Good morning and welcome to the Sabre Third Quarter 2019 Earnings Conference Call. Please note that today's call is being recorded and also being broadcast live over the Internet on the Sabre corporate website. This broadcast is a property of Sabre. Any redistribution, retransmission or rebroadcast of this call in any form without the express written consent of the company is strictly prohibited. I will now turn the call over to the Director of Investor Relations, Jennifer Thorington. Please go ahead.

Thank you, Sonia, and good morning everyone. Thanks for joining us on our third quarter 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 IR web page. A replay of today's call will be available on our website later this morning. Throughout today's call, we will be presenting certain non-GAAP financial measures, which have been adjusted to exclude certain items. All references during today's call to EBITDA, EBITDA less capitalized software development, operating income, EPS and net income have been adjusted for these 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. We would like to advise you that our comments contain forward-looking statements. These statements include among others disclosure of our guidance including revenue EBITDA, EBITDA less capitalized software development, operating income, net income, EPS, cash flow and CapEx; our medium-term outlook; our expected segment results; the amount and effects of changes in capitalization mix and depreciation and amortization; the effects of customer financial conditions and new or renewed agreements, products and implementation; our expectations of industry trends; the financial and business results and effects of acquisition; and various other forward-looking statements regarding our business. These statements involve risks and uncertainties that may cause the actual results to differ materially from the statements made on today's conference call. Information concerning the risks and uncertainties that could affect our financial results is contained in our SEC filings including our second quarter 2019 Form 10-Q and 2018 Form 10-K. Participating with me on today's call are: Sean Menke, our President and Chief Executive Officer; and Doug Barnett, Executive Vice President and Chief Financial Officer. Dave Shirk, our Executive Vice President and President Travel Solutions; and Clinton Anderson, Executive Vice President and President of Hospitality Solutions, are also with us today and will be available for Q&A after prepared remarks. Sean will start us off and provide a review of our strategic and commercial performance and business outlook. Doug will offer additional perspective on our financial results and forward outlook. We will then open the call to your questions. With that, I will turn the call over to Sean.

Thanks, Jennifer. Good morning everyone and thank you for joining us today. Before we get into the details of the call, I want to take a moment and thank my Sabre team members. I continue to see a team that has embraced the challenges and opportunities within the global travel ecosystem, which we reside. I am very proud of what we have accomplished over the past three years and what we will accomplish moving forward. This wouldn't have happened without the hard work, sacrifice and dedication of my team members around the world. Sabre continues to be a global retailing distribution and fulfillment technology leader within the $1.7 trillion global travel marketplace. We are at the forefront of the industry's digital transformation. Our new management team is driving changes that are resonating with customers and our technology solutions are gaining commercial momentum, winning new customers and increasing share-of-wallet with existing customers. Today, I'm pleased to announce third quarter results that demonstrate our continued solid execution and the strength of our business model and geographic and customer footprint. Travel Network our largest business segment continues to prove its resiliency, despite uncertain macro and geopolitical conditions. The third quarter marked the seventh consecutive quarter of strong gains in our GDS position. Our global share increased 100 basis points year-over-year to 39.6% in the third quarter. We grew bookings 6% in our home region of North America the fastest-growing region for the overall GDS industry. And for the first time in three years our booking contribution margin expanded. In Airline Solutions, our focus over the past two years on product health and securing renewals has allowed us to shift our attention to new innovation and sales. We announced a number of customer wins during the quarter for our retailing and operations solutions. Hospitality…

