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Endrich Reveil

IATA Urges GDS Systems Reform | Travel Agent Central - 0 views

  • The International Air
  • To move forward, IATA said it is working on a new distribution capability (NDC) that will bring the industry up-to-date with online retailers and revolutionize distribution.
  • the GDS model is too clunky to adapt easily to the emergence of trends such as fare unbundling and merchandizing,” said Tyler.
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  • The International Air Transport Association (IATA) is encouraging strong information technology (IT) partnerships to strengthen the air transport industry, but says the Global Distribution System (GDS) model is now holding the industry back.
  • “The GDSs and system providers have an important role to play in working with us to optimize this NDC and to take advantage of the opportunities it will offer the entire value chain,” Tyler said.
  • Tyler noted that IT continues to facilitate improvements in operational efficiency. “For example, e-ticketing, the flagship program of IATA’s Simplifying the Business (StB) initiative, was about far more than eliminating paper. It brought multiple benefits across the supply chain and greater convenience for passengers.
  • “By 2020, our vision is for 80% of passengers to be able to be offered a complete self-service suite,” said Tyler.
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    Even though the GDS had reformed the distribution system of the travel industry, will it continue to grow and update it's current model to upkeep the growing age of tourism? The International Air Transport Association (IATA) is looking for newer ways to revolutionize the travel industry. Tony Tyler, IATA CEO, feels that the Global Distribution System (GDS) is lacking upgrades and says "the GDS model is too clunky to adapt easily to the emergence of trends". As a result, the IATA is working on a new distribution capability (NDC) that will enable the industry to become on trend with online retailers and transform distribution. However, the GDS will still play an important role in aiding the NDS to get there. Tyler spoke at the SITA Air Transport IT Summit in Belgium, asking the IT partners to help innovate the air transport industry. He also explained that the IT already did and will continue on doing a great job with facilitating the operational efficiency.
jessielee214

Travel Data Collective - 0 views

  • What is New Distribution Capability (NDC)?
  • NDC aims to transform the airline industry by addressing the current limitations in distribution
  • What is NDC?
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  • New Distribution Capability (NDC) is a new technology created by IATA to streamline the airline distribution process.
  • It's an XML-based communication standard originally developed by Farelogix in 2010 to create direct connections between airlines and third party distributors.
  • This was standardized in 2012 by IATA to replace the old EDIFACT messaging standard, which global distribution systems (GDSs) rely on.
  • NDC was orginally created as a way to bypass the GDS providers, but slowly these providers have become more involved in the process. The basic idea is that NDC is supposed to give indirect distribution channels, such as GDS and metasearch, the same capabilities as an airline’s website.
  • Who's Involved in NDC?
  • There are several different players involved in the NDC process: travel agents, airlines, aggregators and IT providers.
  • Travel agents and airlines are straightforward. The aggregators are the different intermediaries involved in communicating the travel agent's request to different airlines.
  • IT providers are responsible for integrating NDC into the airline’s IT infrastructure.
  • The integration layer method is less complicated, and companies such as Openjaw, Farelogix, and Paxport have created solutions by sitting above the airline’s PSS.
  • third party distribution process works as follows when a traveler needs to reach their destination at a certain time and price:
  • The traveler goes to their travel agent who then queries the GDS system.The GDS pulls information about schedules and fares from a third party. The GDS builds the offer, then goes to the airline to get information about availability. When the offer is available, the information is relayed back to the travel agent and passenger who can then see the airline, price and schedule.
  • In a complete NDC solution, the process goes like this:
  • A travel agent will create a shopping request which will be sent to an aggregator. The aggregator will then create an offer request to be sent out directly to airlines. The airlines will then determine a product that fits the offer.
  • Third Party Distribution Today and Under NDC
  • According to IATA, this process will eliminate confusion over what's included in the offer. It will also be able to simplify the airline ticketing process.
  • How Can NDC Be Implemented?
  • wo recommended ways
  • One is by integrating directly to the airline passenger service system (PSS), the other is an integration layer outside of the PSS.
  • The product is sent back to the travel agent through the aggregator and the offer will "evaporate" after a certain amount of time.
  • In order to set up a full NDC suite, airlines have to create an offer and order management system, which will interact with the PSS.
  • How is NDC Being Used Today?
  • There are currently 62 airlines who are either NDC Certified or XML-capable.
  • NDC connections mostly use it in limited cases, and not to its full potential. United has partnered with Amadeus to have an NDC connection to their GDS for selling their economy plus product.
  • Many airlines are piloting these simple types of connections through NDC (instead of developing their own direct connection) as it will be easier to increase the scope with other distribution providers.
  • Other carriers such as GOL are using NDC connections for offer and order management, providing ability to purchase seats, bags, upgrades, meals, car rentals, and travel insurance, as well as ability to bundle the products (this is being done with Navitaire as their IT provider).
  • What's the Future Outlook for NDC?
  • In the future, there are hopes that NDC will be able to connect to chatbots, allow purchasing and upsell through things such as Amazon and Alexa.
  • Part of the challenge is getting airlines, travel agencies and GDSs to spend money on the infrastructure needed to implement NDC.
  • Airlines are hoping that by using NDC connections either through GDS or directly to travel agents/metasearch they will be able to pull in additional revenue for each ticket sold
  • Some airlines such as Lufthansa, IAG (British Airways, Iberia, Aer Lingus), Meridiana, and Ukraine International Airways are introducing fees for tickets booked through GDS, however the fees are waived for tickets booked through NDC connections.
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    The article talks deeply in NDC from the past to now and is very clear about how it works. NDC can help airlines to know the need for customs and without the commission. I think one day, NDC can instead of GDS, but it still needs to take such a long time.
naxiang2001

