Global Distribution Systems (GDS) in the Travel Industry

Overview

• Global Distribution Systems (GDS) have been used by airlines and travel agencies for over 30 years.
• They are essential for the functioning of the travel industry today.
• GDS connects suppliers (e.g., airlines, hotels) with distributors (e.g., travel agencies).

Function of a GDS

• Online Network: Connects companies within the travel industry.
  • Includes travel agencies, cruise lines, hotels, car rentals, and airlines.
• Content Management: Takes content from suppliers and distributes it to distributors.
  • E.g., Airlines provide reservation systems to keep track of inventory (seats booked/available).

Example: Airline and Travel Agency

• Airline as Supplier: Provides inventory access to GDS via a contract.
• Travel Agency as Distributor: Uses GDS to access airline inventory.
  • If a travel agent books a seat, GDS updates the airline's reservation system.

Illustration: Booking a Trip

• Scenario: Jean books a trip from Atlanta, Georgia to Cape Town, South Africa.
  • Needs a flight, hotel, and rental car.
• Travel Agent's Role: Uses GDS to access thousands of options for flights, hotels, and car rentals.
  • GDS filters options to provide the best set of travel choices.
• Booking Process: Travel agent uses GDS to book flights, reserve hotel, and rental car.

Importance of GDS

• Connectivity: Vital for the expanding travel industry.
• Scope: Allows suppliers to reach more travelers.
• Options for Travelers: Provides agencies with the ability to offer a wide range of travel options.

Summary

• GDS Overview: An online network connecting travel suppliers and distributors.
• Contracts with Suppliers: Allows access to supplier inventory.
• Access for Distributors: Enables thorough search and booking of travel options.
• Industry Reach: Enhances the ability of the travel industry to expand and connect globally.