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Category: Travel

Date: January 29, 2024

What is GDS? – A Simple Guide For New Travel Agencies

Many travel agents around the world are using the Global Distribution System (GDS) as their major booking channels. It is also responsible for the significant growth of the travel industry.

If you are brand new to the travel business, you will be probably wondering what a GDS is and why GDS is much important to develop travel agents website

In this blog, we are going to explore about GDS, its importance in the travel industry and what the future looks like for this primary reservation tool.

What is GDS?

Global Distribution System (GDS) is the brain of the travel industry. It is a computerized network system which provides real-time information to companies such as airlines, hotels, car rental and travel agencies. Each of these sectors uses GDS to view real-time inventory of services offered in the travel industry.

For example, using GDS, a travel agency can find the availability of hotel rooms, flight seats or cars on behalf of their clients and book through the same GDS. 

How Do Travel Companies Use Global Distribution System (GDS)?

Travel companies use GDS to find the best airline ticket, car rental, hotel rooms, etc. for their clients. Information is customized and by the travel companies based on the preferences and itinerary.

When a traveler requests information from a travel company, the agent will find the most accurate and cost-effective itinerary. Travel companies are charged every time they access the GDS or they can buy a particular software offered by the GDS on a yearly basis. Also, an average person can never access the GDS without the help of a travel agency or a vendor.

Evolution of Global Distribution System (GDS)

The airline industry created the first GDS in the 1960s to track flight schedules, availability and prices. In fact, the GDSs were actually among the first companies that aided B2B e-commerce in the world. They were used by the airline industry to automate the booking system , but, later travel agents were also given access.

These are some of the major GDS systems in the industry.

Apart from these famous GDS systems, there are other smaller regional GDS systems such as Travelsky , a state-owned company in China and; KIU System , a PSS and GDS used in Latin America.

What Are the Benefits of Using GDS?

GDS will be the most important channel of distribution for airlines, hotels and car rental companies. Here are some of the major benefits of using Global Distribution System (GDS).

• Effective in attracting international travelers
• 24/7 access to inventory
• Enables business models such as retail travel agency and OTA (Online Travel Agency)
• Offer consumers increased pricing transparency
• Travel agents can get a global platform with a strong market penetration
• Provide best rates to your customers which no other system can provide
• Place travel services to many clients without affecting your marketing budget

Frequently Asked Questions About GDS

1. how can i start using a global distribution system (gds).

To use a GDS, you have to be a professional travel agent. For that, you must have a proper industry ID such as an ARC (Airlines Reporting Corporation) or IATA (International Air Transport Association) number. Without this number, airline agencies will not know where to send your commission payments. Moreover, airline agencies will not allow unaccredited agents to issue tickets.

If you don’t want to get this certification, you can have a tie-up with an ARC or IATA host company who can book tickets on your behalf.

Some airlines will not allow you to issue tickets even if you have a full IATA license. To be on the safe side, before you sign for the GDS, make sure you talk to the particular airline to ensure if they will deal with you.

2. How much does it cost to use a GDS?

It depends on the specific service you want to use in the GDS. For example, if you want to use Amedeaus’s Flight booking software, they may sell it to you for $150-$160/year (contact the GDS provider to know the exact amount). The software will allow you to reserve tickets on any airlines.

3. Do I need a Global Distribution System (GDS)?

If you are a travel agent who falls under the below category, a GDS will be useful for you.

• A corporate travel agent who books on behalf of corporate clients or an individual working at a corporation who needs to book flight tickets for all their employees
• Complex itinerary agents who have steady clients with multiple travel plans
• High volume booking of air-only travel

If you are a leisure agent who doesn’t book air tickets multiple times in a day, you probably don’t need it.

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What is the future of gds in the travel industry.

The traditional role of GDS is changing and being challenged by the changes taking place in the travel industry. Many online travel websites and airlines are pushing and encouraging consumers to make bookings directly via their website. Some airlines are charging additional fees for tickets purchased via the GDS when compared to the pricing in their own website.

Some industry experts predict that GDS can turn into a direct corporate booking tool rather than a booking tool for travel companies.

For example, Southwest Airlines do not work with the GDS Company Worldspan; Sabre is used by American Airlines; PARS by USAir; TravelSky by Air China; and Worldspan by Delta. If you are an agent who uses WorldSpan, you cannot book with Southwest Airlines or you need to look for pricing directly on their website. Another newsworthy information is, agreements signed between airlines and GDS is on a renewal basis. Many in the travel industry are wondering if the airlines will renew their relationship with certain GDSs.

While changes will continue to impact the future growth of GDS, there will definitely be a role for them. Hopefully, they continue to evolve as they did from the old techniques in the 1950s.

We hope that you learned something new about the travel industry. Keep checking our blog section as we plan to further dismantle the ever-changing world of travel.

Do you have any questions? Feel free to reach our travel solution experts at ColorWhistle anytime. We are always happy to help.

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About the Author - Anjana

Anjana is a full-time Copywriter at ColorWhistle managing content-related projects. She writes about website technologies, digital marketing, and industries such as travel. Plus, she has an unhealthy addiction towards online marketing, watching crime shows, and chocolates.

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A GDS Primer: What is the GDS and Which Travel Agents Need It?

In short, the Global Distribution System (GDS) is a travel agent’s motherboard for booking airline tickets and other sorts of travel goodies (like hotel and car). So it might seem pretty odd for me to show up here and say that many travel agents don’t necessarily need it.

That’s right. If you are a leisure travel agent, there’s a huge whopping huge chance that you don’t need to use a GDS. If you want to become a corporate travel agent though? That's a whole different story. Much more on this later, but before we get there . . . a brief history of the GDS! 1

Before the Dawn of the GDS

It can be easy to confuse the GDS with a Central Reservation System or Computerized Reservation System (CRS). CRSs are automated inventory-tracking systems that were (originally) owned and run by individual vendors (like airlines, car companies and hotels).

American Airlines created the first CRS system in 1946. And while this helped automate inventory for vendors, travel agents did not have direct access to that inventory. Travel agents would need to call the airline’s booking center, who would then contact one of their CRS operators, then relay the results to the travel agent over the phone (literally, like playing telephone). It took a lot of people power to book a single airline ticket. Travelers booking their own ticket? Forget about it! 

Thanks to IBM, these CRS systems became progressively more sophisticated throughout the late 50s to the 70s. Simultaneously, travel agents became progressively more annoyed by all the hoops they had to jump through to book a ticket—they wanted it to be more automated on their end too.

Nowadays, GDSs function as an umbrella for many many CRS systems. It’s like a CRS motherboard. (In fact, many vendors outsource their CRS systems to a GDS.)

The GDS Today

The GDS started out as a distribution channel for many airline carriers and later expanded to carry inventory of hotels and car rentals. But for the purpose of our article, we’re focusing on the airline component of the GDS.

There are many GDS options, and each GDS system will has access to their own pool of carriers. The four largest GDSs are: Amadeus, Sabre, Travelport (which is the parent company of Apollo/Galileo and Worldspan).

Literally hundreds of airlines can be logged into a single GDS system, to which thousands upon thousands of travel agents globally have access. That’s the win win situation of the GDS . . . travel agents have access to zillions of different airline fares, and many airlines’ inventory is accessible to the zillions of travel agents who are booking flights for their many many clients.

The advantage for airlines is that they are spared some of the legwork of trying to market to individual consumers—and their product is in the hands of thousands of consumers through the collective pool of agents that book through the GDS.

The advantage to travel agents is that the GDS not only can show you many fares from multiple airlines, but it also offers a great depth of information about each flight in one place. The carrier, the times, the costs, the class of the seat, aircraft type and so much more. It’s a smorgasbord of options. So if you’re booking a high volume of tickets, it’s great to have access to every minutiae of information from multiple carriers in one go.

Simple, right? Just point and click and get your tickets. Nooooooo sireeeee. That could not be further from the truth.

Green Screen and GUI: The Evolution of the GDS

In today’s world, the GDSs have a bit of a split personality. There is the old school, traditional GDS commonly called “the green screen.” Then there’s the hip side of the GDSs, which people will call “point and click” or “GUI” (Graphical User Interface). Essentially, it’s a more intuitive and prettier looking version of the GDS.

But of course, it’s not that simple. Sigh.

1. The Green Screen: There’s No Such Thing as GDS for Dummies

Most of the time, when people are talking about the GDS, they are talking about the green screen. If an ad for a travel agency job says you need to know how to use Sabre, what they mean is you have to be able to navigate the green screen side of Sabre (not just use GUI).

Let me be blunt: unless you’re some kind of prodigy, the GDS green screens are not user friendly. Be afraid, be very afraid. It’s not like supplier portals and online travel booking sites where you can rifle through your choices, do a price comparison, and click on what you want. Voila. (Watch some videos and read up on what travel agents do and how they do it .)

Using a GDS is a technical skill (think computer coding), and to use it really well is an art. Having experimented with it a few times myself, I have serious respect for travel agents who are fluent in the language of a GDS.

Take a listen (or read the transcript) to our podcast with Karen Hurlbut, of Hurlbut Travel , as she describes working within the GDS and shares what she uses the GDS for, and what she books with consolidators. The answer may surprise you! 

To learn the GDS green screen takes intense training, and to become proficient takes tons of practice and constant use. That means daily use with a mentor (for at least 6 months to a year), not just booking a ticket for a client every few weeks. Even then, you still gotta keep using it on a regular basis to remain a GDS speed demon (think of being fluent in a language).

Here's another great listen (or read the transcript) with Lary Neron of Airfare Consultant . He did price management at WestJet and then left to start his own agency. His knowledge of how the GDS works and tips and tricks to booking is something every travel agent should listen to.

This, my friends, is why host agencies and travel agencies aren’t jumping up and down to teach you the GDS (if they even offer it). It’s hard. Here’s what a booking in an Amadeus green screen looks like:

Are you still awake? Whoa, right?! (FYI: An experienced GDS user will be able to do that at about 10,000x the speed in the video.)

2. GUI: A Brighter Future for the GDS?

The GUI is the point-and-click version of the GDS. You may have heard of options such as Sabre Red 360 and TravelPort+ . So why doesn’t everyone use it? Here’s the problem: At its current stage of development, even GUI users need to understand the language of the green screen. As Ann Waters, president of the $40M Conference & Travel agency and Apollo user said,

“It’s not inputting the information new agents have problems with, it’s interpreting what the GDS is sending back to the agent.”

—Ann Waters, President of Travel Leaders-Conference and Travel

Essentially, the GUI interface isn’t quite there yet . . . and developing this technology is reeeeeally expensive and comes with a lot of growing pain. Sure it’s got perks (like being easier on the eyes and allowing agents to book airline ancillaries) but here’s what happens: You type in that you want a ticket from JFK to LAX on [enter date] and click search. You think, “That was so easy, just like searching online. So intuitive! I’m definitely a natural at this.”

That is, until it spits back at you the cryptic type and command lines you see on the green screen GDS. What in the world?!? Yup. That’s the problem. While new agents can partially navigate the GDS with the GUI interface, the code that comes back still has important information like fare types and rules that the agents really needs to understand. So many agents, in the end, need to learn the green screen (and find it faster) regardless.

If they don’t know exactly what they’re doing . . .

Risks of Booking with the GDS

To book in the GDS, you must have an IATA/IATAN accreditation number , in addition to an ARC accreditation number if you’re located in the United States.

As a new agent, you can’t get these accreditation numbers because they require a lot of experience. So you come into the industry under a host agency ( more on what a host agency is and a list of host agencies ) and use their accreditation number instead.

And heck, your new host agency has a GDS! They’ll just give you that login information along with your Disney log in, right? Wrong. No freakin’ way. Because of the complexity of booking air tickets (or anything) with the GDS, there’s a huge margin for error. And these errors can cost a pretty penny. And this is to say nothing of fraud , which is another can of worms in the GDS world.

Enter travel agency debit memos . In short, debit memos are fines to travel agencies for making a mistake when booking with the GDS. Yes, even an itty bitty innocent mistake or typo. It may not seem like a biggie when you have one or two, but when you sell hundreds of tickets, these fines risk start adding up right quick. In 2015, there was a total of $530-capital-M-million-dollars issued to ticketing agencies.

This is why a host agency cannot afford to let a new agent use the GDS without rigorous training. It’s just too risky. At the end of the day, since the ARC accreditation number is assigned to the host, they will be the ones responsible to pay the big bucks to the carrier or carriers that issue the debit memos.

And the risk doesn’t even end there. When a host or travel agency uses the GDS, they must negotiate long, complicated and specialized contracts with their GDS provider. Somewhere in this contract, the agency commits to selling a certain amount of air segments. And if you miss your goals? Expect there to be financial penalties.

So even if you do have mad GDS skills, you may be better off going with a host agency's accreditation.

Do I Need the GDS?

The GDS does have a time and place! Here’s a few reasons why an agent might want/need to use the GDS:

• Corporate Travel Advisors: Corporate travel agents book a whole lot of air, so the GDS is pretty much a must for them. This can either be a travel agent who books on behalf of corporate clients, or an appointed individual at a corporation who has the capacity to book air for all their employees.
• Agents Booking Complex Itineraries: If your specialty is around the world tickets or you have a steady stream of clients with multi-stop air itineraries, the GDS will be a necessity. 
• High Volume Booking of Air-Only Travel: I’ll be honest, I’m not sure what other travel agents other than corporate agents book reeeally high volumes of air. It might be an advisor who focuses on booking air to a specific international destination. Who knows! But if that’s you, let me know what your niche is!!

If you fall into one of these categories, check out this article on how to become a corporate travel agent . Even if you don't want to sell corporate, it offers strategies to learn the GDS system. Essentially if you’re not booking airline tickets multiple times each working day and you were never trained in the GDS, you probably don’t need to use it. This includes most Leisure Agents.

One of the reasons that most leisure agents don’t need the GDS is because the air will be included in a vacation package by the tour operator, or you can book it with the cruise line and you don’t need to use the GDS.

If you’re only booking a few flights here and there, there are ways to nab tickets for your clients without having to labor through the GDS.

