Facing visibility problems on the Global Distribution System (GDS) is not uncommon. You can change this by partnering with the right consortia and getting the most out of your GDS investment. Let’s explore.
What’s Consortia?
Consortia and Travel Management Companies (TMCs) can be groups of independent travel agencies that come together under one umbrella, Franchise groups or wholly owned chains. They often negotiate preferred rates with hotels for the benefits of their corporate clients.
That’s where the simplicity can end for a hotel if they do not have a good GDS Hosting partner.
Why You Need to Join Consortia and TMCs?
- Increased visibility for your property via exposure through the consortia’s marketing communications and rate plans in the GDS.
- Greater booking potential as travel agents first look at the selected hotels in the consortia programme. If the rates in that are more competitive than the best available rate (BAR) in the GDS, it’s their preferred option.
- Increased revenue via exposure to travel agents who may book at a higher average daily rate. Also, these typically are business travellers who are high spenders, and stay longer.
What Does Consortia Have to Do with GDS?
Consortia and TMCs are the major producers of Business Traveller GDS reservations globally.
Hotel Consortia/TMC rates are one of the rate plans on GDS but are the most important. Once you join a Consortia/TMC program your rates are loaded into the GDS by our team along with the other rates e.g. BAR.
When an agent searches for hotels with their Consortia/TMC code in the GDS, only hotels listed as part of the Consortia/TMC will show up. However, the rates themselves need to be negotiated between the Consortia/TMC and you.
In general, the order of rates for a company is:
- Negotiated company rates
- Consortia/TMC rates (starting with preferred hotels)
- Public rates / BAR