What is a Global Distribution System (GDS)? 2022 Guide for Hotels - 3 views

  • What is a Global Distribution System (GDS)? 2020 Guide for Hotels
  • The History of the GDS
  • a GDS functions as a middleman between a travel agent and a hotel’s (or airline’s) central reservation system. Travel agents can see real-time rates and inventory for a given hotel via the GDS, though the GDS doesn’t actually hold its own inventory.
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  • Besides the time savings, the GDS allows travel agents to tap into reservation systems for a world of travel providers.
  • What are the Most Popular Global Distribution Systems?
  • Did you know you could book a flight, tour operator, car rental or hotel room in real-time via electronic GDS systems since the 1960s? You may be thinking, “hmm… online travel agencies like Expedia and Booking.com aren’t that old, are they?” But years before the OTAs gained prominence, global distribution systems provided real-time access to hotel and flight inventory for travel agent service providers across the world. 
  • The GDS industry has come a long way since the 60s; while Sabre is still a major player, several GDS companies operate today. The major global distribution systems for travel reservations include: Amadeus is the world’s largest GDS, accounting for about 40% of GDS transactions, and it’s especially popular in Europe. Though many of these reservations are for airfare, it’s still a powerful tool for hotels, with over 600,000 hotels connected. Sabre is the second-largest GDS, accounting for about 35% of travel agency bookings. Around 175,000 hotels are connected to Sabre, but its portfolio in North America is larger than its competitors. Travelport GDS  owns systems called Galileo, Worldspan, and Apollo. Travelsky is a state-run GDS in China.
  • Does the GDS still serve a purpose when travelers can easily book directly with the airline or hotel? In many cases, yes, the GDS still delivers value, especially for airlines and corporate travel companies. Airlines still distribute their inventory to OTAs via the GDS, and corporate travel planners continue to use the GDS to find corporate rates.
  • American Airlines was the first company, in partnership with IBM, to implement an electronic reservation system for their reservations agents to use. This new technology, called the Semi-Automated Business Research Environment (SABRE), allowed American Airlines to greatly expand their reservations team beyond the number of people who could huddle around the paper booking files.
  • For hotels, airlines, and the like, the GDS offers massive marketing power.
  • No one GDS can be called the “best” travel service provider, since they all provide similar functionality and have their own unique differences.
  • travel comp
  • With decades of history and an enormous user base of travel agents, using the GDS can be a great way to expand your hotel’s marketing and distribution strategy. But the GDS doesn’t necessarily provide value to every hotel; if you’re wondering how to use the GDS or why to add it as a distribution channel, it’s important to weigh the pros and cons for your individual hotel.
  • No one GDS can be called the “best” travel service provider, since they all provide similar functionality and have their own unique differences.
  • hotels would need to undertake huge marketing efforts in order to be seen by travel agents. The GDS effectively democratized this process, with chain hotels getting the same visibility on the GDS as independent hotels.
  • Today you can book not only airfare and hotels via the GDS, but also rental cars, cruises, rail tickets, and tours.
  • In 2006 the volume of internet reservations exceeded GDS reservations for the first time,
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    This arctic is about what is a global Distribution System, history of the GDS, how does a GDS work and what benefits GDS offer.
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    A brief history of the GDS gives us a glimpse of the important this technology which as been around for over 50 yrs. Although it has evolved, the consumer has evolved with it but the basic idea still prevail and still very much in use.
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    This article gives a complete description of what the GDS is and its history. It goes over how the GDS works, the benefits of using it, and whether the GDS has a role in the future of global distribution.
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    A GDS or Global distribution system can come in handy for many different purposes. Some of these companies such as Expedia and Travelocity are know ones in the United States. It is important to weight pros and cons when deciding who to book with when choosing a hotel or an airlines especially since there are so many options. Depending on how you book especially when bundling with a GDS you could get a great deal.
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    This article evaluates the past and current roles of GDS in the travel and tourism industry. It is clear that the GDS has adapted and changed with the times and now is able to do even more than at its initial conception. However, as the article pointed out the all the functions of the GDS it is clear that OTA's ad websites are also able to provide a lot of these same functions. We discussed this week whether the GDS system is still currently a relevant system and most agreed that it is. However, as we look to the future it will be interesting to see what evolutions the GDS has yet to go through and how it will attempt to remain relevant in the ever changing tourism market.
Dian Peng

GDS vs ADS - 0 views

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    Global Distribution System (GDS) & Alternative Distribution System (ADS) GDS & ADS Today's Global Distribution System (GDS) is comprised of 4 major GDS channels: Sabre Amadeus Worldspan Galileo The latter two, as of 2006, have been aggregated under the TravelPort banner. There are also a number of smaller, regionalized GDS connections including Abacus and Patheo. Included with GDS connectivity are hundreds of Alternative Distribution System channels that are effectively "hybrid distribution" mechanisms in that they provide web-based visibility to 3rd party merchants while "pulling inventory" from the GDS. These include household names such as Travelocity and Expedia and not-so-well-known sites such as e-Bookers and Opodo. A single "switch," Pegasus, provides overall system connectivity (Wizcom was acquired by Pegasus in July, 2004) and the industry is now seeing a proliferation of "direct-connects" to by-pass switch transaction and pass-through fees to mitigate acquisition costs. Connectivity to, and marketing within, the GDS is vital to the success of any hotel and resort given that 17-21% of worldwide bookings are made by travel agents through this channel. To have access to the GDS, your operation must belong to a Central Reservations Service (though you could try to create a proprietary CRS) and that is where the Hospitality Performance Group distribution program can bring value to your operation. We work closely with a number of CRS providers and can match you with one that is appropriate to the distribution needs of your property. Approximately 80,000 travel agents globally use the GDS. Hotel and resort "book-ability" has been an element of the GDS since the 80's (see the HPG history timeline) and given the vast selection provided to agents, GDS marketing can prove extremely productive--particularly in an extremely competitive market or when your operation's feeder markets are global. Working with our GDS marketi
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    This article talked about the GDS and ADS. It said there are four major GDS channels: Sabre, Amadeus, Worldspan, Galileo. Besides, there are also small channels like Abacus and Patheo. Then, the article introduced that Included with GDS connectivity are hundreds of Alternative Distribution System channels that are effectively "hybrid distribution" mechanisms in that they provide web-based visibility to 3rd party merchants while "pulling inventory" from the GDS. Then, according to the article, the GDS is vital to the success of any hotel and resort given that 17-21% of worldwide bookings are made by travel agents through this channel. It said that about 80,000 travel agents globally use the GDS So we can say the GDS's is very useful for travel agency business. It has very long history since Hotel and resort "book-ability" has been an element of the GDS since the 80's (see the HPG history timeline) and given the vast selection provided to agents. In the end, the article promoted a new system called HPG.
Yunfan Wu

Was hotel marketing always this complicated? Part Two of Three - GDS consolidation and ... - 0 views

  • These four GDS vendors controlled the marketing and distribution channel for the entire industry. They had market power and could impose higher fees at a whim on both the agent and airline. At the same time airlines sought ways to lower their distribution costs.
  • For the most part the hotel industry did not have the coordination or the moxie to fight like the airlines and simply paid the higher distribution fees and travel agent commissions.
  • But the larger effect was that the travel agency industry was shrinking; in a short period of time hotels saw their traditional distribution channels dry up. No longer were agents sending customers to the hotels.
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  • The arrival of the internet as a commercial device only accelerated the demise of the travel agency business. Of the nearly 40,000 independent travel agencies in existence, less than a third still exist today.
  • In 2001, the early years of our hospitality consultancy, general managers walked through our doors describing their online marketing strategy as “having a static online hotel brochure, email, and Expedia“.
  • The catchphrase “direct online distribution strategy” described the new world order in hospitality. Yet hotel managers were slow to embrace the idea that they would soon be entirely responsible for the marketing, sales, and distribution of their hotel inventory.
  • hotels locked themselves into OTA contracts that required steep discounts, ever-increasing inventory, and multi-year agreements. To this day OTAs resemble GDS-like oligopolistic behavior.
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    This article introduced how GDS controlled the whole industry in the last decades. Most airline companies and hotels use GDS and the traditional distribution channels and travel agencies dry up. But after 2001, things become different. Hotels need to do marketing and distribution by themselves to survive. But many of them are not professional, so they lock themselves into OTA contracts. They need reinvented hotel marketer by themselves. 
kpony001

