant near-term uses of cash. Sean, back to you.

所以總結一下。我們加強了我們的流動性頭寸，降低了我們的成本，延長了我們的債務期限，並且看到了改善的預訂趨勢。最後，我們在本季度末的現金餘額為 17 億美元，並且近期沒有大量使用現金。肖恩，回到你身邊。

Thanks, Doug. In summary, we remain focused on the future, are confident travel will rebound and feel competitively well positioned post COVID-19. I want to once again thank my Sabre teammates around the world for their dedication to serving our customers, shareholders and each other during this difficult time.

謝謝，道格。總而言之，我們仍然關注未來，相信旅行會反彈，並在 COVID-19 之後感覺在競爭中處於有利地位。我想再次感謝我在世界各地的 Sabre 隊友，感謝他們在這個困難時期竭誠為我們的客戶、股東和彼此服務。

And with that, Victor, I'd like to go ahead and open up the call for questions.

有了這個，維克多，我想繼續並打開問題電話。

(Operator Instructions) And our first question with come from the line of Mark Moerdler from Bernstein Research.

（操作員說明）我們的第一個問題來自 Bernstein Research 的 Mark Moerdler。

Nice to see the steady improvement. Obviously, it's been a slow slog forward. I apologize, but I got 2 questions, if you don't mind. Doug, you had onetime items impacting cash in Q3. And now there's another $90 million in items impacting Q4. Can you give us any sense of what you now currently see, obviously, in terms of other onetime items or timing changes in terms of cash impacts for 2021 and beyond. And then a follow-up.

很高興看到穩步改善。顯然，這是一個緩慢的前進過程。抱歉，如果您不介意的話，我有 2 個問題。道格，你在第三季度有影響現金的一次性項目。現在還有 9000 萬美元的項目影響第四季度。您能否告訴我們您目前在其他一次性項目或 2021 年及以後的現金影響方面的時間變化方面顯然目前所看到的情況。然後是跟進。

Yes, Mark, once we've burned through the severance payments, which we'll do primarily by the end of 2020, then obviously, we're seeing a lot less impact from cancellations than we saw earlier in the year. So I don't expect those 2 items to continue. And the only reason why you had a variability of the interest cost in the fourth quarter versus the prior quarters is because of the financing that took place in April. So they will commonize and be normal throughout all of 2021 and beyond.

是的，馬克，一旦我們用完了遣散費，我們將主要在 2020 年底完成，那麼很明顯，我們看到取消的影響比今年早些時候要小得多。所以我不希望這兩個項目繼續。第四季度利息成本與前幾個季度相比存在差異的唯一原因是 4 月份進行的融資。因此，它們將在整個 2021 年及以後普及並成為常態。

So we shouldn't expect any specific specialty onetime items at this point, right?

所以我們現在不應該期待任何特定的一次性物品，對吧？

That's correct.

這是正確的。

Okay. And then can you give us any color on travel agency failure rates?

好的。然後你能告訴我們旅行社失敗率的任何顏色嗎？

Yes, Mark, I mean, what we've seen so far, I'm going to go around the globe, we haven't seen what I would consider a lot of failure rates. Many of them have gotten a lot of expense out. There's been a number of furloughs that have taken place. What we have seen is some level of consolidation, M&A taking place with CTM, the large TMC out of Australia, acquired Travel and Transport here in the U.S. But for the most part, we have not seen a lot of failure at this point.

是的，馬克，我的意思是，到目前為止我們所看到的，我將環遊全球，我們還沒有看到我認為很多失敗率。他們中的許多人已經得到了很多費用。已經發生了一些休假。我們看到的是某種程度的整合，與澳大利亞大型 TMC CTM 進行的併購，在美國收購了 Travel and Transport。但在大多數情況下，我們目前還沒有看到很多失敗。

Our next question will come from the line of Ashish Sabadra from Deutsche Bank.

