GDS was invented a way to automate the travel reservation and booking process for travel agents so that they could more efficiently access information about flight schedules, fares and seat availability. Before this system, travel agents had to refer to lists of airline fares that were published annually in a book of tariffs each time that a customer wanted to book a trip.

Hotel agents around the world use the Global Distribution System (GDS) as their major booking channel, which is also responsible for the significant growth of the travel industry. If you are a newbie travel agent or consultant, you will be probably wondering what is GDS is and why It is important.

What is GDS?

Global Distribution System (GDS) is the brain of the travel industry. It is a computerized network system that provides real-time information to companies such as airlines, hotels, car rental and travel agencies. These sectors use GDS to view real-time inventory of services offered in the travel industry.

For example, using GDS, a travel agency can find the availability of hotel rooms, flight seats or cars on behalf of their clients and book through the same GDS. 

Major GDS

Sabre, Travelport, and Amadeus represent the leading GDSs.

Demystifying GDS: A B2B Powerhouse

At its core, a GDS is a business-to-business (B2B) platform that facilitates real-time data exchange between travel service providers (hotels, airlines, car rentals) and travel sellers (travel agencies, online travel agents [OTAs]). It acts as a centralized hub where travel agents can access a comprehensive inventory of hotels, compare rates and availability, and seamlessly book accommodations for their clients.

Unlocking a Decade of GDS Advantages for Hotels

Integrating a GDS into your hotel’s distribution strategy unlocks a treasure trove of benefits. Let’s explore the 10 compelling reasons why hotels should leverage the power of GDS:

• 1. Global Reach & New Market Segments: GDS boasts a massive network encompassing travel agents worldwide. This unparalleled reach exposes your hotel to a global audience, potentially attracting new market segments you may have yet to consider. Corporate travelers, for instance, heavily rely on travel agents for bookings, and GDS is their preferred platform. Being present on a GDS allows you to capture this lucrative segment, known for extended stays and higher spending.
  
• 2. Revenue Boost & Increased Occupancy: GDS acts as a powerful marketing tool, placing your hotel’s information, rates, and availability in prominent positions for travel agents to discover. This increased visibility translates to more bookings, ultimately boosting your hotel’s revenue and occupancy rates. GDS bookings often translate to multi-night stays, further enhancing your bottom line.
  
• 3. Growth Opportunities & Riding the Agent Wave: The travel industry is witnessing a surge in travel agent bookings facilitated by GDS. In the past two years alone, agent use of GDS has skyrocketed: USA (30%), Latin America (49%), Europe & Middle East (47%), and APAC (64%). By being part of the GDS network, you capitalize on this growing trend and position yourself for future growth.
  
• 4. Real-Time Efficiency & Streamlined Operations: GDS ensures real-time updates on rates and availability. This eliminates the risk of overbooking and simplifies the reservation process for both travel agents and your hotel staff. Streamlined communication and instant booking confirmation save time and resources, allowing your team to focus on delivering exceptional guest experiences.
  
• 5. Cultivating the Lucrative Corporate Segment: GDS is a preferred channel for large corporations booking travel for their employees. By joining a GDS, you gain enhanced visibility to this highly profitable guest segment – the business traveler. These guests often represent higher spending and consistent bookings, contributing significantly to your hotel’s revenue stream.
  
• 6. Enhanced Guest Targeting & Upselling: GDS platforms often offer advanced guest profiling features. By leveraging this data, you can tailor special offers and packages to specific guest segments, maximizing upselling and revenue opportunities.
  
• 7. Powerful Reporting & Data-Driven Decisions: Leading GDS systems offer valuable reporting tools. Gain insights into booking trends, guest demographics, and travel agent preferences. This data empowers you to make informed decisions about pricing, promotions, and overall marketing strategy.
  
• 8. Cost-Effective Marketing & Increased ROI: Compared to traditional marketing channels, GDS offers a cost-effective way to reach a vast audience of travel agents and potential guests. Maximize your return on investment (ROI) by focusing your marketing efforts on a platform with high conversion rates.
  
• 9. Seamless Integration & Reduced Errors: Many GDS platforms integrate seamlessly with your hotel’s Property Management System (PMS). This ensures real-time inventory updates and eliminates the need for manual data entry, reducing errors and streamlining operations.
  
• 10. Building Brand Awareness & Reputation Management: GDS listings allow you to showcase your hotel’s unique offerings and brand story to a global audience. Positive reviews and feedback left by travel agents through the GDS platform can further enhance your hotel’s reputation and attract new guests.
  

