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Carolina Ferrer

Amadeus steps up efforts to enable personalized travel experiences - Runway GirlRunway ... - 0 views

  • Amadeus also found that 26% of travelers are more likely to respond to messages tailored to their personal interests, and 22% are more likely to respond to promotions that are specific to their location.
  • Merchandising is about providing customers with a shopping experience that presents products in the best possible light, at the best possible time, and allows them to tailor their travel experience. In the past, GDSs have faced criticism from airlines and other industry stakeholders for not always being able to accommodate this philosophy
  • Fast forward to today, and Amadeus is working hard to change this perception by providing tools to travel agents that allow the passenger experience to be personalized. In addition to making ancillary services available to travel agents at the point-of-sale, they can now access and book even more enriched content through ‘airline fare families’.
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    Amadeus is working with travel agents to ensure their clients get the most personalized experience possible while booking their vacations especially, airfare. After a study done by Amadeus with Frost & Sullivan, the found that many travelers would respond to messages that they can relate with their interests. Also, they found out that travelers would respond to offers related to their locations. The article summarizes that GDS were not providing the most conclusive and personal content to travel agencies. Amadeus has developed 'fare families' for airlines. These fare families are able to combine options and services that appeal to consumers and give travel agents the ability prepare targeted offers with the GDS in place. Additionally, using consumer relationship management data, like spending patterns and social media, will lead to better customer response. Travel agents rely a great deal on global distribution systems. Amadeus is going in the right direction in giving travel agents the proper tools to succeed in a market that is increasingly booking directly with suppliers. This new personalized offers that Amadeus is bringing to the table may actually give travel agents an advantage over the competition.
swhit149

What is Global Distribution System (GDS)? - Guide For New Travel Agencies - 0 views

  • Many travel agents around the world are using the Global Distribution System (GDS) as their major booking channels
  • significant growth of the travel industry.
  • s the brain of the travel industry.
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  • provides real-time information to companies such as airlines, hotels, car rental and travel agencies.
  • can find the availability of hotel rooms, flight seats or cars on behalf of their clients and book through the same GDS.
  • When a traveler requests information from a travel company, the agent will find the most accurate and cost-effective itinerary.
  • Travel companies are charged every time they access the GDS or they can buy a particular software offered by the GDS on a yearly basis
  • The airline industry created the first GDS in the 1960s to track flight schedules, availability and prices
  • They were used by the airline industry to automate the booking system, but, later travel agents were also given access
  • Amadeus
  • Travelport
  • Sabre
  • Effective in attracting international travelers24/7 access to inventoryEnables business models such as retail travel agency and OTA (Online Travel Agency)Offer consumers increased pricing transparencyTravel agents can get a global platform with a strong market penetrationProvide best rates to your customers which no other system can providePlace travel services to many clients without affecting your marketing budget
  • To use a GDS, you have to be a professional travel agent. For that, you must have a proper industry ID such as an ARC (Airlines Reporting Corporation) or IATA (International Air Transport Association) number.
  • Some airlines will not allow you to issue tickets even if you have a full IATA license.
  • they may sell it to you for $150-$160/year (contact the GDS provider to know the exact amount). The software will allow you to reserve tickets on any airlines.
  • A corporate travel agent who books on behalf of corporate clients or an individual working at a corporation who needs to book flight tickets for all their employeesComplex itinerary agents who have steady clients with multiple travel plansHigh volume booking of air-only travel
  • While changes will continue to impact the future growth of GDS, there will definitely be a role for them.
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    This article thoroughly explains how GDS was brought into the airline industry and how a travel agent may get access with the proper training. GDS systems will not be going anywhere I do feel as if it will only improve on helping those that use for travel. As the article states its goal is to impact growth for the future!
Chengcheng Feng

Global Distribution Systems in Present Times - Four Major GDS Systems; Amadeus, Galileo... - 1 views