我們的下一個問題將來自德意志銀行的 Ashish Sabadra。

And let me echo the good -- the strong -- sorry, the improvement that we're seeing in the bookings here. One of the key debates that we've heard from investors is around the corporate bookings, specifically around the disintermediation from Zoom or video conferencing, but also on the positive side, the increased managed care. So Sean, maybe if you can take your crystal ball and give your thoughts on what you think about the corporate travel, particularly on the disintermediation front. But also, if you have done any research in the past, talking about what percentage of the corporate bookings was managed and how the duty of care emphasis post the pandemic could potentially shift more volume to the GDS?

讓我回應好的 - 強大的 - 抱歉，我們在這裡的預訂中看到的改進。我們從投資者那裡聽到的主要爭論之一是圍繞公司預訂，特別是圍繞 Zoom 或視頻會議的非中介化，但也從積極的方面來看，管理式醫療的增加。所以肖恩，也許你可以拿出你的水晶球，談談你對公司旅行的看法，尤其是在去中介化方面。而且，如果你過去做過任何研究，談論管理的公司預訂的百分比是多少，以及大流行後注意義務的強調如何可能將更多的數量轉移到 GDS？

Yes. Thanks, Ashish, for that question. So let me just touch upon the way that we look at this. And again, I go back in history a little bit, just with my number of years in the business, and go back to 9/11, go during the period relative to the economic, essentially, recession that took place, 2008 through 2010 roughly. There was a call for corporate travel really slowing down and not rebounding the way that it did. Now as you look at it, it did. There was a rebound that took place.

是的。謝謝 Ashish 提出這個問題。所以讓我談談我們看待這個問題的方式。再一次，我回顧一下歷史，就我在這個行業的年數，回到 9/11，在與經濟相關的時期，基本上是發生衰退的時期，從 2008 年到 2010 年大致.有人呼籲公司旅行真正放緩，而不是像以前那樣反彈。現在，當您查看它時，確實如此。發生了反彈。

No doubt that we're seeing more of a significant impact in what's taking place. If you do a breakdown of what we're looking, and we look at the data very closely, we do see that leisure bookings are recovering faster than corporate bookings. But when you look at the trough, it was down essentially 100%. I think at the peak down, it was probably 98%, 99%. We're actually seeing corporate bookings in the range down about 80% or so, give or take a couple of points.

毫無疑問，我們在正在發生的事情中看到了更多的重大影響。如果您對我們正在尋找的內容進行細分，並且我們非常仔細地查看數據，我們確實會發現休閒預訂的恢復速度快於公司預訂。但是當你看低谷時，它基本上下降了 100%。我認為在峰值下降時，它可能是 98%、99%。實際上，我們看到公司預訂量下降了大約 80% 左右，增減了幾個點。

And with that, Ashish, the one thing that's clear is we don't see really corporate bookings starting to recover until 2021. The other thing that is very important, and we are an organization that I have thousands of employees that travel around the world, and you mentioned this, and it's the duty of care and the importance of duty of care. And there are things that are being worked on relative to additional technology that is going to allow corporations to make sure that they are doing the best thing and the safest thing for their employees around the world.

Ashish，有一點很清楚，我們要到 2021 年才能看到真正的企業預訂開始恢復。另一件事非常重要，我們是一個組織，我有成千上萬的員工在世界各地出差，而你提到了這一點，這是注意義務和注意義務的重要性。還有一些與其他技術相關的工作正在進行中，這些技術將使公司能夠確保他們正在為全球員工做最好和最安全的事情。

So I look at it that we have to be patient. Recovery is taking place. And again, living through this a couple of different times, there's no doubt in my mind that we have seen essentially Zoom calls as well as Teams calls have allowed us to be efficient. But I do believe we will see corporate travel recover over a period of time. I don't think it's just going to snap back, but I think we just have to be patient. It goes back to everything that we have done as it relates to, one, raising liquidity, focusing on the balance sheet, continuing to improve our technology products in the marketplace that position us well for the future.

