Global Distribution Systems (GDS) FAQs

What is a Global Distribution System (GDS)?

A Global Distribution System is a digital network connecting the various service providers in the travel and hospitality industries, such as airlines and hotels, with travel agencies. In the context of hospitality, it’s the middleman between a travel agent and a property’s central reservation system. While the GDS does not actually hold any inventory, it provides travel agents with an overview of the rates and inventory for a given hotel in real time – using the GDS, travel agents can see the room types, rates, and restrictions. Travel agents are able to create bookings directly, in addition, and the GDS transfers the reservation information from the agency’s system to the property’s central reservation system and removes that room from the property’s available inventory. 

What are some of the benefits of using a Global Distribution System?  

 

• Efficiency: Travel agents do not need to communicate with the property to make reservations, and reservation agents do not need to do manual data entry. 

• Versatility: Nowadays, it is possible to book various travel and hospitality services using a GDS, such as rental cars, railway tickets, or tours, allowing a more customized guest experience if needed. 

• Marketing Reach: GDS gives independent hotels and smaller properties with the same visibility as hotel chains, to travel agents. GDS also gives hotels access to new segments of guests, such as corporate travelers who are not likely to book tickets directly, but through a corporate travel agency using a GDS. 

• Cost: While properties still pay a fee per booking to use the GDS, that fee is often lower than the average commission for an Online Travel Agency (OTA).

 

What are the most popular Global Distribution Systems?

 

• Amadeus: The world’s largest GDS, accounting for about 40% of global GDS transactions, though it is especially popular in Europe. While it is most popular for airlines, it is still powerful for hospitality, with over 600 000 properties connected.

• Sabre: The second largest GDS, accounting for about 35% of global transactions and has around 175 000 connected properties. It is most popular in North America, where it has the largest portfolio.

• Travelport: Owns multiple systems such as Galileo, Worldspan, and Apollo.

• Travelsky: The state-run GDS in China.

How to choose a Global Distribution System?

Here are some of the variables to look at when considering a GDS:   

 

• What are the general system functionalities?

• Does your preferred GDS have a strong market presence in the region most of your guests come from?

• Which travel websites and services does the GDS connect to?

• Does your Property Management System (PMS) offer an integration that connects with the GDS?

• Which rates and fee structures apply to your property and market, and are they sustainably profitable?