Learn how a GDS system benefits your Hotel in various way in terms of revenue and efficiency & also know some of it's cons. Know what are the new solutions GDS is offering to problems and how it is adapting to the needs of guests and agents.

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2. A GDS connects travel agencies :
both traditional and online to
airlines, hotels, car rental
companies and other travel
service reservation systems. A
seamless connection between a
central reservation system and
the GDS allows agents to have
access to your hotel content 24
hours a day, which ensures that
information is up-to-date and
reliable.

3. You wouldn’t buy the cheapest
car seat on the market no matter
what the quality, so why would
you expect other products to be
any different?
High quality is often synonymous
with high price, which can be off-
putting to some, but some things
you don’t want to gamble with.

4. A global distribution system can be quite the investment for your growing business,
but it is worth the cost. A GDS will protect your property’s bottom line and connect
your listings to travel agents around the world.
A GDS may not be cheap, but the services included are far-reaching. Costs
that go into a GDS include :
# Travel agent commissions # Hotel switching fees # GDS pass through fees.
# Commission tracking fees # Credit card & bank clearance fees.
With all the combined technological costs and outside fees that GDS’s take care of,
they are an extremely good investment when you break down the cost.
Because GDS’s are so prominent, it has been difficult for airlines and
properties that don’t work with them to connect with a large segment of customers.
Business travelers typically use corporate travel agencies to book flights and
accommodations, so that segment of the market would be lost if your property is
not connected to a GDS.

5. Global distribution systems (GDS)
have been a mainstay in the
travel industry since travel agents
began using the systems in the
1970s. The technology allowed
agents to easily compare rates
and amenities on one, easy-to-
use interface. This connective
service links buyers with hotels,
airlines, and car rental services all
in one system.
Not only does this benefit the
travel services and the travel
agent, but the end-user as well.
Having the complete itinerary in
one place means easy access to
alterations and a no-fuss travel
day.

6. Packages - Properties can offer bundled packages that include a hotel stay, air travel
and other travel plans. This gives better rates to guests, which is always an attractive
selling point.
Marketing - If you want to gain better marketing exposure without shelling out for
additional marketing costs, investing in a GDS is a wise decision. The system places
your property in front of numerous clients without dipping into your marketing budget.
Audience - GDS also reap the benefit of reaching untapped segments for your
property. If you typically attract families, broaden your reach to include corporate
travelers as well. GDS are a great source for corporate travelers and many businesses
use travel agencies to book itineraries through GDS.
Reduced Manpower - A GDS is the trustworthy middleman that can seamlessly relay
information from point A to point B, so you don’t have to take hours out of your day to
do so.
Another perk that comes with a GDS is the ability to update product information in real
time. As rates change, managers can easily alter price points or make special offers.
Agents will immediately see these changes and will be able to suggest the new
opportunities to clients without skipping a beat.

7. There is always a negative side to
every positive.
A GDS can be an asset, but there
are many hotels that chose to seek
bookings through other means.
With the uncertainty of the travel
industry, many properties are
looking for ways to cut costs and
with a high ticket price, GDS’s are
often one of the first to go.
Some of the most common reasons
hotels chose to opt out of using a
GDS are:

8. Money - The price of GDS’s alone is a deterrent for many properties. As
a growing business, your funds may be better invested in other areas of
your property.
Priorities - Retaining customers is more important than bringing in new
ones. Making sure that guests are comfortable with clean rooms,
abundant amenities and a welcoming staff should be your first order of
business.
Industry stagnation - Despite their ability to connect agents with
properties, it is ineffective if neither party uses it. A HotelHub bookings
report showed that there was no growth in GDS hotel bookings in 2011,
while non-GDS bookings saw growth.
Declining audience - GDS mostly catches the corporate traveler
segment, but business travel growth is slowing. Businesses use travel
agencies to book hotels and air travel, which a GDS is good at catching.
But after tough economic times, a company would rather solicit one hotel
chain to gain leverage in negotiating lower rates.
Controversy- Many airlines have rallied against GDS’s, claiming that the
fees are unreasonable.

9. GDSs were originally created as automated
booking systems for airlines. Since its
conception, the GDS has gone through
many changes and has faced some serious
threats along the way. In response, GDS
firms have evolved through the setbacks and
refined their products accordingly.
GDS firms are constantly working toward
creating better, more practical solutions for
their customers.
As the industry becomes more collaborative
and more inclusive, so does the technology.
Some GDS firms are recognizing the need to
include non-GDS, independent hotels in their
searches in order to offer a better range of
choices.

10. At the start of 2013, GDS hotel bookings surpassed January 2012 rates by 7.9
percent, according to Pegasus data. While the rates leveled off in the following
months, there was still growth in the first-quarter of 2.4 percent, according to
Pegasus Solutions. In addition to the positive economic outlook, the technology
of GDS itself is proving to be a powerfully tool. With greater reach and
increased visibility, GDSs make the jobs of agents easier, and in an information-
based industry, ease of work is a high selling point.
The GDS will have many more obstacles to face in its evolution, but the future
looks bright for this inclusive booking software.
To know more about GDS, Cloud Technology and Hotel Technology you can read
our blog HERE.

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