  • Among the “shelves” on which buyers search for travel services are world’s global distribution systems and the Internet distribution systems
  • The airlines realized that by automating the reservation process for travel agents, they could make the travel agents more productive and essentially turn into an extension of the airline’s sales force. It is these original, legacy GDSs that today provide the backbone to the Internet travel distribution system
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    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.
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    I don't know why but I was failed to highlight this article. I did it in My Library.
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    It is a great article that provides some detailed information on the four most famous GDS. and it was separated into four parts by explaining the four major GDS one by one. It is talking about the history, current status and development of these four major systems to help readers understand what exactly it is and how it works. I like this because it helps me create an overview of GDS systems.
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    Interesting article that summarize important information about major GDS companies. GDS companies such as Amadus, Galileo and Sabre are platforms in which a range of travel related services are offered through electronic switches and routers .
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    This article introduces four major GDS systems' characteristics and strength. I think these information will be useful for hotels when they choose the GDS systems.
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    According to the World's Leading CRS/GDS System 2011, Sabre is the winner profile. And the Amadeus, Galileo, Worldspan and Zurich Systems were nominated.
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    This is about GDS!
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    In the travel marketplace it is global where buyers and sellers work together to exchange travel services. Global distribution systems and the internet distribution systems have become electronic supermarkets linking buyers to sellers and allowing reservations to be made quick and easy. Travel today is sold most on the internet, it is a vast networks of suppliers and a wide customer pool in a centralized maket. Currently today there are 4 major GDS and they are continuing to grow. This article pretty much summed up what we learned in the past 2 classes
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    SUMMARY A global distribution system (GDS) represents a computerized system used for managing different transactions within the air travel and hospitality industry There are currently four major GDS systems: 1. Amadeus (2) Galileo (3) Sabre (4) Worldspan Amadeus Founded in 1987 by Air France, Iberia, Lufthansa, and SAS, Amadeus is the youngest of the four GDS companies. Amadeus is a leading global distribution system and technology provider serving the marketing, sales, and distribution needs of the world's travel and tourism industries. Its comprehensive data network and database, among the largest of their kind in Europe, serve more than 57,000 travel agency locations and more than 10,500 airline sales offices in some 200 markets worldwide... Galileo International Galileo International was founded in 1993 by 11 major North American and European airlines: Aer Lingus, Air Canada, Alitalia, Austrian Airlines, British Airways, KLM Royal Dutch Airlines, Olympic Airlines, Swissair, TAP Air Portugal, United Airlines, and US Airways. It is a major player in the GDS business throughout the world: North America, Europe, the Middle East, Africa, and the Asia/Pacific region. Galileo International is a diversified, global technology leader. Sabre For more than 40 years, Sabre has been developing innovations and transforming the business of travel. From the original Sabre computer reservations system in the 1960s, to advanced airline yield management systems in the 1980s, to leading travel web sites today, Sabre technology has traveled through time, around the world, and has touched all points of the travel industry. Worldspan Founded February 7, 1990, Worldspan was originally owned by affiliates of Delta Air Lines, Inc., Northwest Airlines, and Trans World Airlines, Inc. It is currently owned by affiliates of Delta Air Lines, Inc. (40%), Northwest Airlines (34%), and American Airlines, Inc. (26%). Since its 1995 advance into the world of Internet technology fo
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    This article is about the GDS system, and it introduced four major GDS system in present times. GDS is a worldwide computerized reservarion network used as a single point of access for reserving airline sears, hotel rooms, rental cars, and other travel related items by travel agents, online reservation sites, and large corporations. The for major GDS systems, Amadeus, Galileo, Sabre, and Worldspan owned and operated as joint ventures by major airlines, car rental comopanies, and hotel groups. GDS is also called automated reservation system (ARS) or computerized reservation system (CRS). Among the four major GDS systems, Amadeus is the youngest one and has done remarkably well during its short tenure. With its strong company infrastructure worldwide, impressive product set, and growing customer base, Amadeus is one of the most significant players in shaping the future of the GDS. Galileo's competitive strengths include market share, well-balanced and global presence, relationships with diverse groups of travel vendors, technologically advanced information systems, highly skilled personnel, and a stable product line. Gralileo is a follower when it comes to technology, but is has established successful relationships with entities such as Go, UK's best low-cost airline. Sabre's competitive strengths include market position, global reach, stable product line, diversification of revenue streams, and intellectual capital. Sabre business model is a strong one, and continues to make significant progress in advancing both its electronic travel distribution and its information technology solutions businesses. The last one Worldspan has a legacy of industry firsts that are not well known. It continues to look at benefits of creating its own consumer brand and has been partnering with different companies to expand the services that it can provide to its customer base.
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    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.
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    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.
espence13

About Global Distribution Systems (GDS) and Travel - 0 views

  • Global distribution systems (GDSs) are computerized networks/platforms that centralize services and provide travel-related transactions. They cover everything from airline tickets, to car rentals, to hotel rooms, and more. Global distribution systems were originally set up for use by the airlines but were later extended to travel agents. Today, the 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.
  • To see how global distribution systems work, take a closer look at one of the largest—Amadeus. Amadeus was created in 1987 as a joint venture between Air France, Iberia, Lufthansa, and SAS and has grown considerably over the past twenty-five years.
  • 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 websites that offer price comparisons and the increased push from airlines and other travel service providers to encourage consumers to make bookings directly via their websites.
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  • While such changes will definitely impact the future growth opportunities for global distribution systems, there will continue to be a role for them as they evolve to meet the needs of travel planners, travel websites, airlines and groups of individuals.
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    Global Distribution System (GDS) is a system operated by an organization that empowers automated exchanges between travel specialist organizations for mainly airlines, lodgings and vehicle rental organizations and travel agencies. Travel agencies generally depended on GDS for administrations, products and rates so as to provision travel related administrations to the end consumers. A GDS can connect services, rates and bookings uniting items and services over every one of the three travel segments: i.e., aircraft reservations, hotel reservations, vehicle rentals. The biggest global distribution framework is Amadeus. GDS is not the same as a PC reservations framework, which is a reservation framework utilized by the specialist organizations also known as vendors. Essential clients of GDS are travel specialists both online and office-based to reserve spot on different reservation frameworks kept running by the sellers. GDS holds no inventory; the inventory is hung on the merchant's reservation framework itself. A GDS framework will have constant connect to the merchant's database. For instance, when a travel office asks for a reservation on the administration of a specific carrier organization, the GDS framework courses the demand to the proper aircraft's PC reservations framework. This empowers a travel specialist with an association with a solitary GDS to pick and book different flights, lodgings, exercises and related administrations on every one of the merchants working in a similar course who are part of that GDS network. There's no uncertainty that global distribution frameworks will have an imperative influence in the travel landscape for a long time to come, yet their conventional job is changing and being tested by every one of the progressions occurring in the travel business. While such changes will affect the future development open doors for global distribution frameworks, there will keep on being a job for them as they advance to address the issue
paige rosenberg

