Yeah! Good day, everyone. So, this is Lecture Vlog. Kasama ang inyong lingkod, nasa Sir Jade.
So, okay. So, our topic for today, this is all about... Errline Global Distribution System, which is for the subject of Applied Business Tools and Technologies. So, are you ready? Okay.
One eternity later. Okay, so our lecture for today, it's all about Errline Global Distribution System. So, as a learning objective, so at the end of this lesson, students must be able to of course in this lesson we need to define what is the meaning of global distribution system explain how gds works for travel agents and of course give example of booking facilitation done by an airline gds which is actually uh you need to read the module in applied business tools and technologies.
So, this last objective, this is the assignment for those who have a module because it is under the passenger name record. Yes. So, are you ready? What is global distribution system?
What is TDS? Or what is global distribution system? So if you have some any ideas or if you know the definition, so please comment below.
Okay, so please comment below here. When you talk about a global distribution system, it is a network system, computerized. Okay, which gives or which provides the different services in airlines, in hotel, car rental companies.
travel agencies. Okay, so originally it was set up for use for airline but later it got an extension to different travel services because before, this was only for airlines, this global distribution system. Okay, but which is started by the American airlines and then now this system allows users to purchase tickets from multiple different providers or airlines okay so by the way uh when you talk about uh gds there are different gds i'm going to discuss later okay and then um when you talk about gds as i told you uh it is owned or operated by different companies no with as a transaction.
So, meaning, there are different companies who are owned or operated the GDS in the world. And it has a transaction with the different travel agencies or travel industry worldwide, not only in the travel agency, in airlines, in car rentals, and, of course, in hotels. So, lahat yan. Lahat ng pinoprovide ng isang travel agency. Okay?
Yan ay... That's where Global Distribution System provides services. Okay.
So, another one when we talk about GDS, it's all about platform. Platform that centralizes services and provides travel-related transactions. So they cover everything from airline tickets, car rentals, and more. Okay? Now.
So the GDS mainly uses real-time inventory. Okay, so when I talk about real-time, simultaneously record, okay, such as what? Or you can check the number of hotel rooms, kung ilan yung mga available na hotel rooms sa isang hotel, kung ilan yung number ng flight available sa isang airline, and then malalaman mo din kung ilan yung car available.
car available in car rental or rental car. So that's how GDS works. GDS records the available rooms, available flights, and then of course available car rental. I mean the red car.
Okay? So of course, normally and traditionally, different travel agencies rely on GDS because In GDS, it provides different travel services. It's already there.
Okay? All the travel agencies need to find an end consumer or end users. It's already there. For example, airline ticket, hotel rooms, rental car, and so on.
Or even cruise line, it's already there, actually. So, here. A GDS can link services, rates, and bookings, consolidating products, and services across all three travel sectors.
Airline, hotel, and car rentals. So, that's it. So, the GDS, I told you, you can check. Example, if you're going to utilize the GDS, you can check airline seats. You can check hotel available.
or rent and then you can book and reserve. So you can reserve and book. Okay, so that's how GDS works. You can see the rates there and then if it's okay with your customer, because if you're a travel agency, if it's okay with your customer, you can book or you can reserve for them.
So you can reserve or book them. okay so in these three sectors or three sectors of travel and tourism so here is the diagram so so normally uh the travel agency of course the travelers travel agency and then uh here she's utilizing the gds the gds platform and then they take what is needed. Okay?
What the traveler needs, if he needs a car, to visit a place, or available flight, and available rooms. Now, GDS will provide that. You can see that on the GDS platform.
Okay? In a specific destination. Now, after you see it, So, it will be reserved or booked and then it will be provided to the traveler.
Okay, so it is different from computer reservation system which is a reservation used by the service provider also known as vendors. So normally, GDS is a group of computer reservation system because GDS has a wide network globally. And then, the computer reservation system from one specific airline, hotel, or car rental, and then it connects to the GDS or the services that are called vendors.
The primary customers of GDS are travel agents, both online and office-based. Okay? To make reservation bars and reservation systems run by the vendors.
Okay? So, the service providers are the suppliers and vendors. And then, the different suppliers like hotels, airlines, and car rentals are the service providers of tourism.
