In the early 1960s, long before the internet was a spark in human imagination, the GDS was created to serve as an electronic reservations system for airline companies. Not long after, hotels and travel agencies joined the network, and in 1992 the first Global Distribution System (GDS) was formed.
Today, the GDS is used by travel agents around the world to book flights and hotel rooms as well as rental cars, train tickets, tours, cruises, and travel packages. Despite the popularity of OTAs, many travellers prefer to have their trips arranged by an experienced, knowledgeable professional who can step in to help if travel is disrupted. And many companies who want greater control over employee travel outsource the work to a professional travel management company.
For hotels, the GDS is the primary platform for reaching travel agents and can generate a small but significant proportion of total bookings. In 2022, hotel groups reported receiving 8 % of total bookings from the GDS on average, according to h2c’s 2022 Global Hospitality Distribution Study.
Large chains received the highest proportion, at 9 %, whereas small and medium-sized chains received 4 %. The difference is presumably less related to low demand than to the fact that fewer small groups list properties on the GDS. While the study didn’t include independent hotels, D-EDGE data shows that they are missing out on even more of the action.
“The GDS gives us access to worldwide agencies and online travel agencies which increase our hotel’s visibility and helps us drive more bookings and generate higher revenue, especially from corporate bookings,” said Piyadol Chantadej, revenue manager at Grand Fortune Hotel Bangkok. “It has also prevented and reduced booking errors, as the GDS is a real-time system.”