Booking Air Without the GDS

If the GDS doesn’t seem practical for your agency, and you have a client who wants an air-only reservation that’s not already included in a package you’re selling, here’s a few strategies:

• Use an Airline Consolidator: When you become a travel agent you will have access to airline consolidators. A consolidator is a wholesaler of international airfares that works with travel agencies (not the general public). You can either book net fares, published fares (the rate available to the general public), or commissionable fares. This article is a great resource that will provide more detailed information regarding the types of airline fares .
• Book air directly through through the airline's site and charge a service fee: Just remember to compensate yourself for your time . . . especially if the client is, errr, particular. Charging a service fee is one way to offset the cost of your valuable time .
• Ask clients to book their own air-only reservations: If it’s not worth your time, it’s not worth your time. 
• Use your host’s or consortium's online booking tools : Your host may have an online booking engine for air. Revelex is one example of these tools . . . they are user-friendly booking engines that are linked to the host’s GDS (so agents get the advantage of a host’s airline contracts in the GDS without having to learn the process). 
• Ticketing Desk: Some hosts have a ticketing desk service that can book flights on behalf of agents (see image below on how to find out if a host has a ticketing desk) . Usually there are applicable fees and certain service hours, so you'll want to ask about that. If your client is flying international, first or business class, always look into a ticketing desk at your host agency or a consolidator first to see if there are any commissions (rather than booking it on your own).

But . . . I’m Losing out on Airline Commissions! (No, you’re probably not)

Yes, airlines do have commissions. No, they are not as common as you think.

The simplest way to say this: If you’re booking domestic non-premium seats, forget about commissions. If you’re booking international air, especially first and business class, commissions are a possibility. A possibility. Not a certainty.

I won’t go into things here, but you can read more on travel agent commissions here (airlines and otherwise). But at the end of the day, for most leisure agents, it’s frankly not worth their time to learn the GDS.

In Closing/ Major Thank Yous

The GDS is no walk in the park! Do you use it? Do you wish you could? Are there other places where you book air-only reservations with your consortia or host agency? Please let us know in the comments (literally, we’re begging you)!!

Last but not least, thank you to Marc Casto, CEO and President of MVC Solutions, Ann Waters, President of Travel Leaders—Corporate and Events, Sandy Armstead and Christy Young, corporate agents at Safe Harbors Business Travel, a branch of Tzell Travel Group, and Jason Block, CEO & Managing Partner of WorldVia, a division of Tzell Travel Group. We would have floundered without their willingness to share their agencies' GDS experiences with us!

• Sources Travel Weekly , Wikipedia ,   ↩

About the Author

Mary Stein has been working as a writer and editor for Host Agency Reviews since 2016. She loves supporting travel advisors on their entrepreneurial journey and is inspired by their passion, tenacity, and creativity. Mary is also a mom, dog lover, fiction writer, hiker, and a Great British Bake Off superfan.

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What is a GDS (Global Distribution System)?

A Global Distribution System (GDS) is a central platform that enables travel agencies, online travel agencies, airlines, hotels, car rental companies and other service providers to distribute products and services efficiently. It serves as a one-stop shop for travel information and bookings, enabling seamless transactions and providing travelers with multiple options at competitive prices, underscoring its critical role in the modern travel industry.

How does a Global Distribution System work?

Here is a condensed description of how a GDS works:

• Integration : Service providers such as airlines, hotels and car rental companies integrate their inventory and pricing information into the GDS database.
• Access : Travel agents access the Global Distribution System through specialized software or web interfaces. They can search for available flights, hotel rooms, rental cars and other travel services based on specific criteria such as date, destination and budget.
• Reservation : Once a traveler selects a service, the travel agency or online travel agency makes the reservation directly through the GDS. The system then communicates with the service provider’s reservation system to confirm the booking and issue tickets or vouchers.
• Updates and changes : The GDS constantly updates availability and pricing information in real time to ensure that travel agents and travelers have access to the most up-to-date options. It also allows existing bookings to be changed or canceled if necessary.

Who uses a Global Distribution System?

Various companies in the travel industry rely on GDSs to help them operate:

• Travel Agencies : Both traditional brick-and-mortar travel agencies and online travel agencies use Global Distribution Systems to search and book travel on behalf of their clients.
• Airlines : The world’s major airlines distribute their flight inventory through GDSs, making it available to travel agents and travelers worldwide.
• Hotels : Hotel chains and individual properties use GDSs to distribute room availability and rates to travel agents and corporate clients.
• Car rental companies : Car rental companies integrate their fleets and rates into Global Distribution Systems, allowing travel agents to book cars for their clients.

What different GDSs are there?

There are several Global Distribution Systems (GDS) that are widely used in the travel and tourism industry. Here are some of the most popular:

• Amadeus : Amadeus is one of the largest GDSs and serves a wide range of travel suppliers worldwide, including airlines, hotels, car rental companies and tour operators.
• Sabre : Sabre is another leading GDS offering a full range of travel services. It is used by airlines, hotels, cruise lines, car rental companies and other travel service providers.
• Travelport : Travelport is a GDS provider that offers a range of solutions for the travel industry, including the Apollo, Galileo and Worldspan systems. It provides travel agencies with access to a wide range of travel services and also offers technology solutions for airlines, hotels and other travel suppliers.
• Worldspan : Worldspan is part of Travelport and provides a range of services to travel suppliers and travel agencies.
• ITA Software by Google : ITA Software is a technology company acquired by Google that provides travel search and booking solutions. It offers advanced tools for searching airfares, itineraries and availability.

These GDS systems offer similar services, but there are also differences in terms of functionalities, coverage, user interface and availability of additional services. Travel suppliers and travel agencies often choose the GDS that best suits their specific requirements.

Who finances a Global Distribution System?

Funding for a Global Distribution System typically involves a combination of revenue streams:

• Subscription fees : Travel agencies and OTAs pay subscription fees for access to the GDS platform and its services.
• Transaction fees : Service providers pay a commission or transaction fee for each booking made through the GDS.
• Additional services : Global Distribution System providers may offer additional services, such as marketing solutions, analytics and consulting, for which they charge fees.
• Advertising revenue : Some GDS platforms generate revenue through advertising partnerships with travel-related companies.

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What is Global Distribution System (GDS) – A Simple Guide

The Global Distribution System (GDS) is one of the primary booking channels used by many travel agencies worldwide. The travel business has grown significantly as a result of it. It is essential to know how to become a GDS travel agent and learn the tech to further your business. 

If you are just getting started in the travel industry, you probably have questions about what a GDS is and why creating a travel agent website is crucial.

This blog will discuss GDS, its role in the travel industry, and what the future holds for this key reservation tool.

What is a Global Distribution System?

The driving force behind the travel business is the Global Distribution System (GDS). It is a computerized network system that gives businesses like airlines, hotels, auto rentals, and travel agencies access to real-time information. To access the current inventory of services provided by the travel industry, each of these sectors employs GDS.

For instance, a travel agency can use GDS to check the availability of hotel rooms, airline seats, or vehicle rentals on behalf of its clients and make reservations using the same GDS.

How do travel companies use GDS?

The most incredible deals on airfare, rentals, cars, hotels and other travel-related items are found by travel agencies using GDS. Travel agencies tailor their information based on the customer’s tastes and trip plans.

A travel agency’s agent will locate the most precise and economic schedule when a customer wants information. Travel agencies can either purchase a specific piece of GDS software on an annual basis or pay a fee each time they use the GDS. In addition, a regular person can only use the GDS with a vendor or a travel agency’s assistance. Suggested Read:  Travel and Tourism Courses – TBO Academy

Evolution in GDS

The airline industry developed the first GDS in the 1960s to monitor flight availability, rates, and timetables. In reality, the GDSs were among the first organizations to support B2B e-commerce globally. The airline industry employed them to automate the reservation process, but later, access was also granted to travel agencies.

What are the benefits of using GDS in travel?

For airlines, hotels, and car rental businesses, GDS will be the most effective distribution channel. The following are a few of the main advantages of adopting GDS.

• Effective at enticing tourists from abroad
• Facilitates the use of business models like retail travel agencies and OTA’s (Online Travel Agency)
• Increased price transparency for customers
• With significant market penetration, travel agencies can get a worldwide platform.
• Offer your clients the best prices possible—rates that no other system can match.
• Distribute travel services to numerous customers without letting your marketing budget suffer

What is the future of GDS in the travel industry?

The developments occurring in the travel sector are challenging and modifying the conventional function of GDS. Airlines and other online travel agencies encourage and lure customers into making reservations through their websites. Compared to the cost on their own website, several airlines are adding extra charges for tickets bought through the GDS.

Some industry experts believe that GDS may evolve into a platform for direct corporate booking instead of a travel agency service.

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What are the major GDS systems?

The majority of the data from hotels, airlines, and other distributors is stored and processed by a few large global distribution systems.

• Amadeus : Amadeus is one of the largest GDS providers. It offers a wide range of services, including airline reservations, hotel bookings, car rentals, and more. It’s used by travel agents to search and book travel-related services for their clients.
• Sabre : Sabre is another major GDS provider. It offers technology solutions for airlines, hotels, travel agencies, and other travel-related businesses. Sabre’s platform helps travel agents access and book travel options for their customers.
• Galileo : Galileo was one of the original GDS providers and is now part of Travelport. It offers travel booking solutions for travel agencies and travel suppliers, including airlines, hotels, and car rental companies.
• Worldspan : Worldspan, also a part of Travelport, provides a GDS platform used by travel professionals to access and book travel services. It offers a range of services to travel agencies and travel suppliers.
• Apollo : Apollo is a GDS system primarily used by travel agencies and professionals in North America. It provides tools to search and book travel services such as flights, hotels, and car rentals.
• Pegasus : Pegasus Solutions is a provider of technology solutions for hotels and travel distribution. While it’s not one of the primary GDS providers like Amadeus, Sabre, or Travelport, it offers services related to hotel distribution and reservations.

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How do gds systems work.

GDS are programmed platforms that provide access to real time data of flights, hotels, and car rentals. It aggregates the pricing and inventory of the various suppliers for flights, hotels, and car rentals and list them using a tech-backed platform. The data is then used by online travel booking agents and platforms to shop for the best fit as per clients and customers requirements. Once a booking has been made, the system marks it as unavailable and update it on the system so that it can’t be sold again. This helps issues such as double booking for the same amenity. 

GDS in hotel Industry

In the hotel industry, Global Distribution Systems (GDS) play a crucial role in distributing hotel inventory and making it accessible to travel agents, online travel agencies (OTAs), and other travel professionals. GDS systems help hotels reach a wide audience of potential guests and streamline the booking process.

For instance, GDS company Worldspan do not work with Southwest Airlines; American Airlines uses Sabre as a GDS tool; PARD by USAir; Air China uses TravelSky; Delta uses Worldspan.Another newsworthy affair is that agreements are signed between airlines, and GDS is on renewal. Many people working in the travel sector are still determining if the airlines will continue using particular GDSs. So, if you are a travel agent who uses Worldspan, you cannot book Southwest Airlines, or you need to look for pricing on their website and book directly from their website.

We really hope you discover something new about the tourism sector. Check back often as we intend to dismantle the ever-shifting travel industry further. Suggested Read:  How to Become a Tour Operator

Global Distribution System GDS FAQ’s

1. what is global distribution system (gds).

A global distribution system, or GDS, is a computerised network that streamlines interactions between travel service providers and travel agencies (both online travel agents).

2. What are the four Global Distribution Systems?

There are currently four major GDS systems: 1. Amadeus 2. Galileo 3. Sabre 4. Worldspan

3. Who created GDS?

The first GDS was developed by the airline industry in the 1960s as a tool to monitor flight availability, rates, and timetables.

4. Who can use GDS?

GDS requires a training process to understand the user interface. Therefore, travel agents and bookers use GDS. However, several online booking platform use GDS and simplify the interface providing a better way to book for layman as well.

5. Which industries do GDS cater to? 

GDS is widely used by car rentals, flights and hotels suppliers

ravinder babbar

February 13, 2024

Business Guide , General , Travel Agent Guide

GDS guide , Global Distribution System , Simple Guide for GDS , What is GDS

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Transforming the Global Distribution System

What is gds in travel.

A Global Distribution System (GDS) is a computerized network system that facilitates transactions between travel service providers such as airlines , hotels , car rental companies and travel agencies . The GDS software offers a centralized platform for distributing travel-related content and plays a vital role in streamlining the travel booking process, connecting travel agencies with a diverse range of service providers, and ensuring a smooth flow of information and transactions within the travel ecosystem.   

The Sabre GDS 

The Sabre Global Distribution System is a comprehensive platform that revolutionized the travel industry. Sabre has since evolved into one of the world’s premier GDS software, powering the global travel industry through intelligent technology that connects people with experiences that matter. 

The Sabre GDS – including NDC – through a single channel.

Products to meet your needs

Meet the demands of modern travelers through bespoke experiences created from a global marketplace.

The evolution of the Sabre GDS  

Today, Sabre is much more than a GDS – we are a technology ecosystem that touches almost every stage of a traveler’s experience. As the industry transforms to embrace modern retailing , we are also evolving to deliver the technology and support our customers require. With our agency partners top of mind, we are investing in innovative technologies and intelligent solutions to reshape our GDS software and open new opportunities to better serve the travelers of tomorrow.  

Your true potential unlocked

Open a world of possibilities with the technology you need and the partner you deserve.  

NDC at your fingertips

Go beyond the standard to enable a smarter, more flexible travel retail experience. 

Travel booking redefined

Sell the full spectrum of GDS travel content through our flagship product. Customizable and user-friendly, it features intuitive end-to-end workflows. 

Partnership-based approach

Get the support you need to make the most of our products and solutions. 

Please contact us to learn more about how the Sabre GDS software can transform your business. 

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What is GDS? Your Complete Guide to Mastering Travel Technology

Did you know that it has been possible to instantly book flights, car rentals, and hotel rooms using electronic GDS systems since the 1960s? Although we mainly associate bookings with online travel agencies, or OTAs, such as Booking.com, many years before, global distribution systems enabled real-time access to hotel and flight tickets and inventory for travel suppliers worldwide. So what are global distribution systems? How do GDSs support travel agencies and the whole travel industry? You’ll read about it later in this article.

What is GDS in the hotel industry?

How does a gds work in travel, how do travel companies use gds, what is gds software, what is the difference between gds and crs, what is the difference between ids and gds, what benefits does the gds offer.

• Key statistics in 2024

What are the most popular Global Distribution Systems?

How can i start using a gds, how much does it cost to use a gds, building a travel application or extending your development team.

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A Global Distribution System (GDS) is a vast computer network connecting hoteliers, travel agencies, hospitality providers, and others involved in other travel-related services .

The GDS enables instant exchange of information, room reservations, price and availability management, and other critical functions needed for the proper operation of tourism.

It transmits up-to-date product, pricing, and availability information to travel agencies and online booking systems to automate the transaction and booking process. GDS is often used for business travel bookings because it allows hotels, flights, and rental cars to be presented in one interface, providing convenience to users.

The GDS intermediates between the travel agent and the central hotel (or airline) reservation system . With the GDS, travel agents can view current rates and available resources for a specific hotel in real-time.

How does the GDS work in practice? Current rates and availability are sent directly from the hotel’s property management system (PMS) to the GDS and online booking pages via the channel manager.

