A Guide to GDS: Unlocking Opportunities for Travel Agents
Global Distribution Systems (GDS) power transactions between travel service providers and travel agents. Initially developed in the 1960s by airline companies, GDSs have evolved to be a centralized platform with real-time access to airline tickets, hotel reservations, car rentals, and more.
The importance of GDS in the travel industry cannot be overstated. According to a Statista report, the global GDS market size is projected to grow from $15.1 billion in 2022 to $18.6 billion by 2029. Connecting travel agents and travel service providers improves operational efficiency and makes it so more service providers can scale their businesses.
Understanding Global Distribution Systems
What is a GDS?
A GDS is a network that enables transactions between travel industry service providers, such as airlines, hotels, and car rental companies, and travel agencies. At its core, a GDS acts as an intermediary that consolidates travel-related services and makes them accessible to travel agents. This system comprises several key components that work together: travel service providers who list their offerings, the GDS that aggregates this data, and travel agents who access the system to book services for their clients.
How a Global Distribution System Works
First, travel suppliers upload their data into the system, including flight schedules, room availability, and car rental options. The GDS then distributes this data to travel agents worldwide, providing them with real-time access to inventory. Integrating with various travel service providers helps travel agents make instant bookings, receive immediate confirmations, and efficiently manage reservations.
Major GDS Providers
A few leading GDS providers occupy a majority market share and have broad global reach. They are Amadeus, Sabre, and Travelport (which operates Galileo and Worldspan). Amadeus is known for its extensive network in Europe, while Sabre has a strong presence in North America. Travelport’s Galileo and Worldspan platforms have more expansive reach in various regions.
Benefits of Using GDS for Travel Agents
As the travel industry continues to evolve, GDS has become an indispensable asset for travel agents. Those that use GDS experience better efficiency and can offer their customers more options. Let’s explore the top five benefits.
Access to Comprehensive Travel Inventory
One of the primary benefits of GDS is the extensive database of travel options by tapping into a central reservation system. Travel agents can access flight schedules, hotel room availability, car rental options, and more, all in one place. This real-time access allows for instant travel booking capabilities. Travel agents have peace of mind that they’re offering the most current and comprehensive travel solutions to their clients.
For instance, a travel agent using GDS can quickly compare flights from multiple airlines for a client’s trip from New York to Tokyo. They can see real-time availability, prices, and schedules from carriers like United, JAL, ANA, and Delta all on one screen, so they can find the best combination of price and convenience.
Streamlined Booking Processes
GDS simplifies the booking process by integrating multiple services into a single workflow. Agents can book flights, hotels, and car rentals in one go, without moving to another system. They can book a client’s flight, reserve a hotel room, and arrange a car rental in a single transaction. The system automatically applies the correct booking codes and fare rules. Automated confirmation and ticketing processes reduce the chances of errors and speed up the transaction time.
Better Efficiency and Productivity
GDS reduces the need for manual data entry and minimizes booking errors. Without GDS, an agent might spend 30 minutes calling different airlines to check availability and prices for a multi-city trip. With GDS, the same task can be completed in just a few minutes.
That leads to much better efficiency. The speed and accuracy of GDS allow agents to handle more bookings in less time. Efficiency and productivity mean more opportunities for growth and long-term business success.
Increased Revenue Opportunities
With access to a wider range of travel services, travel agents can offer more up-sell and cross-sell opportunities to their clients. When booking a flight, the system might prompt the agent to offer travel insurance, seat upgrades, or lounge access. This can lead to increased revenue through commissions and additional service fees.
Improved Customer Service
Since travel agents have real-time access to data, they are better equipped to respond quickly to client inquiries and provide customized travel options. Faster responses and more personalized experiences improve customer satisfaction and drive customer loyalty.
Key Features of GDS
Inventory Management
GDS provides real-time access to global travel inventory, so travel agents can check availability and make bookings with the most up-to-date information. Travel agents get specific information about inventory from a GDS. For flights, for instance, they can see the carrier, times, costs, class of the seat, and aircraft type in one place.
Reservation and Booking Tools
These systems offer advanced search and filter options, so agents can find the best travel options. For example, an agent can search for flights with specific layover durations, preferred airlines, seat types, and price ranges all at once. Many systems also offer map-based hotel searches. Instant booking and confirmation features help streamline the entire reservation process.
Integrated Payment Solutions
GDS offers secure payment processing and support for multiple currencies and payment methods, including credit cards, debit cards, and sometimes even digital wallets. Many systems also offer split payments, which can be helpful for group bookings, and the ability to store payment information securely for repeat customers. This simplifies financial transactions for both agents and customers.
Data Analytics and Reporting
GDS comes with tools for detailed booking reports and performance metrics. Travel agents can analyze sales data and customer trends to make business decisions based on quantitative insights. They show booking patterns, popular destinations, average spending per customer, and seasonal trends. Some advanced systems offer predictive analytics, helping agents anticipate future travel trends or identify potential upsell opportunities.
Connectivity and Integration
API and XML integration capabilities ensure that GDS can seamlessly connect with other travel systems and software, such as CRM software, accounting systems, or custom-built agency tools.
Why You Might Want a GDS for Your Travel Business
Implementing a GDS in your travel business has a myriad of benefits, as outlined above. In addition, it can help you earn commissions on agent bookings, handle high-volume bookings, and work with corporate clients. For travel agents that are scaling or looking to grow in the future, using a GDS is a strategic move. You’ll be able to grow your business and adapt to changing market conditions without a significant increase in workload.
Travel agents can improve their business operations and boost their efficiency by choosing the right technology systems. As more digital systems enter the travel industry and customer expectations continue to increase, travel agents should consider how GDS can help them stand out from competitors and provide even better travel experiences for customers.