Air Canada Begins Using a New Way to Distribute Fares to Partners - Skift - 0 views

  • The shape of the future is unclear.For a glimpse at what may come, look to Air Canada, which this week processed its first transaction via a new platform called NDC Exchange.
  • For several years now, Air Canada has offered internet-based connections for online travel agencies and travel management companies to access its airfares. These worked outside of the incumbent three giants of travel distribution, Amadeus, Sabre, and Travelport.
  • About 40 to 50 agencies access Air Canada’s application programming interfaces, or APIs, to process about a million tickets a year via direct connections that avoid the intermediaries.
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  • it enables the airline to have enhanced control over how the content appears on travel agency reservation systems to make sure they’re presenting their full-service products in the best way and not encouraging customers to shop by lowest price.
  • Air Canada
  • began using NDC Exchange, a platform that does the work on Air Canada’s behalf to transform data from its web services into a way that’s readable by sellers using any of the different versions of New Distribution Capability.
  • NDC Exchange was created by airfare filing clearinghouse ATPCO
  • and SITA,
  • the airline industry has heavy control of both organizations, which may help keep costs below what they would probably have to pay third-party distribution giants to do the same work.
  • The platform could become more valuable if it effectively enabled the cross-selling of ancillary services between airlines.
  • If the vision is mostly fulfilled, the NDC Exchange could take on a life of its own. It could become more than a mere data transformation tool that acts as an integration layer during a presumably temporary spike in updates to the New Distribution Capability standard.
  • “There is a nominal cost to use it for airlines and a nominal cost to use it for the sellers, but if the costs stay low and the system has low latency, then the value would be worthwhile,”
  • Wallis said, “My wish would be to put all of my partners in the NDC Exchange, though it would take more than a year to get there.
  • For this platform, SITA is taking on the role of providing the IT networking for messaging and data services to power the exchange, while ATPCO transforms the data.
  • The NDC Exchange runs on SITA’s cloud-based infrastructure and airlines use its 24/7 call-center support to handle any troubleshooting.
  • Amadeus’s Elena Avila, executive vice president, head of Americas, airlines, said, “Air Canada is a long-term partner that we’re thrilled to be working with both on the IT and the distribution side.
  • Amadeus Anytime Merchandising will equip Air Canada to address evolving industry initiatives, such as NDC.”
  • Sabre announced “a commitment to advance at an industry level” new technological and business practice methods with American Airlines and several key players in corporate travel
  • A Sabre spokesperson said in an interview, “Efforts like the one you highlighted [by ATPCO] are often focused only on offer creation, whereas Beyond NDC is focused on developing end-to-end solutions that let airlines retail, distribute and fulfill across the entire traveler journey.
  • Amadeus announced an NDC-X program that’s working with Qantas and American Airlines and with travel sellers like Flight Centre, Travix, American Express Global Business Travel, Carlson Wagonlit Travel, and BCD Travel.
  • The traditional masters of this task — Amadeus, Sabre, and Travelport — could choose to plug into it. But they might have to accept commercial terms that would be less lucrative than past arrangements.
  • Verteil Technologies, an Indian IT provider, will use the NDC Exchange to aggregate the New Distribution Capability content and then enable Indian travel agencies to issue standalone New Distribution Capability tickets.
  • Australia- and New Zealand-based corporate travel technology company Serko is plugging into NDC Exchange.
  • Other vendors launching on NDC Exchange include Airlines Reporting Corp., Innfinity and Atriis.
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    Air Canada's new platform, NDC Exchange, which works outside of the GDSes, allows the airline to manage the way its bookings appear on travel agency registration systems. The system was created by ATPCO (Airline Tariff Publishing Co.) and SITA, the latter of which transforms the data while the former provides the data services that make it have the ability to run,. Recently, several GDSes, such as Sabre, Amadeus, along with other entities like Verteil Technologies, Serko, and more, have also began to utilize their own NDC Exchange program.
gulsevim

SiteMinder Brings GDS Representation In-House as Hotel Customers More Than Triple in On... - 1 views

  • Almost 900 hotels located in the world’s top destinations are poised to receive personalized GDS sales and marketing representation from the global hotel industry’s leading cloud platform.
  • GDS by SiteMinder’, gain its own chain code and more than triple in hotel users.
  • Through sales and marketing representation, those hotels can now access a network of GDS experts based in New York, Los Angeles, London, Hong Kong, Paris, Munich and Sydney that will work with travel buyers on their behalf to increase hotel brand exposure and revenue.
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  • Over the past year, GDS by SiteMinder powered nearly 200,000 reservations worth over $60 million in hotel revenue, showing how effective global distribution systems are in bringing guests hotels wouldn’t otherwise attract, especially from Monday to Friday when properties need business most.
  • Mr Lewis-Purcell has spearheaded SiteMinder’s dedicated GDS function over the last 12 months, growing the total number of GDS by SiteMinder hotel users from 250 to almost nine hundred.
  • GDS by SiteMinder uniquely brings cloud-based technology together with legacy GDSs that are as relevant today as they were thirty years ago, to provide hotels an incomparable total distribution platform. It’s now used by about sixty percent more hotels than our industry’s most renowned soft brands.
  • GDS by SiteMinder provides hotels a single point of entry to the world’s major global distribution system providers – Sabre, Amadeus and Travelport – and travel agent network. In addition to sales and marketing representation, hotel users of the GDS connection receive free consortia advice, account management and local customer support.
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    Site Minder by GDS experience, serves as good example to better understand the impact of a GDS's impact on the hotel industry. GDS by SiteMinder provides a single point of entry to over 500 000 travel agents across the globe, which means that hotels can target many type of travelers in multiple geographic regions. By connecting hotels directly to the world's major GDS providers - Sabre, Amadeus, and Travelport - and travel agent network, GDS by SiteMinder offers a major convenience to participating hotels. Through this service, hotels don't have to worry about signing up with each one of these providers. Another advantage of SiteMinder is its affordability; there are no commission fees, rather, just one flat transaction fee per reservation. The company offers free services from GDS experts and free technical account management advice which are other benefits. For instance, in another article, in mid-2013, South Beach Group who has boutique hotels in the heart of Miami Beach, decided to switch its 12 hotels to GDS by SiteMinder. After moving to GDS by SiteMinder, South Beach Group representative highlights the significant increase in bookings leading to a growth in annual revenues by17% in 2013. In essence, GDS by SiteMinder advertises participating hotels to more customers globally within an incomparable distribution platform, with real-time and two-way GDS connectivity. As we can see in the article, in 2016, just within 12 months the total number of users of GDS by SiteMinder increased from 250 to almost 900. This article underlines the importance of GDS for the growth of travel industry. With Site Minder by GDS, one can realize how GDS helps increase hotel bookings by placing hotels on more virtual channels (an analogue of supermarket shelves) globally.  
leahesper

