Over 87% of GDS hotel reservations are related to business travel. GDS reservations have recovered from the COVID period and, in 2024, have surpassed the previous peak reached in 2019.
This growth has led to a significant increase in the number of hotels listed on the GDS. Therefore, hotels considering listing on the GDS should seek expert advice to determine if it’s the right fit for them.
Let’s examine some of the factors that can guide a Hotel’s your decision.
Defining the GDS: What Is Global Distribution System?
Global Distribution System (GDS) serve as a network that allows over 600,000 travel agents globally to access your hotel’s room availability and rates in real time. For hotels, GDS offers a channel to engage with corporate travel planners and international agents who typically depend on these systems for their accommodation bookings.
Assessing Hotel Compatibility: Key Considerations of GDS For Hotels
Evaluation of Hotel Suitability for GDS: Summary of Criteria
Before integrating with the Global Distribution System (GDS), it is essential to determine if your hotel can genuinely leverage this platform. Consider the following critical factors:
1. Target Demographic: If your hotel regularly accommodates business travellers, utilising GDS can be highly advantageous. Many corporate travel agencies and large organisations prefer to book through their travel agents and GDS platforms.
2. Location and Demand: Is your property situated in a high-demand Business location?
Properties situated in vibrant urban areas, close to major transport links, or in sought-after tourist destinations can significantly benefit from enhanced exposure through GDS.to maximize your property’s visibility, consider the following:
- Major Companies
- Airport
- Hospitals
- Light Industrial Complexes
- Government Departments
- Courts/Banks
- Business Centres
If your property is close to these key locations, leverage this advantage through GDS to boost your exposure and attract more guests.
3. Room Availability: Properties with a larger number of rooms (40 or more) are more compatible with GDS, as they can effectively cater to the demand generated by this distribution channel.
4. GDS Fees: There are fees involved for hotels participating in the GDS such as hosting fees, transaction fees, and possible commissions. It is important to give consideration to these with good advice from your chosen GDS host.
5. Technical Capabilities: A reliable connection between your Channel Manager and Property Management System (PMS) to feed Rates and Availability to GDS is crucial. Your technology must facilitate real-time updates to prevent issues like overbooking.
GDS Checklist: Is It Right for Your Property?
To assist you in determining whether to list your property on a Global Distribution System (GDS), we have compiled a checklist of questions. Each question is accompanied by an explanation to facilitate your decision-making process.
1. Does your target audience include a considerable number of business travelers?
GDSs are especially advantageous for properties that serve corporate clients as 87+% of GDS reservations are Business Travel related.
2. Do you possess sufficient room inventory to accommodate increased demand?
Having a larger inventory allows you to manage the potential increase in bookings that may arise from GDS.
3. Consider fees charged by your GDS Host
Evaluate all related costs, including monthly fees and transaction fees.
4. Are your competitor hotels listed on the GDS?
Consider and receive advice if your major competitor hotel is on the GDS. This would indicate consideration should be given by a hotel to be listed.
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Conclusion
Choosing to list your property on a Global Distribution System is not a universal solution; it necessitates a thorough evaluation of various factors including your target audience, geographical location, available inventory, financial resources, and technological infrastructure. Utilizing the checklist provided can help you arrive at a well-informed decision that supports your business objectives.
If your property meets the outlined criteria, GDS could serve as an effective means to enhance visibility and drive bookings. Conversely, if your hotel does not fulfil these requirements, exploring alternative distribution channels may yield better results. It is essential to assess your options meticulously to identify the most suitable strategy for your property.
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