What is the Global Distribution System? How it benefits your Hotel?
The Global Distribution System has been used in the market for decades.
With the rise of Online Travel Agencies, the popularity of GDS reduced.
But GDS implemented some changes in them to gain its position back in the market.
They realise to match the user expectations they have to implement changes like making it more user-friendly.
And more practical for travel and business agents to match the needs of the industry.
As a result, many are still favouring GDS which is clearly evident from its statistics (i.e., 90% of corporate travellers rely on it for hotel bookings.)
Most hotels see a 50 per cent rise in onsite spending from visitors who visit via GDS.
Because of its range of global offers, ease of use when booking more than one type of travel.
Further, the benefits they receive while using the system, travel advisors favour GDS.
In this first, we will under GDS and some of its major types. Then, we will understand why it is beneficial for your hotel to adopt it
Global Distribution System
A global distribution system (GDS) is a company-owned or managed computerised network system.
It allows transactions between service providers in the travel industry, specifically airlines, hotels, car rental firms, and travel agencies.
If your hotel is facing a problem in attracting guests, then you can sign-up the Global Distribution System(GDS).
A large number of travel agents on behalf of businesses use the Global Distribution System to book hotels, flights, destination activities.
It is the number one way to advertise your hotel globally on corporate travel market.
Major Global Distribution Systems
Although there is a number of Global Distribution Systems in the market.
For instance, Amadeus, Sabre, Galileo, Travelport, Worldspan, etc.
Travel agents or tour operators must use Global Distribution System because it helps them to grow their volume of transactions.
Moreover, GDS is the most important distribution channel for hotels, airlines, etc.
In this blog, I have only given a description of three major Global Distribution System.
Amadeus
It is the leading and most common Global Distribution System. It’s operating from more than 3 decades.
It builds solutions to help hotels and other travel agencies to improve their hotel business and run smoothly.
Amadeus GDS helps deliver the services in order to be able to get the specified results from the customers.
Its API integration gives the most effective search result. Thus, provide better services to the portal.
Sabre
Sabre is a data-driven system and one of the popular technology to grow the business of hotel, airlines.
It is a leader for online travel agencies, revenue management, mobile itinerary tool and many more.
The global business to business travel marketplace of Sabre Travel Network consists primarily of the Global Distribution Systems.
And a wide range of applications that integrate with GDS.
It helps airlines, hotel and other distribution channels to expand their reach and an additional bonus is, it is cost-effective.
Galileo
It developed in 1987 by nine European airlines.
Hotel rooms, plane tickets, train tickets, cruises and car rentals can be booked using Galileo.
The primary advantage of the Galileo GDS system for hotel owners is the ability to distribute hotel rooms to travel agencies globally.
It is achieved by offering 24 hours live access to inventories and its information.
Thus, travel agents can easily book rooms at a hotel for customers.
How does Global Distribution System work?
Live prices and availability are transmitted from the property management system ( PMS) of a hotel directly.
From a channel manager to the Global Distribution System and online booking websites.
The channel manager promptly eliminates inventory across all channels, including the hotel’s website.
As soon as a reservation is made on the Global Distribution System or an online booking website.
And automatically returns the reservation information back to the property management system or central reservation system ( CRS).
Benefits of the Global Distribution System
- Generally, the amount of bookings generated by a GDS exceeds that of direct bookings.
- While direct bookings are growings, GDS produces more bookings than hotel websites.
- Revenues are high in number because Global Distribution System places the information, rates, dates available, etc. of a hotel in a place, which travel agents can easily locate.
- Global Distribution System reaches a large number of the market as one GDS is connected through B2B, B2C, B2E and B2B2C markets.
- It helps hoteliers uncovers the new market segments. Additionally, it draws the attention of foreign travellers.
- You can use it to specifically advertise the new promotional post, exclusive deals and discounts to travel agencies.
- You have to incur the initial cost in the set-up of the GDS, but you can save your money from incurring additional marketing costs.
- Because more travel agents are aware of your hotel.
- Reduction in manual task and saving of time is possible as GDS seamlessly updates information in real-time.
- It alleviates the burden from hotel staff by instantly accessing to booking online.
- It is possible because many distribution systems integrate with the property management system that manages daily operations.
- There are opportunities for growth because to find the place for their customers to stay, travel agents depend on the GDS. The agents find it easy to connect with hotel properties.
- GDS capture real-time data which enables to provide an outstanding glimpse of what’s happening on a day to day basis.
- It is easier to learn, hence less complicated and time-consuming for new users who don’t know about MS-DOS.
- Use of Graphic User Interface( GUIs), present GTAs data in a more visually appealing way.
- For instance- more use of maps and image galleries that help agents to sell the property.
Conclusion
From the above, we can understand that the Global Distribution System available for hotel reservations make the booking process easier.
Further customers, especially business travellers find it much more efficient because of its global offerings.
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If you want to learn about the functionality of QloApps then you can visit this link: QLO Reservation System – Free Open-Source Hotel Booking & Reservation System.
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