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In this article we discuss the issues that airlines are having with the GDS system. They give an example of someone attempting to purchase a ticket through an airline website, and then through a travel agency. The direct airline method was only cheaper, if the guest provided information to a direct bank account. The cost for airlines to sell is a bit less than 10%, and they are sold mostly through indirect channels, like travel agencies. The main reason this can happen, is the integrated GDS system. A GDS system is a data facility that shares inventory information for various airlines to different 3rd party channels. The issue with this, is that the total in fees for the use of the GDS system was around $7billion, which is twice the amount of net profit they are receiving. People state that the airline system cannot survive without the GDS, but is that statement really true? Airlines like Air Asia or Ryanair have really attempted to focus on selling tickets directly, and really expand on their profit. How can this be achieved? Well, airlines are making the booking process easier for guests to manage, which gives them more of a reason to book through there. Also, they are offering greater loyalty rewards for directly booking through the site. Different incentives need to be created to attract guests to book directly. Lastly, they would like to create another distribution system, to put GDS out of business. This new system will work to allow guests to handle meal and baggage fees. Concepts that the GDS cannot handle. With that said, will this new system reduce costs for airlines? I guess they will have to wait and see.

It appears that American Airline is about to remove itself from the tradition global distribution system and introduce its own distribution system. American Airlines is advocating for distribution companies to utilize AA direct connect which is a direct link into AA's host reservations system. Currently American Airlines fares are no longer available on Expedia or Orbitz sites. This is because no contractual agreement was reached for the distribution of AA products. Travel professionals are waiting to see the result of this bold move by American as this has great implication for the future of airline distribution systems. If American Airlines pulls away from the mainstream GDS, consumers and travel specialist alike will be faced with the inconvenience of going to a separate reservations system to compare fares. Although travel professionals are now urged to use direct connect on a trial basis, the general feeling is that eventually they will be charged to sell American Airline flights. To defend this move American Airline is only saying that direct connect will make it easier for them to tract ancillary fees like priority seating. It was noted in the article that Southwest Airline for the most part is a stand alone reservations system but they do not negotiate with the GDS companies to sell their flights. It is therefore quite evident that this move by American is really to reduce expenditure by eliminating the middle GDS companies while increasing revenue by charging travel partners for utilizing direct connect. American Airlines clearly wants to globally control their distribution system and maximize revenues. Contract renewal for both world span and sabre are due and the experts are waiting to see if American will renew with them. Sabre is owned by American Airlines so its a wait and see game to see how all this will be panned out. The real problem for the consumers and travel specialists are that if other airlines are to follow this move by American the tra

This article explains the distribution route American Airlines is taking to sell their flights. Due to not seeing eye to eye with the two most probably used websites for travel, Expedia and Orbitz, American has now taken their products away from both airline distribution sites. American suggest that all travel agencies and distribution companies begin using Direct Connect, which is a system for only American Airlines flights. If this would happen, travel agencies and companies will then begin having to pay for the system in order to sell Americans flights. At the moment you can still book flights through other distribution sites, but until when will that be? They already stopped Orbitz and Expedia, what's not to stop the others. The future of global distribution systems will be up in the air if all airlines choose to sell their own systems to be able to sell reservations. The only positive that was pointed out in this article was that if this system takes over, then more consumers will have to go back to using travel agents to secure the best reservations for flights and such.

With the contracts for major global systems, Worldspan and Sabre, being up for renewal in the near future, this article analyses the possible outcomes for airlines, and alternatives should they choose not to forgo continuing use of GDS

This article gave me a different perspective as to how the GDS system has affected the airline industry.  According to The Economist, the airlines chronic unprofitability is due to two strategic errors of their own doing. One was to stop paying direct commission to travel agents and the other was to set the reservations systems free. Despite their best efforts airlines are now having very hard time getting travelers to bypass GDS agents and come to their websites. A majority of the profit margins in the travel business are seen by the GDS systems and airlines are left footing the bill. In hopes of resolving this problem, the airlines international association is working what is called "new distribution capability." Through use of this service it would become easier for travel agents to utilize computer systems that would deal directly with the airlines. However, ambitious IT projects have failed hundreds of different times across hundred of different industries and getting the airlines to agree to make such a dramatic change in IT would be a daunting task. Both the airlines and GDSs argue they hold the true consumer advantage.  On one hand, airlines are able to provide flyers with personally tailored service, while on the other, the GDSs allow customers to compare flights for the best value. Whether it be the airlines or the GDSs that prevail, the future of travel is now online. 

