GDS usage on the rise as travel demand grows - 0 views
-
Industry leaders’ speculations that the global distribution system is dying a slow death have lingered for the last decade, ever since online-travel agencies made their debut in the hotel distribution space.
-
A study conducted by the American Society of Travel Agents in 2009 found the percentage of member travel agencies that used the GDS channel declined from 98% in 1999 to 79% in 2009.
-
However, despite the decrease in GDS usage amid the most recent global economic downturn, hotel companies and travelers still find value in the channel, according to sources interviewed for this report.
- ...22 more annotations...
-
Sabre Travel Network, for example, saw an increase of more than 7% in its GDS bookings during the first quarter of 2012 over the same period last year
-
Many hoteliers are attempting to leverage those increases in demand through dynamic pricing models, which offers clients a percentage off a hotel’s best available rate on each travel date as opposed to a fixed, negotiated rate for the year
-
“Hotels that have typically had a negotiated rate for each corporation can actually work better with corporations with dynamic rates, as long as they are able to ensure they are giving that corporation access to whatever the deal of the day is
-
One of the trends she is seeing in the GDS channel is the increase of combined business and leisure trips
-
There’s more opportunities for hotels to put promotions, put leisure opportunities on there … It enables hotels to really take value of the GDS.”
-
More and more, Kennedy is seeing corporate account managers ask: “What would you offer our travelers for their weekend stay if they wanted to stay longer or extend?” “What can you offer for group rates?”
-
The GDS is not going away any time soon because of the unique solutions it provides for hotels and travelers alike
-
Although these and other benefits will continue to attract hoteliers’ inventory, Cole said the GDS would provide additional value if distribution costs were lowered
-
Travel-management companies are coming up with many security reporting and informative ways to show corporations where people are at any point in time, which can be important for insurance purposes
-
“Insurance companies are also pushing today that (companies) know where their employees are,” which the GDS facilitates,
-
The pricing model provides corporations with a lower rate when demand decreases but also gives hoteliers the opportunity to achieve higher rates when demand increases, Kennedy said. “It’s a win-win for both sides.”
-
Many hoteliers are attempting to leverage those increases in demand through dynamic pricing models, which offers clients a percentage off a hotel’s best available rate on each travel date as opposed to a fixed, negotiated rate for the year,
-
Sabre Travel Network, for example, saw an increase of more than 7% in its GDS bookings during the first quarter of 2012 over the same period last year,
-
This article is about the current rise in the use of the GDS system again. This rise has been seen primarily with corporate travelers, but has also been used by the leisure traveler. While GDS usage percents dropped from 98% in 1999 to 79% in 2009, it has slightly started to increase again. Sabre one of the larger GDS companies has seen a 7% increase in use of the system in 2012. Hotels have tried to give companies better rates to their consumers, for example as more corporate travelers are extending their stays from a business trip and then turning it into a leisure trip for a few more days. This gives the traveler a lower rate a night at the hotel, as they are staying for more nights. Overall, while there was a decline in the use of GDS because of the OTA, there is now a slight increase, bringing life back to the GDS system.
-
This article gives an in depth explanation of the importance of GDS's in the hotel industry and the increased usage of the GDS due to the rising travel demand. The American Society of Travel Agents conducted a study in 2009 and found the percentage of member travel agencies that used the GDS declined from 98% in 1999 to 79% in 2009. A significant portion of the decrease was due to the economic downturn, but regardless hoteliers and travels still found value is the GDS channel. According to Sabre Travel Network, there was an increase of more than 7% in GDS bookings during the first quarter of 2012 over the same period last year. The demand for corporate travel is the main reason for the increase. Many people that are traveling for business want to extend their trips for leisure. This allows hotels the opportunity to adjust their pricing strategies by putting travel promotions for leisure for the business travels as well. Many people utilize the GDS to find the most affordable prices, but it is also beneficial to hoteliers as well. Elaine Kennedy, one of the two interviewed in the article, stated the pricing model provides corporations with a lower rate when demand decreases but also gives hoteliers the opportunity to achieve higher rates when demand increases, which ultimately is a win-win for both sides. The GDS also provides many opportunities for hotels to cut costs. Robert Cole, the other person interviewed in this article, stated "The GDS also provides enhanced marketing support….immediately when you use the GDS to put your product, your service, your room, your rate, you're getting it in front of an audience without using your own marketing budget." According to Robert Cole, the GDS is not going away any time soon because of the unique solutions it provides for hotels and travelers alike. I believe this article was very informative on how the GDS is currently being utilized and where it is going in the future. It basically helped answer question 3