Thank you, Sean. In the third quarter, we generated durable stable revenue growth and strong free cash flow growth despite a more uncertain geopolitical and macroeconomic environment. Let me remind you of the many attractive benefits of our business model. We have long-term contracts and customer renewal rates well over 90%. Our transaction-based business model has 94% recurring revenue. Our revenue streams are tied to travel volumes which have proven resilient across economic cycles even during the great recession. We expect to invest over $1 billion in technology annually and we expect to continue to benefit from increased share-of-wallet from airlines and hoteliers as we drive a digital transformation for the travel industry. Looking more closely at our Q3 results; revenue was up 1% year-over-year totaling $984 million. In the third quarter, recurring revenue totaled 94% and our mix of recurring revenue increased one point year-over-year. Across each of our businesses, Travel Network revenue was up 2%, Airline Solutions revenue was down 1% as expected and Hospitality Solutions revenue was up 7% in the quarter. EBITDA less capitalized software development which reflects our total R&D spend grew 4% in the quarter faster than revenue. As expected for the second quarter in a row, incentive fee growth moderated and was up low single-digits. Additionally, the quarter benefited from a reduction in benefits and other labor-related costs. We continue to make good progress on our cloud migration and our total technology spend increased 5% in the quarter. As previously discussed, the costs associated with our cloud migration and related technology transformation efforts are expensed as incurred instead of capitalized. This shift in our capitalization mix caused technology operating expenses to increase materially in the quarter with an equal and offsetting decrease in CapEx. Accordingly, operating income totaled $133 million in the quarter,…

Thanks Doug. I'm pleased with how the year has progressed and would like to once again thank my colleagues around the world for all their hard work and dedication. We believe the third quarter was clear indication we are progressing against our strategies, seventh quarter in a row of share gain, moderation in incentive fee growth, 18% growth in free cash flow and our new innovations are gaining commercial traction. We continue to benefit from the resiliency of our business model and strength of our geographic and customer footprint. I'm confident we will have a solid finish to the year. I want to once again thank all of you for joining our call today and for your continued interest in Sabre. And with that, I will ask the operator to open up the call for your questions.

Thank you. [Operator Instructions] Our first question comes from John King of Bank of America. Your line is now open.

Great. Thanks for taking the questions. First one was really just a big picture on the GDS industry as you see it today. Obviously, I appreciate there's a couple of one-off factors and maybe some cyclical impacts to the current sluggish growth as you called it out. Obviously India is probably a bit of a one-off, and there's also a macro. But as you look out you have perhaps some of the stuff that's going on in Europe might continue for a while. So what would your kind of estimate be for volume growth over the medium-term in the GDS industry? And then I guess linked to that, we've also seen Sabre typically take share, and Sean you also see average booking fee increases over time. And is there an argument that says at least on the booking fee side that that would also continue to be a tailwind partly because of mix? Perhaps you could just speak to that.

Yeah. I'm happy to touch on that John. And this is Sean. So let me talk about -- and I think this is a trendsetter for a number of people in sort of the GDS marketplace, and I would actually even say the macro marketplace. And we do a number of things as we look at what's happening. And let me walk you through what we do. So first we really spend a lot of time on what's happening in capacity, specifically on the airline side. So we look at from total capacity and then we break it down into full service carriers and low-cost carriers. And I'll get into that in a little bit. We also spend time looking at -- probably more specifically what's happening with the global TMCs, because we do believe that's a leading indicator relative to leisure traffic. So, if I look at global TMCs and what's taking place as it relates to bookings, we're seeing that relatively flat throughout the year and what I've seen early into the fourth quarter is that sort of remaining the same. On the capacity front, we have seen on a comparison basis and I'll just give you some stats on a year-over-year basis, and this is looking at the third quarter is that capacity growth was up 3.4%. And if you look at the previous year and the comp it was about 5.3%. So, there is a deceleration of growth in capacity. If you actually drill down into full-service carriers, it only grew at about 2% where the previous year was up slightly over 4%. So, we watch that in what's happening. You then get into more of, what I would consider to be some of the things that are playing out and this is why we talk…

That's very helpful. And if I could just ask one more on the Airline Solutions side, I'm sure you're aware there's some speculation out there about renewals in your base, specifically with your largest PSS client. I just wonder just given -- you sound very confident in the script that you're playing on offense now and you're looking to take share back from some of the stuff I guess you lost in the last two or three years. Maybe just some comments on that topic would be useful.