所以我認為我們必須要有耐心。恢復正在進行中。再說一次，經歷過這幾次不同的時期，在我看來，毫無疑問，我們基本上已經看到 Zoom 電話和 Teams 電話讓我們變得高效。但我相信我們會看到公司旅行在一段時間內復蘇。我不認為它會迅速反彈，但我認為我們必須要有耐心。它可以追溯到我們所做的一切，因為它涉及到，第一，提高流動性，關注資產負債表，繼續改進我們在市場上為未來做好準備的技術產品。

Sean, that was very helpful color. And then just moving on to the Google partnership. Congrats on those new product launches there. I was just wondering if you can talk about or remind us how Google is helping you in developing those products? Do they have people, engineers on their front actively helping you with the development. So that's one part of the question.

肖恩，那是非常有用的顏色。然後繼續與穀歌合作。祝賀那些新產品在那裡發布。我只是想知道您是否可以談談或提醒我們 Google 如何幫助您開發這些產品？他們是否有人，工程師在他們的前面積極幫助您進行開發。所以這是問題的一部分。

And then the second question would be just how does it change your competitive positioning going forward with these new products out in the market? And then third, I know it's still very early days, but have you had any conversations with any of your customers on these modules or any initial feedback? Sorry, for so many questions.

那麼第二個問題就是隨著這些新產品上市，它如何改變你的競爭定位？第三，我知道現在還很早，但是您是否與您的客戶就這些模塊進行過任何對話或有任何初步反饋？抱歉，問題太多了。

Yes. Thanks, Ashish. I mean, first and foremost, I think we're already doing great things with the products. And I think this is just going to pole-vault us even further into opportunities to continue to accelerate wins in the future because it's really aligning to what the marketplace needs to do. As a reminder, there's sort of 4 aspects of the Google relationship. One is the cloud deal that Doug talked about and the savings that we get. The second is really the technology transformation. Part of that is with Google and then also the new DXC agreement that really gives us a lot of flexibility on how we think about the transformation. With that, there are a number of Google engineers that are helping on that tech transformation.

是的。謝謝，阿希什。我的意思是，首先，我認為我們已經在使用產品做一些很棒的事情。而且我認為這只會讓我們進一步抓住機會繼續加速未來的勝利，因為它確實符合市場需要做的事情。提醒一下，與 Google 的關係有 4 個方面。一個是道格談到的雲交易和我們得到的節省。第二是真正的技術轉型。其中一部分是與 Google 的合作，然後是新的 DXC 協議，這確實為我們考慮轉型的方式提供了很大的靈活性。因此，有許多谷歌工程師正在幫助進行技術轉型。

The third part of it is really the machine learning, the AI side of the equation. We talked about this and how this is going to be integrated, and it's taking place now. The other piece of it is the innovation framework. And again, this really does get into what we're doing on the merchandising side. We'll get -- we'll be able to share more with this, but this is essentially a Farelogix replacement and what was taking place there. And we believe it is what we consider to be Gen 3, which is really not in the marketplace because it really does get into dynamic offers.

它的第三部分實際上是機器學習，等式的 AI 方面。我們討論了這個以及如何整合它，現在正在發生。另一部分是創新框架。再一次，這確實影響了我們在商品銷售方面所做的工作。我們會得到 - 我們將能夠與此分享更多，但這本質上是 Farelogix 的替代品以及那裡發生的事情。我們相信這是我們認為的第 3 代，它實際上不在市場上，因為它確實進入了動態報價。

So when you look at it, Ashish, it's really all the components of the relationship are beginning to come together that's allowing us to continue to position ourselves to be able to transform the industry that we're in.

因此，Ashish，當您審視它時，實際上是這種關係的所有組成部分都開始融合在一起，這使我們能夠繼續定位自己，以便能夠改變我們所處的行業。

So Ashish, just to add to your question on customer interaction. We've already had multiple customer sessions, joint sessions, ourselves, Google and the customer, and we have a backlog of folks that, with these announcements, are very interested in continuing that. So we've got our teams pretty busy over the course of the next several months on the topic.