HEDNA Joins HTNG/OpenTravel Partnership to Strengthen Focus Around Distribution - 0 views

  • The Hotel Electronic Distribution Network Association (HEDNA) has joined a partnership with Hospitality Technology Next Generation (HTNG) and The OpenTravel Alliance, to advance distribution technology in the hospitality industry.
  • a community of interest to advance electronic distribution in the hospitality industry. While the missions of the three associations are different, they all share the goal of improving the traveler experience from the searching and booking process through to the conclusion of the trip.
  • In addition to uniting around distribution, HEDNA and HTNG will further their collaboration, including promoting each other's events and partnering on other future activities.
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    This article is an industry update in which readers learn that the Hotel Electronic Distribution Network Association has joined partnership with Hospitality Next Generation and The OpenTravel Alliance with the goals to improve and advance technology distribution technology in the hospitality industry! This awesome partnership will leverage the strength of HEDNA's business focus. This article gives information on HEDNA as well as OpenTravel Alliance as well.
sherylvelazquez

The Future of Global Distribution Channels: New Horizons for Airline e-Commerce - 0 views

  • Earlier this year, Lufthansa announced that it was adding a surcharge to all bookings made via global distribution systems in an attempt to funnel traffic to direct bookings
  • Nonetheless, distribution has seen a number of interesting trends that may spell new opportunities for airlines looking to capture new markets, bring in additional revenue via ancillaries, and keep pace with the competition. Airlines are more interested than ever in alternative distribution, with the majority of airline marketing/sales/distribution executives saying they are very or extremely likely to adopt an alternative to GDS by 2017.
  • Overall, travel “distribution” is becoming more like “e-commerce,” with campaigns, offers, and channel marketing edging out the simpler “product push” of yesteryear.
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  • Pay-per-click advertising is a huge boon for the travel industry – travel and tourism was the third highest spending industry on Google AdWords in 2014,
  • Metasearch is a great opportunity for airlines because, again, it meets comprehensive or complex travel shopping needs.
  • With IT solutions that can gather, store, and analyze data in a variety of ways, airlines are better able to monitor performance across channels, quickly adjust offers based on a variety of situations and circumstances, and optimize communications and transactions by device.
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    This article is about the future of global distribution systems and how airlines are making a push towards direct bookings. They are using things like performance adverting, metasearch networks, and data based e-commerce in increase revenue and improve operations.
cwilliamsiona

Southwest Will Put Content on GDSs: Business Travel News - 0 views

  • Southwest Airlines at long last will provide content and full booking capabilities in global distribution systems via agreements with Travelport and Amadeus
  • Southwest president Tom Nealon said the GDSs are the "third leg of the stool" in Southwest's distribution strategy for business travel, the other two being direct channels and the Swabiz booking tool.
  • Southwest has rolled all those approaches and its recently revamped sales team into a newly named Southwest Business umbrella
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  • "We have a great business product, but we've been harder to do business with in terms of how you book, transact and settle," Nealon said
  • "The shift away from our [Basic Booking Request] and the basic approach to an industry-standard GDS is important.
  • Southwest projects that the GDS presence will bring between $10 million and $20 million in additional revenue during the second half of 2020
  • "We're going to compete hard and compete to win
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    In sum, this article discusses the long awaited partnership with Southwest airlines and global distribution channels Amadeus and Travelport. In the past, there have been many debates regarding the topic of "full content" between airlines and travel intermediaries. However, according to Southwest, this agreement will bring "the highest level of participation." As Southwest continues to revamp and improve the way it competes in the global market arena, Tom Nealon, President of Southwest has stated that, "GDSs are the third leg of the stool in Southwest's distribution strategy for business travel. With its great business product, Southwest is hoping to improve the way consumers book, transact and settle by using global distribution systems. With a conservative outlook, Southwest is hoping that the newly formed partnership with Amadeus and Travelport will generate between $10-$20 million in additional revenue in the second half of 2020.
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    The article demonstrates the benefits of implementing GDS in the hospitality industry. According to the article, installing GDS will enable Southwest Airlines to improve its level of participation by allowing buyers to not only book but also to "change, change, cancel, and modify reservations" via the system. Besides, the implementation of GDS will lead to increase revenue for the company.
ovila009

Global distribution system (GDS): Complete guide for hotels - SiteMinder - 1 views

  • More than 600,000 travel agents plug into the GDS every day on behalf of companies to book flights, hotels, car rentals and destination activities.
  • Despite the growth of third party online travel agencies (OTAs) like Booking.com and Expedia, the GDS remains the number one way to promote your hotel to the corporate travel market globally.
  • A GDS is a worldwide conduit between travel bookers and suppliers, such as hotels and other accommodation providers.
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  • The history of global distribution systems dates back to the 1960s when a more sophisticated method was needed to keep track of flight schedules, availability, and prices
    • anonymous
       
      This is how GDS started back in the day in order to keep track of things however nowadays it is used for so much more.
  • Hoteliers are always looking at ways to increase their reach to attract more customers, increase revenue, and make a profit
    • anonymous
       
      Hence why GDS is so beneficial for hotel companies and other industries.
  • As soon as a reservation is made on the GDS or an online booking website, the channel manager instantly reduces inventory across all channels, including the hotel’s own website, and automatically delivers the reservation details back into the PMS or central reservation system (CRS).
    • anonymous
       
      Reservations are now made quick and easy with this system. It gives customers a pleasant experience.
  • There are several major global distribution systems that house and process the majority of data from hotels, airlines, and other distributors. These include Amadeus, Sabre, Galileo, Worldspan, Apollo, and Pegasus.
    • anonymous
       
      Here we can see some examples of GDSs.
  • The Apollo reservation system was used by United Airlines until 2012, when it switched to SHARES, a system used by its former Continental Airlines subsidiary.
  • Sabre is seen as a pioneer for online travel agencies, corporate booking tools, revenue management, and web and mobile itinerary tools, to name a few.
  • Galileo traces its roots back to 1971 when United Airlines created its first computerised central reservation system
  • created by other airline groups in an attempt to gain market share in the computer reservation system market.
  • Worldspan is a Travelport platform, and is the technology leader in web-based travel eCommerce, offering solutions for all facets of travel business online. As a leading GDS, Worldspan provides travel distribution, technologies and services for thousands of travel companies worldwide, including travel agencies, corporations, travel suppliers and travel websites.
  • Amadeus has the biggest global footprint of any of the GDSs, with a potential reach to millions of guests.
  • Abacus was founded in 1988 and became a leading provider of travel solutions and services in the Asia Pacific region.
  • Pegasus Solutions pioneered the hospitality reservations industry.
  • The best systems will connect your hotel directly to the world’s most prominent GDSs
  • Using a software provider to tap into the GDS saves a lot of money and time.
  • Essentially, the GDS can increase hotel bookings and revenue by placing hotels on more ‘supermarket shelves’ globally.
    • anonymous
       
