Picture this: two hotel bookings come across your desk. One is from an online travel agent (OTA) – quick, straightforward, usually leisure-focused. The other? It’s routed through a Global Distribution System (GDS).
NB: This is an article from Staah
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Instantly, you know: there’s something about that GDS guest that signals higher value, longer stay potential, and a strong corporate link.
In this post, we’ll chat about why GDS bookings aren’t your everyday reservations, who these guests are, and why hoteliers should champion this channel to drive smarter revenue growth.
GDS isn’t nostalgia – it is still evolving
Some see GDS as a throwback to the travel industry’s past, but here’s the kicker – in 2024, it’s not just surviving; it’s gaining traction. Multiple industry forecasts from late 2024 show modest but steady growth, with GDS expanding around 1–2% annually in certain markets.
Why? Corporate and agency-managed travel is rising again. As unmanaged bookings start returning, there’s an opportunity for travel management companies (TMCs) to steer those bookings back into GDS-managed workflows. In simple terms: GDS is shifting with the market – not stagnating.
GDS vs OTA: more than just booking platforms
Here’s why GDS guests aren’t the same as OTA visitors:
1) Targeted corporate & agency reach
GDS acts like a hub for travel agents and large organisations. TMCs such as American Express are the engine behind many GDS bookings. For hoteliers, it means exposure to a high-value corporate audience that values policy, ease and reliability.
2) Boutique appeal meets big demand
Today’s business travellers crave memorable experiences, not cookie-cutter chain hotels. GDS opens boutique and independent properties to corporate travellers looking for something special, so even small hotels get their shot.
3) A seamless value chain
GDS isn’t just distribution- it’s orchestration. TMCs manage complex logistics, cross-border billing, commissions and agent workflows. For hotels, this means less guesswork, smoother transactions, and a streamlined value-sharing relationship.
Why GDS drives value-rich bookings?
Let’s break down what actually makes GDS bookings stand out. Corporate rates on GDS tend to be premium – or at least better yielding – than price-sensitive OTA deals, earning properties higher revenue per stay.
GDS bookings profile typically consists of business trips, consulting jobs, projects – they often mean longer bookings, giving hotels steady occupancy, extended stays and consistency. Another key GDS advantage is reliable retention – hotels that become GDS favourites often see repeat corporate and government bookings, creating dependable revenue pipelines. In the highly competitive and volatile hospitality market, GDS brings forecasting clarity. With structured bookings and fewer last-minute cancellations, predicting revenue becomes more accurate.