所以 Ashish，只是為了增加你關於客戶互動的問題。我們已經舉行了多次客戶會議、聯合會議、我們自己、谷歌和客戶，我們有大量的人，隨著這些公告，他們非常有興趣繼續這樣做。因此，在接下來的幾個月裡，我們的團隊在這個主題上非常忙碌。

(Operator Instructions) Our next question will come from the line of Jed Kelly from Oppenheimer.

（操作員說明）我們的下一個問題將來自奧本海默的傑德凱利。

Just getting an update on the booking mix and when you can become free cash flow neutral. Does it still need to be 70% of 2019 levels? Or is there a way you could reach free cash flow neutral before then?

只需了解預訂組合的最新信息，以及何時可以實現自由現金流中性。是否仍需要達到 2019 年水平的 70%？還是有什麼辦法可以在此之前達到自由現金流中性？

Yes. Jed, you recall, last time, at the end of -- in the last conference call, we gave kind of 2 goalposts, I'll tell you. The unfavorable mix we're seeing right now between corporate and leisure and international and domestic, if that were to stay the same as what we're seeing right now, today's environment, then we would need to have a 70% recovery. If we got back to the more historical mix of what we had for those categories, it would be 60%. So they are the goalposts, somewhere between 60% and 70%.

是的。傑德，你記得，上次，在上次電話會議結束時，我告訴你，我們給出了 2 個球門柱。我們現在看到的企業和休閒以及國際和國內之間的不利組合，如果要保持與我們現在看到的相同，今天的環境，那麼我們需要有 70% 的複蘇。如果我們回到這些類別的更多歷史組合，它將是 60%。所以他們是球門柱，大約在 60% 到 70% 之間。

Got it. And then just on your partnership with Google. How does that impact your relationship with the OTAs? I mean is that going to be competing with them? Or how should we view that?

知道了。然後就是關於您與 Google 的合作夥伴關係。這對您與 OTA 的關係有何影響？我的意思是那會和他們競爭嗎？或者我們應該如何看待？

Yes, Jed, I think the best way of thinking about this, and it goes back to really just what I walked through on the technology and what that is providing. And we sit in a position that we have to look at airlines, we have to look at hoteliers and how are we helping them create new products that they can sell. And at the same time, we also have to be thinking about OTAs as well as TMCs, brick-and-mortar, on the other side of the equation. And a big part of what we continue to hear and what we're facilitating, because we have a vast majority -- a lot of focus on this, is how do we make sure that those new offers are essentially pushed through to the agencies that want to sell them. So I look at it that, as I've said all along, we're a technology company. We're focused on providing the technology to our customers, and we're capable of seeing sort of the end-to-end capabilities that are required to facilitate the change that a number of people are looking for.

是的，傑德，我認為這是最好的思考方式，它實際上可以追溯到我在技術上所經歷的以及它所提供的東西。我們的立場是，我們必須審視航空公司，我們必須審視酒店經營者，以及我們如何幫助他們創造可以銷售的新產品。同時，我們還必須考慮等式另一端的 OTA 以及 TMC、實體店。我們繼續聽到的和我們正在推動的很大一部分，因為我們有絕大多數 - 非常關注這個，我們如何確保這些新提議基本上被推到那些機構想賣掉它們。所以我認為，正如我一直所說的，我們是一家科技公司。我們專注於為我們的客戶提供技術，並且我們能夠看到促進許多人正在尋找的變化所需的某種端到端功能。

Got it. And then it's pretty well understood that leisure domestic accommodation is leading and going to lead the recovery into the first half of next year. Just how do you kind of look at your strategy in your hotel business, hospitality business, around alternative accommodations in those single unit inventory types that are probably going to be in high demand even into next summer.

