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GDS hotel bookings poised for strong growth through 2030

  • Automatic
  • 23 May 2025
  • 2 minute read
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This article was written by Hospitality Today. Click here to read the original article

As global demand shifts, GDS strategy becomes a key lever for hotel revenue growth, offering hotels a chance to boost profitability beyond OTA and direct channels

May 23, 2025

In an age of digital direct bookings and OTA dominance, the Global Distribution System (GDS) remains a quietly powerful engine of hotel revenue – particularly through agency/post-pay commission structures. Part one of this two-part analysis by Onyx in partnership with Skift delves into how GDS booking shares vary by region, country, and hotel class, revealing where and how tens of millions of dollars in commissions are earned annually. For travel management companies (TMCs), hotels, and industry strategists, these variations represent not just data – but opportunities for growth, efficiency, and profit optimization in global distribution.

Key takeaways

  • GDS hotel bookings is big business In 2024, hotels paid an estimated $2.1 billion in GDS-related commissions, mostly via the agency/post-pay model. This accounts for roughly 5% of global hotel commissions – a small percentage with large monetary implications.
  • Regional gaps drive competitive advantage
    • North America (5%): High integration between TMCs and hotel CRS systems keeps costs low and volumes high.
    • Europe (4.3%): Strong cross-border demand and duty-of-care policies aid GDS usage, but hotel direct-booking campaigns pose challenges.
    • Asia-Pacific (4%+): Poised for the fastest growth, thanks to rising card adoption, modernizing TMCs, and regional business hubs.
  • Top national markets for GDS hotel bookings
    • New Zealand (11%) and Australia (10.5%) lead globally, driven by corporate compliance and regional TMC dominance.
    • U.S. (5.1%) sits slightly above average, pulled between GDS use and loyalty-driven direct strategies.
    • Belgium (4.4%) underperforms, where corporate chains bypass the GDS with negotiated deals.
  • Luxury hotels dominate GDS revenue
    • 6%–7% GDS share in luxury/upper-upscale hotels, as these cater to premium business travel.
    • Midscale & economy hotels fall under 3%, losing share to OTAs and bundled travel platforms.
  • Strong growth forecasted Though GDS bookings account for a modest share of global revenue, travel agency bookings are forecast to grow by 125% by 2030.

Get the full story at Skift

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