The Advantages of Hotels Using a Global Distribution System (GDS)
Global distribution systems (GDS) have been a mainstay in the travel industry since travel agents began using the systems in the 1970s.
NB: This is an article from Staah
The main purpose of a global distribution system is to help travel agents search for hotel accommodations that fit a set of criteria.
It is a business-to-business system used by companies to stay on top of real-time data about the availability of travel arrangements, such as hotel rooms, to sell them to customers planning to travel. They create a common entry point for multiple travel agencies and travel agents to access accurate information about travel reservation availability and prices.
All hotel, flight, and car rental reservations are the consolidated by the Travel agent.
So what are the advantages of using a GDS? Glad you asked! Here are some ways that it makes a hoteliers’ job more effective and efficient.
A lot of travel agents who specialise in corporate travel use a GDS to get their clients booked quickly and efficiently.
1) Reach Market Segments Globally
The GDS can help hotel managers uncover new market segments to promote their products. In many cases, hotel operators discover through the GDS that there are traveler market segments interested in the products that they couldn’t previously reach. Leverage this channel’s distribution reach to be seen in a travel ecosystem that can get you lucrative corporate & group bookings. GDS Hotel bookings often result in multiple nights stays.
2) More Revenue
Hotels generate more revenue through a GDS because it places the hotel’s information, availability and rates in prominent locations where it is easy for travel agents to find. It helps hotels maximise their bookings during any given time period while also reaching powerful travel markets that are willing to spend money in order to book the best room available.
3) Growth Opportunities
More travel agents are relying on the GDS to find the best places for their clients to stay. Every year, more agents are realising that this is the best way to easily connect with hotel properties from around the world. Agent increase in use of GDS systems over the past 2 years:
USA- 30%, Latin America- 49% , Europe & Middle East-47%, APAC-64%.
4) Instant Updates
Through the GDS, the agents have access to live rates and availability, and they can easily book rooms for their clients. The number of bookings generated through a GDS generally outpaces that of direct bookings. While direct bookings are rising, and they do represent a significant amount of revenue for hotel operators, there are still more bookings being generated through the GDS than through hotel websites.
5) Grow The Lucrative Corporate Segment
As a major access point for travel agents and large companies looking to book travel, GDS is an important mix into larger properties’ distribution channels. Improve your visibility to the one of the most profitable guest segment – the business client – and see your revenue grow.
This little piece of technology saves time and will lead to greater exposure for your property. All the buzz surrounding GDS is worth looking in to. Check out the plethora of platforms available and see if one speaks to your property. After all, technology is here to make our lives easier – and what would be more welcome than a helping hand to boost your business?