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global distribution system

Why is Global Distribution System Important To The Travel Industry?

There are many aspects that Travel agencies and companies need to consider when they are creating their business, and one of them is finding the right set of tools, Global Distribution System is one such tool. It. offers a central reservation system that allows access to hotel rates and availability as well as prices for flights, trains and rental car companies in real-time. 

What is a Global Distribution System?

In today’s interconnected world, travel is no longer a luxury, it’s a necessity for businesses and leisure enthusiasts alike. However efficiently managing corporate travel or planning a dream vacation can be a daunting task. This is where Global Distribution Systems (GDS) step in, acting as your digital travel concierge, streamlining the booking process and unlocking a world of possibilities.

Demystifying the GDS: A Powerful Booking Network

Imagine a centralized platform that connects you to a vast network of travel suppliers โ€“ airlines, hotels, car rentals, and more. This, in essence, is the magic of a GDS. It’s a computerized network that acts as a mediator between travel service providers (like airlines and hotels) and travel bookers (like travel agencies or corporate travel managers). GDS platforms offer real-time access to travel inventory, allowing bookers to compare prices, check availability, and make reservations instantly.

There are three important GDS systems: Travelport, Amadeus and SABRE.

it was revealed that the Global Distribution System will remain the most important channel of distribution for airlines, hotels and car rental companies. In some cases, it’s allowed for the Global Distribution System companies, label providers and even traditional travel agents to host websites directly that access their connections and provide the services previously offered by offline travel agents.

History of Global Distribution System

The GDS journey began in the 1960s when American Airlines, seeking to revolutionize the paper-based booking system, partnered with IBM to develop an electronic reservation system. This innovation paved the way for more efficient booking processes and improved accessibility. The hospitality sector soon followed suit, with Westin becoming the first company to adopt an electronic booking system in 1970. By 1992, the landscape had shifted significantly with the merging of electronic booking systems from Europe and North America, marking the official birth of the Global Distribution System as we know it today.

Unveiling the Key Components of a GDS

GDS platforms offer a suite of functionalities that empower both travel suppliers and bookers. Here’s a closer look at some of the core components:

  • Extensive Inventory & Content Management: GDS platforms provide a vast and ever-growing inventory of travel options from airlines and hotels around the globe. Travel suppliers can leverage this platform to showcase their services and content (descriptions, images, etc.) to a wide audience of travel bookers.
  • Seamless Booking Engine: Travel bookers can effortlessly compare prices, check availability, and make real-time reservations for flights, hotels, car rentals, and much more. This streamlines the booking process and saves valuable time.
  • Global Connectivity: GDS acts as a bridge, connecting travel suppliers across the world with travel bookers, ensuring a smooth and efficient booking experience regardless of location.
  • Integration with External Systems: Many GDS platforms integrate seamlessly with online travel booking platforms, further expanding booking and management options for travel professionals.
  • Data-Driven Insights: GDS platforms provide comprehensive reporting and analytics tools, allowing travel bookers to gain valuable insights into travel data (e.g., booking trends, and pricing patterns). This empowers them to make informed decisions and optimize their booking strategies.
global distribution system, global distribution systems

How Does a GDS Work?

The GDS operates through a centralized computerized platform that facilitates hotel, flight, and tour bookings. Travel and hospitality suppliers pay a fee to utilize the GDS reservation system, gaining access to a vast network of potential customers. This fee is often justified by the extensive exposure their services receive through the GDS network, reaching countless travel agencies and individual bookers.

For Travel Bookers:

  • GDS connects travel agencies to various travel inventories by establishing a live link between vendors for booking flights and accommodation.
  • Dynamic pricing and real-time updates ensure bookings reflect the latest availability and pricing information.
  • GDS displays relevant details to travel bookers, facilitating informed booking decisions. Once a booking is confirmed, the GDS updates the supplier’s system and removes the product from the inventory.

The Benefits of GDS: A Win-Win for All

The Global Distribution System offers a multitude of benefits for both travel bookers and travel service providers in the hospitality industry.

For Travel Bookers:

  • Effortless Efficiency: Save significant time by completing the entire booking process (flights, hotels, etc.) through a single platform.
  • Eliminate Manual Contact: No need to contact individual suppliers for quotes or availability checks.
  • Enhanced Visibility: Gain access to a vast database of travel options, ensuring you find the best deals for your clients.
  • Level Playing Field: GDS helps smaller travel agencies compete with larger chains by providing access to the same extensive inventory.
  • Centralized Management: Manage bookings for multiple clients efficiently with a single platform.
  • Reduced Complexity: Eliminate the need for complex contracts with individual vendors.

For Travel Suppliers (Airlines, Hotels, etc.):

  • Global Reach: Gain exposure to a vast network of potential customers through connections with numerous travel agencies.
  • Increased Visibility: Showcase your services and offerings to a wider audience, boosting brand awareness and attracting new clientele.
  • Streamlined Operations: Manage bookings and inventory centrally through the GDS platform, improving operational efficiency.
  • Targeted Marketing: Reach specific traveler segments (business travelers, leisure travelers, etc.) through targeted marketing strategies within the GDS network.
  • Real-Time Data Insights: Gain valuable insights into booking trends and customer preferences through GDS data analytics, allowing you to tailor your offerings and pricing strategies more effectively.
global distribution system

Future of Global Distribution System

The world of travel is constantly evolving, and GDS platforms are keeping pace by embracing cutting-edge technologies. Here are some exciting trends shaping the future of GDS:

  • Hyper-Personalization: Imagine travel booking experiences tailored to individual preferences. GDS platforms are integrating artificial intelligence (AI) to personalize search results, suggest itineraries based on past travel behavior, and offer dynamic recommendations.
  • Enhanced User Experience: GDS platforms are continually improving user interfaces to be more intuitive and user-friendly. Expect mobile-optimized experiences, voice search capabilities, and chatbots for seamless on-the-go booking.
  • New Distribution Capability (NDC): This emerging standard aims to enhance communication between airlines and travel retailers, enabling airlines to offer more customized fares and ancillary services through the GDS platform.
  • Blockchain Integration: The potential for blockchain technology to improve data security, streamline transactions, and enhance transparency within the GDS network is being explored.

Your Gateway to a Seamless Travel Experience

In today’s dynamic travel landscape, GDS platforms play a crucial role in connecting travel suppliers with travel bookers, facilitating efficient bookings, and unlocking a world of travel possibilities. Whether you’re a seasoned travel professional or a passionate globetrotter, GDS can empower you to navigate the world with confidence and create unforgettable travel experiences.

How You Can Get Started?

The amazing workers at Systrix IT Solution can help with generating a travel booking engine for customers to use. Global Distribution System integration offers a wide range of data solutions to help airlines to serve their customers efficiently and market themselves. It is a productive and cost-effective distribution channel that causes carriers to expand their market reach to leisure and corporate travel.

Systrix offers a user-friendly and comprehensive GDS solution designed to streamline your travel booking processes and maximize your reach. Contact us today. to learn more about how our GDS can help you achieve your travel goals!

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