Why a Global Distribution System (GDS) is important for the success of hotel firms

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There are many aspects that hotel companies need to consider when they are creating their business, and one of them is how to distribute details about their firms. A Global Distribution System (GDS) is a wonderful tool that properties should use to reach customers easily. This is a central reservation system that allows travel agents to access hotel rates and availability as well as prices for flights, trains and rental car companies in real time. GDSs have been influential in shaping the modern travel market and still have an effect in this modern digital age. Online travel companies still use GDS platforms to place bookings for customers.


A hotel GDS system will help accommodations to reach travellers with the information they want to put out there. There are many reasons why the usage of a GDS could be impacted including the growth of online travel websites offering price comparisons. Also the way that hotels now encourage customers to book directly through their website, as they do not want to pay the fees required by Online Travel Agencies (OTAs). Hotel firms are always looking for ways to promote their business, so that the general public learn about their products and brand. A GDS is exactly what a hotel business needs to link up with to get its firm noticed.

The first GDS was actually created by the airline industry back in the 1960s that kept track of flight schedules, inventory and prices. What a GDS does in the internet era is to actually help out traditional travel agencies, but also OTAs or Online Travel Agencies such as Expedia. A Global Distribution System network puts details of a hotel, rates and inventory in front of thousands of travel agents around the world. Tourists are travelling further than usual around the globe nowadays so it is vital for hotel firms to connect with a GDS for greater exposure.

The general idea is accommodations will receive a higher amount of reservations if their details are easily available to share with travel agents and the public. A GDS is crucial to independent hotels that can benefit hugely from being associated with one to achieve a greater amount of online bookings. Of course connecting with a GDS means firms have to invest and this means spending money on an initial sign-up charge and maintenance fees. There will also be booking charges per reservation and commission fees to the travel agent or website through which the GDS bookings are created. It is definitely worth the investment if a hotel business has a decent sized residence, and is found in a well-known travel spot.

The amazing workers at hospitality marketing agency World Hotel Marketing can certainly help with generating a superb website for customers to use. They can also successfully pair up hotel businesses with leading channel managers including Rate Tiger, Parity Rate, XYZT and Ezyield. There are many chances to link with firms such as American Express (Global Business Travel) and HRG (Global Hotel Programme). Hotels will need to expose their firm to a GDS as it is a brilliant way to get customers. Once they have those loyal guests they can encourage them to directly book on the site, which will reduce future commission costs.