Travelers returning to travel agents - 1 views

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    People are starting to use travel agents again, research shows that travel agents showed a 51% revenue increase with an expect of 94% to make a profit. When people travel to exotic destinations is when they tend to use travel agents, and this is the future where more people are traveling all over the world. The internet is a useful took for gathering travel infromation, the counsel and expertise of a travel agent is invaluable. But when people use the interent for the information and get to there destinations and something goes wrong, they have nobody to go to if they need help. Travel agents are evoloving again!
avila031

Are Travel Agents Still Useful? - 0 views

    • avila031
       
      This was why people used to need them.
  • They got you the deals you couldn’t find on your own because you didn’t have access to the resources they did.
  • (according the Bureau of Labor Statistics the number of freelance travel agents went from 124,030 in 2000 to 64,250 in 2014),
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  • expertise and special business relationships
  • (they’re heavily used for luxury, corporate, and group travel
  • they have seen a surge in demand in recent years
  • their time-saving, stress-relieving, and problem-solving skills.
  • Travel agents are useful if you’re doing a very costly or complex trip, planning a honeymoon or something fancy, or traveling with a large group.
  • Internet has made it easier to book your own travels, but with that comes informational overload.
  • Travel agents are for people who don’t want to spend hours researching their trips, are not experienced travelers, or are traveling in such a large group that the economics and logistics of booking it yourself do your head in. I’m not surprised that travel agents have seen a rise in usage of the last few years, especially among millennials who try to outsource time intensive activities.
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    The following article explains why many people expected travel agencies to go extinct once Expedia started being used and all the reasons why that did not end up happening. In todays age there are still many people that use travel agents, in fact the article even states that there have been spikes of usage in recent years. It speculates that this might be because of millennials always using the easiest and quickest ways of getting things done. In fact the simplicity of travel agents is one of the main reasons many people use it along with their ability to get package deals, assist with group or complicated trips, their ability to get discounts, and they prevent problems.
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
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    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.
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    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.
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    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.
davidclark33

In A Covid-19 World, Here's Why You Should Use A Travel Agent - 0 views

  • Back in March, I wrote about how travel agents helped clients get home as walls of travel restrictions went up, and as airlines cut flights.
  • That story led a number of travel advisors to contact me, sharing their tales. With pictures of stranded travelers sleeping in airports still fresh in my mind, and thousands of others unable to get ahold of their airlines, I thought now would be a good time to remind you why it pays to use a travel advisor. From Classic Travel Connection in Birmingham, Alabama, Christen Perry recalled, “On March 11, during the middle of the President's speech to our nation regarding travel to and from Europe my team began making immediate contact with our clients who were still traveling in Europe.”
  • Closer to home, as millions of folks who booked direct were getting busy signals, Alexis Sherry of As Travel Pro was swinging into action. A family she had in the Dominican Republic were notified by their hotel that the airport was shutting down. Since they had used a travel advisor, as in real person, not an online screen bot, they had no problem getting through. After finding no flights available, Sherry contacted a private jet company, which arrived to pick the family up just seven hours after the hotel notified them of the shutdown. She also obtained a credit for the remainder of their interrupted stay.
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  • She continued, “We could only assume how crazy the European airports would become when they woke up the next morning to the news from the press conference. Even though it was the middle of the night for them, we called them, woke them up, calmly communicated the situation, and asked them to pack their bags and head to the airport. “While they were doing so, we began immediately changing their flights to get them home as soon as possible. By acting quickly, calmly, and as a team, we were able to communicate with the clients, with each other, and with our suppliers. Our clients were among the first out of Europe that morning.”
  • Back across the Atlantic, Louisa Gehring of Brownell Travel affiliate Gehring Travel, didn’t need to look far to see how quickly the situation was deteriorating. A reporter from The New York Times posted about “bedlam” at Charles de Gaulle Airport as throngs of Americans sought to get home.
  • When the ban was announced, Gehring reached out to a couple were in the City of Lights celebrating the wife’s 40th birthday. She talked them through options to return home, even though it was 2 am. Her clients decided to leave the next day. In cutting their trip short, they were going to miss going to the top of the Eiffel Tower and a dinner cruise by celebrated chef Alain Ducasse, which was also nonrefundable. Within hours, the star advisor moved both experiences to that day, their final day in Paris. They were among the last visitors to the Eiffel Tower before it closed, followed by dinner, where they were among only a guests.
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    This article is about the value of using a travel agent. The article describes several real-life situations that unfolded as borders and countries were shutting down travel.... all while tourists were still visiting these countries. Luckily these tourists booked their vacations using travel agents so they were able to work with their travel agents on navigating home and not with a computer screen.
Gabriela Moreno

