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 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 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 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 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 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.

To Read More: What is GDS? – A Simple Guide For New Travel Agencies

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