知道了。眾所周知，國內休閒住宿正在引領並將引領復甦進入明年上半年。你如何看待你在酒店業務、酒店業務、圍繞那些即使到明年夏天也可能會有很高需求的單一單元庫存類型的替代住宿的策略。

Yes. I think it's -- and I think you know this well, Jed, as you cover that sector. I mean a big part of the growth that is taking place now are essentially a number of people that because people are working from home, people have wanted to move out of the urban areas and have been looking for places. So that's been a big driver as you look at that. The other thing that is important is we've had conversations specifically as it relates to distribution and how does that get pushed through our distribution channel. It goes back to some of the things that we've done with our lodging content services capabilities and being able to do that. So I think there's a balance associated with it. But I'll have Dave, or we have Scott, who is remote right now, who's our new President of Hospitality, if you guys have a comment.

是的。我認為這是 - 我認為你很了解這一點，傑德，因為你涵蓋了那個領域。我的意思是現在正在發生的增長的很大一部分本質上是一些人，因為人們在家工作，人們想搬出市區並一直在尋找地方。所以當你看到它時，這是一個很大的驅動力。另一件重要的事情是我們已經進行了專門的對話，因為它與分銷有關，以及如何通過我們的分銷渠道推動。它可以追溯到我們利用住宿內容服務功能所做的一些事情，並且能夠做到這一點。所以我認為有一個與之相關的平衡。但我會請戴夫，或者我們請斯科特，他現在是遠程的，他是我們的新任酒店總裁，如果你們有意見的話。

Yes. I think, I mean one comment I would make, Jed, is just some of the initiatives that Sean was pointing to with our content services on the lodging side. We've been pretty active within the hospitality space from a distribution perspective with the Stay Safe initiative and other things, which the question that was asked a little bit earlier about duty of care, it's not just on the air side, but it's also on the hospitality side. And we're doing everything we can to help bring that piece along to make sure that certain requirements and certain measurements are met. So I think that will also add to it and help and assist in both the leisure to corporate balance. And then, Scott, do you want to add anything on the CRS side.

是的。我想，我的意思是我要發表的一個評論，Jed，只是 Sean 在住宿方面針對我們的內容服務所指出的一些舉措。從分配的角度來看，我們在酒店領域一直非常活躍，包括“保持安全”倡議和其他事情，這個問題之前被問到關於注意義務的問題，它不僅在空氣方面，而且也在好客的一面。我們正在竭盡所能幫助實現這一目標，以確保滿足某些要求和某些測量值。所以我認為這也將增加它並幫助和協助休閒與企業的平衡。然後，Scott，你想在 CRS 端添加任何內容嗎？

Yes. Actually, I think the way Sean broke it down makes a lot of sense, is there's Distribution and, of course, there's IT Solutions. We look at that as another market for us to go with our set of IT capabilities, both on the commercial capability side, like CRS, as Dave just mentioned but in addition, for operations and execution as well. So we think that it's a great new market for us to have some conversations with about extending our IT capability reach.

是的。實際上，我認為 Sean 將其分解的方式很有意義，即分佈，當然還有 IT 解決方案。我們將其視為我們的 IT 能力集的另一個市場，包括商業能力方面，如 Dave 剛才提到的 CRS，但除此之外，還包括運營和執行。因此，我們認為這對我們來說是一個很好的新市場，可以就擴展我們的 IT 能力範圍進行一些對話。

Our next question comes from the line of Josh Baer from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Josh Baer。

I was hoping you could talk a little bit about the kind of conversations that you're having with customers, and maybe touch on how they've shifted over the course of COVID. Are you able to start talking about Sabre Travel AI and Smart Retail and adoption of these new innovations? Is it partly still survival mode? Any context would be interesting.

我希望你能談談你與客戶進行的那種對話，也許可以談談他們在 COVID 過程中的轉變。您能否開始談論 Sabre Travel AI 和智能零售以及這些新創新的採用？它部分仍然是生存模式嗎？任何上下文都會很有趣。

Yes. I'll kick this off, and then have Dave just get into maybe some more of the details of the conversation. So I mean, listen, there are some carriers around the world and I think we're seeing the -- as time goes, there are certain carriers that are definitely pivoting to more of how they're looking at the future, those that have done a lot of good work relative to their balance sheet, their liquidity and what's taking place.