Yes, John, I'll kick off and then I'm going to have Dave stepping on this. This is what is I talked to people about sort of what has transpired over the last three years and this is why I'm feeling pretty confident about our ability to compete in the marketplace is I saw where we were in early 2017 relative to product stability and health and the conversations that I was having with customers and I know Dave would say the same thing as it relates to the conversations that he was having. You get stability of the product and things that are taking place there. That allows you to really move into more strategic conversations. And what Dave and team have done on the Digital Workspace side of the equation the way that we're looking at just retailing and the changes in retailing, we have a lot of customers that are very intrigued in that. You then look at it on the work that's been taking place as it relates to a few other things that are associated with being on the AirVision and AirCentre side of the equation. It really allows you to have a portfolio of products that you can move forward. I would actually -- the Radixx transaction is one that when we look at the whole portfolio of products that we can bring forward we feel that we can enter into that low-cost carrier space to be able to move that in the right direction. So Dave I'll let you jump in because you're involved in a number of conversations around the world.

Yes. I would just -- Sean you've covered it well. I just maybe add a little bit that I've shared this in the past with all of you that we set out a mission not only to improve the health of the portfolio and the stability and technology improvement footprint which has definitely happened. You're seeing that in the results. That helps with cross-sell and upsell. That makes carriers more interested to have conversations. With our SabreSonic portfolio in particular, we have the largest most innovative launch in its history back in October of last year that has really opened up the doors to conversations that hadn't happened to allow us to start play offense. We have quite a bit of interest from folks wanting to understand what we're doing, where we're going and the strategic direction that Sean talked about in retailing and distribution and fulfillment. And so that's given us an ability to kind of come in and talk about things that we really weren't in a position previously -- in the previous two, three years to really get their attention to work their way through that. So that's part of why the confidence and kind of where we're at. The results are certainly showing that continued confidence from our install base expansion and renewal cycles that we've been going through. I think also, we were watching the low carrier -- low-cost carrier space for a little bit of time. Our planning and operations portfolios if you're seeing wins are occurring both in the full-service and in the LCC space. It was natural for us to look for a way to expand further into the retailing part of that by adding Radixx that's really kind of rounded out the full breadth and depth of portfolio. It's opened up even more renewal runway for us in terms of what PBs are available in the marketplace. So we're definitely playing offense and feel pretty good about the conversations that we're starting to have.

All right. Thank you.

Thank you. And our next question comes from Mark Moerdler of Bernstein Research. Your line is now open.

Thank you very much and very detailed. I do appreciate it. I have really two questions. First on the Radixx deal -- on the Radixx acquisition. Can you give us a little more color on how you think about how that's going to impact the Airline Solutions from a business or financial point of view? How is it -- where is the upside in terms of increasing growth? Is it by your investment in there? How do we think about it in terms of margins? Any color on that would be really appreciated. And then a follow-up.

Yes. I think as we've said, I mean when you look at the -- this is Dave. Low-cost carrier space is continuing to grow at twice the full-service space. In addition to that, we've seen them kind of take over about 30% share of the overall PB space. And so for us that's all new greenfield from a reservation and retailing perspective. As I said just a minute ago, we've always and continue to have operations and planning footprint there. And so, we're already engaged in low-cost carriers, having conversations, working with them in a number of solutions that are successfully deployed. It's a natural expansion of that conversation. So again, we feel pretty positive about that. I think as we look at the space over the course of the next three or four years, there's about -- roughly about $500 million PBs that are up for grabs over that time period and that doesn't even include new entrants, which we're seeing pretty significantly in the Asia Pacific and Latin America and European markets. And so that gives us a chance to kind of round out our sales efforts there. It also -- I would also add, it fits our go-to-market motion quite well. The way our footprint globally -- one of the things that Radixx was probably like any small company is limited to is the global touch point that they have and the way to get in and deal with some of the stuff is really a significant part of that. And as we think about where Radixx is at in the ultimate equation, we had been watching the space. One of the things we were watching is they were in the midst of a significant replatforming. They've now taken carriers live on their new SaaS-based platform very, very positive results and that's what kind of hit the right timing kind of catch the proof point wave on the front end of that and it fit very well in line with the overall technology modernization and efforts that we have underway across the portfolio. So again pretty excited and pretty optimistic about what that could mean to us and where it will take us as we go forward with it. Again, you have to think about when -- your question on margin. You have to think about the cross-sell and upsell. It's not just that we're going in with a pure PSS solution to the LCC space, but we have the full planning operations and data and analytics assets set already here. And so that combination really rounds out a broader conversation in the LCC space that we're excited about.