Once a reservation is made in the GDS or online booking site, the channel manager immediately updates availability across all channels, including the hotel’s official website, and automatically transmits the booking details back to the PMS or central reservation system (CRS). This eliminates the need for the travel agent to talk to hotel staff and for the hotel’s reservation agents to enter any data manually.

Importantly, each GDS has individual connection fees and registration requirements. So before choosing a particular GDS, it is worth knowing the terms of cooperation.

[Read also: Yield Management: What It Is and The Best Strategies ]

Travel agents use Global Distribution Systems (GDSs) in many ways, as they are a vital tool for organizing travel.

GDS – all-in-one major global distribution systems

GDSs are electronic platforms that allow travel agents, airlines, hotels, car rental companies, and other travel service providers to connect in a single system . As a result, travel agents have access to a wide range of information, pricing, and availability, allowing them to manage bookings for clients effectively.

Access to multiple resources and compare offers

Examples of GDSs popularly used by travel agents include Amadeus , Sabre , and Travelport . These platforms provide access to various resources.

For example, if a client wants to book a flight, a travel agent can use the GDS to check available flights on different airlines and compare prices, flight schedules, and travel options. Once the choice is made, the agent can book the airline ticket directly through the GDS. The GDS also allows the agent to manage bookings, such as changing flights, canceling tickets, adding additional services such as seat reservations, choosing onboard meals, etc.

Verification of hotel room availability

In addition, hospitality providers use GDS to book hotels. Travel agents can browse various hotels and check room availability, prices, location, and customer reviews. With a GDS, they can make hotel reservations on behalf of clients and receive confirmation instantly.

More efficient customer service

GDS systems are essential for travel agents because they allow them to search and book travel services quickly, conveniently, and accurately. This allows travel agents to provide their clients with a wide range of choices, access to up-to-date information, competitive prices, and personalized bookings.

Do you know that the idea of the first GDS system was born during a meeting with two Mr. Smiths in 1953? On an American Airlines flight from Los Angeles to New York, they met C.R. Smith, airline president, and R. Blair Smith, a senior sales consultant at IBM. The brief conversation led to the idea of developing a system for processing airline reservation data that would allow instant electronic access to this data via telecommunications networks.

Today, the GDS Global Distribution System is a sophisticated interface that integrates the various offerings of travel service providers. In addition, its tasks include:

• collecting data from travel providers and storing it in its database. This information includes flight seats and other details, hotel room availability, prices, booking conditions, etc.;
• managing bookings , such as changing flights, canceling reservations, adding additional services, etc.;
• generating booking confirmations for customers and any necessary travel documents, such as airline tickets, hotel vouchers, car rental confirmations, etc. Accommodation providers can provide these documents to clients electronically or in print, making it much easier to organize daily activities.

[Read also: Best travel management solutions ]

GDS and CRS (Computerized Reservation System) are separate but interconnected systems in the travel and hospitality industry. Although they serve similar purposes, there are some differences between them.

Scope and Connectivity

GDS is a comprehensive platform connecting multiple travel suppliers, including airlines, hotels, and car rental companies.

CRS focuses primarily on the internal reservation management system of a single travel service provider, such as an airline or hotel chain.

Integration

GDS integrates different online travel websites and suppliers into a unified system, allowing seamless access to multiple suppliers and their offerings. In addition, it acts as a bridge between travel agencies and suppliers, facilitating the exchange of information and transactions.

CRS is an internal system a single travel supplier uses to manage inventory and bookings. It optimizes a supplier’s internal processes and ensures efficient bookings and related operations management.

Market Coverage

GDS has a global reach and connects hospitality providers worldwide to an extensive network of suppliers.

CRS primarily serves the offerings of a specific travel supplier or group of suppliers. It focuses on its inventory and bookings, making it more limited in market reach.

Customer base

GDS caters to travel agents as intermediaries between travelers and travel suppliers. It provides agents with the tools and resources to effectively manage bookings and deliver personalized travel experiences to their customers.

CRS serves the customers of a specific travel provider directly. It enables bookings, guarantees access to pricing information, and manages bookings now through the supplier’s channels, such as websites or call centers.

Functionality and features

GDS offers a broader range of features, including comprehensive capabilities for searching, comparing prices, checking availability, and managing bookings across multiple other airlines and travel sectors. In addition, it provides agents with powerful tools to handle various travel requirements.

CRS is more focused on the supplier’s specific needs, emphasizing features such as real-time calculations and inventory management, price control, booking modifications, and internal reporting.

IDS (Internet Distribution System) and GDS are integral components of the travel and airline industry, serving different purposes in distributing travel services. The main differences between the two are:

Connectivity and Outreach

IDS connects travel suppliers, such as hotels, directly with online travel agencies, global distribution systems (GDSs), and other distribution channels. This allows suppliers to reach a broad online audience and distribute their services through various online platforms.

GDS connects accommodation providers to a comprehensive network of travel suppliers, including airlines, hotels, car rental companies, and more. It facilitates bookings and information exchange between agents and suppliers, serving as a centralized travel distribution platform.

Target Group

IDS primarily targets online travel agents, tour operators, and other intermediaries operating on digital platforms.

GDS primarily aims at hospitality providers as intermediaries between travelers and travel providers.

Scope of Services

IDS mainly focuses on the distribution of hotel accommodations and related services. It enables hotels to manage rates, availability, and other hotel inventory, across various online channels, providing a broader online presence and maximizing revenue opportunities.

GDS covers a broader spectrum of travel services, including flights, hotels, car rentals, cruises, and more.

Integration and Technology

IDS uses advanced technology and connectivity solutions to integrate multiple platforms and online systems. It enables seamless data exchange, inventory synchronization, and reservation management between travel service providers and OTAs.

GDS is a centralized booking system integrating various travel providers into a unified platform.

Market presence

IDS has gained prominence with the growth of OTAs and the increasing popularity of online booking channels. Playing a pivotal role in online distribution, GDS has long been present in the travel industry and remains an important distribution channel for travel agents.

The global distribution system offers the travel and hospitality industry many benefits.

Key among them are:

Wider distribution reaches

The GDS provides access to a global sales network, allowing it to reach many travel agents and customers worldwide. According to statistics, in 2020, the global distribution system handled about 670 million hotel bookings worldwide.

Facilitated synchronization of offers

GDS provides a unified interface that allows hotels or airlines to update and synchronize their offers. This gives accommodation providers access to the most up-to-date data, making sales more effective.

Competitiveness

By having a presence in a GDS, travel entities have greater visibility among travel agents, who often use these systems to search and book accommodations for their corporate clients. According to the data, about 65% of hotel bookings by travel agents worldwide are made through the GDS.

Operational efficiency

In addition, the GDS makes it easier to manage reservations, control room availability and pricing. The automation of these processes contributes to the operational efficiency of hotels.

Access to analysis and reports

GDS also offers advanced reporting and analytical tools to track sales performance, analyze booking data, and identify travel market trends . Such data is precious for making strategic business decisions.

Key statistics on GDS in travel industry in 2024

As of 2024, the Global Distribution System (GDS) in the travel industry has been showing a trend of significant growth.

The global market for travel technologies, which includes GDS, was valued at around US$ 6 billion in 2023 . It is projected to continue growing at a Compound Annual Growth Rate (CAGR) of approximately 8% through the next decade , potentially reaching a valuation of US$ 13 billion by 2033 .

Specifically, the GDS segment is expected to grow at a CAGR of 6.1% from 2023 to 2033​​.

Previously, in 2022, the global market for travel technologies was estimated at US$ 5.4 billion and projected to reach US$ 10.7 billion by 2030, growing at a CAGR of 8.8% during the period from 2022 to 2030. Within this market, the GDS segment was expected to record a CAGR of 7.9% and reach US$ 7.2 billion by the end of this period​​.

These trends and projections underscore the robust growth anticipated in both the GDS and broader travel technology markets. This growth trajectory is primarily driven by factors such as the increasing preference for online travel bookings, advancements in technologies like AI and IoT, and the overall expansion of the travel and tourism industry.

Sources: Fact.MR , GlobalNewswire , Transparency Market Research .

Regarding major global distribution systems, several noteworthy players contribute to the travel industry. Let’s delve into some leading GDSs shaping the travel landscape with their innovative solutions.

One of the largest GDSs globally, Amadeus stands out for its comprehensive offerings. It is a valuable intermediary between travel suppliers and agents, granting them access to real-time information and enabling hassle-free reservations. Alongside its core functionalities, Amadeus empowers travel agency professionals with tools and features to streamline operations and enhance customer experiences. This GDS embodies the essence of efficiency and convenience within the travel industry.

Another prominent player in the realm of GDSs is Sabre . With its cutting-edge platform, Sabre equips travel agencies with many tools and solutions. This empowers them to effortlessly book air tickets, hotels, and car rentals and even arrange specialized tours. Moreover, Sabre extends its expertise beyond traditional travel agents themselves, providing technology solutions that cater to the unique requirements of multiple airlines, hotels, and other service providers. Such comprehensive support showcases Sabre’s commitment to driving innovation and excellence across the travel landscape.

Travelport is yet another global distribution system that warrants attention. With its dynamic platform, Travelport empowers travel agents to search for and book various travel-related services efficiently. From flights and hotels to car rentals and more, Travelport ensures that agents have access to a wide range of options to meet the diverse needs of their clients. Not stopping there, Travelport extends its value proposition by offering robust tools and solutions for airlines, hotels, and service providers. This facilitates the sale and distribution of their offerings, driving growth and profitability in the highly competitive travel and tourism industry.

To start using GDS, take the following steps:

• Contact the GDS provider for information on the registration process and terms of use.
• Conduct training or obtain a certificate in GDS operation to learn basic functions and procedures.
• Register as a GDS user by providing the required data, such as contact and travel agency information.
• Sign a contract with the GDS provider that specifies the system’s terms of use, as well as fees and commissions.
• Install the GDS software on a computer or use the online platform, if available.
• Configure user preferences and customize system settings.
• Start using GDS by searching and booking airline tickets, hotels, car rentals, etc.
• Keep track of changes to the GDS system, such as updates, new features, and promotions, to keep your knowledge current.

Remember that the specific process for getting started using GDS may vary depending on the system provider, so it is essential to consult the provider directly for detailed instructions and support.

Need help integrating GDS into your business? Contact Stratoflow, the travel industry software specialists. Let us guide you seamlessly through the process. Book your free consultation today !

The cost of using a Global Distribution System (GDS) can vary depending on several factors, such as:

• the specific GDS provider,
• the services required,
• and volume of use.

Pricing structures are typically tailored to the needs of individual companies and may include installation fees, monthly subscription fees, and transaction fees for booking. It is estimated that commissions for OTAs are typically around 15-18%, while GDS booking can be about 10% plus a small transaction fee. In addition, it is essential to remember that GDS is extremely popular for increasing corporate bookings and international travelers. Therefore, for accurate and up-to-date information on the cost of using a GDS, it is recommended that you contact GDS providers directly.

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What Is a Global Distribution System (GDS)? Everything to Know

Key takeaways.

• Global Distribution Systems enable the distribution of travel products from suppliers (airlines, rail, car rentals, hotels) to OTAs, TMCs, DMCs and Travel Aggregators.
• Sabre, Amadeus and Travelport are today’s GDS market leaders, accounting for a whopping 98% of all travel bookings made.
• GDSs are a mainstay of the Travel & Hospitality sectors, having shed their archaic models and adapted to new standards and technologies to stay relevant and profitable.

Like several other businesses, the travel industry has immensely benefited from the adoption of technology to make travel products available to a global market. Travel tech has not only made travel planning convenient, but it continues to enrich the traveler’s experience, making it intuitive, interactive, and immersive. Let’s take an in-depth look at how one such development, the Global Distribution System or GDS, transformed the face of the travel industry worldwide, and the various global players that have emerged as GDS service providers.

• What’s a Global Distribution System (GDS)?

A Global Distribution System (GDS) is a computerized network that makes the combined inventory of travel suppliers from all over the world available to Online Travel Agents (OTAs), Travel Management Companies (TMCs), Destination Management Companies (DMCs) and Travel Aggregators.

What started out as a distribution channel for air travel products expanded to include hotel, car rental and even cruise bookings. Today, it is also possible for travel agents to create customized travel itineraries for end-users through a GDS.

Let’s understand the origin and evolution of GDSs to what it is today and look at the factors that differentiate a GDS from an Internet Distribution System (IDS) and a Computerized Reservation System (CRS).

A Brief History

The first GDS saw its origin in 1959 in a collaborative effort between American Airlines and IBM to create a computerized reservation system that would hold the inventory of airline seats and enable airline employees to perform and manage bookings on the platform, a departure from the manual paper-based bookings that were time-consuming and prone to error. The reservation system thus created was named Semi-Automated Business Research Environment or SABRE.

The system made it possible for multiple airline executives to perform bookings simultaneously, which helped to address the spurt in demand for air travel. In 1960, Sabre was jointly rolled out by American Airlines and IBM as a third-party GDS, the first of its kind in America, although a wide-scale uptake of Sabre as a GDS would not happen until the late 1970s.

Other airlines followed suit, some adopting Sabre GDS, while others ventured out to create their own reservation systems and capitalize on the new technology. Although airlines were increasingly adopting computerized systems, travel agencies were still functioning manually. It was not until 1976 that an external travel agent was granted direct access to an airline reservation system, launching the dawn of a new era in the travel industry.

With direct access to reservation systems now available, travel agencies could efficiently execute travel bookings. On the flip side, airlines were using disparate reservation systems, which left travel agencies with no choice but to integrate a single airline’s reservation system with their computers. It is worth noting that airlines would charge travel agencies a recurring payment for installing and using their airline reservation system, making multi-airline integration financially untenable.

This gradually changed with airline industry deregulation, followed by airlines opening up their inventories on a unified platform – a GDS. Sabre, Trans World Airlines Programmed Airline Reservations System (TWA PARS), and Delta DATAS II were some of the earliest GDSs in operation during the period from 1970 – 1985. By 1985, Sabre had become a market leader in the GDS industry, entering into contracts with over 10,000 travel agency offices.

The Internet Distribution System, or IDS, saw its emergence in the widespread roll-out of Internet access to the masses.

While a GDS could only be accessed by travel agencies that signed expensive contracts with a distributor, the IDS comprised travel agencies that now went online (becoming OTAs), travel portals, meta-search engines, travel aggregators, and hotel consolidators, among others.

End-users with Personal Computers (PCs) and Internet access could use the IDS to explore and book airline, hotel, car rental services, and create customized travel and tour packages from the comfort of their homes.