是的。我會開始這個，然後讓 Dave 談談談話的更多細節。所以我的意思是，聽著，世界上有一些承運人，我認為我們正在看到 - 隨著時間的推移，某些承運人肯定會更多地轉向他們對未來的看法，那些已經在資產負債表、流動性和正在發生的事情方面做了很多好的工作。

If I look at the North American marketplace, even though that we have seen increased cases of COVID, we've actually seen in the data that we shared with you, we continue to see the bookings are still continuing to improve slowly, but they're continuing to improve. In the European marketplace, there's definitely been a falloff. So what -- the reason I bring that up is we're seeing different carriers thinking about different things. And what I would say are the carriers that are thinking about really the options or opportunities in the future, there's a lot of focus on what we're doing as it relates to the technology, a lot of interest really well for what we're doing with Google. So Dave, you want to provide maybe some color on that?

如果我看看北美市場，即使我們看到 COVID 病例增加，我們實際上已經在我們與您分享的數據中看到，我們繼續看到預訂仍在繼續緩慢改善，但他們'我們正在繼續改進。在歐洲市場，肯定會出現下滑。那又怎樣——我提出這個問題的原因是我們看到不同的運營商在考慮不同的事情。我要說的是，運營商正在真正考慮未來的選擇或機會，他們非常關注我們正在做的與技術相關的事情，很多人對我們正在做的事情非常感興趣與穀歌合作。所以戴夫，你想提供一些顏色嗎？

Yes. Maybe I'll break it down into LCC and full-service carrier, probably it'll be a little bit easier to follow, Josh. On the LCC side, the conversation is not changed, is aligned. And frankly, the activity has been very positive in terms of interest and interaction. So not much change there. And again, we continue to knock down wins and continue to see steady progress from that. The data continues to say that LCCs are recovering faster than full-service in each of the regions around the globe. So we'll continue to take advantage of that, not only with our Radixx portfolio, but with the rest of our capability set.

是的。喬什，也許我會把它分解為低成本航空公司和全方位服務航空公司，可能會更容易理解。在 LCC 方面，對話沒有改變，是一致的。坦率地說，該活動在興趣和互動方面非常積極。所以那裡沒有太大變化。再一次，我們繼續擊敗勝利，並繼續看到穩步進步。數據繼續表明，在全球每個地區，低成本航企的複蘇速度都快於全方位服務航企。因此，我們將繼續利用這一優勢，不僅利用我們的 Radixx 產品組合，還利用我們的其他功能集。

On the full service side, there's a range of discussions. It depends on the region and the carrier. There are some carriers, where we're spending a lot of time helping them with planning and scheduling because they're having to relook at routes and what makes sense and what's profitable. Other places where our operations portfolio, we had a number of go-lives and milestones this quarter in Asia with our recovery systems and movement systems and crew systems. Those are becoming important. And then to your point, when you start to think about the retailing side, we had a big rollout of Dynamic Pricing with Etihad and then the announcement of our Proration Engine with Southwest that got delivered, again, first-of-its-kind innovative answer for them to help understand and take apart segments from it.

在全面服務方面，有一系列的討論。這取決於地區和運營商。有一些承運人，我們花費大量時間幫助他們進行規劃和安排，因為他們不得不重新審視路線以及什麼是有意義的，什麼是有利可圖的。在我們的運營組合的其他地方，本季度我們在亞洲通過我們的恢復系統、移動系統和機組人員系統實現了許多上線和里程碑。這些變得越來越重要。然後就您的觀點而言，當您開始考慮零售方面時，我們與阿提哈德航空公司一起大規模推出了動態定價，然後宣布我們與西南航空公司交付的按比例分配引擎再次交付，這是同類首創的創新為他們回答以幫助理解並從中分離出片段。

So it just depends on where they're at in the maturity curve and what types of things. As far as our new Sabre Travel AI and the Sabre retailing engine, a lot of interest to learn more and understand more about how those dynamic offers will come together, what and how the patterns in machine learning and the data ours and the carriers' will come together to help them drive higher revenue yields even in a recovery-based environment. So we feel good competitively in terms of where the portfolio is at and some of the moves that we're making and taking advantage of the Google situation.