Choosing the Right GDS for Your Hotel

With several GDS providers vying for your business, selecting the right one for your hotel requires careful consideration. Here are some key factors to keep in mind for optimal SEO impact, use relevant keywords throughout your content:

• Target Market: Identify your ideal guest segments. Do you cater primarily to business travelers, leisure tourists, or families? Different GDS providers may have strengths in specific market sectors. Research which GDS boasts the strongest network of travel agents specializing in your target audience.
  
• Budget: GDS participation comes with associated fees. Consider GDS connection fees, transaction fees, and subscription costs. Carefully evaluate your budget and choose a GDS provider that offers a pricing structure that aligns with your financial goals.
  
• Features & Functionality: GDS platforms offer a variety of features beyond basic inventory management. Explore features like:
  
  • Advanced guest profiling for targeted marketing
  • Reporting & analytics tools for data-driven decision-making
  • Content management systems to showcase your hotel’s unique offerings
  • Mobile-friendly booking capabilities to cater to the growing trend of on-the-go reservations
• Global Reach: Consider the geographic reach of the GDS provider. If you aim to attract international guests, choose a GDS with a strong presence in your target markets.
  
• Integration Capabilities: Ensure the GDS integrates seamlessly with your existing hotel Property Management System (PMS). This eliminates manual data entry and ensures real-time inventory updates across all platforms.
  
• Reputation & Customer Service: Research the GDS provider’s reputation for customer service and technical support. Opt for a provider known for responsiveness and a commitment to resolving partner inquiries efficiently.
  

Benefits of GDS

There are several major benefits when it comes to global distribution systems within the hotel industry. Here are five ways they make hoteliers’ jobs more efficient and effective.

1. Increased Access to Travel Agents

Many hotels still rely on travel agents to book arrangements for their hotels instead of having someone on staff take care of individual reservations. There are now more than 600,000 travel agents who use a global distribution system searching to find and complete hotel reservations online.

2. Efficient Booking Process

These systems help to alleviate some of the administrative burdens on hotel staff in booking room reservations. The instant access to bookings online means that hotels are simply notified after a reservation is complete instead of having to accept them manually. This prevents the hotel from the need to increase its reservation intake staff in order to receive additional reservations.

3. Bundling Options for Travel

The advantage of using a global distribution system for hotel room bookings is that travel agents are able to bundle travel deals for the same trip. For example, they can book the hotel room, flight, rental car or any other ground transportation from the same system. This makes it more likely that a travel agent or customer will select a hotel that is included in a bundling option.

4. Less Expensive than Marketing

There is an initial fee in setting up a global distribution system for a hotel, but it is less than what you have to invest in marketing costs to see the same increase in bookings. This will help hotels to immediately access a bigger share of the travel reservation market by signing up with a global distribution system to get in front of more travel agents.

5. Integration with Property-Management Systems

Many of the leading distribution systems are capable of complete integration with the property management system, which helps manage the daily operational tasks of a hotel. It means hotels can automate the tasks associated with taking on room reservations without having to manage individual components, such as the room cleaning schedule, staff availability, current booking and availability information, event calendars and supply levels

In today’s competitive hospitality landscape, a robust distribution strategy is no longer a luxury, it’s a necessity. GDS empowers hotels to tap into a vast network of travel agents and potential guests, significantly boosting revenue and occupancy rates. By understanding the 10 compelling benefits of GDS and carefully selecting the right GDS provider, your hotel can gain a significant competitive edge. Embrace the power of GDS and watch your hotel ascend to new heights in the ever-evolving world of travel. Remember: GDS is a valuable tool, but it’s just one piece of the puzzle. Combine your GDS presence with a strong direct booking strategy and effective online marketing to create a comprehensive distribution network that drives bookings and propels your hotel’s success

Revolutionize Your Operations with Systrix:

• Smart Travel Accounting Software (STAX): Eliminate the complexities of travel agency accounting with STAX. This user-friendly software simplifies financial management, offering online access to your finances from anywhere. Streamline your operations, save time, and gain valuable financial insights with STAX.
• Smart Travel Booking Engine (STBE):  Equip your travel business with a mobile-ready online booking engine built for the future. STBE caters to both B2B and B2C needs, allowing you to offer seamless booking experiences for your clients across any device.  Increase customer satisfaction and boost your sales with STBE’s advanced functionalities.

Ready to unlock the growth potential Your Business upholds ?  Contact Systrix today. . and schedule a consultation with our travel technology experts. We’ll help you create a customized solution that caters to your specific needs and propels your business toward success.