And Mark we'll provide more guidance on the financial impact of Radixx in February when -- on our Q4 results.

Perfect. I appreciate it. And then switching gears a little bit if you don't mind, really helpful the detail of the status on the Airline Solutions renewals. But two quick clarifications. On the renewals when you discuss the 94% total contract rate renewals, is that -- are you counting in things like bankruptcies and other things like that? And then when you talk about the 75% renewal lock-in, is that you're including some of your biggest airlines? Have you locked in on those guys?

Yes. The answer of course would be obviously -- when we did the renewal rates, obviously Jet wasn't included because obviously that's a unique situation. Beyond that, the other items were included.

Okay. And on the lock-ins, is it lot of the big guys already locked in at this point?

Yes.

Yes.

Excellent. I really do appreciate. Very helpful. Thank you.

Thank you. And the next question comes from Ashish Sabadra of Deutsche Bank. Your line is now open.

Thanks for taking my question. First question on the Hospitality Solutions. Just wondering what led to the bad guiding to the lower end of the range. And then maybe just a follow-up on that Clinton your decision to leave. Sean, how are you thinking about the leadership as far as the Hospitality Solutions? Thanks.

Okay. Perfect. This is Clinton. Why don't I answer the first two questions at least half of the second question and then I'll let Sean chime in as well. Look the reason we're guiding to the lower end of the 7% to 9% range is simply from macro factors. We're seeing slowing bookings in the macro environment that runs parallel to what we're seeing in the GDS marketplace. So that's fully accounted for by just a slowdown in overall bookings in the hospitality space. In terms of my departure, look I'm excited to take on a chief executive role in my next opportunity. At the same time, it's very bitter sweet. I'm very sad to leave my Sabre family. I'm -- I have the ultimate confidence in the strategy we've laid out. The intersection of travel and technology an exciting space. Sabre is going to continue to be a leader in that space. And our focus on really around retailing distribution and fulfillment and a focused strategy we have here I think is going to make Sabre successful for many years to come. So I'm going to be excited to see my team, my family here continue to be successful and perform strong in the market, but at the same time, I'm excited for the next chapter in my life.

Yes. Let me just add to that. Since I've been with the organization for four years Clinton and I -- and this when I was running Travel Network, Clinton and I have been thinking about where the marketplace is evolving. He was running corporate strategy at the time. He helped me think through Travel Network strategy and where we are going. Even when he was in hospitality, I've leaned on Clinton quite a bit. And so I have sort of mixed emotions about this. I'm very excited for him, because individuals do have a desire to run companies and do different things. And Clinton and I had the discussions and talked about it. I feel very good with what he has done within hospitality. A lot of what we talked about is related to Airline Solutions. We shouldn't forget that there were some things that we had to work through on the hospitality side as well and Clinton was able to do that for us. So it's one that I hate to see him go, because I love him by side here, but at the end of the day, it's a world where people move on and do different things. The nice thing about it is, we continue to build a strong bench here within the Sabre family. And I do believe that we have candidates internally, but at the same time I will be looking externally. The model has continued to, I wouldn't say change, but we know a lot about the marketplace. And as we look at the growth, because I think this is one that you have to continue to be patient, as making sure that we have the right leader to take it to the next level.

Thanks, Sean and congrats, Clinton. And maybe just a quick follow-up. You talked about a strong hotel bookings attach rate on the GDS side. Just can you call out what's driving that? Is it the CWT win? And how should we think about the sustainability of the -- sorry, of hotel attach rate going forward? Thanks.

