Understanding Global Distribution Systems in Travel Booking

What is a Global Distribution System (GDS)?

Ever wonder how travel agents seem to find the perfect flight or hotel outta nowhere? Well, chances are, they're using a Global Distribution System, or gds. Think of it as the travel industry's secret weapon.

• A gds is basically a massive database that pulls together all sorts of travel options – flights, hotels, rental cars – from tons of different suppliers. It's like one-stop shopping for travel pros.
• It's the go-to for travel management companies (tmcs) and online travel agencies (otas), giving them real-time access to prices and availability.
• And get this: it seriously streamlines the booking process. No more hopping between a million different websites – everything's in one place.

As explained by altexsoft.com, a gds acts as a computerized platform, serving as a crucial intermediary between travel resellers and service providers. This makes it way easier for travel agents to plan and book trips for their clients. Now, you might be thinking, "Isn't that what OTAs like Expedia do?" Not exactly. A gds is more for travel professionals, while otas are aimed right at us regular folks. We'll get into that distinction next!

A Brief History of GDS

Okay, so where did gds come from anyway? It wasn't like they just appeared overnight, right? The history is kinda interesting, actually.

• Back in the day, airlines were struggling to keep up with booking flights, which was a total mess of paper and phone calls. Can you imagine?
• Airlines like American Airlines stepped up and developed early computerized reservation systems – think of it as the proto-gds. Altexsoft.com points out that American Airlines actually created something called sabre, which gave them a huge edge by processing reservations super fast.
• Deregulation then happened in the late 70s which really shook things up, with crs systems evolving into the gds we know today.
• That's when some big players came onto the scene, you know, like sabre and amadeus.

So that's how GDS got started, from airline systems to global powerhouses. Next up, we'll see how they actually work!

How GDS Works: The Booking Flow

Ever booked a flight and wondered what really happens after you click "confirm"? Well, it's more than just magic, that's for sure.

• First off, when you search for a flight, the online platform sends all your details – dates, destinations, etc. – to the gds via something called an api. An api, or application programming interface, is essentially a set of rules that allows different software applications to communicate with each other. The gds then pings the airline's crs to see what's available.
• Then, the gds gathers all the info, from seat availability to prices, and throws it all together to create offers. Think of it as compiling a shopping list, but for flights, as altexsoft.com explains.
• Once you pick an offer and punch in your details (name, payment info), the website sends that to the gds. The gds double-checks if the offer's still good and then asks the airline's crs to make the booking.

The crs then spits out a pnr – Passenger Name Record – with a unique booking code. This pnr is a crucial record that contains all the details of a passenger's itinerary, from flight times to seat assignments and contact information, making it essential for managing bookings. The gds grabs this code and passes it back to the website, which shoots you that confirmation email. you know, the one you panic about not receiving for a full 10 minutes.

So, that's how your booking goes from a click to a confirmation. Next up, we'll see how airlines and gdss actually work together (or don't!).

The Key Players: Sabre, Amadeus, and Travelport

So, you're probably wondering who the big dogs are in the gds world, right? Well, let me tell you about sabre, amadeus, and travelport. These are the names you'll hear all the time.

• Sabre is kinda like the old guard, you know? It has a huge presence in North America and Asia. Plus, they offer tech solutions for airlines and travel agencies. They primarily generate revenue through transaction fees for bookings made through their platform and by offering technology services.
• Amadeus is big in Europe, Latin America, and Asia. They're known for their advanced tech and integration with major pms platforms. Their business model also relies heavily on transaction fees and providing technology solutions.
• Travelport operates galileo, worldspan and apollo. They've got a solid foothold in North America, Europe, and parts of the Middle East and Africa. Similar to the others, they make money from booking fees and technology services.

These gds platforms aren't just about flights, though. They also handle hotels, car rentals, and other travel services. Basically; they're trying to be the one-stop shop for all things travel.

Next up, we'll get into how these gds giants and airlines, like, work together.

The Airline Perspective: Challenges and Opportunities

Airlines aren't always thrilled with gdss, can you blame them? I mean, imagine paying someone every time they help you make a sale. It's a bit like that, but on a massive scale.

• One big issue for airlines is the high fees charged by gdss for each booking segment. Think of it like this: airlines are charged for pretty much every interaction, from ticketing to refunds, and it adds up quick, as altexsoft.com notes.
• Also, the underlying tech, often based on edifact (Electronic Data Interchange for Administration, Commerce and Transport – a standard for electronic data interchange), is kinda old school. This makes it difficult for airlines to offer rich content or be super flexible with pricing.
• Airlines also crave more control over their offers and wants direct access to customer data during the booking process.

It's like, they wanna know who's booking and what they're really after.

So, what's an airline to do? Well, many are pushing for new distribution capability (ndc), which is all about modernizing how airlines sell their stuff. This is why airlines are trying to make changes, like adding fees to bookings made through traditional gds systems.

But, hey, the gds isn't just gonna sit there. They're adapting, too. Next up, we'll dive into how travel agencies are dealing with these changes and what the future holds.

The Travel Agency Perspective: Benefits and Challenges

Do travel agencies still even use gdss? Turns out, yeah, they do, and for some pretty good reasons. It's not all sunshine and roses though, there are some definite challenges, too.

• One-Stop Shop: Travel agents get access to, like, everything through a gds. We're talking flights, hotels, that rental car you always regret, the whole nine yards. It's convenient, y'know?
• Different Flavors: Agencies can hook into a gds in a bunch of ways. Some still uses those old-school "green screen" terminals (whoa, right?), but most use fancy guis or even apis for connecting their own systems.
• Money Talks: Otas and tmcs are often sticking with gdss 'cause of the money. Incentives are a big deal, but also, their back-office systems are often built around the gds. Plus, change is hard, right? Adapting to new tech takes time and effort.

The cost of using a gds can vary quite a bit, often depending on the volume of bookings and the specific services an agency uses. Many agencies pay per transaction, while others might have subscription-based models. Training is also a significant factor; while some agencies have staff with years of gds experience, newer agents might need dedicated training on specific platforms and their functionalities, especially as new features and integrations are rolled out.

So, yeah, gdss are still kicking, even if they ain't perfect. What about the future though? Let's take a peek at that next!

The Future of GDS in Travel Booking

Okay, so what's the deal with gdss in the future? Are they gonna stick around or what? Honestly, it's a tricky question.

• Airline distribution is changing fast, with more folks booking directly online, as we've seen. This means gds platforms gotta adapt, or they risk becoming obsolete, which, let's be real, no one wants.
• GDS are trying to stay relevant by expanding their offerings beyond flights. Think hotels, cars, and even tours. They're basically trying to be a one-stop travel shop, even if they're not quite there yet.
• Airlines, though, are fighting back by investing in their own digital channels and pushing for things like ndc to get more control, as also mentioned earlier. It's like a tech arms race, and honestly, it's hard to say who will win.

So, will gdss disappear completely? Probably not. They've been around forever, and they're too ingrained in the industry to just vanish. However, they'll definitely need to keep evolving if they want to stay relevant. And as altexsoft.com points out, they will continue to adapt to meet changing industry demands. It's all about survival of the fittest, right?