If you’ve been in hospitality for a while, chances are you’ve heard hoteliers dismiss GDS with a wave of the hand: “That’s outdated.” Or “Only the big chains use it.”
NB: This is an article from Staah
Subscribe to our weekly newsletter and stay up to date
But here’s the reality: the Global Distribution System (GDS) may be decades old, but it’s far from obsolete. In fact, GDS continues to evolve, adapt to technology shifts, and carve out a critical role in modern distribution strategies.
Today, as corporate travel rebounds, consortia networks expand, and AI-driven booking tools emerge, GDS is more relevant than ever. Future-ready hotels – independents and groups alike – cannot afford to leave this channel out of their distribution mix.
Why GDS still matters in a direct-first world?
The hospitality industry has leaned heavily into a “direct-first” mindset over the past decade – and rightly so. Direct bookings often bring the highest profit margins, lower acquisition costs and valuable guest data. However, while driving direct traffic should remain a priority, it’s not the full picture.
Here’s the truth: direct and GDS are not competitors; they are complementary. Direct bookings capture leisure guests, returning customers and loyalty-driven stays. GDS, on the other hand, unlocks access to corporate travellers, government contracts and consortia programs that simply cannot be reached through direct marketing efforts.
Corporate travel managers are unlikely to book a five-night stay for their executives by trawling hotel websites one by one. They depend on the efficiency, compliance and negotiated rate visibility that only GDS platforms deliver. Similarly, global travel agencies sourcing hotels for business clients are not browsing OTAs; they’re booking through GDS.
In other words, hotels that focus exclusively on direct channels may build loyalty but risk leaving premium, high-value demand untapped. By keeping GDS in the distribution mix, hoteliers strike a balance, maximising profitability from direct bookings while securing volume, stability, and premium ADRs through GDS.
This is where future-focused hoteliers stand apart – recognising that long-term success doesn’t come from picking one channel over another, but from aligning each channel with the type of demand it’s best suited to serve.
GDS today: not what it used to be
The image of GDS as “old-school terminals and green text screens” couldn’t be further from today’s reality. Modern GDS platforms are integrated into sophisticated booking tools, powered by artificial intelligence (AI) and automation.
Travel management companies use them to compare rates instantly, corporations leverage them for policy compliance, and travel agents access them for accurate, real-time inventory. For hotels, this means visibility in front of decision-makers who book thousands of room nights annually.