Travelocity by Sabre and Expedia by Microsoft became the earliest OTAs to dominate the IDS landscape. While Travelocity could utilize a huge travel inventory courtesy of the Sabre GDS, Expedia entered into a contract with Worldspan GDS, another major GDS player.

Travel aggregators Orbitz, Skyscanner, and Kayak emerged at the turn of the millennium. Interestingly, these IDS players were born out of partnerships between travel suppliers and technology companies to make travel product prices and schedules available to the public. End users could then make direct bookings on the airline website, bypassing OTAs and paying lower fares in the process.

The Computerized Reservation Systems were booking engines owned and operated by individual airlines. Although CRS platforms were initially used exclusively by airline executives to perform bookings requested by travel agents, airline companies later integrated CRS with computers used by travel agents to make direct bookings possible.

The first GDS, Sabre , began as a CRS built for American Airlines by IBM. From there, it gradually transformed into a third-party distribution channel, integrating the inventories of multiple travel suppliers.

Other major GDSs, Amadeus and Worldspan, were created through partnerships between airlines and IT service providers, which gradually expanded through mergers with other airline CRSs and acquisitions of smaller GDSs to take the form they are in today.

• How GDS Works in Travel

GDSs function as middlemen, liaising between travel suppliers and OTAs, TMCs, DMCs, and travel agents to make comprehensive inventories available for booking.

Airlines, hotels, and car rental services make their inventories accessible to a GDS, which showcases the same to OTAs and other resellers. It is essential to note that a GDS itself doesn’t hold the inventory; instead, it is a channel to locate travel products from multiple providers, perform bookings, and update the inventory listing once a booking is made.

Travel suppliers enter a paid, contractual agreement with a GDS to make their travel schedules, pricing, and availability universally accessible to travel agents globally. In addition to license and service fees, airlines shell out a 2-4% booking fee on the ticket price for each ticket sold. This figure shoots up to 20% for hotel bookings facilitated via a GDS.

On the other side of the GDS spectrum, OTAs and smaller travel agents also pay a GDS to get access to travel inventories from across the globe. Charges are calculated based on a ratio of the number of times a travel agent looks up an inventory to the actual number of bookings made, also called the Look to Book ratio. Besides this, OTAs and travel resellers need to pay a portion of their earnings made through commissions to a GDS.

In return for facilitating access to a massive worldwide travel inventory, a GDS reaps profits from both sides of the distribution channel. However, with the emergence of the IDS and the direct access end users now have to travel suppliers online, the hegemony of GDSs has dimmed somewhat.

• Popular GDS platforms

Let’s consider a few dominant players in the GDS ecosystem and how they came to be.

The first Global Distribution System to come into existence is the Sabre GDS. It evolved from the CRS created for American Airlines by IBM in 1959. A year later, American Airlines and IBM made Sabre available as a reservation system to other airlines, although it would be a while before it would witness widespread adoption.

By 1986, the system had been installed and was being widely used by over 10,000 travel agents.

Subsequently, Sabre became a separate entity owned by AMR Corporation, which was the parent company of American Airlines.

At present, Sabre Holdings is a publicly listed company, with a majority of its shares owned by Silver Lake Group LLC, a global equity firm. Today, Sabre GDS serves more than 425,000 travel agencies, 400 airlines, and 175,000 hotel establishments the world over, besides car rentals, cruise liners, and tour operators.

Amadeus GDS

While Sabre remained the dominant GDS platform in the U.S., European carriers developed their own distribution system. Thus, Amadeus was formed in 1987 through a partnership between Lufthansa, Iberia, SAS, Air France, and the technology service provider, Amadeus Germany.

Amadeus is currently the largest GDS service provider by market share in the air travel segment, with over 40% as of 2022. The company serves 440+ airlines, over 1 million hotel properties, and 230+ tour operators, and has facilitated over 200 million bookings via travel agencies in 2021.

Since 2004, Amadeus has diversified its offering, acquiring several travel tech companies and developing technology solutions in addition to its role as a major distributor.

Travelport GDS

The third largest distribution system, Travelport, is a relatively new entrant in the GDS industry. Formed in 2001, Travelport later took over Galileo International, another distribution system that originated in 1987 in Europe, followed by a merger with Worldspan GDS. Travelport GDS serves over 400 airlines, more than 650,000 hotel establishments, and several car rental providers, cruise liners, and rail transport providers.

Today, Travelport, along with Sabre and Amadeus, capture the lion’s share of the GDS industry, with a nearly 99.9% market share.

In 2018, Travelport introduced New Distribution Capability (NDC) standards on its distribution channel, becoming the first GDS to do so.

The International Air Transport Association (IATA) introduced NDC in 2015 as a means for airlines to extend ancillary benefits to their customers through direct selling to OTAs and other travel resellers, as well as receive valuable customer data that was not available when the distribution was channelled via a GDS.

NDC integration is increasingly seen as a means to subvert travel distribution away from GDSs and help airlines improve revenue streams.

Besides its major role as a distributor, Travelport also develops IT solutions for airlines.

Galileo GDS

Galileo was created as a joint initiative by British Airways, KLM Royal Dutch Airlines, Aer Lingus and several other European carriers.

Soon after it was formed, Galileo grew to become one of the largest distribution systems in Europe. In 1993, Galileo went global, joining forces with the US-based GDS, Apollo Systems and transitioning into Galileo International.

Galileo GDS was acquired by Travelport in 2006.

The Abacus GDS was the leading distribution channel in the Asia Pacific region that came into being in 1988 through a joint agreement between 11 airlines from the region to develop a local distribution system.

It served over 100,000 travel agents across the region, as in 2015 when it was acquired by Sabre Corporation to further Sabre’s strategic interest in expanding to the Asia Pacific region.

In 1971, U.S.-based United Airlines introduced Apollo as an internal CRS to streamline reservations on their systems.

Following the installation of the Sabre CRS in a travel agency for the first time in 1976, United Airlines launched the Apollo Travel Services division to promote the Apollo CRS among travel agencies across North America and Japan.

In 1986, Apollo was renamed Covia and marketed as an independent affiliate of United Airlines. The European GDS Galileo would later absorb Apollo into its existing reservation system to become Galileo International, the first GDS touted to create a global and neutral system that countered flight listing bias.

United Airlines continued to use the Apollo GDS till 2012 when it moved to deploy the SHARES system.

Galileo International, which was later acquired by Travelport, continues to use the Apollo system.

Pegasus GDS

Pegasus was launched in 1989 to develop technology solutions for hotel establishments to integrate their booking systems with GDSs, develop additional sales and marketing channels, and maximize revenue.

Pegasus Systems developed the switching technology that enabled hotel reservation systems to connect with GDSs accessed by travel agents. Hotels that were members of The Hotel Industry Switch Company (THISCO) could utilize this technology to improve their reach across travel agencies worldwide and enable bookings in a manner similar to how airlines received bookings through a GDS.

Under the Pegasus umbrella, the Hotel Clearing Company (HCC) and Travel Web were also launched. Introduced in 1992, the HCC served travel agents by consolidating their earnings through commissions from hotel bookings in a single check in return for a small fee.

In 1994, the Travel Web became the first website to offer hotel bookings in real-time, a service that received widespread acceptance.

More recently, in January 2022, Pegasus Solutions (renamed in the year 2000 from Pegasus Systems) completed its merger with Cendyn, a leading provider of a cloud-based suite of software solutions for hotels across the Sales & Marketing and Revenue Strategy verticals.

• How Much Does a GDS Cost?

A GDS imposes two-way charges across both sides of the distribution pipeline; both the travel supplier (airlines, hotels, railways, car rentals) and OTAs and travel resellers, are required to pay for utilizing GDS services.

While travel suppliers make recurring contract-based payments, in addition to a levy of 2-4% of the ticket price for airlines and up to 20% of the booking price for hotels, OTAs are charged based on the targeted market and the quality of the inventory they receive access to.

Another significant factor that can add up costs is the number of Application Programming Interface (API) calls made from travel agent terminals to look up inventories as opposed to the actual number of bookings made, also called the Look to Book ratio. The higher the ratio, the higher the costs incurred.

With the introduction of NDC opening up an alternate distribution route between travel suppliers and OTAs, both parties seem keen on taking the GDS-free approach. Airlines especially stand to benefit from NDC, as they can significantly improve revenues by offering ancillary services like seat selection, excess baggage booking or other in-flight services.

Following the opening up of NDC standards for implementation, several airlines began to impose a surcharge on bookings made through a GDS. In 2015, the Lufthansa Group announced it would levy a €16 ‘Distribution Cost Charge’ per GDS booking to compensate for the mounting GDS costs that would typically approach three-digit million euros a year. British Airways, Air France KLM and several other carriers have also followed suit with a GDS surcharge.

• Benefits of Using a GDS

Notwithstanding the substantial costs of using a GDS, travel suppliers and OTAs continue to renew their contractual agreements year after year, a strong indication that the benefits of using a GDS outweigh the disadvantages. Let’s consider some of these benefits.

For Travel Suppliers

• A GDS gives travel suppliers visibility across a global marketplace, putting independent providers on par with household names. Thus, the revenue generated via GDS bookings is far higher than what is achieved through direct bookings.
• Travel agents from any part of the world can access a provider’s inventory listing via a GDS and even make bookings, with API integration being offered separately by the GDS and third party providers.
• GDSs are the preferred mode of booking for corporate travel, a lucrative segment for travel providers. Since corporates made bulk bookings to take advantage of wholesale prices, travel providers using a GDS can channel this revenue stream into their coffers.
• Bookings made via a GDS are automatically updated across all channels, preventing double bookings and streamlining the process flow.

For Online Travel Agents

• Travel resellers using a GDS gain access to a worldwide inventory of airlines, railways, car rentals and hotel establishments, enabling them to serve bigger markets.
• A GDS makes end-to-end bookings possible, enabling OTAs to sell complete travel packages to travelers.
• OTAs can make bookings at any time of the day, regardless of the time zone, given the 24/7 accessibility of a GDS.
• Tips for Using a GDS

Signing up with a GDS is a big decision and could bring major changes to your business structure. Here are some tips to keep in mind before taking the plunge.

• Consider the market a GDS is active in. While Sabre is the dominant GDS across North America and Asia, Amadeus is the market leader in Europe, the Middle East, and Africa (EMEA region). Travelport has the smallest market share of the top three and is perhaps the most well-rounded in terms of coverage, serving the American, Asia Pacific, and EMEA markets.
• It is also important to ensure your existing software and systems will seamlessly work with the GDS you choose. A GDS employs APIs to transfer data. Some travel providers choose to purchase API integration directly from the GDS, while others use third-party systems that enable integration with multiple GDSs.
• Not all Low-Cost Carriers (LCCs) are accessible across all GDSs. OTAs that would like to offer bookings on LCCs must carefully check if their GDS of choice has ongoing contracts with those LCCs.
• If the costs of using a GDS are prohibitive, you could consider a viable alternative to using one - affiliating with OTAs or wholesalers or using online booking portals directly from travel providers.

Global Distribution Systems have come a long way from their initial form, adapting to the evolving landscape of travel technology, diversifying their product offerings and adopting new standards to stay relevant.

Despite numerous predictions to the contrary, these distribution channel behemoths are in for the long haul and will continue to transform the travel industry in the years to come.

If you are considering utilizing the immense benefits and features of a GDS and are unsure of the best way to proceed, Voyage Labs will walk you through the process, developing custom APIs suitable for your business requirements.

Samuel Corso

Samuel Corso is a software engineer and entrepeneur with deep expertise in systems integrations and reverse-engineering APIs, dating back to his time building commercial ecommerce bots. He's the author of the number one open source project of this kind on GitHub. He also bears unique knowledge of the software infrastructure behind the travel industry. He founded Voyage Labs to help companies unlock cutting-edge software solutions to meet the needs of their customers.

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Table of contents.

Global Distribution Systems: 

The engines behind traveler choice.

Worldwide passenger airlines

Daily Flights Handled by the FAA

Total Public Airports in the US

US Hotel Businesses in 2023

Hotel rooms in the US as of 2022

GDS technology is the intelligence behind online travel sites, mobile apps, travel agents and a multitude of travel solutions that allow consumers to search for, compare and book among thousands of travel options.

Passengers flying in and out of US airports daily

“We know you have a choice when you fly, and we thank you for choosing…”

You’ve probably heard an announcement like this while you were busy remembering where you stored your carry-on or checking the gate for your connecting flight. Travelers have a lot to keep track of, an entire world to explore and many decisions to make along the journey. That’s where GDS systems come in, illuminating choices for travelers – without overwhelming them.

Innovating for Decades to Enable Discovery and Choice 

Global Distribution Systems (GDS) have been innovating for decades to power consumer choice in the global travel and tourism industry. These worldwide reservation systems act as platforms connecting travel bookers and travel suppliers (e.g., airlines, hotels and car rental companies), promoting the price transparency and competition that allow travelers to choose the travel options that best meet their needs. Having real-time access to the travel supplier’s price (fares and fees) and availability data allows travel agents and online booking engines to offer travelers a rich set of options, and helps airlines and other travel suppliers reach a global audience. Most importantly, GDSs make travel more competitive and accessible by allowing consumers to compare fares/fees between travel suppliers and scout the best deals. 

Learn more about Global Distribution Systems and other travel technologies empowering traveler choice

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In a world without GDS systems or other aggregators, travelers would have to visit airline websites one by one, potentially spending hours looking for the best fares. With more than 400 worldwide passenger airlines in operation, the loss of comparison shopping would mean the loss of consumer choice. 

Tackling Technology Today to Power Tomorrow 

GDSs are committed to helping travelers and travel industry professionals leverage next-generation technology applications such as artificial intelligence (AI), machine learning and real-time data and analytics to make their travel experience better — from the onset. 

In recent years some airline companies have moved away from the transparent pricing and comparison shopping that GDSs provide by choosing not to load and distribute all or some of their flight, fare and fee data through a GDS. 

This not only harms GDS competitiveness with airline-owned methods of distribution, but also degrades GDS performance and ultimately rebounds to hurt the airlines’ own customers. 

When the airlines withhold information from GDSs, travel agents and online travel sites are not getting a complete picture — and the consumer suffers . 

More Resources on Global Distribution Systems:

Global Distribution Systems: The Engines Behind Traveler Choice

Global Distribution Systems: Frequently Asked Questions

Your Guide To Global Distribution Systems GDS

• by Sam Campbell
• January 21, 2023 February 5, 2023

Are you wondering what a GDS is or do you need a refresher? This quick guide will take you through the past, present and future of global distribution systems.

• What is a Global Distribution System (GDS)?
• A History of GDS
• An Overview of the Current GDS Market
• The Major Players in GDS
• Current Issues with GDS
• The Future of GDS

1. What is a Global Distribution System (GDS)?

A global distribution system (GDS) is software that travel agencies use to sell airline tickets or book hotel rooms. It’s one of the most important channels for airlines to sell their tickets.

