Sabre's Travelocity gaining share from IAC and Orbitz? (TSG, IAC, CD)

Sabre Holdings' management team presented at the Goldman Sachs Lodging, Gaming and Leisure Conference June 7th. Sabre owns Travelocity, one of the three leading online travel sites. Here's an extract from Travelocity President Michelle Peluso's comments about Travelocity's growth versus Expedia's (owned by IAC, ticker: IACI) and Orbitz (owned by Cendant, ticker: CD), and the growth opportunity in Europe:

… we gained share on all of the important metrics... On a revenue basis we more than doubled IAC's revenue growth. Unfortunately, Orbitz no longer reports their revenue growth now that they're a part of Cendant. Having said that, at the beginning of 2004 we started 39% bigger in revenue and in the third quarter, the last time they reported, 80% bigger in revenue than Orbitz… we imagine… that trend continued on the revenue side. Package revenue clearly growing at a much faster clip than IAC and also room nights… the way we connect with hotels, the kind of product we build out for them, has really led to sizeable room night performance over the past five quarters - roughly 50% last year and 32% this quarter.

…the second big growth opportunity for us… besides the domestic business is… Europe. Europe… is a very large leisure market driven in large part by the 25 vacation days that an average European gets. It's actually slightly larger than the U.S. marketplace… online penetration is not as much as the U.S... but it's forecasted to grow at a faster clip...

(Quotes are from the CCBN StreetEvents transcript.)

TSG chart below.

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