So, they have their own CRS, Computer Reservation System, which connects to the GDS or Global Distribution System. So that, So that they can connect wherever you are far away. For example, I'm from a hotel in Argentina.
The hotel is in Argentina, right? And the client is from the Philippines. So that has a CRS.
That CRS will connect to GDS. That's part of GDS. So now, the travel agency in the Philippines, if the hotel is in Argentina, for example, is going to stay in Argentina.
So, you can see it on the platform if it's available in Argentina. So, CRS will be provided by Argentina. So, we can see that on the GDS platform. So, it can be both online and of course, office-based.
Because travel agencies have online travel agencies. So, online travel agency will be provided by which one? Once they open an online travel agency, so of course, their system that they use is GDS.
so they are also connected there but in office bay, normally this is a what? this is by telephone reservation or telephone booking reservation or by walk-in so office bay, you will see that they will really explain to you based on the platform what are the available hotels that you will go to okay so GDS holds no inventory The inventory is held on the vendor's reservation system itself. Okay, so now, of course, that inventory is not held by GDS.
It is held by the suppliers or vendors who provided the service. Of course, that is their own record. If you open it, your record is there. That's where you will know, normally, that's where you are doing the transaction. GDS helps you access the available room store.
That's the benefit of GDS. That's why it's called Global Distribution System. GDS will immediately distribute. A GDS system will have real-time link to the vendor's database. So, GDS has a record but it's based on the inventory of the vendors.
Based on their database. For example, when a travel agency requests a reservation on the service of a particular airline company, the GDS system routes the request to the operated airline computer reservation system. So, that's what I'm telling you. So, the GDS itself will request.
from the CRS of the airline to show it to the travel agency the transaction or the PNR the passenger name record okay here, as I said this is the right diagram for example, this is the customer below they are going to book or reserve in the different intermediaries which is the travel agency and then this travel agency has a platform the GDS so there are the different platforms like Amadeus, Galileo Sabre and WorldSpan okay and then so this GDS has a connection with the different CRS of the different travel service provider such as airline, hotel and car rental system so there are the inventory. May mga kanya-kanyang record yan. Okay? So, yan yung base doon sa CRS nila. So, it connects yan doon sa GDS.
And then, the GDS, they are going to distribute to the different intermediaries or the travel agencies para maiprovide sa mga customers. Okay. So, the GDS, ayan.
So GDS is composed of the different CRS, I told you earlier, CRS of hotels, CRS of airlines, CRS of other service providers and so on. So now, it's placed in a GDS zone, in a platform, different platforms of GDS. Okay. And then it gives to the travel agency. So it will be distributed to the travel agency.
So, it is called business to business model. And then, travel agency to customer, business to consumer. And then, of course, there are B2B to B, and then B2B to C.
So, those are the models. Okay? So, when we talk about flight preservation system with pictures like one-way roundtrip multi-destinations all together. So yung mga different airlines na yan, mga different airlines, they have their own Computer reservation system or CRS such as example Philippine Airlines may CRS yan.
Yung American Airlines may CRS sila. Tate Pacific, Malaysian Airlines, Tireways, lahat yan may CRS which connects to the different GDS. And then, maa-access na yan.
Maa-access na yan ng mga different travel agencies around the world. Basta meron silang platform. Meron silang ganitong platform.
So that they can know the flight availability in an airline. No matter how far it is. For example, if the travel agency is from the Philippines, and you want to know the available flights going to Argentina, going to France, going to...
No matter how far it is, as long as there's a GPS, because it connects to the whole world. To the world's airline. Okay? So it's easy. to connect with the different airlines.
So that's the help of GDS agents. So how GDS works for travel agents? So again, the travel agents are the primary target for today's GDS network.
So those travel agencies are the main target of GDS because some of the customers rely to the service. of the travel agency. Mapa online man yan or mapa office-based. Okay? Of course, yung GDS nakakonek na yan sa mga service provider.