      It gives hotels the ability to expand and increase the number of customers they get by exposing them more internationally.
  • there are still more bookings being generated through the GDS than through hotel websites.
  • The GDS is indeed a unique and direct marketing tool for your hotel.
  • booked quickly and efficiently.
  • The GDS can help hotel managers uncover new market segments to promote their products to
  • More travel agents are relying on the GDS to find the best places for their clients to stay.
  • the GDS improves search positioning and displays your brand messaging during the search and booking process
  • Hotels generate more revenue through a GDS because it places the hotel’s information, availability and rates in prominent locations where it is easy for travel agents to find.
  • you can market all of your rooms to all of your distribution channels at one time.
  • Your GDS should help you maximise your bookings and increase your revenue
  • the capability for the GDS to integrate completely with your existing PMS, online booking engine and channel manager.
  • help you make the best decisions regarding your marketing strategy and distribution plan.
  • discover and tap into the most powerful and motivated market segments.
  • trial the GDS for a short time and measure results before continuing your subscription.
  • Because cruise travellers rely heavily on travel agents for their trip arrangements, it’s highly likely any hotel bookings will also be made through this channel.
  • A GDS is a worldwide conduit between travel bookers and suppliers, such as hotels and other accommodation providers
  • Cruises tend to rely on more conventional channels like travel agents to reach and convert guests.
  • With the cruise industry currently in a state of growth, it represents a chance for hotels to get a slice of the revenue.
  • It appears travel agents are driving most of this success, with 70% of cruise bookings made via this channel.
  • Cruises do all the hard work to book their guests but often they will arrive a day or two early or depart a day or two after their cruise, booking at hotels for the extra time.
  • Most prominent is your hotel description
  • you eliminate the frustration of signing up with each individual platform, and you can connect to all of the top providers without paying the individual fees.
  • The GDS is often used to tap into the corporate travel market because it has the ability to present hotels, flights, and car rentals in one simple interface which is convenient.
  • Live rates and availability are sent from a hotel’s property management system (PMS) directly to the GDS and online booking websites via a channel manager.
  • What are the major GDS systems?
  • here are several major global distribution systems that house and process the majority of data from hotels, airlines, and other distributors. These include Amadeus, Sabre, Galileo, Worldspan, Apollo, and Pegasus.
  • There are several major global distribution systems that house and process the majority of data from hotels, airlines, and other distributors. These include Amadeus, Sabre, Galileo, Worldspan, Apollo, and Pegasus.
  • Amadeus GDS
  • Sabre GDS
  • Galileo GDS
  • Worldspan GDS
  • Apollo GDS
  • Abacus GDS
  • Pegasus GDS
  • – like the ones mentioned above – so you don’t have to worry about signing up to each one
  • individually.
  • In one fell swoop you can access all the retail and traditional travel agents you want:
  • There are a few specifications which will greatly aid successful GDS connectivity: Being centrally located Being located close to an airport Room capacity of more than 20 rooms Lodgings that are set up for corporate markets and not affected by seasons
  • Here’s a checklist to ensure you’re using the GDS to its full potential:
  • 1. Pooled inventory
  • 2. Commission-free structure
  • 3. Integration capabilities
  • 4. Comprehensive reporting
  • 5. Ability to target specific markets
  • 6. No lengthy contracts
  • 7. Simple and affordable connection
  • Essentially, the GDS can increase hotel bookings and revenue by placing hotels on more ‘supermarket shelves’ globally. This approach is particularly effective at capturing international corporate travellers. You can gain lucrative international corporate business, particularly if you’re near a major airport gateway or close to government or commercial enterprises.
    • yoevelyn
       
      This article goes into how to optimize the use of GDS for a hotel operation and the author touched on a point we have discussed in the class before: how to market your local hotel to an international audience. The author suggests that adding your property to a GDS can be a cost-effective way to bring those international business travelers, specially if your hotel is near an airport.
  • The number of bookings generated through a GDS generally outpaces that of direct bookings
  •  
    This article goes in depth into GDS. It explains the concept of the GDS is and how eaxctly it works. It also gives examples of some major GDSs. It talks about the benefits of using GDS in hotels.
  •  
    The global distribution system in the hospitality industry is beyond vital in the act of keeping the ball rolling. GDS provides live products and offers to travelers across the globe. Whats really amazing about GDS is that live availability and rates are transferred through a channel manager directly to online booking sites. This allows guests to acquire the best rates the soonest as opposed to waiting to call a hotel or resort to see what they have and at what price.
  •  
    This article shows us everything we need to know about Hotel GDS. It includes GDS in the hotel industry, GDS work way in travel, seven major GDS systems, the way to access leading GDSs with GDS software, GDS conditions of use, benefits of connecting hotel to the GDS, and how to use the GDS to capture cruise travel bookings at hotel.
laboygrisell

