GDS a small guide

Although the GDS (Global Distribution System) are well known in the world of tourism, there are surely many people and tourism professionals who are still not clear about the function of these systems and the advantages that their implementation brings us in our hospitality businesses. .

In this article, we will be able to see what the GDS are and how they work and we will see the benefits of implementing them even in times where direct booking has an increasing presence.

What are GDS and how do they work?

The GDS or Global Distribution System, are a network of computerized systems, that is, a connected network of reservation information that is used primarily by airlines and travel agencies. The objective is to have real-time information on the booking of plane tickets, the booking of hotel rooms, the rental of vehicles and also the booking of train tickets, bus tickets, cruise tickets or even insurance tickets.

Therefore, the way the GDS works is the interconnection of information in real time, this information is offered through servers where tourism professionals connect to offer their clients the best prices and rates for a service.

In addition, this network gives us information on all the services, prices and dates of all the operators that are connected, thus becoming an indispensable tool for tourism businesses such as travel agencies.

Thus, when a hotel works with a GDS, the hotel can offer its rooms to all the agents that are connected to that GDS, in addition, they will see the availability of rooms they have, the different rates or the available dates.

Therefore, for hotel companies, working with a GDS very significantly increases their visibility in the tourism market, since it will reach a large number of travel agencies around the world. Therefore, a huge market and even new market segments will open up where the hotel business might not be present.

We could conclude that GDS have become a very important and even essential technology for the distribution strategy of the various tourism agents.

How do GDS arise?

GDS are not a new technology, although it is true that much progress has been made since their emergence and their way of working has been perfected. GDS emerged in the 60s and 70s.

It was the airlines who began to work with these systems with the objective of optimizing airline ticket reservations, in this way, they were able to simplify the work and carry out better reservation management.

What are the most important GDS?

It should be noted that there are several GDSs with great importance in the tourism sector, but the most used of all for years is Amadeus.

Amadeus was created in 1987 by SAS and Air France, and today there are more than 67,000 connected travel agencies around the world and 490 airlines.

Another widely used GDS is Sabre. It was created in 1960 by IBM in the United States and for use by American Airlines. This GDS operates in around 57% of the market in South America and that is why it is the most used and most important in this area of the world.

Abacus, however, is the most important GDS in the Asian and Pacific markets, operating in more than 20 countries in this area. It was created in 1988 and, in addition to focusing on tourism, it also operates educational and cultural services.

Finally, it is essential to also mention Travel Port, which bought the GDS Galileo and Worldspan. Apart from those mentioned, we can also name Travelsky, KIU Systems and TCA Innst.

What advantages do GDS provide?

Among the advantages that the use of GDS brings us, we can mention the following:

The information is obtained in real time, so it is always up to date and reservations can be made instantly.

The number of reservations received through GDS is much greater than direct reservations, in addition, operating with a GDS would give us much greater visibility and expand our market, therefore, sales would also increase.

We can compare the prices and availability of services and thereby achieve a much more efficient adaptation to the client.

Complementary information about the service is offered, such as photos, maps, the weather or the type of currency, etc.

Therefore, the use of GDS would allow us to increase our market and our sales, so much so that if a company used the first four GDS such as Amadeus, Sabre, Abacus and Travel Port, its services would be offered in more than 500,000 points of service. sales around the world.

GDS in the hotel sector

GDS (Global Distribution Systems) play an important role in the hotel sector, to such an extent that it is essential in large hotels due to the large number of programs and platforms they have to coordinate. These systems are technology platforms that allow hotels and other accommodation providers to distribute and sell their room inventories through multiple sales channels.

In addition to distribution, GDSs also offer reservation management functions and administration tools for hotels, allowing hotels to update their inventory in real time, receive and confirm reservations, manage rate policies, and perform reporting and analysis. This facilitates the organization and management of customer data, the correct completion of legal and tax documents, effective and exhaustive storage of data that will be used to make sales predictions, as well as avoid overbookings or overbooking.

Benefits of a GDS for a hotel

Greater visibility

GDS connect hotels with thousands of travel agencies, tour operators and other distribution channels around the world, thereby increasing the hotel's visibility and allowing it to reach a global market of travelers. And not only by other agencies, but travelers who use intermediaries have access to hotel information and availability through the GDS.

Efficient inventory management

GDSs ensure that the availability of each of your rooms is kept up to date and avoids the risk of overbooking through reservation management tools that update hotel inventory in real time.

Updated rates and availability

GDSs allow hotels to keep their rates, cancellation policies and room availability up-to-date so travelers receive accurate and current information at the time of booking.

Process automation

A GDS automates tasks such as updating inventory, managing reservations, syncing rates and availability, and generating reports in a hotel. By reducing the manual workload for hotel staff, they can provide faster and more efficient service to guests.

Reports and analysis

The GDS collect all data regarding reservations, prices, guests, competition, general and specific product sales, expenses, etc. that can be analyzed to draw transcendental conclusions about fashion trends, viability and economic performance of each of the hotel's activities. This helps in making strategic decisions and identifying opportunities for improvement.

Integration with other systems

GDS integrate with other systems and tools used in the hotel industry, such as the property management system (PMS) and the revenue management system (RMS) to manage information efficiently and centralize all management.

We offer seamless connection to the GDS for your Hotel or Hotel chain