Sabre Corp (NASDAQ:SABR) is extending its global reach by agreeing to assist Cambodian Airways in establishing its business. The South Eastern Asia airline company is the newest in the region with less than one year in operations. Notably, Sabre’s distribution platform will enable Cambodian Airways to coordinate its operations better.
U.S. government shutdown adversely affecting the travel industry
While the aviation industry is under strenuous pressure for lack of business in North America, South East Asia is booming. Notably, the U.S. is currently in a prolonged government shutdown due to lack of funding. As such, few people have money to make frequent flights as is the norm. Further, the shutdown is chaffing the airlines that make frequent trips to the United States.
On the contrary, the Cambodian air travel industry is just getting on its feet. Interestingly, this is due to the rising number of tourists picking the country as a tourist destination. Notably, the Cambodian Ministry of Tourism late last year requested Vietnam airlines to increase trips between Cambodia and Vietnam. In particular, this was due to a high number of people making trips across the two country mainly as tourists.
High growth potential for the Cambodian travel industry
Interestingly, the request for more flights came as Cambodian airports recorded high traffic at their terminals. According to local news outlets, the airports surpassed the 10 million landmark as more people continue to flow in. Certainly, this is evidence that there is the market for airlines in the country. In this respect, it is evident that Cambodian Airways has a huge growth opportunity given the correct execution of the growth strategy.
Further, the growth potential in the Cambodian air travel industry explains Sabre’s commitment toward Cambodian Airways. According to Rakesh Narayanan, Sabre Travel Network Asia Pacific Vice President, Sabre has a rich marketplace for global travel. As such, their technology will connect the airline to over 425,000 travel agents across the globe. Notably, this will further increase the airline’s global penetration.
“Sabre will partner with and actively support Cambodia Airways as they move into the next phase of their strategic growth plan,” said Narayanan.