And of course, itong mga service provider na ito, may mga CRS na yan nakakonek lahat ng mga nila, mga available services nila doon na sa CRS na nakakonek sa GDS. Para it's easy to access ng mga travel agency. that has this kind of platform of course, as I said, Adjudice delivers data in real time so agents can determine which particular flight, accommodation, other services best suit their client needs in seconds example, you need a hotel in this one in this destination, for example in France okay, so example, if on this day on this date So you can see there what are the available dates, rooms, and rates on that day. You can also see the flights.
You can see everything there. So it's real time. GDS has expanded to other travel services.
Expanded it to the inter-cabination flight. car or hotel can be purchased on one platform. So, example, may, meron kang business meeting in the, in US, meron kang business meeting sa US.
So, kailangan mo ng airline. Syempre pagdating doon, kailangan mo ng kotse at kailangan mo ng hotel. So, all in one sa GDS platform, makikita mo na lang yun.
You can be, it can be purchased on one platform. So it eliminates the hassle of booking each component. So it's all in one ticket.
Right? It's all in one ticket. The ticket, the flight availability that you need, the car, and the hotel. It's all there.
It's all in one. So you can just show it in the samples when you're about to check in. You will be followed by a car rental or the driver of the car rental and then to the hotel. When you check in to a hotel.
You will show all of that because it's all in one. It's easy on a platform. All of the needs of a customer will be visible.
GDS also alerts agents in a limited time. sales, special rates, and promotional packages that further incentivize their use. Of course, since these GDS companies which connects to the day-per-day of all airlines, so they will know the promo that the airlines provide, it's easy. And all travel agency platforms, they will know first what are the special rates.
limited time sales, promotional packages of different airlines or hotels and car rentals. They are the first to know because they have the platforms. What are the major GDS?
These are the major GDS. Normally, there's Abacus which is under Sabre, Travelport, Worldspan, Galileo, and Amadeus. Which is this Galileo and Worldspan under Travelport and Amadeus.
Normally, Amadeus is the most used in the whole world. This is the most worldwide use. That's why a lot of travel agencies are using Enol.
Because it's easy to use. The Amadeus, then to the other GDS. So, those corporations partner with different GDS. Double S. GDS.
So, each system connects agents to their own set of participating vendors. So, those airlines, since they have a CRS, they are connecting or partnership and collaborate with the different GDS. Okay?
So, for easier access to the different travel agents around the world, for them to provide their services. For example, Sabrem, it can be used to book flights with American jet. Blue, Cathay Pacific, and China Air.
So I told you that American Airlines is one of the pioneers that had GDS, which is Sabre. Among the hosts of Major Airlines as well as hotel rooms from chains, like the Kimpton Hotel and Restaurant, which is under the Intercontinental Hotel Group and others. So Kimpton is under Sabre. So the hotel chains around the world are connected to GDS such as Sabre.
So here, this is KimTone, under Intercontinental Hotel Group. The Intercontinental Hotel Group is connected to Sabre. So we can say that this KimTone Hotel is well known around the world which is owned and organized by under the hotel chain of Intercontinental Hotel Group So, in the whole world, there are many of them Actually, there are some in Japan, Dubai, France, and so on and some parts of Asia and Europe and America This is Amadeus, I said it earlier Amadeus is the largest provider of travel services because all travel agencies, almost all of them are relying on in Amadeus platform because it connects to 490 airlines around the world.
490 airlines are the partners in Amadeus. And some of these are British Airways, Southwest, Qantas, Lufthansa and more. So as you can see in the picture of Amadeus, that's all that Amadeus offers.
There's airline, car rental, hotel, cruise na rin and then may tours mismo or holiday package which is all in one na pwede mong ma-enjoy okay so here as an additional na lang ito as the corporate landscape so keep shipping however some of the travel retailers or yung mga travel agency nagkatag sila ng deals with several different GDS simultaneously allowing certain aspects of their services to be accessed through multiple channel So that's why, like this one, Amadeus, this is where they rely on. Because this is the biggest of all GDS. So here, these are all the airlines that Amadeus scoped.
So almost 121 international airlines around the world are contracted. And the other ones are the regional ones and others. So these are the regional GDS.