It’s also controversial, as it siphons off revenue from airlines and keeps airlines dependent on outdated technology. GDS providers used to control a higher share of the distribution market, but airlines have invested in their own direct sales channels to bypass this. Nevertheless, it’s still – and will likely continue to be – important for distribution.

2. A History of GDS

Before the creation of computerized reservation systems, a traveler who wanted to book a flight would go to an airline or a travel agent, who would find a file with the flight’s availability and physically check off a seat on a card. As airline operations ramped up, it was nearly impossible to scale this system. It consisted of 8 people seated around a rotating table of cards and took several hours from the passenger query to having a confirmed reservation.

In the 1950s, airlines were at the forefront of technological innovation and created a computerized reservation system. American Airlines was the first to develop this. Together with IBM they created SABRE using technology originally designed for the US Air Force to coordinate flight operations. Other airlines followed with United Airlines creating Apollo (which was eventually purchased by Galileo/Travelport) and Air France, Iberia, Lufthansa and SAS creating Amadeus.

These computer systems were sold to travel agents, making money not just from the systems but also by pushing their tickets to the top of the list. In the late 1970s the airline industry became deregulated in the United States and airlines were able to set their own prices. It created a complex market and made these computer reservation systems (CRS) even more valuable.

This resulted in the GDS, which is basically unchanged as of today. Airlines file their schedules with seat availability in a separate system and file their fares with the Airline Tariff Publishing Company (ATPCO). A travel agent uses the GDS to query all of these systems and create an offer.

3. An Overview of the Current GDS Market

As the role of traditional travel agencies is being replaced by online travel agencies (OTAs), GDSs still continue to dominate. OTAs are simply replacing the human travel agent with a website, but they are still using the same GDS system to book the actual ticket.

GDS providers have developed other software and typically produce a whole suite of services for the airlines, ranging from passenger service systems (PSSs) to revenue management systems (RMSs). Their main source of revenue however still comes from distribution – for Amadeus, approximately 65% of their revenue comes from distribution fees. This revenue is often greater than the total revenue of many airlines that they serve.

When it comes to return on capital, airlines are the least profitable segment of the industry. Travel agents and providers of IT products like GDS are the most profitable segments.

4. The Major Players in GDS

Currently the largest GDS providers are Amadeus, Sabre, Travelport and Travelsky. In 2016 Amadeus was the largest provider in terms of market share and revenue and controlled nearly 44% of the entire GDS market, with most of its bookings in Europe.

Sabre is the second-largest GDS provider and the largest in the Americas. It has its own GDS and also the Abacus GDS, which is entirely for the APAC region. In the 1990s airlines were strapped for cash and they spun off their respective GDS as separate companies (although some such as Amadeus are still partially owned by the airlines). These systems still dominate the market, although the direct distribution channel is becoming more important.

Travelport controls the Galileo and Worldspan GDS systems but contains a much smaller overall market share. Travelsky is the state-run GDS for the Chinese market only.

The main differences between the GDS providers are the markets in which they primarily serve, as well as the language used to build passenger name records (PNRs) and create queries. Some smaller airlines may also sell their inventory on one GDS but not another, so they may differ in inventory offered.

5. Current Issues with GDS

The main issues airlines currently have with GDSs are the fees produced when querying for a ticket or when booking a segment. Currently the average fee per segment booked through the GDS is approximately 4 euros. While this doesn’t seem like much, it makes it difficult for trips with connections to compete with direct flights or flights booked without GDS (16-euro price difference on a round-trip ticket).

Another common gripe about GDS providers is that they have been weak in innovation. The interface most GDS providers use is basically unchanged since their inception and allows little in the way for displaying content beyond price and schedule.

As airlines introduce new products and services, it’s important that they can show passengers what they’re actually buying, as well as increase upsell and cross-sell. This is especially important for low-cost carriers and ultra low-cost carriers, where a significant percentage of passenger revenue comes from ancillaries.

Airlines have also complained about full content agreements. These are usually included in the participating carrier contracts they sign with the GDS. In theory, these are provisions where the airline agrees to give the GDS the same information on availability/prices that they have for their own direct distribution. In return, the airlines receive a discount on the distribution fees charged by the GDS.

Routings that have two or more connections are often omitted from results, which leads to a large revenue loss for that carrier and limits options for the consumer. The airlines argue that GDSs don’t follow their end of the bargain and are biased against airline offers that have complex routings. This is illegal in the EU but not in the United States.

While distribution through GDS often makes it difficult to provide the lowest prices, it does have some important benefits. This is partially why some low-cost carriers, which used to avoid GDS, have signed distribution agreements within the past few years.

Airlines who want to sell to business travelers from larger companies that use travel management companies (TMCs) often find it necessary to distribute through GDS. These tickets are important as they are usually higher priced and can increase yields for the airline. Jetblue, which pulled its distribution agreement with Sabre after several years, agreed again to a distribution contract as their yields through direct distribution were lower.

Another point is that the distribution agreements are often part of broader technology contracts. Alessandro Ciancimino, VP of airline solutions at Sabre admitted that “there are economies of scale that exist when negotiating with a vendor across multiple products”, implying that GDS providers are using their distribution contracts as leverage when signing contracts for other software services.

6. The Future of GDS

It’s not immediately clear what the future distribution landscape will look like. However, it’s likely that airlines will try to create direct connections with travel agencies and TMCs to bypass GDS providers. Airlines will also work to grow their traditional direct distribution channels.

Companies like Farelogix are creating NDC (New Distribution Capability) connections with travel agencies for this very purpose. American Airlines is going to start paying travel agents $2 for every booking through NDC – reviving an old practice – while airlines like IAG and Lufthansa are forcing the GDS providers to create NDC connections by charging for their “standard” GDS bookings.

GDS providers are slowly stepping up their game by working on ways to sell ancillaries and further improve their interfaces. For example, Sabre has introduced a graphical user interface (GUI) for their GDS platform. Additionally, they are trying to become NDC “aggregators”. Travelport has reached NDC Level 3 Aggregator status. This is the highest certification level, which means they’re capable of managing offers and orders.

It’s likely that some gap will remain in the distribution landscape. Airlines are working out what they’re able to do with their direct distribution, while and NDC that the GDS providers will try to fill (for example with business travelers and niche airlines who lack advertising resources). However, the distribution landscape is beginning to move away from times where GDSs are the only gatekeepers of distribution.

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What is a Global Distribution System (GDS)?

A GDS is a computerized network that facilitates transactions between travel service providers and travel agents.

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A GDS allows agents, both human and technological, to review information, compare prices and schedules, and make purchases from multiple different vendors in real time to quickly and efficiently create an itinerary for their clients.

The first GDS, called the Semi-Automated Business Research Environment, or Sabre, was developed in collaboration between IBM and American Airlines with the express purpose of automating the airline’s internal reservation system.

Before it came online in the early 1960s, all flights were booked and managed manually by airline reservationists, making for a time-consuming, labor-intensive, and easily bungled process.

Sabre revolutionized the industry and led to the creation of several additional GDS, each catering to different airlines or airline groups. By the 1970s, independent travel agencies were granted access and the concept eventually grew to encompass not just airline bookings, but also car rentals, cruises, hotels, trains, and other travel services.

How a GDS works for travel agents

Travel agents (again, both human and online) are the primary target for today’s GDS networks. A GDS delivers data in real-time, so agents can determine which particular flights, accommodation, or other services best suit their client’s needs in seconds. And because GDSs have expanded to other travel services, the entire combination (i.e. flight, car, hotel) can be purchased on one platform, eliminating the hassle of booking each component individually. GDSs also alert agents to limited-time sales, special rates, and promotional packages that further incentivize their use.

What are the major GDSs?

Sabre, Travelport (the majority owner of Galileo, Apollo, and Worldspan), and Amadeus represent the leading GDSs today.

Different corporations partner with different GDSs, so each system connects agents to their own set of participating vendors. For example, Sabre can be used to book flights with American, JetBlue, Cathay Pacific, and China Air, among a host of major airlines, as well as hotel rooms from chains like Kimpton Hotels & Restaurants, Preferred Hotel Group, and others. Amadeus, on the other hand, works with British Airways, Southwest, Qantas, Lufthansa, and more. As the corporate landscape keeps shifting, however, some travel retailers have cut deals with several different GDSs simultaneously, allowing certain aspects of their services to be accessed through multiple channels.

Are Expedia and other online booking agencies considered GDSs?

While they aren’t standalone GDSs, online travel agencies (OTAs) like Expedia use GDSs to fuel their backend by connecting users to their fleet of travel-related services. When you search for a flight, hotel, or car rental on Expedia, many of the options that surface come from a GDS like Sabre.

The GDS is then responsible for facilitating the transition between the vendor (i.e. American Airlines) and the user (i.e. you). Entering into an agreement with a GDS lets an OTA like Expedia tap into a massive inventory in one fell swoop.

Which travel agency GDS is best?

Since only three main GDSs dominate the market, recommending a single “best” is near impossible. Each have their benefits and drawbacks depending on an agency’s specific needs and the needs of their clients, from frequently-visited destinations and preferred hotel brands to preferred modes of travel. What’s more, travel companies can terminate or begin new contracts with one or more GDSs at any given time.

As an end user, you really don’t need to know which GDS powers the online travel agency you’re using to search for flights; most likely the OTA is using several. What’s more important is the functionality of the online search engine or OTA and its ability to surface the cheapest flights .

Last updated Jan 10, 2024

A Quick Guide to Global Distribution System (GDS)

What is GDS? also known as the global distribution system, is one of the biggest breakthroughs in the travel industry. This is a network or platform through which the travel agents find the best value for their clients. The major GDS in travel sector are: Sabre, Amadeus and Galileo. In this article, we will also be seeing how to integrate them in your online travel portal.

GDS has great relevance for the travel agencies, hotels, airlines, car rentals, and many more. GDS is the amalgamation point of three primary services – car rentals, airlines and hotels.

Working of GDS with the Travel Industry

The travel industry has a huge collection of databases, most of which is completely cluttered and always changing. Let us understand this with the help of an example.

If you want to book an international trip, then you will be booking – airlines, hotels, tours, activities, and much more. A customer might have to look up five different searches and then book one of them. And that might not always be the best solution. You can also check different travel sites for flight reservations and find out what works best for you.

But to find the optimal solution, nothing works better than GDS. With GDS, you will get the best value for all your reservations.

Why do Travel Agents Need Access to GDS Systems like Amadeus, Galileo, and Sabre?

A global distribution system is a computerised network that eases transactions and networking between travel service providers and travel agents. Travel agents can also be connected directly to airlines or hotels via a GDS system.

A GDS system also gives travel agents access to travel data that will help them compare prices and facilities that different airlines, car rentals, and hotels offer to ensure that they come up with the best deal for their clients.

However, professionals or tech experts are needed to run and understand the GDS system properly. The three most effective and important GDS systems universally are Amadeus, Sabre, and Galileo, and all GDS professionals are well versed with these platforms.

To save costs and be connected to a GDS in a systematic way a travel agent can also sign up with platforms like OTRAMS which help travel companies both big and small and independent travel agents create their online presence.

How does the Flight Reservation System work on OTRAMS GO ?

How do you Integrate GDS into your Travel Website?

A global distribution system is like the encyclopedia for every travel agent connecting them to all the travel industry information easily and efficiently. However, integrating a GDS system into your travel website can be expensive as well as time-consuming. Many travel agents do not have the budget and time to invest in installing and understanding the GDS.

The easiest and most cost-effective method is to hire a SaaS platform like OTRAMS to integrate a GDS system in your current website or else create your entire travel online presence with their travel tech expertise. This is the quickest way to integrate a GDS system as such cloud-based companies have expert GDS professionals and engineers to handle all the tech hassle.

Other options to integrate a GDS system into your travel website is hiring a full-time travel tech consultant on a contract basis to integrate the GDS system in your website and training your staff and you to operate it. In that way, the integration will be a one-time cost, but on the other hand, you will have to have an active back-end tech team to support any issues or doubts that may arise.

How can you integrate SABRE GDS on your website?

SABRE is among the most famously known Global Distribution System. SABRE offers 100s of APIs with which you can pull data to your website as per your requirements.

To integrate SABRE GDS on your website, follow the following steps:

• Visit: https://developer.sabre.com/home
• Create a Dev Studio account
• Explore SABRE APIs and choose the most relevant one for you.
• A license key is provided to get you started.
• Follow the instructions given under the Dev Studio Developer Guide on the Dev Studio website.

In case you do not have any experienced developers on board, you can also seek advice from a travel technology consultant. A travel consultant offers you the technical guidance that you require to build a fully functional travel platform.

You could also hire a SaaS platform to help you integrate SABRE GDS with your website.

A SaaS-based platform typically offers you a travel platform that is hosted on the cloud with several aspects of online booking. Building an Online Travel Agency (OTA) is just a contract away, in case you wish to work with a SaaS-based company to help you integrate the GDS. With these platforms developing an OTA takes two to four weeks.

OTRAMS is the authorized developer for Sabre. If you wish to integrate Sabre GDS in your system, get in touch with us here .

What is the procedure to integrate Galileo GDS API to a travel booking website?

The Galileo GDS system (Global distribution system) is one of the most popular travel content providers with their package of B2B and B2C travel software. The use of the Galileo XML API integration assimilates the global travel data from multiple services into a single platform. It helps travelers to find the best deals for every aspect of travel. This includes the worldwide booking of airlines, cruises, hotel rooms, trains, and rental cars.

• The first step to be taken for the integration is to buy the subscription of Galileo GDS to get access into their API modules.
• There are various subscription models available, which can be chosen based on the business needs and budget.
• In the next stage, the actual integration takes place through PUSH and PULL XML integrations methods.
• This is carried out by a team of professional developers. Once this is complete, the API needs to be certified.
• Finally, the secure process of data upload and mapping can begin for the final implementation.

To understand how it works, you can look at the GDS integration offered by OTRAMS for flight reservation . The system is linked with the database of various airlines and provides a comprehensive view of the seats, rates and booking information in real-time. This allows the travel regents or customers to make the right choices in a few easy steps by using a single platform.

If you wish to integrate Galileo GDS in your system, get in touch with us here .

How to integrate Amadeus GDS in your Online Travel Portal?

Amadeus is a transaction processor and a distribution system that is essential for the travel and tourism industry. Basically, it is a one-stop solution for automating a travel booking system with full reliability. It allows a user to get all the details of the hotel/car/airlines deals through a customized booking management system. You also get a user-friendly interface and a platform that is easy to maintain.

