Three letters which have remained something of a mystery for many hoteliers: ‘GDS’.
NB: This is an article from innQuest
They stand for ‘Global Distribution System’, which is a huge network dedicated to providing travel industry professionals with a wide choice of hotels and travel packages.
Until very recently, the GDS has quite rightly been the domain of large hotels and big chains. We say ‘quite rightly’ because it was cumbersome, expensive and required an inordinate amount of someone’s time if it was to be used effectively.
Thankfully, things have changed. Thanks to PMS platforms like roomMaster Anywhere finally making the GDS accessible and manageable for smaller operators, everyone can benefit from this brilliant guest finder tool. So without further ado, here’s a quick GDS guide for hotels.
So… how does the GDS work?
There are countless travel industry professionals out there whose responsibility it is to find their clients the best possible hotel rates and travel arrangements.
These agents use tools like the GDS to make their lives easier and their clients happier. And guess what – if your hotel’s rates and availability can be found on the GDS, you’re in with a shout of winning plenty of new business.
By connecting your PMS and channel manager to the GDS, you can advertise your hotel to this massive network and gain access to a market you simply won’t find on any OTA.
Should my independent hotel sign up to the GDS?
Not long ago, we’d have said “tread with caution” when asked this question, but not any more. The GDS is no longer a tool solely for the big boys of the industry.
The aforementioned travel agents are primed and motivated to find great room rates and decent hotels for their clients, and they could become some of your most loyal customers.
The GDS is brilliant for increasing brand awareness about your hotel, too. It contains market segments that may otherwise never have discovered your property, and the fees for making that happen are pretty reasonable when compared with the marketing budget black hole that is Google Adwords.
Not convinced? Here are 4 reasons you need the GDS!
Okay, the GDS does still have a bit of an image problem within the independent hotel market, and you probably need a little more to go on if you’re to spread your wings wider online.
So, here are four reasons the GDS should be in your hotel’s marketing plans:
- You’ll get more bookings. You want that, right? 2017 was a record year for bookings made via the GDS, and if you’re not on that network, you’re missing out.
- Your revenue will rise. More bookings = increased revenue. Simple. And, remember – if you’re worried about the profitability of those bookings due to commission fees, the GDS is more affordable than you might think, and there’s always a profit in a room sale if you price it right.
- You’ll discover new markets. We’ve mentioned this a few times but it bears repeating: the GDS puts your hotel in front of a brand new audience. New audiences open up so many opportunities for hotels to expand on their offering, widen their customer base and increase awareness of the brand.
- Travel agents will become some of your best friends. We all need friends in this industry, and with travel agents under significant pressure to find great hotels and reasonable room prices, the discovery of your property will put a great big smile on their face.
With over 100,000 travel websites, agents and portals out there, the GDS can’t be handled manually. Make sure you have a PMS and channel manager that will connect to the network and automate the delivery of rates, availability and confirmed bookings!