This article demonstrates the way how relationship between the airlines (United) and the technology companies which serve as middlemen is build. According to the estimations, the airlines pay to the gds's about $18 per round trip ticket reservation, which results in 7 billion in fees that are payed to the gds's annually. The air companies consider these fees unfair in regard of the gds' performance. To compensate for these payments as well as to promote direct bookings, the airlines (namely, Lufthansa) have added a surcharge for any external bookings. GDS's, however, fight back and start litigations against Lufthansa. The decision on this case will either stop such a practice, or force other airlines to follow LH and add surcharges for gds's too. Another problem that airlines experience with GDS's is the presentation of non-standard products that the airlines offer. For example, it took the GDS's several years to correctly display the Ecomy Skycouch by Air New Zealand (buy 3 seats at the price of 2 to sleep across all of them during the long-haul flight). United is going to introduce its Basic Economy Seats with no carry-on luggage and no qualifying miles. However, they are not sure that the GDS' s will be able to display this product to the customers in a proper way so that they could fully understand what they are buying. The reason for that is that GDS's are mainly reluctant to invest in technologies that are focused on product differentation. In this regard, it becomes more difficult to compare fares since different set of services is included in different products. Thus, the customers might be mislead. Moreover, there are antitrust issues with the gds's. The airlines claim that Sabre has a stranlehold on the US domestic market. Such position allows it to ultimatum the airlines and voluntary decide on search display order. The airlines expect the GDS's to be more prone to partnership ralations. This would imply the fair compensation for what they add to the

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."

This article discusses Lufthansa airlines and Ukraine International Airlines who both now impose a surcharge on GDS bookings. The GDSs Amadeus, Sabre and Travelport disagree with this strategy and say that they offer the most choice of services and think that steering clients away from using GDSs to book travel is not a smart idea. In 2015, Lufthansa and its other airlines (which also includes Austrian, Brussels, Eurowings and Swiss airlines) implemented a 16-euro fee on all GDS bookings. Ukraine International Airlines (UIA) is a much smaller airline than Lufthansa, however, some analysts believe that this decision could prompt other airlines to do so as well. About one month ago, UIA imposed a $9 surcharge on GDS bookings. Some analysts believe that the new imposed fee will drive some customers, especially the price-sensitive leisure travelers, towards other airline carriers. In addition to implementing a surcharge on GDS bookings, UIA is also adding fees to any bookings made on third-party booking sites. The airline is trying to incentivize its travelers to book directly through their website and not go through any other channel. Lufthansa has had success with their strategy. The CEO stated the fee had a net-zero impact on their business, but there was a rise increase in sales through their direct channel.

This article discusses what travel agents think about the enhanced ability of both corporate and leisure based travel agencies to sell airline ancillaries because of improved Global Distribution Systems' technologies. Ancillaries are products and services that airlines sell to gain additional revenue on top of your ticket price. Ancillaries have become increasingly popular in the airline industry because of the sky rocketing price of jet fuel. To keep ticket prices down airlines are "unbundling" items from the overall experience. This presents them with an opportunity to turn a profit by charging fees for bags (carry on, checked, additional), on board food and drink, credit card purchases, headphones. It seems like everything you encounter from when you arrive at the airport to when you disembark the plane has a fee. This phenomenon is especially present in Low cost carriers such as Spirit, Air Tran, Jet Blue, etc. However there are consumers who disagree with this additional costs as is apparent in Southwest's continuous marketing campaign. I'm sure everyone has seen the commercials with Southwest representatives 'flagging' down unnecessary fees in order to promote their 'bags fly free' campaign. Anyhow the reason I am explaining ancillary revenue is because travel agents are now starting to sell more ancillary products such as hotel accommodations, travel insurance, rental cars because of GDS technologies. They can track the sale of fees through EMD (Electronic miscellaneous Documents) which is the current industry standard. In the article some agents state that the EMDs are hard to understand and use. I believe until the EMDs become "seamless and easy to use" there will exist some hesitation to sell airline ancillaries. However on the other hand the article states that Travelport is working towards a simple and uniform platform called Travelport Universal API/Desktop. Once this comeplete perhaps more agents will feel comfortable selling ancillaries. This is a goo

I still remember when most airlines used to include breakfast or dinner for their passengers including alcoholic beverages well that doesn't happen any more. I believe when Travelport Universal Desktop becomes available it would become more clear to travel agencies the transaction process and for the consumers what products and services they are ofering.