Aside from Sabre, Amadeus, and then the travel port, there are regional GDS. Like in Asia, there's one in Japan. There is also SITA and INFINI. They provide services to different service providers in Japan. And then the access is under the travel port for Japan.
And then the TOPA is in Korea. And then in Sabre Pacific, this is the old Pantecia. So that is called Pantecia before but it was acquired by Sabre. That's why it was called Sabre for all the Asia Pacific region to be able to provide service providers that are connected here in Sabre Pacific. Okay, so this is the other one.
So, that's it. The other Amadeus or the other GDS, I mean. The GDS, there are those that are connected to regional GDS. There.
Abacus, Infini, that's under what it says. Okay, that's Travelport, Access, and then so on. The others, those are the independent. GDS. So, Abacus is well known.
But, it was acquired by Sabre. Because this is the one that was used before Amadeus. Because when many people are using Amadeus, it's like in the business, Abacus is losing. That's why Sabre acquired it.
Sabre also worked for Habahus. So what are the different services of a travel agency? Normally, which is already discussed in travel agency and tour operation management.
So the normal services of a travel agency are car rentals, hotel hotels, and package tours. Cruise and ships and railways. So, that's it.
And then, these travel services, these travel services, it's easy to see it on the GDS platform. It's easy, right? That's the help. That's all a passenger needs in one destination.
That when he visits the destination, that's all. Even the railways, he has that. It's also connected to GDS. Because, you know, Railways may mga CRS na rin yan. Mga cruise ship.
Pati yung mga different tour operators. Yung mga tour operators around the world. Gumagawa na rin yan ng CRS.
Para malagay nila dun yung mga tour package na yan. At nakakonect na rin yan sa GDS. Satya's yung sa Amadeus nga. Pati yung mga hotels. And of course, yung mga car rentals.
And of course, mga local road transports. Meron na rin yung mga bus. Okay? Yung mga bus po. Yung mga tour bus.
yung mga bus for yung mga provincial bus. Meron na rin po. Connectado na rin yan sa kasi may mga CRS na yan eh. Okay? Or Expedia and other online booking agency considered GDS.
Kasi may mga ano po. Meron po tayong mga tinatawag na online booking agency or yun yung parang online travel agency din. Now, which is na dun yung mga tour package nila and then may mga flight availability and so on.
Holiday packages are all there. So, is that considered GDS? So, this is Expedia. Actually, when I make a tour package, when it's international, I use Expedia.
Because it's easy. Then, you'll put a commission or an additional commission or by requesting the contracted rates and published rates in Expedia. That will be provided to you or you can just add commissions to the price. Expedia is an online travel agency.
I told you that online travel agencies use GDS. Of course, this GDS is already connected to all service providers. Meaning, even the tour packages, tour package around the world.
It's in GDS that Expedia uses and sells it to customers or to users of Expedia. Because customers don't have accessibility to Amadeus or to Sabre because it's an expensive platform. It's expensive because you're not a travel agent. So you can't use it.
Even with the internet, you can't access it. because it's a system that you install on a computer it's a computerized system so meaning this GDS provides services to Expedia or online travel agencies these online travel agencies show their websites and you can book your... travel related deeds such as hotels, airlines, car rentals, or holiday package. So when you search for a flight hotel or car rental on Expedia, many of the options that surface come from a GDS like Sabres, as I told you. I told you, right?
So those information, you saw on Expedia. flights, hotels, or even a car rental. Sabre provides this to service providers, to different CRS service providers that are connected to GDS.
And this is distributed to Expedia, which is distributed to a client or a customer of Expedia. So the GDS is then responsible for facilitating the transition between the vendors such as American Airline and the user cow. Okay?
So this is really one of the most computerized intermediaries between the service providers and then the users. But this service will not be provided to the user if there is no travel agency. if there is no travel agency that utilizes this system so you need to be close to the customer to the travel agency or online travel agency so you can know the available flights Normally, the users are already approaching the website of the airlines and that's where they book. But there are other services in GDS like tour package. So, wherever you look at the tour package, you won't know the different tour operators around the world.
So, you will approach the online travel agency such as Expedia. Expedia is where you will see the tour package which is provided by the GDS. Getting into an agreement with the GDS, let's an auto-like expedient tap into massive inventory in one fell swoop.