The travel business: The ineluctable middlemen | The Economist - 0 views

  • Some of the tastiest margins in the travel business are enjoyed by the “global distribution systems”
  • The airlines’ chronic unprofitability is partly the result of a wave of competition
  • But it is also due to two moves by the airlines, from the 1990s onwards, that in retrospect were strategic errors. One was to stop paying direct commissions to travel agents. The other was to set the reservation systems free to become (as the airlines see it) profit-gobbling monsters that devour their parents.
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  • These were originally created by several of the largest airlines to distribute their flights through travel agencies but have since become independent firms. Most flights booked through a physical or online travel agent go through a GDS, which charges the airline a fee of about $12 per round trip, passing a few dollars of that to the travel agent.
  • Some airlines have thrown in the towel and let a GDS take over the running of all their in-house systems for handling passengers—in some cases, even their websites
  • In recent years the main hope for restoring airline profitability has been ancillaries: all those extra charges for meals, checked bags, less-cramped seats and the like
  • Hoping to solve these problems, the airlines’ international association, IATA, is working on a grandly titled “new distribution capability”
  • The GDSs could make use of such services, so as to sell the airlines’ full range of extras as well as just flights. But perhaps of more interest to the airlines is that it would become easier for travel agents to build computer systems that deal directly with airlines. It would also become easier for search engines to scour the web for flights, assemble a list of options for travellers, then let them click through to the website of their chosen airline to complete the booking—again without a GDS’s involvement.
  • IATA hopes to have its new technical standards agreed by the end of the year—though as a rule, getting airlines to agree on such things is tricky
  • The airlines argue that the cost of the middlemen adds to the price of tickets (though the superficial evidence suggests that it is airline shareholders who suffer). They say they want to reform the distribution system to offer flyers a wider choice and a more individually tailored service. The GDSs argue that they provide travellers, through their agents, with impartial comparisons of all available flights, allowing them to get the best value.
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    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. 
yyr997

Importance OF GDS for Travel Agents and Tour Operators - 1 views

  • Popular GDS Systems in Travel Industry
  • Amadeus 1987 Iberia, Air France, SAS  and Lufthansa, Strongly based in Europe, Mid East, North Africa & Asia Pacific Galileo 1993 Galileo was Founded by a combination of 11 most significant North American and European airlines conducted by United Airlines. Currently owned by Cendant Corporation It has a strong web-presence in US and Western Europe. Sabre 1976 Initially it was founded by American Airlines. Currently Sabre is a separate entity owned by AMR corporation very strong  Global presence in US and Asia Pacific Worldspan 1990 Worldspan was founded by Delta, TWA, and North West Airlines. Further it was being sold to Transaction Processing Corporation. Mainly in the US and Europe
  • Please find few of the benefits of  Global distribution systems: The Use of Global distribution system shows a rise across corporate and leisure travelers GDS is highly effective in alluring the international travelers. This is the reason why using of GDS among the travel agents is growing exponentially every year. OTAs have greatly improved the travel shopping experience and convenience for consumers and have increased pricing transparency. GDSs enable the retail travel agency and OTA business models. The GDSs enable the travel agents to make their travel services available to consumers globally where they might not otherwise be able to achieve efficient worldwide market penetration through direct marketing efforts. Booking through Global distribution system is most preferable for  corporate travel agents as a suitable reservation process for holidays,  air, hotel and rental cars. Travel agents can get global platform for their business with strong market penetration Global distribution system is the base to  enter into corporate clients across the world GDS is the ability to update the status of inventory  in real time.  Due to its real-time  status update capability managers can view rates change and  can easily alter price points or make special offers. Agents can view all the changes instantly and will be able to suggest the new updates and offers to clients without any interruption to make the deal.. Its a wise decision to invest in a GDS. The system places your holiday booking services and inventories in front of  huge  clients without affecting  your marketing budget.  The unique selling point of GDS is that it Can provide best rates to your guests, which no other systems can provide.  Your gusts can find packages that include a hotel stay, air travel and car rental
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  • 2015 is going to be a successful year for travel agents using global distribution systems for bookings. According to Travel-Click research the bookings through GDS is projected to 62 Million, which was 61 million in 2014 and 42 million in 2009.
  • Having a mobile optimized tours and travel prortal is the most efficient way to find both local  and international hotels, airlines, holidays and car rentals on short notice.  Its a big change in consumer behavior to switch over to mobile. Shifting to mobile search is already being started and reflects of changes can be apparently measured.
  • GDS is a computerized web service that provides pricing, real time availability, centralized data display with  reservation functionality to the global travel industry in a very unified process.
  • GDS is highly effective in alluring the international travelers.
  • Global distribution system is the base to  enter into corporate clients across the world
  • GDS is very huge and it will create robust ecommerce platform for travel industry.
  •  
    As we all know, GDS is an online system known as global distribution system, which delivers worldwide data, rates, inventory, offers, real-time availability of airlines, hotel rooms, car rental, bus tickets to bridge the gap between tour operators and travel bookers. The article has introduced the most popular GDS systems in the industry and their strong advantages. In addition, it also reveals the reasons why the industry still uses GDS and the importance of it. In one word, GDS is highly effective in alluring the international travelers with the development of information and technology. It enables the travel agents to make their travel services available to consumers globally where they might not be able to achieve efficient worldwide market penetration through direct marketing efforts.( The article has also given a future prediction about GDS. According to the statistics, GDS will rule the travel industry if it keeps continuing the ever changing needs of airlines and hotel industry.
  •  
    GDS is very important in the tourism industry. Even if the company creates its own direct sales channels, the impact and benefits of GDS are considerable. Making good use of the advantages of GDS can create word of mouth and revenue for the company in the hospitality industry.
laurenperdomo