I too miss the days of free sodas and peanuts. "Sigh-" sometimes its the little things in life that bring the most joy. I agree I think the new Travelport Universal Desktop will be a valuable tool if utilized correctly.

The leader in the airline industry, Emirates airlines is collaborating with Sabre Corporation Technology to provide better services for it's customers, as well as receiving more in revenue. Studies have shown that customers enjoy customizing their travel plans and by working with this new type of technology partnership, the software is being developed that will allow the customers to customize every aspect of their trip. They can filter based upon price, miles earned, and date/time while then adding on any other options, but rather through just one airline, this software allows guests to choose from all airlines within the Emirates family. I think this type of investment technology is the future, because the airline industry has already changed the way we purchase airline tickets, by no longer including seat selection, checked baggage, and now even carry-on baggage. Instead of trying to make the customers feel like the airlines are charging for every littl thing (which they are), this type of technology can let guests feel like they are truly creating their own trip.

Ok so this article is lengthy but comprehensive. And the general consensus is the GDSs are never going away. They will likely change with new technologies, but they won't be replaced completely by something new. Heck, even though air travel is dominant among travel options, we still have trains, right? Overall this article takes the reader through the birth of the GDSs, their evolution to today and thoughts about what to expect in the future. One part of the article of particular interest is the talk about New Distribution Capability for airlines that uses XML coding language to allow airlines to sell ancillary products like seat upgrades. This layers directly into revenue increases through revenue management of seats on flights. There are already price differences between cabin classes. But instead of all seats being one price in the main cabin, seats closer to the front of the plane could be sold for a slight premium. There could be a different fare for window or aisle or exit row. There are 3 levels of this certification for an airline and although some airlines like American Airlines has been certified as level 3, full capability, most airlines have not gone beyond level 1. None of the GDS companies offer level 3 for New Distribution Capability which means you need to go a company's site directly to be able to purchase the specific desired attributes of your seat. By not having that capability, the GDSs disadvantage themselves as a distribution channel.

NDC or New Distribution Capability is a new subset within GDS systems to provide airlines with detailed information about customer in order to enhance the personalized service. NDC will be able to provide pricing independence and direction information to airlines about their passengers. The system is more flexible and accurate in order to improve the experience from what GDS would provide.

This article tells us about a new communication protocol which is called NDC. NDC stands for the New Distribution Capability. You can also find some information about how airline distribution works in general.

Sabre, one of the three largest Global Distribution System signs a long-term agreement with United Airlines. This agreement would allow customers to provide ancillary products and services to customers through the Sabre market place. With United airlines and Sabre joining forces they will use the latest technology allowing both companies to provide more personalize products and services to customers. Sabre will market United Airline ancillary products including air fares and economy plus seats to passengers that buy products and services from Sabre in a way that would differentiate United Airlines products from that of its competitors. Other Global Distribution systems such as Amadeus and Travelport are presently making it a standard policy, mandating airlines to provide ancillary products and services to GDS. American airline one of the major airline who for a long time was reluctant to market its ancillary products through GDS is now one of the many airlines that are presently jumping aboard the GDS wagon. The airlines are beginning to see the benefit of expanding their brand globally through GDS and reaping substantial revenue beyond the sale of air fares.

China's Eastern Airlines & Sabre, a Global Distribution System, just signed an agreement allowing Sabre to use the airlines inventory and airfares to market to the travel agencies associated with Sabra.  This will help increase their North American expansion.  Sabre's technology and resources will help enhance the expansion for for China Eastern and Shanghai Airlines.  Marketing intelligence from Sabre has helped the airlines cater to the flight schedules and operations for their customers.  Sabre's network reaches more than 300 million people! 

