Sabre
The first online reservation system revolutionized air travel and hastened globalization
A woman types at a console

Imagine a world where booking a flight required traveling to the airport or waiting three hours on the phone with a reservations agent who would record your information on a handwritten card, only to arrive for your flight and discover another passenger assigned to “your” seat.

In 1953, when R. Blair Smith, an IBM salesman, and C. R. Smith, the president of American Airlines, were randomly seated next to each other on a cross-country flight, this was the status quo in airline travel. But their chance encounter would spark a dramatic change. A conversation that began with discovering their common surname would lead to the invention of Sabre, the world’s first centralized airline reservation system. It would go on to not only revolutionize the travel business but also unleash the movement toward instantaneous e-commerce.

In the course of their fateful conversation, C.R. Smith lamented to Blair Smith that due to computing limitations, American Airlines could not track passenger information. “I told [C.R.] I was going back to study a computer that had the possibility of doing more than just keeping availability,” Blair Smith recalled. “It could even keep a record of the passenger’s name, the passenger’s itinerary, and, if you like, his phone number. Mr. C.R. Smith was intrigued by this. He took out a card and wrote a special phone number on the back. He said, ‘Now, Blair, when you get through with your school, our reservation center is at LaGuardia Airport. You go out there and look it over. Then you write me a letter and tell me what we ought to do.’”

Blair Smith relayed the encounter to IBM President Thomas J. Watson Jr., who agreed that Blair should follow C.R.’s advice, setting the wheels in motion for an invention that C.R. Smith and Watson Jr. would, in a joint statement several years later, profess to be “as dramatic an improvement as the jet airplane.” While seemingly hyperbolic at the time, the declaration would prove to be an accurate prediction of the technology’s impact and reach.

 

 

An industry in transition
‘Extreme design measures had to be taken’

Before Sabre, airline agents at each reservation office kept track of customer flight information on handwritten cards that they filed into slots situated around a Lazy Susan several feet in diameter. This inevitably led to clerical errors and too many either oversold or undersold flights, inefficiencies with both financial and social implications that became increasingly untenable as interest in air travel surged in the post-World War II era. “The airline business was growing rapidly,” recalled Shep Nachbar, a retired IBMer who was a programmer and developer for Sabre. “Extreme design measures had to be taken.”

Before Sabre, airline agents kept track of customer flight information on handwritten cards

After meeting Blair Smith and speaking with his long-time friend Watson Jr., C.R. Smith put his weight behind Sabre, committing roughly USD 40 million to a joint research and development effort with IBM. To build the system (which stands for Semi-Automated Business Research Environment, the secret code name given to the project at its inception), IBM drew on what it had learned while creating the SAGE (Semi-Automatic Ground Environment) computer system in the 1950s. SAGE was the world’s first national air defense network, developed during the Cold War to allow the US Air Force to detect and intercept airborne attacks.

SAGE observed, evaluated and communicated incoming threats in real time, functioning like a modern-day air traffic control system. Several of the innovations pioneered in its development proved relevant to the challenge that airlines faced — particularly the ability to transmit data in real time across a geographically distributed network of computers connected via telephone lines. SAGE “was the only precedent we had,” Blair Smith recalled, describing the link between the two projects. “Radar defined the perimeter of the United States, and then that information was signaled into a central computer: the SAGE computer. The perimeter data was then compared with what information they had about friendly aircraft.”

Sabre linked computers at American Airlines reservation desks around the country to a central processing center, creating a network for sharing data and information about flights worldwide. To find available flights between cities, reservation agents would select the Air Information Card specific to that route and insert it into a desk console. They would press buttons indicating passengers’ preferred dates and the number of travelers, then press the Availability button. This would automatically transmit the data to the airline’s processing center in New York, by way of more than 10,400 miles of telephone lines.

By the mid-1960s, Sabre was handling 7,500 reservations an hour, cutting the time to process a reservation from an average of 90 minutes to several seconds.

 

A new age in air travel
From multiple airlines to online booking

Other airlines swiftly followed American’s lead in adopting the technology powering Sabre, often turning to IBM. When Delta became the second airline to deploy such a system, T. Vincent Learson, IBM vice president and group executive, described the profound shift that Sabre had ushered in: from individual, disconnected computers to an interconnected network capable of processing real-time requests. “Sabre moves the electronic computer and all its capabilities beyond the walls of the room in which it is located,” Learson explained at the time. “In effect, it places the computer at the side of every reservations agent in the Delta system.”

American Airlines extended Sabre to travel agents in 1976, allowing them to book reservations directly, and within two years Sabre could store the histories of a million fares a day. American added easySabre in 1985, which gave consumers the power to book travel through services like AOL and CompuServe, and a year later airlines were using Sabre’s revenue management system to maximize airfare profitability. In 1996, Sabre launched Travelocity, a pioneer in consumer-facing online booking.

By giving the public its first taste of how computers could instantly handle transactions and track inventory, prices and consumers, Sabre helped create the online marketplace that exploded as the internet evolved. And so when consumers go online to buy everything from groceries to shoes to virtual currency, they have a chance encounter on a 1953 cross-country flight to be thankful for.

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