The Competition & Markets Authority has raised potential concerns over the acquisition of Farelogix by Sabre.
The government body launched an in-depth investigation into the US$360 million deal in September and has now suggested it could result in less innovation, higher fees and more limited choice of supplier for airlines.
As a result, UK passengers would be worse off, the CMA said.
The provisional finding state that the continued independence of Farelogix will likely motivate Sabre to innovate further, giving airlines more choices in connecting to travel agents that will allow them to sell tickets and extra products through travel agents in more innovative ways.
The expected innovations will further benefit passengers booking by providing them with more options to customise their travel experience.
Martin Coleman, chair of the CMA inquiry group, said: “This is ultimately about passengers and their ability to get good value and innovative services when flying.
“For this to happen it’s really important that airlines have a good choice of supplier for this type of software solution to make sure services are cutting edge.
“Farelogix is at the forefront of a technological change in this industry and we are currently concerned that…