因此，這僅取決於它們在成熟度曲線中所處的位置以及事物的類型。就我們新的 Sabre Travel AI 和 Sabre 零售引擎而言，很多人有興趣了解更多並了解更多關於這些動態報價將如何組合在一起、機器學習的模式以及我們和承運人的數據是什麼以及如何即使在基於恢復的環境中，也能齊心協力幫助他們提高收益。因此，就投資組合所在的位置以及我們正在採取的一些舉措以及利用谷歌的情況而言，我們感覺很有競爭力。

And the nice thing about it, too, is there's a good collaboration between ourselves and Google and the airlines that we're talking to because this is not just Sabre going and talking to these airlines, but it's the request to also have the discussion with Google, understanding what these technology capabilities can do. So again, this is part of the innovation framework that we talked about. There's been a lot of questions about it, and we're really happy to be able to really talk about some of the things that are really coming to fruition.

而且它的好處是，我們與穀歌和我們正在與之交談的航空公司之間有良好的合作，因為這不僅僅是 Sabre 去與這些航空公司交談，而且還要求與谷歌，了解這些技術能力可以做什麼。同樣，這是我們談到的創新框架的一部分。關於它有很多問題，我們真的很高興能夠真正談論一些真正實現的事情。

Our next question will come from the line of Matthew Broome from Mizuho Securities.

我們的下一個問題將來自瑞穗證券的 Matthew Broome。

Could you maybe comment on the pricing environment in terms of your negotiations with travel agencies and airlines as you renew contracts.

您能否就續簽合同時與旅行社和航空公司的談判中的定價環境發表評論？

Yes. If you look at it, I mean, we mentioned a lot of the GDS agreements. A lot of them have been just renewal of the agreements that are in place. So in essence, the economics are status quo to what they have been. And it does go back to what we said all along, is the desire to have essentially their products and services in the GDS, selling through that Distribution channel. When you look at it relative to the agency side of the equation, a big part of it is the renewals that are taking place there as well. So I would not say there has been a significant amount of cost pressure in any of the discussions that we're having. Anything that we've tried to help carriers with has been baked into what Doug has shared.

是的。如果你看一下，我的意思是，我們提到了很多 GDS 協議。其中很多只是更新現有的協議。因此，從本質上講，經濟學是過去的現狀。它確實回到了我們一直以來所說的，就是希望在 GDS 中擁有他們的產品和服務，通過該分銷渠道進行銷售。當你相對於等式的代理方來看它時，其中很大一部分是那裡也發生的續約。所以我不會說在我們正在進行的任何討論中都存在巨大的成本壓力。 Doug 分享的內容中包含了我們為運營商提供的任何幫助。

Okay. And I guess just in terms of your internal realignment, sort of how is that process going? Has there been any sort of meaningful sort of challenges or benefits that haven't originally been anticipated? Just any kind of an update there would be great.

好的。我想就你的內部調整而言，這個過程是如何進行的？是否有任何最初沒有預料到的有意義的挑戰或好處？任何一種更新都會很棒。

Yes. I think the first thing that I would state, and I'll ask Dave to comment on this, is what I have believed all along relative to aligning what were the former Travel Network and Airline Solutions organizations and understanding essentially the cross-pollination of how they actually come together and not siloed, really does allow us to be better educated and doing things in the marketplace that allow us to look at the full spectrum of what we offer. And Dave has really been managing this, and I think he could probably give you a couple of examples.

是的。我想我要說的第一件事，我會請 Dave 對此發表評論，是我一直相信的關於調整以前的 Travel Network 和 Airline Solutions 組織的內容，並從本質上理解如何交叉授粉他們實際上聚集在一起而不是孤立的，確實讓我們能夠接受更好的教育並在市場上做事，讓我們能夠看到我們提供的全方位產品。戴夫真的一直在管理這件事，我想他可能會給你舉幾個例子。

Yes. I think maybe from an outside-in perspective, it's been interesting, the customer feedback. We've had continued positive interaction and responses from our customer base, which is good to see. The level of servicing has actually gone up. Our employee satisfaction levels from surveys and pulse checks and various different means that we use to interact with our employee sets have been some of the highest that we've seen in some time.