The Enterprise APIs of Amadeus Web services allows full access to the entire API catalogue. The integration needs to be done by a professional team of experienced developers. There are a few mandatory steps that are required for the integration:

• In the first step, an API Questionnaire needs to be filled. This is related to the details about the company, including the profile, the top-selling destinations/routes, websites, traffic, and others.
• A contract is given based on the above answers which you need to sign. The deposition of the necessary payment for fulfilling the API is also required.
• The team of developers will work on the integration, and it will be submitted to the API provider for necessary certification. Once this step is finalized, line connectivity will be given.
• Once the GDS API Integration is LIVE, you can easily enable it in your website or portal.

OTRAMS is an authorized developer for Amadeus GDS. If you wish to integrate Amadeus GDS in your system, get in touch with us here .

In today’s era, having a GDS system and online presence is very important to offer competitive pricing, service, and convenience. Therefore, it is essential for any travel company to immediately facilitate a GDS system if they have not until now.

Have you checked out the Flight Reservation System on OTRAMS?

One of the most advanced flight booking engine with connectivity to all major GDS and LCC. If not, do check it out here. Flight Reservation System | OTRAMS

If you have any queries or want to schedule a demo, click here .

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How Global Distribution Systems (GDS) Work: A Deep Dive into Sabre and Amadeus

Published: September 11, 2023

In the age of digital transformation, the travel industry has seen a significant shift in how services are distributed and sold. Central to this change is the Global Distribution System (GDS), a network that enables transactions between travel service providers and travel agencies. GDSs have revolutionized the way airline tickets, hotel rooms, car rentals, and other travel services are booked. In this article, we will explore how GDS works and delve into the history of two major players in the GDS market: Sabre and Amadeus.

What is a Global Distribution System (GDS)?

A Global Distribution System is a computerized network that facilitates transactions between travel service providers and travel agencies, both online and offline. It acts as a centralized hub where airlines, hotels, car rental companies, and other travel service providers can list their services, availability, and prices. Travel agencies and websites access this information in real-time to offer services to consumers.

How Does GDS Work?

Centralized database.

At the core of a GDS is a centralized database that contains information from various travel service providers. This database is updated in real-time, ensuring that travel agents have access to the most current information.

Search and Booking

When a customer approaches a travel agency or visits a travel website , the agent or website interacts with the GDS to search for available options based on the customer’s requirements. The GDS returns a list of options, and the customer can then choose to book one of them.

Transaction Processing

Once a booking is made, the GDS processes the transaction, updating the availability status in its database and confirming the booking details to the travel agency and the service provider.

Commission and Fees

The GDS usually charges a fee for each transaction processed. This fee is shared between the GDS and the travel agency as a form of commission.

History of Sabre

Sabre , which stands for “Semi-Automated Business Research Environment,” was initially developed by American Airlines and IBM in the 1960s. It was one of the first GDSs to be created and was initially used exclusively by American Airlines for its internal reservations. However, it soon expanded its services to other airlines and travel agencies, becoming a global distribution system in its own right. Today, Sabre is one of the largest GDS providers in the world, serving more than 55,000 travel agencies and numerous airlines.

History of Amadeus

Amadeus was founded in 1987 by an alliance of Air France, Lufthansa, Iberia, and SAS. Unlike Sabre, which originated in the United States, Amadeus was born in Europe. The company aimed to create a European GDS that could compete with American systems like Sabre and Apollo. Amadeus has since grown to become one of the leading GDS providers globally, with a significant presence in Europe, Asia, and the Americas.

Global Distribution Systems have revolutionized the travel industry by providing a centralized platform for transactions between travel service providers and agencies. They have streamlined the booking process, making it more efficient and accessible. Sabre and Amadeus are two giants in the GDS landscape, each with its own unique history and contributions to the industry. As technology continues to evolve, GDSs are likely to adapt and innovate, further transforming the way we travel.

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What Is A GDS System And Why Is It Important?

Home » B2B » What Is A GDS System And Why Is It Important?

Corporate travel managers book flights and accommodation for employees to facilitate business trips. Most of them face tough challenges such as finding the right hotel or flight, negotiating the rates, accommodating employee preferences, and complying with travel policy rules. All this can easily be resolved by the GDS. When talking about what is a GDS system, it is a system that acts as a medium between online travel agencies and travel booking options like hotels, flights, and ground transportation. With GDS, travel managers get instant and real-time access to business travel inventories for bookings and reservations.

What is a GDS system?

A GDS booking system, or Global Distribution System, is a worldwide computerized network of travel inventory enabling travel managers, travel management companies, and travel agencies to access services provided by airlines, hotels, and car rental companies. Travel bookers can leverage the live display of the availability of travel services with product details and prices. Travel and hospitality companies can benefit from the unified portal of the Global Distribution System to showcase their products to a large spectrum of online travel agents and enterprise travel bookers. The GDS system training is essential for travel managers and agents to explore multiple services in the travel industry, such as transportation and accommodation.

History of GDSs

American Airlines revolutionized the traditional booking system that relied on paper records. Partnering with IBM, American Airlines developed an electronic reservation system in 1960 to increase booking efficiency and streamline the booking process.

Westin was the first company from the hospitality sector to adopt the electronic booking system in 1970. The Global Distribution System came into existence when electronic booking systems from Europe and North America joined hands in 1992.

Key components and features of a GDS systems

GDS provides access to an expansive inventory from various travel suppliers all around the globe. Travel managers and bookers can easily book these inventories at the listed prices. Apart from extensive inventory GDSs have following features:

• Inventory and content management: With access to an increasing inventory, GDS can help travel suppliers list their content online.
• Booking engine: GDS provides travel managers and bookers with the opportunity to book flights, accommodations, and car rentals.
• Connectivity: It provides connectivity between various travel suppliers and buyers all around the world.
• Integration with external systems: Most of the GDSs can be used with online travel booking platforms to expand the booking and management options.
• Reporting and analytics: GDS enables travel bookers to collect travel data from multiple touchpoints for comprehensive reporting and analysis.

How does GDS work in travel?

The computerized platform of the Global Distribution System enables bookings of hotels, flights, and tours. Travel and hospitality suppliers pay administrative charges to the service provider of the GDS reservation system. These charges are justifiable as they can achieve extensive exposure of their services and products across myriad online travel agencies and other travel bookers.

GDS system for travel bookers connects travel agencies to travel inventories by linking vendors for booking transportation and accommodation with the help of live information. Dynamic pricing and automatic inventory updates help book travel with real-time information on availability and pricing.

The Global Distribution System displays essential information to travel bookers for facilitating booking. It updates the supplier’s system and removes the product from the inventory. Travel bookers and vendors do not interact with each other directly as the GDS completes the booking and inventory updating in real time.

Suggested Read: How Do Small Business Travel Agency Add Value To Business Travel

Benefits of a GDS

The Global Distribution system benefits travel bookers and suppliers in the travel and hospitality sector in myriad ways.

• Timesaving option to complete the entire booking process
• No need to contact individual suppliers
• Travel service providers can enhance the online visibility of services across many travel agencies
• Ensures a level playing field between individual hotels and large hotel chains
• Provides a vast inventory of travel options at your fingertips
• Travel bookers gain direct access to booking systems of travel vendors, like airlines and hotels
• Easy accessibility to a broad spectrum of travel services like tours, rail tickets, cruises, and car rentals besides hotel and airlines
• Travel services can expand their target segment base like business travelers, leisure travelers, and more
• Travel bookers can serve several clients at a time, increasing their overall revenues
• Travel bookers do not need to process complex contracts with vendors

Why is GDS important to travel bookers?

Travel bookers can broaden their client bases by including international tourists and corporate clients using the Global Distribution System. The GDS enables OTAs to achieve global outreach and enhance the travel booking experience to establish brand image.

The Global Distribution System minimizes marketing costs by helping individual travel bookers compete with online travel agencies. The GDS flight booking system assures transparency of prices and provides real-time insights to take maximum benefits of discounted rates.

Suggested Read: How Do Corporate Travel Agents Help In Efficient Business Trips

What is the future of GDS?

With the inclusion of Artificial Intelligence and continuous transformation in the modern-day tech, GDSs as we know are only going to evolve in the future. Some of the key changes expected are as follows:

• Increased personalization in travel booking
• Better user experience
• Accessible with mobile
• Inclusion New Distribution Capability
• Integration of block chain technology

To answer what is a GDS system, in simple words, it is an online platform enabling travel bookers to connect with suppliers in the travel and hospitality industry for instant booking. The platform provides real-time updates on inventories and discounted prices with remarkable transparency.

The wide availability of suppliers helps travel bookers book travel packages, including transportation, accommodation, local transport, and tours. They can create itineraries for travelers with ease using the GDS booking system. SaaS-based online travel management platforms like Paxes allow seamless integration of the Global Distribution System for fast and efficient business travel booking.

Suggested Read: How Do Travel Management Apps Assist Corporates And Agencies

What Is A GDS System FAQs

Who are the primary users of the global distribution system.

The Global Distribution System targets independent travel bookers, corporates and Online Travel Agencies.

How does the Global Distribution System help travel agents?

The GDS allows travel agents to tap into the systems of travel and hospitality vendors to know the real-time prices and availability for instant bookings.

How does the Global Distribution System enable online reservations?

The Global Distribution Service does not take part in the reservation process. The GDS allows travel bookers to access the vendor reservation system to book by checking for availability.

What are some examples of Global Distribution Systems?

Several GDS companies are operating globally and locally. Amadeus, Sabre, and Travelport are examples of large GDS providers.

Can an individual traveler use the Global Distribution System to book hotel accommodations?

No, an individual traveler cannot access GDS. Travel agents or Online Travel Agencies having valid IATA or ARC numbers can use the Global Distribution System for hotel booking for their clients.

What types of data can be managed within a GDS system?

GDS can be used to manage a wide range of data includign the flight availability, seat inventory, hotel room rates, car rentals, etc.

How do GDS systems connect airlines, hotels, and other travel providers?

GDS systems provides a central platform for suppliers to showcase their inventory along with the cost of each service they offer.

Can a GDS system handle both domestic and international travel bookings?

Yes, GDS systems can handle both domestic and international travel bookings.

What features should I look for in a GDS system for my travel agency?

Features to consider include a user-friendly interface, comprehensive travel inventory, real-time data updates, support for multiple booking channels (e.g., online, mobile, etc.), integration with your booking tools of agencies , reporting and analytics capabilities, and reliable customer support.

Are GDS systems customizable to suit specific business needs?

Yes, GDS systems are customizable to some extent. However, the core remains the same so as to maintain the standards.

Are GDS systems compatible with other travel-related software or platforms?

Yes, many GDS systems are designed to integrate with other travel-related software and platforms.

What security measures are in place to protect data within a GDS system?

To protect the data the measures may include encryption protocols, secure access controls, data backups, and compliance with industry security standards.

Can a GDS system provide real-time availability and pricing information?

Yes, one of the primary objectives of GDS systems is to provide real-time availability and pricing information.

How do GDS systems handle cancellations and refunds?

GDS systems facilitate cancellations and refunds through the same platform used for bookings.

Are there any limitations or challenges associated with using a GDS system?

The complexity of the GDS system and additional costs are some of the top challenges of GDS.

Can GDS systems provide real-time updates?

Yes, they are capable of providing real-time updates.

Do GDS systems support different languages?

Yes, most of the GDS systems offer multilingual options.

Pratyush is a traveling enthusiast who always looks for innovations in business travel management. He has 5 years of experience writing content on corporate travel management and working closely with expert business travel facilitators.

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GDS Systems - Enable The Travel Agents To Access, In Real-Time, Availability, Features And Prices Of Flight Tickets, Hotel Rooms, Rental Cars, Cruises.

Global distribution systems (gds) are used by travel agents and services to provide everything from airline tickets to rental cars to hotel rooms..

How Do Travel Companies Use GDS?

Travelopro Global Distribution System (GDS) is a computerized network system.It is a large computer network which is integrated with 100s of worldwide Airlines and consolidators for enabling transactions between travel agents and travel sites and also used by airlines, hotels, car rentals, railways and buses.

Our GDS mainly uses real-time inventory to service providers (vendors). It is also called Automated Reservation System (ARS) or Computerized Reservation System (CRS).

GDS stands for Global Distribution System and it is basically a central reservation system enables travel agencies and their clients to access travel data, shop for and compare reservations options and book travel.

It is an online system or network that functions across the globe and connects the travel service providers or vendors to the travel agencies in real-time, by providing a centralized service that covers the bookings of airlines tickets, car rental, hotel rooms and more. 

It allows travel agents to access, in real-time, availability, feature and prices for hotels, airlines, rental car companies, and additional travel services worldwide.

The influential global distribution systems are Amadeus, Sabre, Galileo, and Worldspan. This allows users to buy tickets from various providers or different airlines.

GDS can link services, rates, and bookings that combine a variety of products and services in all three travel sectors: e.g., airline bookings , hotel reservations , and car rentals.

Early customers of the Global Distribution System are travel agents and travel companies (web and office-based) to place orders on various reservation systems run by vendors.

Independent travel agents, travel agencies and online agents are now using an increasingly sophisticated GDS system to find the best travel and accommodation and rates for their clients.

The agent will make airline and hotel bookings (in real-time) for clients, and they will complete their research and booking within minutes.

Travel Agencies have traditionally relied on GDS for services, products & rates to provide travel-related services to end consumers.

What Are The Benefits Of Using GDS?

GDS combines booking, tariffs, and service & product consolidation in all travel sectors. It is also responsible for the growth of the travel industry. 

GDS system is one of the most important tools for the travel industry. Global Distribution Systems are server-hosted web services that offer deals in the reservation of travel products such as flights, hotels, transfers and vacation packages worldwide.

A GDS system is a search-based system that allows users to search for travel products from suppliers around the world and the system will yield results with real-time pricing and availability comparisons.

It is used to access for international airlines live data, worldwide hotel inventory, car rentals, and other travel-related services.

Through such business platforms as the GDS System, OTA (Online Travel Agent) can access the inventory of hotels, airlines, car rentals reservations in real-time. Users can book and process the travel offers that best fit their needs.

Online travel agencies and customers around the world use GDS-integrated travel software to book the travel services they need. The GDS system enables automated transactions between travel service providers/vendors and travel agencies.

The travel agencies use the services and products to provide travel-related services to the end consumers. It deals with worldwide data, rates, inventory, offers real-time availability of airlines, hotel rooms, car rental, and many more to make the booking easier for the operators and vendors alike.

Now, the GDS systems run independently and their major subscribers are airlines and travel agencies. There are three major GDS in the market- Amadeus, Sabre, and Travelport (Galileo and Worldspan) in both B2B and B2C platforms.