So this is just one. So before and after GDS. So before, that's the day when there were no GDSs.
Mano a mano ang travel agency. Example ako. Travel agent ako. Mag-book ka, example, mag-book ka Argentina Airlines or Aerolíneas Argentina. Or I mean, you're going to book in Cate Pacific.
You're going to book in Philippine Airlines. You're going to book in the Cebu Pacific. So ako, as travel agency, pupunta ako sa Cebu Pacific.
Iche-check ko yung mga flight. So pupunta ako. I will go to the website of Aerolíneas Argentinas, I will go to the website of Cate Pacific, then I will complete that. So it's hard.
The process is slow. Because you will do it one by one, but it's a connecting pipe. Because you will connect that without any conflict. Right? It's slow.
Even if you say computerized, you will be able to do it one by one. But even if it's a connecting flight, if there's GDS, you can use GDS. For example, Manila to Lisbon in Portugal.
They are from Lisbon, Portugal. Just one. This is how it is.
This is a business class. Tapos ilan kayo? Lima? Tapos yun na.
Isang click. Makikita mo na lahat. Sa araw na yun. Kahit connecting pa yan.
Madali na lang yan. Connecting na yan. Tapos yun na.
Book na. That's easy. Kasi kung makikita nyo sa diagram, connectado na yung GDS sa lahat ng mga airline CRS around the world. And this GDS is also connected to each of them.
Like the regional GDS. For example, Sabre is connected to Abacus or Infini. So, for example, Infini, all the service providers in Jackman are connected to it.
So it's easy for you to access. services there. For example, this is Abacus, it's already connected to all service providers in Europe and America. So, it's easy to access.
It's easy because it's already connected to each other. So before, GDS travel agents required individual connections to airlines. Each airline used to be on different legacy systems. Searches and reservation system used to be made separately. That's what I said before.
But now, it's just one research. One search. One reservation. And that's it. The transaction of business is over.
So, it's hard now. It's easy now. So, what is passenger name record?
So, here, when you talk about passenger name record, it is a record in the database of a computer reservation system. that contains the itinerary for a passenger or a group passenger traveling together. So this CRS is the record or inventory of an airline.
Okay? So that's an airline. Okay? That's a record in their database. Those connecting flights, those are the ones with interline agreements.
So that you can reach your destination. That's why connecting flights are also possible. Because multiple airlines are required for one flight. For example, in every flight, there are several airlines to reach your destination.
That's called interline agreement. So now, the... You will know that transaction through the record that's called passenger name record.
You will know that record. It's recorded. Then you have a number. You will access that number.
And then, all your flight information is there. Including the number of airlines you used. That's passenger name, so that's it. Light information such as itinerary, that's also there. So problems before advent of GDS.
So travel agents require individual connections to airlines. As I told you, as I mentioned earlier, there's no GDS yet, so individual connections. So they will search for different airlines. For example, especially if connecting flights is hard, you will still have to connect. If former airlines use different mainframe system, travel agents had to use and be trained on different mainframe client.
So this is another thing. Because they have their own CRS. So it's not that you can utilize that CRS right away. You still need a partnership, you still need training.
How to use their system, how to use this airline's system, how to use this system, how to use this airline's system. Okay? So you need to learn their mainframe system.
So travel agents had to use NB train on different mainframe flights. You need to learn that before you can fly. So you need to have a partner.
You can't just approach. You can't use that CRS if you don't have a partnership with that airline. So you need to partner first. That's before.
Now it's easy because of the GDS. ...ability to perform direct searches across airline system. You can't do direct search, especially if the flights are far. It's hard, especially with those airlines that are not yet available, that are not yet offering services here in the Philippines.
That's the only access going to that destination. So it's very hard. It's hard to across that. So you need to partner with them from that distance.
You need to contact them. to give to your system and allow you to book. Combining airline inventories is a tedious process because inventory searches and research had to be performed individually, airline, CRS, separately.
It's really hard. CRS, separate it. It's not just one system.
It's a different system. Each airline has a system. So you will learn each one of them.
