In a significant shift within the travel industry, Sabre Corporation has implemented new policies regarding distribution capabilities for travel agencies. On March 24, 2025, Sabre sent out a document, titled "Global Agency New Distribution Capability Program General Terms and Conditions," mandating agencies to sign in order to continue accessing NDC (New Distribution Capability) bookings through the Sabre Global Distribution System (GDS).
The release of these new terms has raised several legal concerns, as the NDC terms and conditions represent a separate agreement from the main Sabre contracts known as the Sabre Subscriber Agreement or the Sabre Customer Agreement. This separation means that protections and provisions in the original contracts do not extend to NDC bookings. Agencies are questioning the implications of this separation and whether they should raise objections to the new conditions.
The new terms specify that the commercial aspects of NDC bookings remain a trade secret, a notable change from previous agreements where such terms were typically defined clearly within the contract. According to industry experts, Sabre offers variable incentives for NDC bookings on certain carriers, but these carriers remain undisclosed within the terms. Instead, only they can be accessed via the Sabre Central website, which is restricted to Sabre agencies.
Additionally, there are concerns about Sabre’s rights to alter these incentives or the list of carriers at any time without prior notice. One travel agency representative expressed frustration: “We rely on these incentives for our revenue; to change them so arbitrarily feels extremely risky.” As a result, agencies fear potential revenue loss if Sabre decides to introduce higher fees or reduce incentives for specific bookings.
Another critical aspect of the new terms is the flexibility Sabre holds over its legal agreements. The typical five-year length for Sabre contracts remains for the main agreements; however, the NDC terms allow for changes to be made at will. Sabre can modify these terms simply by posting updates on their Central website, unlike previous contracts where legal terms were static. This dynamic approach to contractual obligations hints at a broader trend within Sabre, potentially aimed at restructuring agreements to resemble more traditional software-as-a-service (SaaS) models.
Moreover, the termination clause under the NDC agreement is starkly different compared to the standard agreement. While the traditional contracts do not allow for termination without cause, either party now has the option to terminate the NDC agreement with just a 30-day notice. This change has alarmed many agencies that depend on incentives provided through Sabre, as they worry that such flexibility could lead to sudden and disastrous revenue impacts.
“This new structure of being able to terminate the agreement at will undermines our long-term planning and stability,” states another industry representative. There’s an emerging concern that Sabre's long-term goal might be to implement such flexible terms across all of its contracts with travel agencies globally. Should that happen, it may set a precedent that could dramatically reshape the landscape of travel distribution agreements.
Travel agencies are advised to cautiously navigate these new terms. Those with significant leverage may negotiate modifications, seeking to integrate NDC terms into existing contracts—thereby gaining the same level of commercial and legal protections they currently enjoy. As conversations continue between agencies and Sabre representatives, the industry watches closely, understanding that these changes may have long-lasting implications for how travel agencies conduct business in a post-NDC world.
In summary, while Sabre's move to adopt NDC is hailed as a necessary evolution towards modernizing travel distribution, the implications of the new agreement raise a host of liabilities for travel agencies that could potentially impact their financial viability and operational structure.
