Yahoo looks to Sabre for travel sector takeoff

Yahoo Inc. said Tuesday that it has forged a long-term alliance with Sabre Inc., owner of high-flying travel site Travelocity Inc., in order to rev up its participation in the growing online travel industry.

Although the company already had an agreement with Sabre to provide Travelocity's offerings through Yahoo's Travel channel, the new alliance includes an extensive marketing program and further technological integration.

Additionally, the two companies will now share transaction revenue for sales generated from Travelocity's offerings on Yahoo Travel. Yahoo has just recently redesigned its Travel site and has plans to include more of Sabre's technology and content, the company said.

In exchange, Sabre will be able to work with Yahoo's Enterprise Solutions division to develop broadcast and communications services for the travel company's 7,000 global employees and 250,000 travel agents.

Given that travel has been one of the few sectors to continue to thrive online, despite the burst of the dot-com bubble, it comes as little surprise that Yahoo is moving to strengthen its position in the market. The heavyweight portal has recently shied away from sectors ruled by tough competitors, such as auctions, and has focused on generating revenue from paid services, such as premium search and in-depth financial content.

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