GDS(Global Distribution System) systems were created and developed in the 1960s, designed and dedicated to the management of airline tickets and their payments. Very soon hotel bookings were introduced, followed by other services such as car rental and cruise bookings.
The systems to which the GDS connects are:
- Sabre
- Amadeus
- Travelport (formerly Galileo and Worldspan)
Still the real-time booking tool for hundreds of thousands of IATA travel agencies worldwide.
The Global Distribution System was one of the first achievements in web marketing for hotels. It allows tour operators - both physical and web-based - to have constant updates on properties and to see their availability in real time.
Hotel rates are also made available to OTAs that can tap into the GDS through specific codes.
HRS, Expedia, Hotels.com, Travelocity, TravelNow and many other OTAs also incorporate and upload hotels from this source, operating in those cases as traditional agencies.
The trend in bookings over the years shows a change in the performance of the GDS.
Fewer and fewer end-users are going to a travel agent to book a plane ticket or hotel for their trip, but it remains the main tool in the corporate and business travel sector.
Absolutely. Travel agencies continue to play an important role: consumers are showing that they are attached to the personal relationship that is lost with online. Although part of the clientele has moved to the Internet, relying on the large online booking portals, agencies can still do a lot for your hotel. The tool that brings agencies and portals together and allows you to reach both is the GDS; both physical agencies and booking portals are supplied through this channel.
A hotel with a good propensity for the corporate segment must also rely on GDS channels to be seen and booked by travel agents: a booking from GDS does not come from other channels.
Entering the GDSs can also be a quick way to build a presence in the OTAs without having to sign direct contracts, if the hotel is in an interesting destination for the OTAs, they may choose to tap into the GDSs. In that case, OTAs act and are considered on a par with traditional agencies. HRS, Expedia, Hotels.com, Travelocity, TravelNow and many other OTAs, incorporate and book hotels from this source, operating in these cases as traditional agencies.
Only if your hotel is on the GDS channels can it participate in Consorzia programmes, i.e. associations or marketing organisations that link small and medium-sized independent travel agencies to leverage their buying power. Similarly, it can participate in RFPs (Request For Proposal) by offering agreed and dedicated rates directly with companies that need to travel.
Almost all multinationals work directly with agencies and consortia, often having agency offices directly within the company (implant), from which they manage all business travel.
If the hotel is located in major cities, or near large companies, airports, military bases, the GDS will have interesting potential. If the hotel has a business vocation, Consortia represent a valuable opportunity to improve profits. They must be managed carefully, however, as they require an annual membership fee and the investment is certainly profitable for medium/large structures in attractive destinations.