GDS vs. Channel Manager: What's Better for Small Hotels? - 1 views

  • Small accommodation providers have two options when it comes to distributing their online inventory. They can either do it via a global distribution system (GDS) or via a channel manager.
  • Option 1: Global distribution system (GDS)
  • GDS acts as a middle-man that connects your small hotel to a network of travel agency professionals, including corporate travel bookers. You connect to the GDS, giving you access to all of the travel agents your GDS is connected with. Those travel agents then sell your rooms to their customers (a mix of corporates and leisure travelers), and any bookings made are automatic.
  • ...15 more annotations...
  • Retail model This is the traditional model, ie. how you would work with a retail or traditional travel agent.
  • Merchant model This model applies to third party service providers that connect you to retail travel agents (by integrating with a GDS) and online travel agents.
  • Opaque model In this model, your guests don’t know they’re staying at your specific property until after they’ve made the booking.
  • Small accommodation providers can benefit greatly from using a GDS to connect to retail travel agents and corporate buyers. However, we highly recommend that you steer clear of the merchant model, because you would be paying commission to both the third party service provider and the OTA.
  • Option 2: Channel Manager
  • On average, small hotels can cut the commissions they pay in half by using an all-in-one solution
  • In this kind of business relationship, it’s much better to retain full control of your rates and inventory
  • In the distribution landscape, Global Distribution Systems (GDS) are just one of the many players involved in selling your rooms to a world of travelers. They are one of the oldest kinds of distributors in the industry, so it’s important that you understand how you can work with them effectively.
  • A GDS doesn’t work exclusively for accommodation providers – it does the same for airlines, activities, and car rental companies.
  • Your rooms are sold through all channels connected through the GDS e.g. traditional travel agents. Whoever sells your room earns a standard commission. Your guest pays you, then you pay your agent. An easy way to understand this model is if you think about how you would work with your local brick and mortar travel agency, that caters to walk-in customers. This is the default model used upon connecting with a GDS.
  • In this model, you would work with online travel agents (OTAs) like Booking.com via the third party service provider. An OTA sells rooms on your behalf, allowing your guests to find and select your hotel, check your availability, and make a booking.
  • However, this is very costly. As they are a third party provider of GDS services, you would not only pay commission to the OTA (a percentage of each booking), but you would also be paying the third party service provider a commission for use of the system (usually $10-$12 per reservation).
  • The only difference is, they won’t guarantee it (there is less of an incentive to sell you because there is no additional commission for them), and they will de-emphasise your listing (by placing it at the end of the list, hiding images, hiding room rate, and other strategies).
  • You set up several rates (usually 25%-45% less than retail rate), selling your rooms based on bids that guests make based on location, star rating, and other attributes. For example, Priceline uses a bidding system, and Hotwire allows guests to make bookings based on discounted rates.
  • GDSes are great for tapping into the corporate travel market – however, it is being used more for other types of travel than for accommodation.
  •  
    Compared to large hotel chains and airlines, the GDS can play a different role for businesses of smaller sizes. For small hotels, it may be beneficial to make use of a channel manager instead of depending on sales from a GDS. The article suggests to smaller hotels that channel managers, who work directly with travel agents, can mean more profit for your business. Using the GDS and a travel agency, you are technically paying 2 commissions. With a channel manager, you would only be paying one. Having this business relationship will cut out a middle man, and hotels with smaller budget will find this strategy more efficient.
  •  
    I find this article a little misleading. The GDS are channels, can be managed by a channel manager, or in conjunction with, or separately but usually for smaller hotels require an intermediary. Accessing the GDS(s) are used less by smaller hotels for two main factors: 1. Costs and Fees 2. Scope of demand (driving the right customers). 3. Program Fees The article cites figures which have changed substantially since 2015, as of Q4 North American GDS growth was up 6.4% and ADR was up 4.2% YOY with 18.4% of all bookings coming through GDS. TravelClick, Inc. (2019, March 4) What isn't highlighted in the article was the fact that margin agreements with OTAs for smaller independent hotel range anywhere from 20-35% . If the article had done an actual cost comparison (access through intermediary to GDS instead of OTA) the 10% commission + access and delivery fee may have proven more profitable. It would have been better if they had done a little more comparative cost analysis. TravelClick, Inc. (2019, March 4). GDS Booking and ADR Growth Drive Strong Q4 2018 RevPAR Performance in Hospitality. Retrieved from https://www.hospitalitynet.org/performance/4092226.html
  •  
    This article from the Little Hotelier talks about what exactly is GDS and the Channel Manager and which on is better for Small Hotels. Small Hotels should opt for the system that gives them what they need, but in their price range and for the size of their business.
aquaholic1371

What is a GDS (Global Distribution System)? - 0 views

  • Global distribution systems (GDSs) are computerized, centralized services that provide travel-related transactions. They cover everything from airline tickets to car rentals to hotel rooms and more.
  • Global distribution systems were originally usually set up for use by the airlines but were later extended to travel agents. Today, global distribution systems allow users to purchase tickets from multiple different providers or airlines. Global distribution systems are also the back end of most Internet-based travel services.
  • There's no doubt that global distribution systems will play an important part in the travel landscape for many years to come, but their traditional role is changing and being challenged by all the changes taking place in the travel industry. Two important considerations impacting the role of global distribution systems are the growth of online travel travel websites that offer price comparisons and the increased push from airline and other travel service providers to push consumers to make bookings directly via their websites.
  •  
    Global Distribution Systems were originally created by airlines to reach more customers, and provide access to fare and flight information to travel agents. They have expanded into the hotel and car rental industry, and are widely used by online travel agencies. As peoples access to the internet increases, airlines have tried to get consumers to move away from the GDS, and book directly on their websites. This has proven to be a difficult challenge, and it is clear that the GDS will continue to play a major role in the way travel is booked, at least for the near future.
denisedantas

Software as a Service? Better Focus on the Service! | By Jos Schaap - Hospitality Net - 3 views

  • Software as a Service is just that - a service. It is a distribution model whereby a software development company can license and deliver its product to clients via the Internet.
  • In the hotel industry, the introduction of a SaaS solutions combined with mobile usability is creating a new world of customer interaction and relationship building.
  • In concert with the management of a SaaS solution is the support of the software.
  • ...1 more annotation...
  • This would never have been possible just five years ago. Software as a Service is gaining momentum month to month, year to year and it will continue to do so.
  •  
    This article emphasizes the importance of SaaS (Software as a Service) to the hospitality industry. This model allows companies to deliver services via the internet, thus decreasing the costs and the failure rate in the software services and the product distribution. This application is creating a new model of customer interaction and relationship building as the mobile usability is constantly increasing into the hotel and travel industry. The SaaS solution distributed via the internet eliminates the physical need for indirect distribution because it is not physically distributed and can be delivered almost instantaneously. This article talks about the impact that this system causes to the hotel's operation. This system can anticipate problems and proactively addresses and fixes the issues via the support and monitoring team that is immediately available investigating and rectifying the issues promptly. Among the many benefits that SaaS brings to the hotel's operations, one very important benefit is that the executive team can keep an eye on the operations and even make changes when they are off-property through cloud-based access. The SaaS implementations would give hoteliers more control on the relationship with their technology provider and SaaS gives this to them. I feel this program is really valuable for people in the hotel industry.
lianettfernandez

https://www.travel-industry-blog.com/travel-industry/ndc/ - 0 views

  • The other aspect of NDC is that airlines want to take control of the distribution, such as provide offers based on ‘who is asking’, price ancillaries etc. – in order to differentiate from each other.
  • In this example, what used to be a closed environment of a few handful of CRS provider hooking into one handful of GDSs, who open themselves only to a limited number of authorized developers, now appear to open up APIs to everybody. This may be an ultimate risk that needs to be managed.
  • there is absolutely no way that every TMC or even every corporation can integrate with all airlines, which means we need a direct connect aggregator.
  • ...7 more annotations...
  • However, not all airlines will migrate to NDC at the same time which would mean a transition period and among the challenges, there is also the unresolved problem who does the ticketing:
  • It takes a number of agreements for each direct connect.
  • Source agnostic Agent Desktops are not easy to develop
  • While I’m sure there are trips which can be better maintained by NDC, there are also trips which will be a nightmare when they have segments of different sources
  • Another issue is the business model. All this new technology will have to be developed and such development costs. While the airlines say they want to inject the same amount of money, just the industry shall distribute it differently as needed, this may be a challenge: It seems like there are more players (such as the aggregators, but also the technology provider of the airline API), which means less money for more entities.
  • And finally, it all comes down to what airlines and GDSs agree upon.
  • NDC is a standard to which airlines can build their API (Application Programming Interface). It is based on XML (I think, the 1st version was actually our XML), which is a language becoming widely successful around the year 2000, to replace an earlier communication language between airlines and providers called EDIFACT (from the 1980s). So, essentially a very old technology is replaced by an aged technology and that is considered “New Distribution Capabilities”. However, an API needs to have a robust schema and XML brings that to the table. Along with NDC, airlines are also changing the shopping process: previously an offer was created by the GDS based on fare, schedule and availability, in NDC, the airline creates the offer and with that can also provide add-ons such as WiFi, lounge access, pre-boarding and other things. In other words, it also allows to personalize offer. It can also mean that a company negotiates with an airlines special business class seats which may only be available to the executives. Consequently, it may help with data collection as well.
  •  
    It sounds so easy to use NDC, but the reality is: Not too many bookings are being made. Why? GDSs won't just give up the battlefield of simple bookings (call it 'easily earned money') and only deal with the complicated PNRs. While I am critical of the global distribution system "oligopoly", the sustainability of the redrawn commercial and technological landscape that NDC could produce has to be questioned. The proposition of NDC means that a "formerly relatively lean distribution chain will become a complicated commercial landscape with numerous airlines, numerous TMCs (or corporations) and several technology providers - all being connected to each other on a technological, as well as commercial, level."
mtedd003