What Is The Future Of GDS In The Travel Industry?

GDS distribution is one of the best ways to connect with the world of travel agents globally. There are over 650,000 plus travel agents connected via a GDS system booking multiple travel services from airline tickets, car rental, hotel rooms, sightseeing and more.

GDS solutions have evolved much more and they continue to do so even more. Today, Global Distribution Systems allow users to buy tickets from multiple suppliers or different airlines.

The Global Distribution System is also the back end of most Internet-based travel services. 

How Travelopro GDS system works?

Travelopro is a Global Brand trusted by many for its services for Worldwide GDS content, other products and services in order to provide travel-related services to the end consumers.

Our GDS automated reservation system can integrate your services, rates and bookings consolidating products and services across all travel ecosystem. 

We have partnered with the GDS systems globally are Travelport (Galileo, Apollo, and Worldspan), Amadeus and SABRE. 

GDS software developed by us typically offers whole suite of services for the OTAs, ranging from passenger service systems (PSSs) to revenue management systems (RMSs).

The passenger name record (PNR) in the airline reservations system is maintained in the GDS system.

If a passenger books an itinerary containing air segments of multiple airlines through a travel agency, the passenger name record in the GDS system would hold information on their entire itinerary, each airline can fly on would only have a portion of the itinerary that is relevant to them.

This would contain flight segments on their own services and inbound and onward connecting flights of other airlines in the itinerary. 

Our Global distribution systems originated from a traditional legacy business model that existed to inter-operate between airline vendors and Travelopro.

We invested heavily in our own reservations and direct-distribution channels and partner systems.

This helps to minimize direct dependency on GDS systems to meet sales and revenue targets and allows for a more dynamic response to market needs.

These technology advancements of our solutions facilitate an easier way to cross-sell to partner airlines and via travel agents, eliminating the dependency on multiple third party solutions federating between systems.

How GDS Integration is Important?

In this tough competition market, we are always looking for the better ideas to sustain. GDS integration will lead you to better global exposure.

GDS are actually computerized and centralized services that provide travel related services and transactions. It covers everything, from airline tickets to the hotel bookings and car rentals.

Running hospitality business is not easy today, knowing the guests are choosy and they have a number of options in the market to find the services they want.

And then there are agents who are also demanding with the extremely volatile market. Hence this whole scenario needs to be looked at a different perspective, in all different hue.

To maximize your profits and revenue with the share in the market you will need a fine tuning in the pricing and inventory allocation across various channel of the hospitality.

This could be done only with the GDS integration. The GDS integration brings the much-needed support one is required to reach the masses with their product and services.

From airplane seat and hotel room to car rental and any other reservation system, Travelopro provides easy Global Distribution System integration for your travel business .

Being an inventory from suppliers across the globe, you can select from all major Global Distribution System facilitators like Amadeus, Galileo, Sabre, Travelport, Worldspan, Low Cost Carriers (LCC's) and rental providers on land and get it implemented on a single interface. 

The top GDS Systems integrated by Travelopro are Amadeus, Travelport, Sabre, Galileo, Worldspan and many more.

We help in providing the complete and the most effective GDS Integration Solution so that the service suppliers and the travelers may get the maximum benefit out of it.

Our complete GDS integration and online travel agency solutions for various business models like B2B, B2C, etc. Our developers deploy the best in class GDS development and integration services that would allow you reach your business needs.

GDS or Global Distribution System is network system that enables transactions between travel industry service providers like airlines, hotels and travel agencies.

GDS has real time link to multiple service providers allowing agencies to operate with up-to-date inventory information. This enables anyone with access to GDS to book inventories from vendors across the world. 

Travelopro raises your business level by providing the best of the solutions using GDS Integration Technology. It is an apt choice of technology to meet the changing needs and demands of the travel agents, suppliers and the travelers.

We help you turn your business into the most successful one. We provide exactly the best thing that you are looking for from your online travel business.

By having the GDS Integration solution, one of the most trusted and reliable software solutions, you can rule the industry. 

Travelopro offers a wide range of solutions with access to global reservation systems - Sabre, Amadeus, Galileo and the Worldspan. GDS booking system supports booking and ticketing of electronic tickets.

GDS booking system gives the technology which maintains the travel industry going. From flights search to the reservation, costing to ticketing, handling bookings to handling entry and exit procedure.

Amadeus Flight API Integration is in demand among travel operators, destination management companies and hotels etc. GDS booking system covers the complete solution from initial search to booking completion.

Achieving an online reservation becomes easy with the GDS System. The customer simply needs to go through the GDS airline booking in order to book a flight.

The GDS Booking System API enables us to combine travel associated features into any program. This can be done for a travel company, website, reservation system, business own reservation device.

Our booking modules provide you with full access to airline resources hosted on various Global Distribution Systems.

Integration of our online booking system on your web site will help you expand the range of travel products provided by you, in a short period of time.

Integration of GDS xml webservices is directly to your website, allowing you to maintain your site’s identity and original design. Detailed description of booking engine.

Best GDS Systems in the travel industry:

Amadeus is one of the most popular and leading Global Distribution Systems which provides global distribution services for the travel industry with advanced computer reservation software, and web services XML.

Amadeus GDS helps to distribute the services so that the target audience or clients may get the desired result out of it. In the world of travel, Amadeus API Integration is one of the oldest and trusted technologies.

Depending on the requirement of the travelers and the businesses, the Amadeus API integration helps in providing the most effective search results to the travelers and this, as a result, can provide the best and effective services to the portal.

Travelopro is a travel technology company which provides the Global Distribution Systems (GDS) and integrate Amadeus GDS API to a travel booking website.

We provide the best-integrated system to our customers by associating with a maximum number of inventories related to flight, car rental, hotels, transfers and vacation, through Galileo GDS system.

We are expert in Amadeus API Integration, Amadeus API XML Integration, Amadeus GDS API integration, Amadeus web services development, Amadeus Hotel Global Distribution System, Amadeus Airlines GDS Integration, Amadeus Car Rental GDS system .

Our Amadeus GDS Integration service will help your travel company book thousands of airlines, hotel rooms and holiday online. 

The Amadeus GDS travel software interconnects travel agents with hotel, car rental, airline and other service providers via a single platform.

The software is linked to the database of these agencies and allows access to the travel agents to let them access information about seat, rates, availability and discounts.

The Amadeus travel software integrates all these entities at one place and allows its access from a single dashboard. 

Galileo is one of the largest global providers of travel products in the world and they now offer the Galileo Global Distribution system.

Galileo is an application program interface (API) that enables customers to build an interface such as a website, connected to the Galileo.

Travelopro provides Galileo API Integration Solution- one of the most reliable and most trusted global distribution systems, that helps the travel portals get the best service suppliers by their side to showcase their effective services at the portal and which in turn will bring huge website traffic as well.

It integrates all the services at a place and this, in turn, helps the travelers find the best deals which are available across the world. The Galileo GDS API can be used for airline, car, and hotel availability and booking.

We have highly skilled professionals in travel technology at our development center, the team is qualified to deliver top class reservation systems and well trained in web services integration, user/sub-user modules and XML live certification process.

Galileo Reservation System stands with lead position in airline reservation software and connected to almost all the leading airlines companies. It also provides solutions to travel agencies by offering the desktop solutions (search & book) and web services XML to connect to core database.

You can sell the flights tickets of all over the world using the integration of XML (API) system that Galileo provides for IATA agencies. We arrange all the technical details after you have made an API contact with Galileo.

You determine service fees, agency commissions and collect payments through your own virtual POS. You can decide if to reserve or/and tickets online through back office program.

We record all flight ticket transactions you made through each of your sales channels. In case of any discrepancy, we contact with Galileo on behalf of you using those records. 

Sabre Global Reservation System is one of the leading providers of travel reservation system with over 55000 travel agencies.

Sabre is an efficient and cost-effective distribution channel that helps airlines and travel companies to increase their market reach to leisure and corporate traveler.

The Sabre GDS enables companies such as travel agents to search, price, book, and ticket travel services provided by airlines and tour operators. Sabre provides users with schedules, availability, pricing, policies and rules, as well as reservation and ticketing capability for travel suppliers.

Sabre Travel Network is the partner of choice for the world's leading travel agencies and corporate travel programs. Through the Sabre travel marketplace, you gain global access to more than 400 airlines, 750,000 hotel properties, and car rental brands.

You will have a mile-long list of travel options to provide to your customers. Travelopro integrates Sabre GDS System which includes Flight Booking System, Hotel Booking System, Car Bookings and many more.

Sabre GDS system is suitable for B2C as well as B2B (Agents, Distributors and Super-Distributors) and provides fast seats confirmation. Sabre System also provides the best results for fares and commissions and is reliable for new customers too.

We are the industry’s leading service providers in Sabre GDS Integration solution that helps the travel business to grow and also to achieve the best profit in the market.

We deal with Sabre API Integration solution which is one of the most trusted and reliable software solutions for the travel website.

GDS Integration equally distributes the services to the desired destination so that the travelers as well as the service providers may be benefitted by the same in the best and the cost-effective manner. 

Travelport is a leading Global Distribution System, which operates in 170 countries including the globally accepted and recognized Worldspan and Galileo GDS platforms.

The Travelport network consists of 400 Airline partners helping travel companies increase revenue, lower cost and efficiently reach leisure and corporate travelers globally in every continent and channel.

With Travelport GDS, travel agencies and management companies can aggregate their business with more enhanced and wide selections of travel contents for booking of flights, hotels, cars with real-time data and best offers.

Travelport travel technology platform enables travel providers, travel agencies, corporations and developers to search, share, buy and sell travel.

This increases profitability and drives commercial success for every customer in our B2B network. Travelopro support you to integrate Travelport GDS to your online portal.

Travelopro integrated with Travelport GDS system brings multiple benefits to global travel companies. It helps them instant access of travel deals in real connection of web services for B2B and B2C modules, enhancement in the performance of the organization time helps the travel management company to move towards the growth sphere.

Travelopro believes its innovative solutions will not only expand our reach to more agencies and global travelers, but also help to fulfill their distribution needs.

In association with Travelport, we look forward bringing safe, enjoyable and unique travel experiences t more travelers around the world.

With Travelport GDS system travel companies can enhance their booking efficiently and effectively to both global leisure and corporate travelers. 

Worldspan is one of the leading travel technology resources for travel agents, tour operators and travel management companies worldwide.

It offers worldwide electronic distribution of travel information, Internet products and connectivity, and e-commerce capabilities for travel agencies, travel service providers and corporations. 

Airlines which are registered with Worldspan network can be displayed in Worldspan availability. With Worldspan travel network travel agencies can get huge selection of airlines with great offers with real-time availability of seats, price changes and status of flights.

In other words, this is the most sophisticated way for Travel agencies to display availability, fares, fare rules and routings, schedules, seat maps, flight information and PNRs directly.

By integrating Worldspan GDS in travel agencies applications or websites can help travelers to get lowest price carrier. Worldspan GDS System provides data-rich solutions that give travel buyers and suppliers unique insights into their operations that help to manage your travel business, reducing costs and improving revenues.

Worldspan travel software acts as a single source for providing travel deals and data all over the world.

This is mainly because integration of Worldspan travel software enables the travel agents to enhance the customer experience by providing information like rates, inventory, discount, room and description which is done on real time basis.

Travelopro is fully integrated with Worldspan GDS which provides world's largest travel content and distribution for travel agents interactive functionality.

It helps customers to display the inventory data, maintained through a schedule distribution system of Travelopro via standardized B2C/B2B channels.

Our pre-integrated Worldspan travel software helps in increasing the revenue and creating a brand name for the organization. 

Why travel agents need access to GDS System?

Travel agents require the assistance of GDS and it is for the sake of their own profits. GDS serves as direct sellers of the air fares travel agents get into an agreement to the GDS and get access to a list of fares what he/she can again sell to the customers.

So, getting access to the GDS would allow you to serve first-hand air tickets and you can draw more profits out of them as compared to purchase tickets from travel agencies and resell them.

It was revealed that the GDS is and will remain as the most important channel of distribution for airlines, hotels and car rental companies alike.

However, Internet also allows the GDS companies, label providers and even the traditional travel agents to host websites directly which access to their connections and provide the services previously offered by offline travel agents.

GDS is a computerized web service that provides pricing, real time availability, centralized data display with reservation functionality to the global travel industry in a very unified process. 

The five main GDS providers in the travel industry are Amadeus, Sabre, Galileo Travelport and Worldspan helping travel agents growing volume of travel transactions.

Key benefits of Global distribution systems:

A global distribution system can be used to market your latest sales message, special offers, and discounts directly to travel agents. 

GDS System is extensively used to broaden the market reach. A single global travel distribution system is connected through B2B, B2C, B2E and B2B2C websites.

OTAs have greatly improved the travel shopping experience & convenience for consumers and have increased pricing transparency.

GDS is highly effective in alluring international travelers. This is the reason why using GDS among the travel agents is growing exponentially every year.

market penetration through direct marketing efforts.

The Use of Global distribution system shows a rise across corporate and leisure travelers

The unique selling point of GDS is that it Can provide best rates to your guests, which no other systems can provide.  Your gusts can find packages that include a hotel stay, air travel and car rental

Travel agents can get global platform for their business with strong market penetration

Global distribution system is the base to enter into corporate clients across the world

It’s a wise decision to invest in a GDS. The system places your holiday booking services and inventories in front of huge clients without affecting your marketing budget.

GDSs enable the retail travel agency and OTA business models.

GDS is the ability to update the status of inventory in real time.  Due to its real-time status update capability managers can view rates change and can easily alter price points or make special offers. Agents can view all the changes instantly and will be able to suggest the new updates and offers to clients without any interruption to make the deal.

The GDSs enable the travel agents to make their travel services available to consumers globally where they might not otherwise be able to achieve efficient worldwide 

Booking through Global distribution system is most preferable for corporate travel agents as a suitable reservation process for holidays, air, hotel and rental cars.

Get your travel business online

If there is one thing you do today, get your travel business online. everyone are talking of going online. provide yourself and your agents with their own b2b/b2c booking engine. travelopro platform consist of many components assembled to get your one stop travel software and travel technology, to automate travel business process and configured in many ways to meet your business goals. here's what you'll get (its affordable, easy and profitable)..

Destination

Fetaures of Online Reservation System:

• Fast and Flexible booking engine
• Secure, scalable and robust reservation architecture
• Fully customized booking engine
• Cost-effective solutions
• User friendly interface
• Integrated Payment Gateway
• Multi-language support

Travel Technology Platform You can trust

Powered by our Industry Leading Travel Technology – Including complete inventory and Global Fares – Travelopro gives you the highest quality travel technology solution to power your brand.