As you research and book, it's very hard. Back then, because of the GDS now, if you have a platform of GDS in a travel agency, for example, if you have a travel agency business, there is a platform of Amadeus or any GDS. It's easy to access no matter how far that airline is. because they are already connected there So, you just need to do one search one transaction search and you're good to go you'll know everything So, a typical airline portal So, this is the typical airline portal I already said that those different agents are also connected to GDS and then it connects to the different travel services But the passengers mostly they can't access through the GDS so that's why more on website sila okay yeah the GDS system exposed their uh services as xml adhering to the standard OTA schema kasi yung GDS na yan meron niyang extensive markup language yung xml so dun sa ano na yan yung parang ah yung platform di ba yung may platform tas dun ka makakapag book no dun ka makakapag book you can modify it. This involves XML. You can book the XML, modify the reservation, and you can cancel everything.
You will type it. Because it's like more on transaction codes. Transaction codes. This is adhering to the standard of OTA. When it's about OTA, it's open travel.
Travel Alliance game so The services could be integrated seamlessly in both ages as well as B2C users can update transactions in seconds, so ma update mo si consumers mo dahil Makikita mo yan doon sa GDS mo maano mo yan Ma re-retrieve mo, ma re-retrieve mo yung transaction because of the XML na ginagamit doon na part ng platform ni GDS So the OTA schema, when it comes to OTA schema, it's a non-profit organization which develops open data transmission specification for the electronic exchange of business information for the traveler, including but not limited to the use of XML. So members of the open travel lines include airlines, hotel companies, car rental companies, cruise, railway, and global distribution system, then distribution companies, solution providers, software developers, and consultants. So this OTA is a non-profit and then this OTA members GDS members.
Okay, so this OTA uses the extensive markup language that allows for the exchange of structured data as well as processing of instruction over the internet or other means of transport okay because um open uh travel alliance alliance okay open syntax and standard you know that takes communication down to the individual data element and then element level and allows two parties to communicate individual data element in any order and quantity that they wish game so meaning um because this is a technical because it has XML where that XML will be part of the platform of GDS and then of the CRS of the different service providers. Okay, so which travel agency GDS is best? So, it's only three main GDS dominate the market.
Travel port, Sabre and mostly yung talaga mas dominant sa lahat, yung Amadeus. So they're recommending single best is near impossible. So hit up their benefits and drawbacks depending on an agency's specific needs and the needs of the client. From frequently visited destinations and preferred hotel brands to preferred mode of travel. Kasi dyan din kami kita yung mga ano eh.
GDSs are distributed to different service providers because they distribute services to different travel agencies based on the needs of their clients. What more? Travel companies can terminate or begin new contracts with one or more GDSs at any time. These different travel companies have a contract with the GDS.
So, after the contract is completed, they need to renew the contract. Or if not, the contract can be terminated. So, they will no longer distribute the service to the specific service provider to the different travel agencies.
As an user, you really don't know to which GDS powers the online travel agency. You're using to search for flights. Most likely, the OTA is using because the other online travel agencies are not in the GDC anymore so they have also a member of the Open Travel Alliance so that Open Travel Alliance can provide XML to the online travel agencies so that will be a part of their booking Especially nowadays, travel agencies, which still don't have platforms, they don't have platforms yet, especially for the smaller travel agencies.
Not all travel agencies have this platform or this system. It's also expensive to install a system. So, it's very...
Some of them rely on different... online travel agency. It is still connected to different service providers.
Because some of them are members of Open Travel. So what's more important is the functionality of the online search engine or OTA and its ability to service the cheapest flight. Because when an online travel agency has to their booking engine or what I call online search engine. If they are more connected to that, because they are the only party, flights are cheaper. But if an online travel agency is connected to GDS, this GDS is a member of OTA that is connected to...
So the price is a bit higher. Because GDS can be an OTA or all airlines can be directly partnered with each other. So it depends.
So if you have some questions, please comment below. okay please comment below okay and i'm ready to answer those uh questions so that's all so thank you for watching uh lecture vlog with sir jade so thank you and don't forget to subscribe my channel jade fortis pulong barry so thank you have a nice day and stay safe everyone