October 2002 - The travel marketplace is a global arena where millions of buyers (travel agents and the public) and sellers (hotels, airlines, car rental companies, etc.) work together to exchange travel services. This is a good article talking about four major GDS System companies in the world nowadays. When we do some research in GDS area, it is better for us to know some information about these four companies. They are Amadeus, Galileo, Sabre and Worldspan. The author said that Aadeus is Number 1 inlocations worldwide compared to other three companies, Galileo International is a cautions follower when it comes to technology when compared to other GDS companies. Sabre's competitive strenghs are market position, global reach, stable product line, diversification of revenue streams and intellectual capital. And Worldspan has successfully developed the strategies and solutions to ensure the company's long-tern success. After read this article, I think I have the big picture of what GDS System is. The author gave us the strength of different systems. I know what are these GDS companies doing right now in the world. And what is the best is that the author used some accurate data to support the point. So in my point of view, I don't only understand the knowledge related to GDS System, but also learn the way to write my paper, that is using lots of numbers.

GDS is started on the airline industry. And with it development, the airline company recognized that the GDS is becoming more and more important and necessary. And in my opinion, the GDS can not only focus on the airline. It can be on the internet. That is means they should built some sub-company around the world and it will help to form a kind of net that can cover all over the world. So that it is reduce the pressure of airline and increase the short distance distribution. it will be more efficiency for the guest and less human labor.

More and more customers rely on global distribution system to buy hospitality products in present time. This article introduces four major type global distribution systems, Ama dues, Galileo, Sabre and Worldspan. There are also some smaller GDS existed in the world. Amadeus is the youngest of the four GDS companies. Galileo International is a diversified, global technology leader. Galileo's competitive strengths include well-balanced and global presence, relationships with diverse groups of travel vendors, technologically advanced information systems and a stable product line. Sabre's competitive strengths include market position, global reach, stable product line, diversification of revenue streams, and intellectual capital. Worldspan provides worldwide electronic distribution of travel information, Internet products and connectivity, and e-commerce capabilities for travel agencies, travel service providers, and corporations.

This article is about Southwest expanding their GDS game. They are going to enhance their relationship with travel agencies and corporate customers.

Southwest Airlines had long resisted using GDS. It has been known for only allowing direct booking through its website. Last year, Southwest began to significantly increase the amount of tickets offered through GDS. This is viewed as good move for Southwest to help increase sales for the Corporate Travel market. This shows that GDS continues to have a use and airlines who did not use them are now willing to use them to help sell their inventory especially in the wake of COVID-19.

Global distribution systems work by connecting travel companies (airlines, car rentals, cruise lines) to travel agencies (online or human) who then connect with the interested traveler. By this chain, the travel agent is able to offer real time availability from the companies to the traveller. The benefits of this system are the ability to deliver tons of information direct from the relevant companies, it is convenient for those that use them and easy to track travelling trends and interests. To me, it works like a mass marketing strategy. The content is generated by the owners and instead of enlisting their own man power, they utilize the efficiency and convenience of remote technology to mass distribute. The intended consumer receives the information without ever having to think where it's coming from, but inevitably trusts its reliability. The productivity of this system is something that those in the hospitality industry cannot ignore because this represents moments of the first interaction between the interested consumer and your operation. In order for the information to reach them in a convenient medium. In summary, GDS's help information get from the travel company to the consumer everyday in real time via global networks.

Global Distribution Systems (GDS) are largely responsible for the expansion of the travel industry. They provide the foundation for most internet-based travel services offered globally, and they link the providers of travel services in real-time. To make the travel business more complex and informatics, the GDS system provides global data, pricing, inventory, offers, and real-time availability of flights, hotel rooms, car rentals, and even bus tickets. GDS enables travel agencies and their customers to access travel information, purchase and compare options for reservations, and schedule trips. One of the most essential tools for the travel industry is the GDS system. Global Distribution Systems are server-hosted web platforms that offer worldwide discounts on the booking of travel-related goods like airfares. Amadeus, Sabre, and Travelport are the three main GDSs in the market, and they are connected to more than 650,000 travel agents. Travel agencies depend on GDS's assistance to maximize their own profits because GDS is a direct seller of airline tickets. To increase their revenues and their ability to offer tickets to customers, travel agencies enter into an agreement with GDS and gain access to a listing of fares.