Yes. So if you look at it, it really is a couple of things that's transpired really over the last year or so. A part of it is what we've actually seen from Flight Centre. CWT has been a portion of that -- has been a part of that as well. As I look into the future and, again, we'll provide guidance in February, I think, you'll see that moderate a little bit going forward. But the other thing that I still am very high on is, what we're doing in lodging content services and what Traci Mercer is doing with that team. Because the discussions that we're having, specifically with the TMCs are really important, because they have been looking for a solution for this for a long period of time. And just a reminder, this is really just content normalization, it's not GDS -- just GDS content, it's coming from Expedia Affiliate Network, it's coming from booking and it's coming from other contracted rates that are out there. So it's that normalization going down to a single property that there may be four or five different rates out there. We can bring that to the forefront for those agencies. And the TMCs are pretty excited about this and we're in numerous discussions with those on how do we integrate that better. So, again, another opportunity relative to where we've been investing for the future.

Thanks. Thanks, Sean.

Thank you. And our next question comes from Matthew Broome of Mizuho Securities. Your line is now open.

Great. Thanks for taking my call. So, Sean, you mentioned that you expect to make incremental investments in the LCC space. Could you talk about any specific functional areas you might be looking to address? And also how are you thinking about sort of buy versus build, as you make those investment decisions going forward?

Yes. I'll let Dave kick off and then I'll go to the buy versus build.

Yes. So, I think, as you look at the LCC space, obviously, continued understanding of the functionality around the retailing areas and what they're trying to do merchandising, digital-based commerce activities, those will just continue to be investments as the space is growing so significantly that you need to stay ahead competitively. There's also a need to start to look at ways in which we can take advantage of some of these low-cost carriers have needs for partnerships, interlines, codeshare pieces. We don't want to go too far with that, but those are places that we'll be looking at in trying to kind of understand what the balancing out of that needs to be. The other thing that we'll need to look at additional investment, as we've said, we've got our full data and analytics as well as the operations and planning portfolios. And so there's some natural integration. The customers will look to see differentiators for and from us. And so those will be places that we'll kind of pay attention to in terms of the way the technology piece and the road map evolves over the course of the next year or two.

And just to build off of what Dave is talking about is, for a number of years that I've been associated, just with this travel ecosystem and this is why we keep highlighting what's happening, specifically in low-cost carriers and the growth of low-cost carriers, if you look at sort of the modern-day retailing that we are in today and how it's evolving, a lot of this started with low-cost carriers and our ability to be more engaged with low-cost carriers and we are there from an operation suite perspective and some of the products within our commercial capabilities. It's just a natural extension for us to enter into this and what's taking place. When you get to the buy versus build, here's a thing that we need to continue to talk about is, when we look at -- and it's interesting, because this gets into a number of the discussions that we have is that, there is a certain sort of understanding of the ecosystem that we live in and the talent that actually resides in that ecosystem. And it's not like you can just go hire people off the street and they understand the world that we live in. And we've talked a lot about this as it relates to Farelogix. It's about people. It's about capability and skill set. And when I look at acquisitions, a big part of that is not just per se the product, it's the people behind the product, because those are the ones that are being creative in nature. And this is another one, when I look at Radixx and you look at the things that we're doing throughout our entire organization. I spent an enormous amount of time. It's probably the thing I spent the most amount of time today, is just understanding where our talent is, do we have the right level of talent, should we be investing, because I'm willing to put more dollars forward if we're pushing the business to get the right return on investment, but do we have the capability of actually doing that. So that really weighs into my buy versus build and you've actually seen that in two cases now. Farelogix and Radixx is one that I have to be able to balance what we're capable of doing internally and then looking at the opportunities of finding one product and two talent that can support essentially our strategy moving forward. And these were two key opportunities that we decided to buy.

Okay. That was a really helpful answer. I appreciate that. And then just within Airline Solutions on AirVision and AirCentre the decline obviously sort of there was better performance last quarter and then we saw a decline this quarter. Just why was there a decline in the upfront revenue recognition for local installs?