Bringing on content and the network effect for GDS hotel platforms | PhocusWire - 1 views

  • It’s an understatement to say that the global distribution companies have evolved away from their traditional airline focus to bring accommodation into the mix.
  • reveals that the GDS “had lost share in lodging distribution” 
  • Sabre had developed the platform in response to demand for more content and functionality from both the supply and demand side.
  • ...11 more annotations...
  • deal boosted its accommodation offering by 30%.
  • interesting theory of whether GDSs can create their own network effect.
  • “We have increased our beach, resort and leisure content which allows us to be a much more attractive content sourcing partner to retail agencies and other online channels so it has expanded our customer base enormously.”
  • GDSs are investing in their lodging content but with travel distribution it’s rarely a case of just integrating content.
  • Waters says Amadeus has five million representations of hotels on its system but over a million unique hotels.
  • normalizes the data so it is only displayed once and travel sellers can see the same room, hotel and date and then compare prices and see what margin or commission they might make from a booking.
  • the standardization is driven by artificial intelligence
  • Sabre, which cites a similar figure for properties available via its new lodging distribution technology, has also worked on normalizing the data
  • The GDSs continue to see opportunity and growth in their hospitality divisions
  • Waters says the ambition is to continue growth and “become the default hotel platform for B2B channels.”
  • biggest, professional metasearch with bookability platform in the industry.” AmadeusBooking.comSabre
  •  
    GDSs continue to lose market share so they need to step up their game to pick it back up again. With airlines and hotels constantly trying to get bookings direct they are losing out. They need to try and get their networks in sync. Companies like Sabre are trying to improve their platform to make it more user friendly and better content. The GDSs are trying to get on board as many accommodations as possible to increase the customers choosing their networks to use to book. The more bookings they get the more attractive they look to providers.
  •  
    Sabre Travel Network, a large GDS company is responding to loss in lodging distribution. Sabre is accomplishing this by competing with rival GDS platforms who have made deals with booking.com. The deals have afforded rival companies such as Amadeus 30% more in accommodation traffic. Amadeus increased their market visibility by expanding their customer base for those looking for beach, resort, and leisure content. Sabre is looking to stretch their lodging distribution by normalizing data with usability studies which is help agents make faster booking decisions. The belief is that the decision will eventually expand Sabre as the default GDS platform.
akallison93

Hotel Distribution - Why you need to be "agile" as a hotelier « Sabre Hospita... - 1 views

  • The need for agile hotel distribution is more important now than ever, as the hotel industry continues to strategize and map out roads to recovery across every segment of the market amidst Covid.
  • We, as an industry, should look at this as an opportunity to better position ourselves, while thinking about both short- and long-term distribution strategies.  Hoteliers’ abilities to quickly move – and fail – then pivot, will help lead the way for our industry’s recovery.
  • Instead, what does come to mind is the brain power and wealth of tribal knowledge that hoteliers will need to leverage over the next few quarters and years to optimize revenue.
  • ...6 more annotations...
  • The first step in getting your organization to wrap their heads around an agile distribution framework is getting buy in from leadership and owners. For any agile strategy to be successful, the organization must require patience and execution across all levels of the organization.
  • Your goal is to build distribution and channel strategies for profitability. Hoteliers should look at net revenue per available room (Net RevPAR) or gross operating profit per available room (GOPPAR) instead of RevPAR when making this analysis.
  • hoteliers should analyze the total cost of a direct booking by including costs of loyalty programs, website development and maintenance, marketing and social media campaigns, and call centers.
  • the who, where and when, but to truly optimize channels for profitability, you must get the “why”. The “why” offers insights on path-to-purchase behavioral data and conversion metrics, which allow customer segmentations for a profitable and deliberate distribution strategy.
  • hoteliers should look at the full contribution from each channel and prioritize channels that bring guests with the highest ancillary spend – think Total Revenue Management.
  • Hoteliers that stay agile and attentive on pulling the inventory levers within their distribution and channel strategies will lead the way (and lead with rate) to recovery.
  •  
    This is an informative article, published by Sabre, on how to utilize certain technologies and stay agile during Covid-19 in the hotel business. It emphasizes how to keep and maintain a hotel during these trying times. Never stopping trying to improve and to keep an eye on all aspects of sale, occupancy, and position in the GDS. It's important to keep everything in the perspective of short and long term solutions.
obena010