How to Start A Travel Agency Online – Key Steps, Software Platform and Top Travel Aggregators

The travel industry is experiencing rapid growth, with a compound annual growth rate (CAGR) of approximately 6%, making it an attractive prospect for aspiring entrepreneurs. Its resilience and expansion are consistently evident, fueled by factors such as rising disposable incomes, globalization, and a burgeoning preference for immersive travel experiences. Revenue streams for travel businesses encompass a wide array, including booking commissions, tour packages, accommodations, transportation services, travel insurance, and supplementary offerings like excursions or event tickets.

In the digital era, travel enterprises have the advantage of accessing a global audience and operating remotely, opening avenues for scalability and expansion beyond local confines. But where does one begin? For many newcomers, the journey starts with a fundamental inquiry: how to open a travel agency ? They seek guidance on aspects like the registration process, legal requirements, accreditation such as IATA, options for host agencies, leading travel aggregators, and optimal technology platforms tailored for startup travel agencies.

How to Establish A Travel Agency : Key Steps Are As Following 

Research and Planning

Conduct thorough research on the travel industry, including market trends, competition, and potential target demographics. Define your niche, such as corporate travel, luxury vacations, or adventure tourism, to differentiate your agency in the market.

Business Plan

Develop a comprehensive business plan outlining your agency's objectives, target market, marketing strategies, financial projections, and operational plan. A well-crafted business plan will get the best answer for original question - how to start travel agency business?

Registration Process

Register your travel agency as a legal entity and obtain any necessary licenses or permits required by your local or state government. Research regulatory requirements specific to the travel industry, such as seller of travel licenses or accreditation from industry associations like IATA (International Air Transport Association) or ASTA in USA (American Society of Travel Advisors). These accreditations will help in getting better hotel and flight aggregators contracts.   

Technology and Tools

Invest in travel technology and software tools essential for starting a startup travel agency, such as booking systems, customer relationship management (CRM) software, and accounting tools. Consider partnering with a Global Distribution System (GDS) provider for access to real-time flight and hotel inventory.

Supplier Connects

Establish relationships with flight wholesalers , hotel suppliers, tour operators, and car rental companies. Negotiate contracts and agreements to access competitive pricing and exclusive deals that you can offer to your clients.

Launch and Operations

Once everything is in place, launch your travel agency and begin offering services to clients. Focus on providing exceptional customer service, building trust and credibility, and continuously refining your offerings based on client feedback and market trends.

About Provab

Provab Technosoft is one of the leading travel technology company, delivering B2B / B2C travel tech solutions, travel CRM, accounting software, car rental software and mobility solutions to global travel & hospitality companies. We work with top hotel, car and air ticket aggregator & global distribution systems. If you would like to know about how to start a travel agency online, travel tech platforms and tools - connect with us. 

Corporate Travel Companies Are Bulking Up: ‘Getting Bigger Is Critical’

Justin Bachman, Skift

April 10th, 2024 at 10:06 AM EDT

Pressure from travel suppliers who want better merchandising tools and lower costs are compelling travel management companies to consolidate.

The big players in the world of managing corporate travel are gearing up to get bigger: Amex GBT’s $570 million bid for CWT and the sale of Direct Travel to an investor consortium are two of the latest examples of the race to bulk up through mergers. 

The trend is driven largely by two factors: Travel suppliers – primarily airlines – seeking greater efficiencies in their distribution channels and the enormous capital required to invest in the technology to sell to and service travelers around the world.

“I think fundamentally customer needs are driving consolidation in the industry,” Amex GBT CEO Paul Abbott told Skift. “I think supplier needs are also changing. Suppliers want their distribution channels to deliver a modern retailing experience,” he said.

For example, airlines are moving a growing share of their fares from the traditional global distribution system model to a direct NDC (New Distribution Capability) platform. And agencies are under pressure to adopt it. 

CWT merging into Amex GBT is “a perfect example of how it’s really only the big players that have the capital to do it,” Mike McCormick, a travel consultant and former head of the Global Business Travel Association, said on April 1 on the Travel Again podcast.

The largest corporate firms, such as Amex GBT, BCD Travel and Navan, have been forced “to really make big investments in technology and continued investments” given the aggressive push by American and others, McCormick noted. 

Navan, for example, last month touted its deeper integration with United Airlines to support that carrier’s pricing strategy for fares, along with other self-serve tools and more personalization for travelers.

“Getting bigger is critical in terms of  a lot of the airline changes and negotiation, and always pressure on earnings and commissions and business in general,” McCormick said.

Investing For the Next-Generation of Travel

Investor Steve Singh, the founder and former CEO of Concur, is managing director of Madrona, the Seattle-based venture capital firm that is among the four investment firms that acquired Direct Travel Inc. on April 2. 

Singh told Skift the investor group is keen to create a “next-generation” travel management company that would offer a seamless connected trip in which all of a traveler’s airline, hotel, meeting, ground transport, and appointment bookings would be integrated, allowing for far simpler itinerary changes. For now, it’s an aspirational goal, one the industry has long wanted but that has proven tough to attain. 

Travel management companies sell multiple technology platforms to serve customers and “the result is that it is very expensive to build and run a TMC,” Singh wrote in a blog post explaining the investor group’s view of how the managed-travel industry should evolve. 

“The fact that these legacy solutions are built on GDS platforms that are not open and not extensible makes the goal of delivering an incredible client experience at a better value proposition even more challenging.”

“As someone who has logged tens of millions of flight miles, I would love a system that allows me to reserve a hotel from the time I arrive in a town to the time I need to leave, not from 3 p.m. to noon,” Singh wrote in his post.

What’s Next for Travelers

Amex GBT customers may see a greater focus on particular industry verticals, such as energy, U.S. government, mining and marine industries for CWT. Those areas tend to present greater complexity and transaction value, along with higher customer retention rates, Amex GBT told investors March 25 explaining the CWT deal.

Abbott said successful travel-management companies will increasingly need both software and services — not just one — that are married effectively.

“You have to have the best technology and the best people, you have to integrate it better than anyone else, and you have to deliver that consistently on a global basis,” he said. “And that’s hard and it requires significant investment and significant expertise.”

The Daily Newsletter

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Tags: airlines , amex gbt , business travel , concur , corporate travel , cwt , navan

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The trains and stations of the Moscow Metro

2 Comments · Posted by Alex Smirnov in Cities , Travel , Video

The Moscow Metro is the third most intensive subway system in the world after Tokyo and Seoul subways. The first line was opened on May 15, 1935. Since 1955, the metro has the name of V.I. Lenin.

The system consists of 12 lines with a total length of 305.7 km. Forty four stations are recognized cultural heritage. The largest passenger traffic is in rush hours from 8:00 to 9:00 and from 18:00 to 19:00.

Cellular communication is available on most of the stations of the Moscow Metro. In March 2012, a free Wi-Fi appeared in the Circle Line train. The Moscow Metro is open to passengers from 5:20 to 01:00. The average interval between trains is 2.5 minutes.

The fare is paid by using contactless tickets and contactless smart cards, the passes to the stations are controlled by automatic turnstiles. Ticket offices and ticket vending machines can be found in station vestibules.

Tags:  Moscow city

You might also like:

The bridge over Zolotoy Rog Bay in Vladivostok

The views of St. Petersburg from the TV tower >>

Tomás · August 27, 2012 at 11:34 pm

The Moscow metro stations are the best That I know, cars do not.

Alberto Calvo · September 25, 2016 at 8:57 pm

Great videos! Moscow Metro is just spectacular. I actually visited Moscow myself quite recently and wrote a post about my top 7 stations, please check it out and let me know what you think! :)

http://www.arwtravels.com/blog/moscow-metro-top-7-stations-you-cant-miss

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Russian IADS Redux Part-7: The Effectors

In the next part of our series on Russia’s strategic integrated air defence system, we look at the kinetic ground-based air defence systems it deploys.

In part-6 of our series on Russia’s strategic Integrated Air Defence System (IADS) we examined the command and control architecture it depends upon. The IADS’ role is ultimately to provide a response to air threats approaching or entering Russian airspace. In Russian air defence doctrine this response is provided using kinetic and/or electronic effects.

The kinetic side of the IADS depends on the Russian Aerospace Force’s (RASF’s) fighters and Surface-to-Air Missile (SAM) systems. Sources have shared with Armada that both the fighter and SAM force would be deployed in wartime to protect key Russian strategic targets. Typically, these could include politico-military targets like the Kremlin, the seat of the Russian government in Moscow. Other potential strategic targets include hardened facilities believed to be earmarked for use by the Russian leadership in wartime. One of these facilities is thought to be located at Mount Yamantau, southwest Russia. A back-up facility may exist at Mount Kosvinsky Kaman, western Russia. Russia’s industrial city of Elektrostal, on the eastern outskirts of Moscow, was one of the first locations where the RASF deployed its S-400 (NATO reporting name SA-21 Growler) high-altitude, long-range SAM systems in 2010.

The SAM Systems

Moscow itself is ring-fenced by the RASF’s 53T6 (ABM-3 Gazelle) anti-ballistic missile system. The 53T6 employs SAMs equipped with a ten kiloton (one kiloton is equal to 1,000 tonnes of conventional explosive) nuclear warhead. These missiles would detonate at altitude in proximity to incoming salvos of ballistic missile warheads or formations of hostile aircraft. The logic is that this ‘shotgun’ approach will vaporise, or at least badly damage, these targets.

The S-400 is the mainstay of the RASF SAM force. A typical S-400 battalion includes two batteries. A battery comprises between eight and twelve individual launch vehicles, each equipped with four missile tubes. Thus, an S-400 regiment could have between 56 and 84 individual missiles ready to launch if fully loaded.  Each battery has a command post, a 91N6 (Big Bird) S-band (2.3 gigahertz/GHz to 2.5GHz/2.7GHz to 3.7GHz) 324 nautical mile/nm (600 kilometre/km) range surveillance and tracking radar. The 91N6 is joined by a 96L6E (Cheese Board) C-band (5.25GHz to 5.925GHz) early warning and target acquisition radar. This radar has a range of up to 162nm (300km). A plethora of SAMs can be launched by the S-400 with an array of engagement ranges from 21.6nm (40km) using the active radar homing 9M96E missile. Engagement ranges can reach up to 216nm (400km) using the 40N6E missile which has a reported engagement altitude of 98,425 feet/ft (30,000 metres/m).

Legacy systems used by the RASF include the S-300PS (SA-10B Grumble-B) and S-300PM (SA-10D/E Grumble) which have subtle differences. An S-300PS battery has three Maz-543 launch vehicles each with four launch tubes. The battery is also equipped with a single 5N63S (Flap Lid-B) X-band (8.5GHz to 10.68GHz) fire control radar. An S-300PM battery has a single 36N6E (Flap Lid) X-band/Ku-band (13.4GHz to 14GHz/15.7GHz to 17.7GHz) fire control radar with a 162nm (300km) range. Joining the 36N6E is a 76N6 (Clam Shell) X-band (8.5GHz to 10.68GHz) search and track radar with a 70nm (120km) range. The rest of the battery is comprised of up to eight Kraz-260 launch vehicles each with four tubes. Both the S-300PS/PM are thought to deploy 48N6/E SAMs which have a reported 81nm (150km) range. The S-300PS/PM’s 5V55R missile has an engagement range of up to 48.6nm (90km).

Sources have shared with Armada that RASF SAM batteries are not routinely deployed but may deploy from time-to-time to support exercises or training. The batteries would only be deployed in anger to protect key strategic targets like those discussed above. The sources continued that the task of the SAM units is to provide a protective ‘bubble’ above these targets. Air defence coverage up to 54 nautical miles/nm (100 kilometres/km) altitude and a range radius of 189nm (350km) around the target would be provided. The SAM units would work to attrit any incoming air attack as much as possible. Russian air defence doctrine focuses on safeguarding as many strategic targets as possible in anticipation of an eventual counterattack.

One crucial part of the RASF’s SAM force is its 96K6 Pantsir-S1 (SA-22 Greyhound) combined medium-range SAM and anti-aircraft artillery systems. 96K6 units would deploy with S-300 and S-400 batteries. Their role would be to destroy air-launched weapons like anti-radiation missiles or attack helicopters engaging the batteries Armada’s sources added.

Over the longer term, the RASF is looking to introduce new SAM systems to enhance the strategic IADS in the form of the S-350E and S-500 Prometey long-range, high-altitude SAM systems. The S-350E is mooted as a replacement for the RASF’s S-300PS/PM batteries. Open sources state that a S-350E battery has one 50N6A X-band ground-based air surveillance radar with a range of 215nm (400km). The 50N6A is joined by a single 50K6A mobile command post and up to eight 50P6 launch vehicles. Each launch vehicle can fire 9M96/E or 9M100 SAMs with engagement ranges and altitudes of up to 65nm (120km) and 98,000ft (30,000m) respectively. It was reported in January 2020 that the first S-350E battery had entered service, although a developmental system may have been deployed to support Russia’s military presence in Syria. The VKS could receive twelve S-350E batteries by 2027.

The S-500 is mooted to have a longer engagement range than the S-350E. The S-500 ensemble includes a 91N6A(M) air surveillance and battle management radar. This radar is an enhanced version of the 91N6A radar accompanying the S-400. The S-500’s 96L6TSP target acquisition radar is an enhanced variant of the S-400’s 96L6E. These two systems are accompanied by the 76T6 multimode fire control radar, itself thought to be a derivative of the 92N6. Also forming part of the S-500 ensemble is the 77T6 anti-ballistic missile engagement radar the capabilities of which remain largely unknown in the public domain.

Open sources say that missiles equipping the S-500 could hit targets at ranges of up to 270nm (500km). Russian sources have claimed that the S-500 could engage targets at up to 656,168ft (200,000m) altitude. Russian media, seldom the most reliable source, claim that the first S-500 regiment went on combat duty in October 2021.

The long-term prognosis for the S-500 and S-350E systems remains uncertain. As documented by the Royal United Services Institute, a London-based thinktank, the Russian defence industry is dependent on clandestinely-sourced Western microelectronics for sophisticated weapons systems. Will Western efforts to clamp down on Russia’s access to such technology have an impact on the fortunes of the S-350E and S-500?

Stay tuned for more analysis on Russia’s strategic air defence capabilities in the next instalment of our Russian IADS Redux series.

by Dr. Thomas Withington

Read our other Russian IADS Redux   articles:

• Russian IADS Redux Part-1: Resonating with Resonance
• Russian IADS Redux Part-2: Hilltop View
• Russian IADS Redux Part-3: Strategic Skywatchers
• Russian IADS Redux Part-4: Missing Link
• Russian IADS Redux Part-5: Reset Password?
• Russian IADS Redux Part-6: Fundament-alists

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