Have you ever wondered how travel agents can instantly find the perfect hotel for a last-minute business trip or secure the best rates for a corporate client? The answer lies in the use by over 600,000 Travel Agents of one of the 4 Global Distribution Systems (GDS) – Sabre, Galileo, Amadeus or Worldspan.
This guide will unravel the mysteries of GDS, explain its significance for business travellers, and examine how evolving company policies are influencing its application. Whether you’re a seasoned hotelier or a newcomer, understanding GDS is key to staying ahead in this dynamic industry.
What is Global Distribution Systems (GDS)?
The Global Distribution System (GDS) is a network that facilitates automated reservations between travel service providers, such as hotels, airlines, car rental companies, and travel agents. The primary purpose of GDS is to enable travel agents to access real-time availability, rates, and services, allowing them to make bookings on behalf of their Business Travel clients.
When a hotel is hosted on the GDS it joins a vast digital marketplace where hoteliers list their properties and services. It consolidates information from various providers and presents it on a unified platform. The four major GDS networks are Amadeus, Sabre, Galileo and Worldspan. Each has its unique strengths and coverage, but all serve the same fundamental purpose: streamlining the booking process for travel agents and their clients.
How Does GDS Work?
The Global Distribution System operates as a centralized, computerized network that connects travel service providers with travel agents worldwide. Here’s a simplified breakdown of how it works:
- Data Collection: Hotels, airlines, car rental companies, and other service providers upload their inventory, rates, and availability into the GDS. This data includes detailed information about room types, pricing, amenities, and more.
- Centralized Database: The GDS consolidates this information into a unified database, making it accessible to over 6000,000 travel agents and IDS online booking systems. It acts as a one-stop shop for agents to find the best options for their clients.
- Search and Book: Travel agents use the GDS interface to search for available services based on their clients’ needs. The system provides real-time data, allowing agents to view current availability and rates. Once the ideal option is found, the agent can make a booking directly through the GDS.
- Confirmation and Record-Keeping: Upon booking, the GDS sends a confirmation to both the service provider and the travel agent, ensuring that the reservation is recorded and honoured.
How Hoteliers Can Benefit from GDS?
For hoteliers, the benefits of being listed on a GDS are substantial:
- Increased Visibility: GDS connects hotels with over 6000,000 travel agents and travel management companies (TMCs) worldwide. This broad exposure can significantly boost bookings, especially among business travellers who often book through corporate travel agencies.
- Access to Business Travelers: GDS is particularly effective for reaching the lucrative business travel market. Business travellers often require specific amenities and flexible booking options, which can be highlighted through GDS listings. Additionally, GDS platforms often provide access to corporate negotiated rates, making them a preferred booking channel for companies.
- Centralized Management: Managing inventory and rates across multiple channels can be challenging. GDS simplifies this process by providing a single platform where hoteliers can update their listings, adjust pricing, and manage availability in real-time. This centralized management helps maintain consistency across all sales channels.
- Data Insights and Analytics: GDS platforms offer advanced reporting and analytics tools, allowing hoteliers to track booking patterns, monitor market trends, and analyze competitive pricing. These insights can inform strategic decisions, such as pricing adjustments and marketing campaigns.
- Enhanced Revenue Management: With features like dynamic rate management in their Channel Manager, GDS allows hoteliers to adjust rates based on demand, occupancy, and market conditions. This flexibility helps optimize revenue by ensuring that pricing is always aligned with the current market landscape.
Should I consider GDS for my property?
Many Hotels and Motels are now using GDS distribution and presumably some will be your competitors. The following are some suggested questions you may consider:
- Does your property have significant Business/ Corporate travellers as guests between Sunday night and Thursday night, this indicates your property is most likely suitable to be listed on the GDS. Over 87% of GDS reservations are Business Travel related
- Is your property located within a reasonable distance of local major companies and businesses?
- Does your property have Facilities and Amenities which cater for Business Travellers?
- Is there a commercial airport serving your location?
GDS reservations have rebounded from COVID and are higher than in 2019 – the previously highest year.
The Impact of Changing Company Policies
In recent years, there has been a noticeable shift in company policies regarding travel. With the rise of remote work and the growing emphasis on cost efficiency, companies are re-evaluating their travel policies. This shift has led to several key changes:
- Cost-Conscious Travel: Companies are increasingly focused on controlling travel expenses. This has led to a preference for booking through GDS, as it offers comprehensive rate comparisons and access to negotiated corporate rates. By leveraging GDS, companies can ensure they are getting the best possible deals for their employees’ travel needs and receive reports from the Travel Agent appointed to make all their Hotel, airline and Car rental reservations
- Increased Flexibility: Flexibility has become a top priority, especially in the post-pandemic world. GDS systems enable travel agents and companies to easily modify or cancel bookings, often with minimal penalties. This flexibility is particularly important for business travellers who may need to adjust their plans at the last minute.
- Sustainability and Corporate Responsibility: Many companies are adopting more sustainable travel policies, prioritising eco-friendly accommodations and minimising carbon footprints. GDS platforms have responded by highlighting properties with green certifications and offering options for carbon offsetting.
- Focus on Duty of Care: Ensuring the safety and well-being of employees is a paramount concern for companies. GDS systems provide comprehensive information on safety measures, local conditions, and health advisories, helping companies fulfill their duty of care obligations. This is particularly important for business travellers who may be visiting unfamiliar or higher-risk destinations.
The Evolution of GDS Technology
As the hospitality industry evolves, so does the technology that supports it. Traditional GDS platforms have been crucial in connecting hotels with travel agents and business travelers. However, the increasing complexity of distribution channels and the demand for real-time data have driven the development of more advanced GDS solutions.
Modern platforms like STAAH GDS represent this evolution, offering hoteliers a streamlined way to manage inventory and rates across multiple channels. With features like real-time updates and dynamic rate management, STAAH GDS helps hotels stay agile and responsive to market changes. Additionally, it facilitates connections with a global network of travel agents, making it easier for hotels to attract and retain business travellers.
Conclusion
The Global Distribution Systems can be an important tool for hoteliers looking to tap into the business travel market. It offers a centralized platform for showcasing properties, provides valuable insights through data analytics, and caters to the specific needs of business travellers. As company policies continue to evolve, GDS systems will play an increasingly vital role in helping hotels adapt to new demands and expectations.
For hoteliers, understanding and leveraging GDS is not just a matter of staying competitive—it’s about thriving in a dynamic and ever-changing industry. By embracing the power of GDS, hoteliers can ensure they are well-positioned to meet the needs of today’s business travelers while preparing for the trends of tomorrow.
This guide provides a solid foundation for understanding the role and importance of GDS in the hospitality industry. By focusing on these key aspects, hoteliers can better navigate the complexities of the market and position themselves for success.
