A Global Distribution System (GDS), is a computerized network system that connects travel suppliers (i.e. hotels) with corporate travel agencies and corporations.
GDSs are typically used by travel agencies and travel management companies (TMCs) to facilitate bookings for corporations and business travelers. They are a great sales opportunity to attract business travelers.
GDSs do not hold their own inventory. Instead, the supply resides within the vendors/hotels reservation system (e.g. eviivo), which offers real-time availability and rates of rooms. The GDS then distributes this information to the travel agencies and corporations.
How Does GDS Work?
- GDS connects hotels with travel professionals – GDS systems link travel service providers (e.g. hotels) with professional consumers (e.g. travel agents), charging a fee for each reservation.
- Intermediary platform – GDS acts as a bridge between a hotel’s reservation system (e.g. eviivo) and an established network of demand partners (TMCs) to facilitate bookings.
- Authorized access – only users with IATA accreditation can access and use GDS services.
Three Major Legacy GDS Systems:
- Amadeus – used mainly by agencies in Europe, except for some countries where Galileo is more widespread.
- Sabre – mainly used by agencies in North and South America, England and Australia.
- Travelport – broad geographical coverage.
Target Users:
- Business customers – GDS are mainly used by corporations and business customers.
- Professional users – reservations are made primarily by professional users, with little time and a lot of work.
Supply and Demand:
- Supply: GDS primarily targets large and medium-sized hotel chains on an international scale.
- Demand: GDS is used by professional travel agents and large corporations for booking business travel (over 860,000 travel agencies and over 1,000 booking websites sue GDS worldwide!)
Hotel Criteria:
- Rating: 3-star and above.
- Size: 15 rooms or more.
- ADR: $150/€140/£120.
- Features: 24/7 reception, high-speed internet, business amenities.
- Location: Urban centre or within 50km of an airport.
Importance of GDS Sales to a Hotel’s Business:
- Steady revenue stream
- Corporate Contracts: Regular bookings from corporate clients provide a consistent and predictable revenue stream.
- Event Hosting: Business conferences, seminars, and workshops bring in substantial revenue.
- Higher Occupancy Rates
- Bulk Bookings: Companies often book multiple rooms for employees or events, ensuring higher occupancy rates.
- Off-Peak Utilisation: Business clients can fill rooms during off-peak seasons and weekdays.
- Long-Term Relationships
- Loyalty and Repeat Business: Corporate clients often have recurring needs, leading to long-term partnerships.
- Word-of-Mouth Referrals: Satisfied B2B clients can refer other businesses, expanding the hotel’s client base.
- Enhanced Brand Reputation
- Prestigious Partnerships: Associating with well-known companies enhances the hotel’s brand image.
- Industry Recognition: Hosting significant business events can position the hotel as a premier venue in the industry.
- Diversified Revenue Streams
- Additional Services: B2B clients often utilize conference rooms, catering, and other hotel services.
- Package Deals: Opportunities to create attractive packages combining accommodation, dining, and meeting facilities.
- Competitive Edge
- Tailored Solutions: Offering customized solutions for business clients sets the hotel apart from competitors.
- Market Insights: Engaging with various industries provides insights into market trends and demands.
Connect to GDS With eviivo:
We connect to GDS via Hotelnet. This two-way integration enables eviivo customers access to all three major GDS networks, Sabre, Amadeus and Travelport. Hotelnet reduce costs too by running on a commission-by-commission model, eliminating any fixed and transaction fees.