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What is GDS? – A Simple Guide

December 05, 2022
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The Global Distribution System (GDS) is one of the primary booking channels used by many travel agencies worldwide. The travel business has grown significantly as a result of it.

If you are just getting started in the travel industry, you probably have questions about what a GDS is and why creating a travel agent website is crucial.

This blog will discuss GDS, its role in the travel industry, and what the future holds for this key reservation tool.

What is a Global Distribution System?

The driving force behind the travel business is the Global Distribution System (GDS). It is a computerized network system that gives businesses like airlines, hotels, auto rentals, and travel agencies access to real-time information. To access the current inventory of services provided by the travel industry, each of these sectors employs GDS.

For instance, a travel agency can use GDS to check the availability of hotel rooms, airline seats, or vehicle rentals on behalf of its clients and make reservations using the same GDS.

How do travel companies use GDS?

The most incredible deals on airfare, rentals, cars, hotels and other travel-related items are found by travel agencies using GDS. Travel agencies tailor their information based on the customer's tastes and trip plans.

A travel agency's agent will locate the most precise and economic schedule when a customer wants information. Travel agencies can either purchase a specific piece of GDS software on an annual basis or pay a fee each time they use the GDS. In addition, a regular person can only use the GDS with a vendor or a travel agency's assistance.

Evolution in GDS

The airline industry developed the first GDS in the 1960s to monitor flight availability, rates, and timetables. In reality, the GDSs were among the first organizations to support B2B e-commerce globally. The airline industry employed them to automate the reservation process, but later, access was also granted to travel agencies.

What are the benefits of using GDS in travel?

For airlines, hotels, and car rental businesses, GDS will be the most effective distribution channel. The following are a few of the main advantages of adopting GDS.

  • Effective at enticing tourists from abroad
  • Facilitates the use of business models like retail travel agencies and OTA's (Online Travel Agency)
  • Increased price transparency for customers
  • With significant market penetration, travel agencies can get a worldwide platform.
  • Offer your clients the best prices possible—rates that no other system can match.
  • Distribute travel services to numerous customers without letting your marketing budget suffer

What is the future of GDS in the travel industry?

The developments occurring in the travel sector are challenging and modifying the conventional function of GDS. Airlines and other online travel agencies encourage and lure customers into making reservations through their websites. Compared to the cost on their own website, several airlines are adding extra charges for tickets bought through the GDS.

Some industry experts believe that GDS may evolve into a platform for direct corporate booking instead of a travel agency service.

What are the major GDS systems?

The majority of the data from hotels, airlines, and other distributors is stored and processed by a few large global distribution systems.

  • Amadeus
  • Sabre
  • Galileo
  • Worldspan
  • Apollo
  • Pegasus

For instance, GDS company Worldspan do not work with Southwest Airlines; American Airlines uses Sabre as a GDS tool; PARD by USAir; Air China uses TravelSky; Delta uses Worldspan.Another newsworthy affair is that agreements are signed between airlines, and GDS is on renewal. Many people working in the travel sector are still determining if the airlines will continue using particular GDSs. So, if you are a travel agent who uses Worldspan, you cannot book Southwest Airlines, or you need to look for pricing on their website and book directly from their website.

We really hope you discover something new about the tourism sector. Check back often as we intend to dismantle the ever-shifting travel industry further.

Author
TBO Academy