Why is GDS important to the travel industry? | TTS - 0 views

  • three important GDS systems: Travelport (Galileo, Apollo, Worldspan), Amadeus and SABRE
  • GDS booking has increased worldwide over the past 4 years yet some industry observers suggest that GDSs may become nearly obsolete by 2020. But like many technology/software-based systems, GDS may evolve, instead.
  • The Global Distribution System (GDS) is a primary reservation tool for travel agents.
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  • agents can access scheduling and inventory of hotels, airlines, car rentals, and (some) railway and bus reservations – in real time
  • alert agents to special rates, fares, and travel packages – an effective marketing tool for passing savings on to agents, and from agents to their customers. 
  • GDSs may become more of a “direct corporate booking tool” instead of a system used exclusively by travel management companies. 
  • Technology may refine and tailor engines to target specific travel interests like corporate or leisure travel. Integration methodologies may change, blurring or merging nearly separate functions like booking and in-flight processes
  • Technology may also produce new solutions to make data more useful and practical for customers (travel agents) and expand to cover new industries.
  •  
    The article discusses the definition of GDS and how important it is in the travel industry. As stated, the three main GDS systems involve Travelport, Amadeus, and Sabre with Travelport generating billions of dollars in travel sales. Upon explaining how important GDS is in the hotel and airline industry, it also explains its importance to travel agents as it points out reasons for why it has a bright future in the hospitality industry.
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  •  
    This article explains why GDS is crucial for the industry. It is suggested that GDS is one of, if not the best tools for travel agents. Along with the pros of using GDS this article goes into what the future of GDS might look like.
  •  
    The Article talks about how important is the GDS in the travel industry. where some agents can access to scheduling and inventory for your hotels. it talks about three important GDS Systems like the Travelport, Amadeus and Sabre.
  •  
    This article describes GDS as a network/platform that enables travel agencies and their clients to access travel data, shop for and compare reservations options and book travel. Agents can access scheduling and inventory of hotels, airlines, car rentals, and (some) railway and bus reservations - in real time. GDS links all those services across the three primary travel reservation sectors (airline, hotel, and ground transportation, i.e., car rentals), and activities. GDSs are very important to travel agents and they will continue to be used and will continue to evolve.
noreen1

Millennials are driving the comeback of travel agents - Kansas City Business Journal - 0 views

  • more Americans, including millennials, are opting for a more traditional route: brick-and-mortar travel agencies.
  • In 2014, 18 percent of American travelers used traditional travel agents compared to 12 percent in 2013.
  • millennials are actually using traditional travel agents at a higher rate than a lot of age groups."
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  • "They want to go some place no one else has been, which means they really need a third party to help them work through the details," he said.
  • Millennials are more adventurous travelers — they want to go off the beaten path, but they're also less sophisticated and less experienced travelers.
  • In 2014, 28 percent of millennials used a traditional travel agent, compared to only 13 percent of Baby Boomers (ages 50 to 65) and 15 percent of Generation X (ages 36 to 49).
  • MMGY's research found that those who booked a leisure trip through a travel agent within the last year were more satisfied with their overall trip than those who booked through online third parties, such as Orbitz.
  •  
    In contrast to the notion that the use of a travel agent is outdated, Millennials are actually more likely to use a travel agent than other demographics. This trend seems to go hand in hand with the increase in experiential marketing we see geared towards Millennials, and the fact that they often want more extreme or unique experiences. While in some ways Millennials are a spontaneous generation, they also appreciate a well planned trip that allows them to make the most of their time.
  •  
    Noreen, I loved the points this article made. One might assume with the millennial generation they would use travel agents less as they would view them as outdated, but it is the opposite. Because the millennial generation are more adventurous and use travel to learn about themselves, they are consulting with agents who have perhaps been to the destination and can fill them in on the really great places to visit. Thank you for sharing!
anonymous

How Can Small Hotels Work With Global Distribution Systems (GDS)? - 0 views

  • 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.
  • What is a global distribution system (GDS)? In simple terms, a GDS acts as a middle-man that connects your small hotel to a network of travel agency professions.
  • 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.
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  • The GDS world leaders are Amadeus, Galileo, Sabre, Travelport and Worldspan.
  • Retail model This is the traditional model,
  • Whoever sells your room earns a standard commission. Your guest pays you, then you pay your agent.
  • This is the default model used upon connecting with a GDS.
  • 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.
  • An OTA sells rooms on your behalf, allowing your guests to find and select your hotel, check your availability, and make a booking.
  • When you do create an agreement with them, the OTAs improve your listing, pay you directly (removing the hassle of credit card transactions), give you the guest’s contact information, and give you the option to run promotions with them.
  • 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.
  •  
    A global distribution system, or GDS, helps hotels sell rooms to travelers. A global distribution system helps smaller hotels connect to several different travel agencies. GDS allows travel agents to sell rooms to customers. There are three models: the retail model, the merchant model, and the opaque model. The retail model is the most traditional model. The travel agent would get a commission from the sell. The guest would pay the hotel and then the hotel would pay the agent.
yimengliu