是的。我認為也許從外向內的角度來看，客戶反饋很有趣。我們已經從我們的客戶群中獲得了持續的積極互動和回應，這是很高興看到的。服務水平實際上上升了。通過調查和脈搏檢查以及我們用來與員工群體互動的各種不同方式，我們的員工滿意度達到了一段時間以來的最高水平。

So despite the difficulty of a COVID environment, I think the entire -- I'm really, really proud of the employee population and how well they've responded. And again, I get calls and contact constantly with CEOs and Chief Commercial Officers of our various customer sets or even Heads of a number of our agency partners, and the feedback continues to come in and the responsiveness that the teams are seeing. So I think we're breaking down a lot of legacy silos. And the innovations speak for themselves of the things that we're putting out into the marketplace while we're in the middle of this. So very resilient and very happy with the progress that we've made to date.

因此，儘管 COVID 環境困難重重，但我認為整個——我真的、真的為員工人數以及他們的反應感到自豪。再一次，我不斷接到我們不同客戶群的首席執行官和首席商務官甚至我們許多代理合作夥伴的負責人的電話和聯繫，反饋不斷湧入，團隊也看到了響應。所以我認為我們正在打破很多遺留孤島。當我們身處其中時，創新本身就說明了我們正在投放市場的東西。非常有彈性，對我們迄今為止取得的進展非常滿意。

And I'm actually not showing any further questions at this time. I'd like to turn it back over to Mr. Menke for any closing remarks.

實際上，我現在並沒有提出任何進一步的問題。我想將它轉回給 Menke 先生，聽取任何結束語。

Great. First, I want to thank my team members around the world. They have done an enormous amount of work over the past several months in what's taking place. And if you actually look at it, it's been going on over the past couple of years. If you look at sort of where we are right now, we have done an enormous amount of work and really stepped into another gear relative to managing the crisis. We've done a lot as it relates to our financial strength. We made really quick decisive decisions that was really based on information that we're capable, just because of the seat that we sit in. And so we've been able to do that really and thinking and balancing the decisions of employees, customers and shareholders.

偉大的。首先，我要感謝我在世界各地的團隊成員。在過去的幾個月裡，他們為正在發生的事情做了大量工作。如果你真的看看它，它在過去幾年一直在發生。如果你看看我們現在所處的位置，我們已經做了大量的工作，並且真正進入了與管理危機相關的另一個階段。我們已經做了很多，因為這與我們的財務實力有關。我們做出了非常快速的決定性決定，這些決定實際上是基於我們有能力的信息，只是因為我們坐在座位上。所以我們能夠真正做到這一點，並考慮和平衡員工、客戶和客戶的決定股東。

I think the important thing is really we're looking sort of post COVID. We're dealing with it right now, but because of what we've done, there are true underlying cost savings that Doug has outlined as it relates to Google GCP, DXC, other costs that have come out. As you can also tell by our comments, we are laser-focused on our technology transformation and the products that we're rolling out in the marketplace. And we believe that when you really do look at beyond recovery here that the market opportunities and what we have done to position this organization is going to be very successful. So with that, I would like to thank everybody for joining us today and look forward to talking to you in the future.

我認為重要的是我們真的在尋找一種後 COVID 的方式。我們現在正在處理它，但由於我們所做的事情，道格概述了真正的潛在成本節約，因為它與穀歌 GCP、DXC 和其他已經出現的成本有關。您也可以從我們的評論中看出，我們非常專注於我們的技術轉型和我們在市場上推出的產品。我們相信，當你真的在這裡看到超越復甦時，市場機會和我們為定位這個組織所做的一切將會非常成功。因此，我要感謝大家今天加入我們，並期待在未來與您交談。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。