This is just the accounting impact of 606. So unfortunately there's going to be certain projects that are in the Airline Solutions space that have to be accounted for – perpetual license agreements despite that they're not. That's just the way the accounting treatment works. That will unfortunately continue to be a little bit lumpy with those scenarios.

Okay. All right. Thanks.

Thank you. And our next question comes from Jed Kelly of Oppenheimer. Your line is now open.

Great. Thanks for taking my question. Just on some of I guess the continued channel shifts. You've called out Egencia recently announce that they're going to partner with Lufthansa and British Airways on a direct connect via the NDC. Can you just discuss that deal? And do you think anything in Europe that's going on right now could actually come back in North America just given some of the changing in technologies we see?

Yeah. He, Jed it's Sean. Let me take that one. So this gets into – and this is why I tried to walk through what has been transpiring probably over the last 10-plus years in the makeup of the marketplace. And I do believe that what we're seeing in Europe is rather unique relative to the full-service carriers and what they're trying to do. And what we have shared in the past also is the cost of distribution in the European marketplace is higher. And in doing that, the European carriers are trying to find ways of essentially reducing this distribution cost which gets into actions that have been taken that focus more on what I would consider to be home country or home region, because they typically have more influence there. What we have talked about is just because of our mix on the long-haul international we're a little bit more immune to that. You're going to continue to see and I think this is the world that we are in today that as NDC evolves you're going to see carriers that are going to experiment with this. But we always often talk about the carrier side. We don't talk often about the agency side of the equation. You do have agencies out there that are tech savvy, but we have a lot and no we talk with them day-in and day-out. They don't want to be the content aggregator because essentially it's aggregation on top of aggregation. And what I mean by that is that when we talk about the 400-plus carriers that we essentially aggregate that content for when somebody is doing an NDC, API and pulling that in there's still a level of aggregation now that has to happen on top of that, because the other…

And then – appreciate all the color there. And then just one question on the macro, how much of that outside of the geopolitical event is sort of softer business travel versus leisure? And then you called out decelerating bookings. We have seen a ton of investment going in sort of the new age alternative accommodation operators Airbnb. I mean how much do you think is just – with the softer hotel bookings is just other business model that people can book their accommodations more?

Well, I think you're going to continue do see – let me just start with the hotel and I'll let maybe Clinton jump in as well. I think you're going to continue to see that right? And as you have different supply that sits out there Jed, you're going to see people that are going to begin to explore. I think that's why when you look at what a lot of the large enterprise hoteliers are doing they continue to look at their portfolio and how do they compete in this space and what's there. Clint, I don't know if you want to add to that before I go into the other piece?

Yeah. Yeah. You bet. So what's interesting here is I think you are seeing a little bit different performance in the segment. So, interesting question my hypothesis in response would be that we're seeing more softness actually in the corporate channel than we are seeing in leisure, right? So that would suggest that it's not actually Airbnb or channel shift to less traditional forms of hospitality. And so therefore, I think what we are seeing here in terms of a softening in the growth in bookings in hospitality is in fact led by corporate space. As it relates to -- what's interesting is as it relates to, the non-traditional hospitality content, that capacity, I think, in order to really be relevant in the long-term will start to come into more traditional channel. In fact, we have relationships with Airbnb. And introducing pretty interesting things there now, in terms of conversations about how we think about exposing traditional hotel content into their space and vice versa, right? So I think, it's one of those areas where in order for that space to really grow to its full potential it will start to look more like other forms of distribution where you see that content, in a sense the inventory floating back and forth across channels of distribution, which is where a place that Sabre has our strong wind to play and win.