Are travel agents REALLY booking less often with GDSs and going direct? - 2 views

  • The report says agents are booking air tickets 15% less than they did in 2006, while they’re booking tickets direct from airline websites 65% more. That result combines with the trend that there are fewer than 10,000 agencies in the US today — down from 32,000 in 1998.
  • That’s one perspective, over a long period. But if you look at the latest data from another source, a different picture emerges. TravelClick, a provider of cloud-based solutions for hotels, found that GDS room nights in Q4 2013 grew by 5.3%, year-over-year, in North America. That was a larger jump than it reported for either OTAs or brand.com sites received from travel agents.
  • GDSs have long given travel agents a cut of the fees, while also often supplying back-office systems. GDSs have wanted to reduce these kickbacks in recent years, as airlines have negotiated hard on segment fees. But they haven’t been able to, as the bargaining hand of agents has been strong.
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  • GDSs have responded by trying to make their tools more user friendly with “graphical user-interfaces”, but uptake has been slow. Despite complaints, some established agencies seem reluctant to learn new systems.
  •  
    There has a report about the travel agents are booking less with GDSs, the customers booking air tickets 15% less than they did in 2006 and they found they are booking tickets from the company the airline website 65% more than before. According to the research, more than 32,000 travel agencies in the US in 1998, but there are less than 10,000 travel agencies in the US today. According to this report, the article trying to find the answer about if travel agents are doing significantly fewer bookings with GDSs. Online travel agencies are very popular led by Priceline.com, Expedia, and Orbitz etc. More and more people would like to book the hotel rooms, airline ticket via the OTA. The benefit of the OTA is the customers can see the price of the different hotels or airline companies on one website rather than several websites. That can help customers save the time and money because they always can show you the lowest price. OTA make the booking easier and clear. We know how popular of the Online travel agent in these years. That's why this article trying to find it out of why the percentage of direct booking more than their booking via GDSs. Travel agents attract a lot of customers that can directly influence the number of booking with GDSs. "ASTA's survey found that American agents use GDSs to book hotel rooms 29% less today than they did in 2006 but agent reservations made on hotel websites have increased 58%". But if we change a perspective, TravelClick found that GDS room grew 5.3% in the 2013 year over year. Therefore, we can found that travel agents use of the GDS for hotel booking growing very fast than direct booking via the company website.
knare002

Travel Agents Rely on GDS for Hotel Selection | News | Breaking Travel News - 0 views

  • Conducted by NFO Plog Research, the study shows approximately 60% of all travel agents are aware of advertising via GDS media, a proportion that is unchanged from research conducted two years ago.
  • The research study also demonstrates that travel agents are increasing their reliance on GDS systems for hotel information. Nearly 90% of travel agents say that they use their GDS and GDS shopping displays as much or more today than two years ago. Travel agents also report increased use of hotel property Web sites compared to two years ago. Travel agents are less likely now to use printed hotel directories, direct mail, fax, and the phone to gather information about hotels.
  • The GDS remains one of the most critical and productive marketing channels for a hotel,” said Roland Tanner, president of the Hotel Electronic Distribution Network Association. “The travel agent GDS marketplace remains the largest single source of electronic business for the hospitality industry, and, although we are seeing large volume growth in the Internet distribution channels, the GDS is still a much larger source of room night revenue compared to the entire Internet channel.”
  •  
    The research the article reports supports traditional travel agents reliance on GDS for hotel selections. The article reports travel agents respond to GDS media used mostly by hotels. The information shared in the article written in 2003 and reported there was an increase in the use of their GDS from two years prior. Considering the growth of GSD today offering more selections sixteen years later, it should be more beneficial for travel agents.
kcamp110

GDS Hotel Bookings Rise in 2017 | TravelPulse - 0 views

  • GDS Hotel Bookings Rise in 2017 | TravelPulse
    • rnobl005
       
      This article is rather short but I thought it complemented the discussion post for this week. Travel Click surveyed 900 travel agents worldwide and discovered that hotel bookings will surpass 68 million reservations by the end of 2017 thanks to Global Distribution Systems. In 2016 the estimated number of bookings was 66 million, meaning GDS is gaining in popularity as a means of securing travel arrangements even today. Like the Whitepaper suggests, Sabre, Amadeus, and Travelport are the 3 major companies supporting this service. I thought it was interesting that the article brought up the issue of "rate parity" as a means to distinguish one hotel from another. Travel agents are less likely to book a hotel if the hotel is offering different rates across platforms, especially if the GDS rate is higher. Again, bringing this article back to the discussion questions, this is evidence that there are benefits to using a travel agent when planning a trip. They have a comprehensive knowledge of the market at their disposable compared to the average person searching for the best deal on their own. Towards the end of the article the author brings up that travel agents are not using Airbnb because the platform isn't integrated into the GDS - which was not surprising.
  • travel agents are using the GDS to make a record number of hotel reservations. 
  • 68 million reservations
    • rnobl005
       