" Benefits of Global Distribution System Global distribution systems are widely responsible for the growth of travel industry and stepping stone of most internet based travel services. Benefits of Global Distribution System for Travel Agents and Tour Operators GDS systems deliver worldwide data, rates, inventory, offers, real-time availability of airlines, hotel rooms, car rental, bus tickets, and many more to make the travel industry more informatics and sophisticated. How Travel GDS Marketplace Is Reshaping the Travel Industry GDS stands for Global Distribution System and it's essentially a central reservation system that allows travel agencies and their clients to access travel knowledge, buy and compare reservations choices and book travel. functions across the world and connects the travel service suppliers or vendors to the travel agencies in real-time, by providing a centralized service that covers the bookings of airline tickets and more. permits travel agents to access, in real-time, availability, feature and costs for airlines and extra travel services worldwide. The leading global distribution systems are Amadeus, Sabre, Galileo, and Worldspan. This permits users to buy tickets from various suppliers or completely different airlines. GDS can link services, rates, and bookings that combine a spread of products and services in travel sectors: e.g., airline bookings. Independent travel agents, travel agencies are now using an increasing sophisticated GDS system to seek out the best travel and accommodation and rates for their clients. Travel Agencies have historically relied on GDS for services, products & rates to produce travel-related services GDS system is one of the most necessary tools for the travel business the system will yield results with real-time pricing and availability comparisons There are 3 major GDS within the market- Amadeus, Sabre, and Travelport here are over 650,000 and travel agents connected via a GDS system Systems enable users to bu

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.  

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.

This article analysis the future of the GDS for airlines from both the airline company's perspective and the marketing perspective. The conflicts between airlines and GDS and the agencies is a recycling battle. It has been back and forth with the airlines withdraw from the system and ended up renewing contracts. The most recent war initiated by American airline pulled its inventory from Orbitz in December, 2010, in order to force GDS Travelport to drop the distribution cost. The two parties need each other and it is time for them to reach common ground and have mutual benefits.Delta has done something for that by adopting three second-tire OTAs. http://www.tnooz.com/2010/12/22/news/delta-cites-apple-experience-exits-cheapoair-bookit-com-onetravel/ But those are the short-term issues. In the long term is that " airlines' long-term strategy to advance distribution from fare- and schedule-led selling to merchandising. " The article also give a marketing perspective. It shows the intention of American Airline to build a system that link directly to the airline that don`t have to obey the searching rules of the agency. It also listed nine unanswered questions and wild cards, which indicates the risk of this strategic shift.

GDS companies continue to evolve and implement new technology to stay in line with current consumer demands. After initial resistance, they are implementing the NDC program into their system. NDC (New Distribution Capability) is a travel-industry supported program launched by IATA for the development and market adoption of a new XML-based data transmission standard (source: https://www.iata.org/whatwedo/airline-distribution/ndc/Pages/default.aspx) This article discusses the need of the airlines to upload useful content and for the travel agents to be more actively involved in order to make it useful for them. However, with major airlines' bookings split between 50% direct booking and 50% agents, and the airlines' efforts to drive more direct booking traffic, I wonder what is the sentiment of the companies to provide with more content and information on a platform that competes directly with their efforts to increase direct sales from their websites. Selling air tickets directly from their sites not only allow the companies to decrease booking fees and commissions but also allow them to collect much needed date from the consumers who use their services.

Some argue that the GDS is a fair system. It it does enable travel agents and clients to access travel data, make price comparisons, access special rates and book travel. The big 3 Travelport, Amaadeus, and Sabre do generate billions of dollars of global travel sales for travel providers. The fact is though that the current system is old, dating back to the 60's, has serious flaws, and can be hacked. It is also biased as travel agents bookings are swayed by the airlines they have preferred agreements with, which can skew the equation away from the traveler's best interests. Having 3 Big players with a virtual travel monopoly is not an ideal situation. Carriers are fighting back and airlines are changing strategy. Tension between airlines and the GDS caused by disputes has European airlines exploring models outside the GDS. To make the changes successful they cannot be restricted by outdated systems, old technology or financial burdens.

It discusses the high fees of the GDS and the fact that their system needs to be upgraded. Also, the challenges airlines face with paying those fees and ways the airlines are making additional revenue without having to pay fees to the GDS.

Due to the high fees some airlines were or are paying to the GDS companies, they are re-thinking their strategy to get more revenue out of the passengers, in order to mitigate the lost of revenue for not being anymore in an open GDS market like Amadeus. Amadeus knows they are the big gorilla in the market with a 44% of the share, compared to Sabre or Travelport, the other two leaders in the GDS market.