Yeah. And I'll build off of -- look because you broke it down into sort of the corporate leisure side of the equation. And I made the statement that when we look at on the air side, when I look at really the large global TMCs, it's relatively flat. Where we see some of the growth and this gets into the leisure side of the equation, if I get outside of what we're seeing specifically in Europe, there's a decent amount of growth that's happening on the OTA side. So you have a leisure that's happening on that side. And then, that's why I tried to break this down from a regional perspective, because it's sort of a different game that's happening, everywhere. The other thing -- and this is the impact of low-cost carriers and full-service carriers. That growth does have an impact, on what's happening, right? As you look at capacity growth, you're not going to essentially see the same GDS growth, because of the number of people that go directly to low-cost carriers. And again, that sort of gives you another proof point of why we believe it's important to go -- do the Radixx transaction.

Thank you.

Thank you. [Operator Instructions] And our next question comes from Neil Steel of Redburn. Your line is now open.

Hi. Thanks very much indeed for taking my question. A slightly tangential question if I may. You announced some of the new agreements with ATPCo, to work with them. Can you just explain exactly what you're trying to do there? Are you -- since this industry over the last couple of decades, the ATPCo sort of pricing database has been to some extent a little bit of a bottleneck for the carriers to achieve, some of the more, richer pricing points that they want. And obviously that's the reason essentially that NDC is being brought in by a number of carriers. Is what you're doing with ATPCo to try and circumvent that? Or is that running alongside your NDC strategies?

Yeah. It's -- I'll kick off. And then, I'll let Dave chime in. It's part of the NDC strategy. And this is where -- this is an important thing and I think it will allow you to better understand what we're doing with carriers around the world. I had mentioned the work that we're doing with Singapore Airlines on NDC. This is one that was really led by our efforts with Delta Air Lines and ATPCo. And it got into essentially, how do you put shelves out there to sell products and services. And you have to balance that relative to the current role in ATPCo with the evolution in the NDC. And I think, it's just a great data point on, how we have to continue to look at the paradigm right. Because everybody talks about going to this new world and we have to sit there and understand that the vast majority of bookings that are happening and is what I would consider to be the old world, right. And in doing that, we have to be able to work through this hybrid type of world -- we have to work through this hybrid change that's happening. And this gets into again, content aggregation be it the old way that essentially the offer was created or the new ways. And then, when you look at the ancillaries and this is one thing that I talked about a lot is the work that we're doing with Delta really gets into how do you sell more ancillaries through the indirect channel and we see that as a large opportunity that I've commented on over the past several years and is one that when you had discussions with airlines around the world they feel that partnering with ATPCO and some of these things is very important. So, that gives you a little more color. And I don't know--

Yes. Neil I'll just add to what Sean's saying. I mean this is again -- it comes back to the strategy that we've talked about with retailing distribution and fulfillment. It's all technology centric. Working with ATPCO, it's all about helping the industry modernize and get to that higher retailing level. Everything that Sean just described comes back down to we've got to make sure that the carriers and the distribution points all have the appropriate level of technology to handle that mix in that basket of a really rich merchandising and retailing kind of transaction and structure. And so that's really what's behind the ATPCO happy linkage of things that we've established in the agreement and what we're trying to do with them.

Okay. Thanks so much. And an unrelated question. Has there been any update from the European Commission's investigation into yourselves and one of your competitors in terms of the structured contract tariff in Europe?

No, Neil there has not.

Okay. Thank you.

Thank you. And ladies and gentlemen, this does conclude our question-and-answer session. I would now like to turn the call back over to Mr. Menke for any closing remarks.

Well, once again, I want to thank everybody for joining. And hopefully this session was good. And number of questions that you have I think the important thing is all gets back to the strategy that we're executing here at Sabre because you can't look at these things from sort of just individual components, you have to actually look at it in its entirety. And -- that's why I'm so excited about what we're doing right now is we were able to go back stabilize what we needed to do. We were very engaged with customers around the world we're talking and having intimate conversations as it relates to our strategy and executing that strategy. And be it some of the things that we're building on our own, or things that we're looking to acquire, or have announced acquiring, it's all based on what is right for our customers and in doing that helping them to essentially execute their plans which is growing their revenue and servicing their customers which are the end consumers at the end of the day. So, once again, I want to thank my colleagues around the world at Sabre and look forward to talking to you in February. Thank you.

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