      I think this figure them mention is slightly misleading though. In context this sounds like the total number of reservations made using GDS systems, not necessarily the number of reservations made by travel agents.
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  • increase of more than 2 million reservations from the number of bookings generated in 2016.
    • rnobl005
       
      Regardless of who is responsible for the amount of bookings, I think an increase of 2 million bookings in one year is evidence that GDS is still an extremely profitable revenue stream for the hospitality industry.
  • One of the most important things that travel agents want when it comes to hotel bookings on the GDS is rate parity. Hotels that don’t offer the same prices on the GDS that they do elsewhere are not looked upon favorably. 
  • Hotels that offer great amenities are also among the ones that travel agents book the most. 
    • rnobl005
       
      The most appealing amenities mentioned in the article are swimming pools, free parking, airport shuttles or transfers, hotel gyms and early check-in/late check-out. Hoteliers should take this information into account and find ways to highlight these features at their properties.
  • global travel agents rely on the GDS as an essential operating system for conducting hotel research and booking reservations
  • Travel agents continue to rely heavily on the GDS for booking and shy away from non-traditional accommodation options such as Airbnb because they are not available on the GDS.
  •  
    The article talks about the use of GDS and its importance in the current Hospitality World. It shows a study which refers GDS as the most important booking tool for travel agents, citing record numbers in booking in 2017
  •  
    Based on the reading GDS assist and has raise the profit margin for hotel across the board. Hotels are more profitable due to this feature .
agarc521

Hospitality Technology Articles: Hospitality Marketing Through Global Distribution Systems - 1 views

  • In an industry not renowned for the prompt embrace of technology, electronic marketing and product distribution have enjoyed uncharacteristically speedy acceptance by the hotel, car rental, cruise line, and other hospitality companies.
  • o reduce costs and further increase their bookings, airlines began installing computer terminals in the offices of their most productive travel agencies.  Airline managers understood it would be less expensive to have travel agents book the reservations directly into the airline systems than it would be to hire additional staff at airline reservation centers.  They also knew that travel agents were more likely to book reservations on the airline that supplied the GDS terminals.
  • Responding to the need for greater flexibility, hotel CRS managers expanded the inventory control capabilities of their systems to allow selling against an allocation of rooms.  Sales controls such as closed-to-arrival, minimum length of stay, and sell-through were also added.  More recently, many systems have been further enhanced to provide central reservation offices with full inventory data, with the central system having the same availability information as the hotel so that the CRO can sell down to the last available room without fear of overbooking.
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  • GDS marketing automation gained its most recent, and possibly most powerful product presentation advance with the introduction of seamless connectivity
  • In its early years, productivity through global distribution systems was low and constituted a very limited portion of each hospitality company's centrally booked reservations.  A consistent upward volume trend has seen that situation change. 
  • In coming years seamless connectivity offers the prospect of delivering the full functionality of supplier systems, from access to frequent traveler files and profile data to multi-media brochures and virtual reality property tours, to every GDS user's terminal.
  • The challenge to suppliers -- hotel companies, car rental firms, cruise lines and the many other travel services -- is to develop and implement marketing automation programs that effectively address this electronic marketing and sales opportunity.
  •  
    This pretty much what we have discussed in class along with the history of  the way hospitality companies have grown so much since the 60s. 
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  •  
    In an industry that is constantly evolving, the GDS remains in a constant in revenue generation, as well as marketing abilities. Seamless connectivity supplies full functionality on virtually all levels in the travel industry.
  •  
    This article describes the development of the GDS, and also introduce its role as a non-air hospitality services marketing channel. The authors introduce the evolution of GDS, and show some points about how hospitality marketing through GDS.
  •  
    This article goes into depth with the development of the primary electronic distribution channel. Surprisingly, as early as the 1960's travelers and travel agents where booking reservations via letter, telex, or telephone. Most of the reservations for airlines, hotels, and car rentals were conducted via telephone. Because of such an increase in demand of the service, airlines installed computer terminals to reduce cost and increase bookings for the airlines. Airlines believed it would be cost efficient to install such system instead of hiring extra staff. The airlines also predicted that travel agents would reserve more with the airlines that supplied the GDS terminal, which in fact turned out to be true. After, the travel agents became heavily comfortable with the system, they noticed that it could also accommodate to bookings for hotels, car rentals, and travel services. The potential of the travel distribution was obvious and many non-air travel companies became major participants within the system.
erinkieltyka

Global Distribution System (GDS): What Are the Benefits for Hotels? - 1 views

  • A global distribution system is a computer network, which empowers service providers in the travel industry to carry out seamless transactions.
  • using a global distribution system helps to reach a larger number of customers.
  • These fees can vary significantly, but it is not unusual for the fees to account for around 10 percent of the amount paid.
    • npate083
       
      Everything has a cost and so does GDS. It is normally a transaction or agent fee on every booking made through GDS.
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  • Amadeus GDS ranks as the market leader and it is estimated that somewhere in the region of 40 percent of all travel agency booking
    • npate083
       