The Advantages of Hotels Using a Global Distribution System (GDS) - 1 views

  • Global distribution systems (GDS) have been a mainstay in the travel industry since travel agents began using the systems in the 1970s.
  • The main purpose of a global distribution system is to help travel agents search for hotel accommodations that fit a set of criteria.
  • They create a common entry point for multiple travel agencies and travel agents to access accurate information about travel reservation availability and prices.
  • ...25 more annotations...
  • 2) More Revenue
  • 1) Reach Market Segments Globally
  • This little piece of technology saves time and will lead to greater exposure for your property
  • 4) Instant Updates
  • 5) Grow The Lucrative Corporate Segment
  • 3) Growth Opportunities
  • GDS is an important mix into larger properties’ distribution channels. Improve your visibility to the one of the most profitable guest segment – the business client – and see your revenue grow.
  • The GDS can help hotel managers uncover new market segments to promote their products. In many cases, hotel operators discover through the GDS that there are traveler market segments interested in the products that they couldn’t previously reach. Leverage this channel’s distribution reach to be seen in a travel ecosystem that can get you lucrative corporate & group bookings. GDS Hotel bookings often result in multiple nights stays.
  • A lot of travel agents who specialise in corporate travel use a GDS to get their clients booked quickly and efficiently.
  • sing a GDS? Glad you asked! Here are some ways that it makes a hoteliers’ job more effective and efficient.
  • A lot of travel agents who specialise in corporate travel use a GDS to get their clients booked quickly and efficiently.
  • A lot of travel agents who specialise in corporate travel use a GDS to get their clients booked quickly and efficiently.
  • A lot of travel agents who specialise in corporate travel use a GDS to get their clients booked quickly and efficiently.
  • Global distribution systems (GDS) have been a mainstay in the travel industry since travel agents began using the systems in the 1970s.
  • A lot of travel agents who specialise in corporate travel use a GDS to get their clients booked quickly and efficiently.
  • A lot of travel agents who specialise in corporate travel use a GDS to get their clients booked quickly and efficiently.
  • Global distribution systems (GDS) have been a mainstay in the travel industry since travel agents began using the systems in the 1970s.
  • Global distribution systems (GDS) have been a mainstay in the travel industry since travel agents began using the systems in the 1970s.
  • It is a business-to-business system used by companies to stay on top of real-time data about the availability of travel arrangements, such as hotel rooms, to sell them to customers planning to travel
  • sing a GDS? Glad you asked! Here are some ways that it makes a hoteliers’ job more effective and efficient.
  • A lot of travel agents who specialise in corporate travel use a GDS to get their clients booked quickly and efficiently.
  • Hotels generate more revenue through a GDS because it places the hotel’s information, availability and rates in prominent locations where it is easy for travel agents to find.
  • Agent increase in use of GDS systems over the past 2 years: USA- 30%, Latin America- 49% , Europe & Middle East-47%, APAC-64%.
  • Through the GDS, the agents have access to live rates and availability, and they can easily book rooms for their clients.
  • This little piece of technology saves time and will lead to greater exposure for your property
  •  
    GDS has been around since the 1970s and is extremely beneficial for the hotel industry. It creates a common entry point for several OTA's and travel agents so that they can obtain accurate information about the hotels. 5 Benefits to GDS in hotels: Reach market segments globally, more revenue, growth, instant updates and growing the corporate segment. All these benefits of using GDS can result in greater exposure for the property.
  •  
    With the growing of the travel industry the GDS is a great tool that many travel agents use to narrow the search of what exact details they are searching for. GDS is an efficient way for agents to promote their product and services. This tool helps with the aspect in business such as revenue generated, growth opportunities, and give instant updates on rates so there is no secret.
  •  
    Five benefits of using a GDS's. Talks about reaching a global market, improving revenue growth opportunities and the ability to have live updates for prices.
mtorres619

The Global Distribution Systems (GDS) Market - 0 views

  • A Market of 3 Companies Reinventing their Relevance
  • The reports of the death of global distribution systems (GDS) have been greatly exaggerated. Several industry analysts believed that GDS would not last long and that airlines would eventually shy away from them
  • Three primary companies dominate the global distribution systems (GDS) market: Amadeus, Sabre, and Travelport. Each of the companies has extended its market reachthrough affiliates or subsidiary companies that offer GDS.
  • ...1 more annotation...
  • GDS companies have served as the stimulus for the growth of online travel sites (e.g., Expedia, Hotwire, Kayak, Orbitz, Priceline, Travelocity).
  •  
    Global distribution systems have thought to eventually become extinct but the growth of new technologies has given GDS new hope. The three main companies that control this market are Amadeus, Sabre, and Travelport. Each of the companies has expanded their market penetration via their subsidiaries that are currently operating with global distribution systems. In 2014 Amadeus brought in almost $1billion in revenue. In addition, Sabre and Travelport showed positive growth. Airlines on the other hand, would prefer to directly have travelers book with them to save on fees. At the same time GDS brings attractive promotions to customers making them useful to the airlines and their revenue. GDS has stimulated the growth of online websites like, Expedia, Kayak, Orbitz, Priceline). Where potential customers find competitive rates and can book more than just a plane ticket.
Eissy de la Moneda

GDSs are a drag on consumer choice - Travel Weekly - 1 views

  • We like to pick our phone, our apps and our data plans and customize them to best meet our needs.
  • And we like the fact that we have multiple options when it comes to where to buy our phone and services, understanding that we benefit from competition, technology and the free market at work.
  • Rather, they now can customize their experience based on what they value and need, opting for choices such as in-flight WiFi, priority boarding, premium seating, meals or doubling their miles, among other criteria.
  • ...10 more annotations...
  • They have purchased the loyalty of travel agents to their own distribution systems, providing incentive for them to ignore technology-driven, efficient solutions and making it virtually impossible for agents to use alternative distribution sources.
  • Online and traditional travel agencies account for some 60% of airline ticket sales, meaning that the GDSs control the distribution of a significant share of airline services and product
  • -- Sabre and Travelport -- continues to insist that airlines use the outdated GDS distribution paradigm and pay exorbitant fees to do so, which drives up the cost of travel for a
  • That is more than three times the cost of booking a ticket through an airline website or through promising new distribution technologies that can connect agents directly to airline reservations systems or indirectly through a GDS.
  • The GDS industry is lobbying the Department of Transportation (DOT) to protect its market dominance.
  • heir plan is to have the DOT force airlines to give them, free of charge, the ability to sell optional services such as checked bags, seat upgrades or club access. Their argument? They need to sell these services so consumers are not surprised by additional costs when they travel.
  • all consumers -- like to have choices.
  • evolutionary efforts are being opposed by a GDS duopoly
  • GDS technology has not yet evolved to enable the kind of customer-focused and customized shopping that other industries have embraced.
  • Airlines support consumer choice and full transparency,
  •  
    This article suggests that consumers now purchase in a more customized why with new technologies offered through applications and data plans through consumer's phones, tables and laptops. Airline consumers have recently changed their purchasing habits to choices such as in-flight WiFi, priority boarding, premium seating, meals or doubling their miles instead of the traditional schedules and fares. Airlines have veered to selling these types of customized travel services through direct selling to consumers and have eliminated the use of global distribution systems GDS. Airlines have found that the use of GDS's are more expensive to both the airline and consumer and that GDS's technology has yet to evolve to enable the kind of customer-focused and customized shopping that other industries have embraced. Now GDS's has ask that the Department of Transportation DOT to protect its market dominance by having DOT force airlines to give them, free of charge, the ability to sell options services as checked bags, seat upgrades or club access. Airlines believe that consumers should know what the are paying for.
  •  
    This article claims that GDS systems are actually limiting consumer choices. The author suggests that using new distribution technologies that connect us directly to reservation systems would be better for consumers because it provides them with all the choices the airlines can offer, without the extra charge. Purchasing a ticket through GDS is three times more expensive than purchasing the ticket directly. Airlines, which aim to support consumer choice and transparency with its customers, try to tailor travel options to accommodate a passenger's individual needs. However, GDS opposes this movement by urging airlines to use outdated equipment that requires its due fees, which in turn raises the cost of travel for consumers.  
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