Global Distribution System (GDS) plays a crucial role in automating transactions (such as reservations, payments, and cancellations) among travel service providers, predominantly airlines, hotels, car rental companies, and travel agencies. It is operated by companies that facilitate network systems, streamlining interactions between these entities. Unlike GDS, these service providers do not directly hold inventory. Instead, each vendor manages its own reservation system and GDS obtains real-time reservation information directly from the databases of these vendors.
The Functionality of GDS
GDS has been instrumental for online travel agencies operating internationally, as managing and sourcing thousands or even tens of thousands of travel-related products would entail significant administrative costs. Therefore, these agencies have relied on GDS to establish reservation services for travelers. Domestically, travel agencies have progressively expanded their use of GDS.
GDS in the Travel Industry
Traditionally, GDS has been used by both online and offline travel agencies to input reservations into various booking systems operated by vendors (service providers). In the case of domestic operations, individuals known as Operators (OP) have been responsible for directly managing reservations through GDS in response to customer requests. Recently, there has been a growing trend of companies utilizing the standard Application Programming Interface (API) provided by GDS. This allows customers of travel agencies to access the agency’s website or mobile application and make real-time reservations without the assistance of an OP.
Key Players in the GDS Market
In the international arena, notable examples of GDS are Check My Trip (airline) operated by Amadeus, Tripcase (airline) operated by Sabre, and Pegasus (hotel) operated by Pegasus Solutions. In the domestic market, companies like Yellow Travels Labs have developed GDS for inventory management of accommodations such as pensions and guesthouses, providing them to international online travel agencies. It is anticipated that GDS will progressively expand into various other travel sectors.
Conclusion
As the travel industry continues to evolve, the role of GDS becomes increasingly prominent. Its integration into the operations of travel service providers, both domestically and internationally, signifies its significance in streamlining travel bookings and enhancing the overall travel experience for customers. With the continuous expansion and development of GDS, it is poised to play an even more crucial role in shaping the future of the travel industry.