      Amadeus is the leading the market share for GDS. They cover around 40% of all travelers.
  • All of this means that hotels have the ability to manage their hotel description, room listings, photos and other information across different GDS systems from a single place, while usage can also be automated.
    • npate083
       
      GDS allows hotels to update their rates, listings, descriptions, etc from one place.
  • Travelport is a company that owns the Worldspan, Galileo and Apollo systems.
  • The Sabre global distribution system is the closest competitor for Amadeus when it comes to total market share
  • GDS can be especially beneficial for a hotel aiming to attract business or corporate travellers
    • npate083
       
      Many corporate travellers still use GDS to book business travel as it is easy for an expense report later.
  • For hotel owners, it is important to balance room rates with this in mind. Ideally, to optimise revenue, a hotel should keep room rates low enough to maintain a good relationship with travel agents, but should
  • a GDS is often used by a travel agency, in order to see real-time information and data about the availability of hotel rooms, flights and other travel services.
  • global distribution system (GDS) is a network, which allows travel agents to access hotel inventories and sell rooms to their clients. F
  • the GDS provides a single point of access for thousands of travel agents across the globe, who can then book hotel rooms for their customers.
  • GDS provider will actually connect your hotel to all of the three major GDS systems at once, rather than focusing on a single one.
  • Amadeus GDS
  • Sabre GDS
  • it is estimated that more than 200,000 hotels use the network to connect with travel agencies.
  • Travelport GDS
  • t offers access to diverse markets, including those in the Americas, Asia and Europe.
  • Hotels can turn to a number of different GDS systems around the world, with each one having its own unique features and target markets. However, it is generally accepted that there is a ‘big three’ within this industry
  • using a global distribution system helps to reach a larger number of customers
  • using a global distribution system helps to reach a larger number of customers
  • This is because a large number of organisations still turn to a travel agent to book business travel, rather than attempting to book directly, as it can be easier for them to manage expenses this way
  • Standard practice is that a hotel will pay a small initialisation fee, followed by transaction and/or agent fees on every booking that is made
  • Amadeus can provide the hotel industry with e
  • xcellent access to the European market, in particular, as its database is hosted in Germany
  •  
    Global Distribution systems ensure that the travel industry gets accurate information and keeps track of data and information. The GDS is a single system that reaches out to very large groups and gives them access to prices and availability of rooms. The GDS comes at a price, for every booking they take a certain percentage of that rate. The best known global distribution systems are Amadeus GDS, Sabre GDS, and Travelport GDS. All of these systems are different but most of the travel bookings are done through them. I believe the GDS is a great way to to attract potential travelers and it makes it easy because everything is on one system.
  •  
    This article is a good introduction to the concept' of GDS. It is brief, informative and written in plain language, making it easy to understand. The definitions are clear, and the major points i.e. The "big three" GDS' are effectively covered.
  •  
    This article discusses the pros of hotels utilizing GDS systems and describes the 3 most prominent global distribution systems. Some benefits include a larger consumer outreach, and helpful information access for travel agents. The "Big Three" global distribution systems are Amadeus, Sabre, and Travelport.
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.
anonymous

Royal Caribbean Expands Distribution Agreement with Sabre Travel Network - MarketWatch - 0 views

  • SOUTHLAKE, Texas, Jan 16, 2013 (BUSINESS WIRE) -- Royal Caribbean Cruises Ltd. has signed a multi-year, distribution agreement with Sabre Travel Network, making all of Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises' fares and schedules available in the Sabre global distribution system (GDS). Under the new agreement, Sabre and Royal Caribbean have expanded their relationship to include travel agents in Mexico, who will now be able to make bookings on Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises through the Sabre Red Workspace.
  • Royal Caribbean Cruises Ltd. has signed a multi-year, distribution agreement with Sabre Travel Network, making all of Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises' fares and schedules available in the Sabre global distribution system (GDS). Under the new agreement, Sabre and Royal Caribbean have expanded their relationship to include travel agents in Mexico
  • Royal Caribbean Cruises Ltd. has signed a multi-year, distribution agreement with Sabre Travel Network, making all of Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises' fares and schedules available in the Sabre global distribution system (GDS). Under the new agreement, Sabre and Royal Caribbean have expanded their relationship to include travel agents in Mexico
  •  
    Royal Caribbean Cruises Ltd. and Sabre Travel Network have signed a multi-year distribution contract that will distribute all Royal Caribbean, Azamara, and Celebrity cruise schedules and fares on the Sabre GDS system. With the Sabre system travel agents in Mexico can now make bookings on Royal Caribbean cruises and associated lines. This system. This system will allow travel agents in Mexico to increase productivity when booking Royal Caribbean cruises. I think this is an interesting step by Royal Caribbean to expand their relationship with Sabre Travel Network and a new region for booking. The impression I get from this agreement is Royal Caribbean is looking at opening their cruises to a new consumer market. This focus is aimed more on making sales and entering a new market. Now Royal Caribbean will be focusing on Mexican consumers. This system will allow travel agents in Mexico to have an easier time at booking a cruise with Royal Caribbean, Azamara, and Celebrity.
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