Understanding Global Distribution Systems in Travel

Aug 22, 2024

Lecture Vlog: Errline Global Distribution System

Introduction

  • Speaker: Sir Jade
  • Topic: Errline Global Distribution System (GDS)
  • Subject: Applied Business Tools and Technologies
  • Learning Objectives:
    • Define Global Distribution System
    • Explain how GDS works for travel agents
    • Provide examples of booking facilitation done by an airline GDS

What is a Global Distribution System (GDS)?

  • Definition:
    • A computerized network system providing services for:
      • Airlines
      • Hotels
      • Car rental companies
      • Travel agencies
  • History:
    • Initially set up for airlines, later expanded to other travel services
    • Originated by American Airlines
  • Functionality:
    • Allows users to purchase tickets from multiple providers

Types of GDS

  • Various GDS are operated by different companies globally
  • GDS connects travel agencies with multiple travel sectors:
    • Airlines
    • Hotels
    • Car rentals

How Does GDS Work?

  • Real-time Inventory Management:
    • GDS provides real-time records of available services
    • Examples include:
      • Available hotel rooms
      • Available flight seats
      • Available rental cars
  • GDS links services, rates, and bookings across travel sectors
    • Allows travel agents to check availability and make reservations

GDS vs. Computer Reservation System (CRS)

  • GDS is a network of various computer reservation systems (CRS)
  • GDS does not hold inventory; it provides access to vendor databases

GDS and Travel Agents

  • Primary customers of GDS are travel agents (both online and office-based)
  • GDS enables agents to quickly access services and rates that fit clients' needs
  • Examples of GDS platforms:
    • Amadeus
    • Galileo
    • Sabre
    • WorldSpan

Benefits of Using GDS

  • Centralizes multiple travel services into one platform
  • Facilitates quick booking of flights, hotels, car rentals, and more
  • Alerts agents about limited-time sales and promotional packages

Major GDS Providers

  • Amadeus:
    • Most widely used globally
    • Connects to 490 airlines
  • Sabre:
    • Originated with American Airlines
    • Partners with various airlines and hotel chains
  • Travelport:
    • Home to Galileo, Worldspan, and other GDS

Regional GDS

  • Examples include:
    • SITA (Japan)
    • INFINI (Japan)
    • TOPA (Korea)
    • Sabre Pacific

GDS Services Provided by Travel Agencies

  • Travel agencies offer:
    • Car rentals
    • Hotel bookings
    • Package tours
    • Cruise bookings
    • Railway tickets

Online Travel Agencies (OTAs)

  • Examples: Expedia, which utilizes GDS for inventory access
  • OTAs do not have direct access to GDS; they use XML for bookings

Passenger Name Record (PNR)

  • Definition: A record in the CRS containing travel itinerary information
  • Important for tracking interline agreements between airlines

Problems Before GDS

  • Individual connections to airlines required
  • Travel agents had to be trained on various mainframe systems
  • Tedious process of combining airline inventories

Conclusion

  • GDS revolutionized the travel industry by simplifying access to multiple services
  • Travel agencies now rely heavily on GDS for efficient service delivery

Questions

  • Encouragement for students to comment with questions

Closing

  • Thank you for attending and reminder to subscribe to Sir Jade's channel.