What is GDS (Global Distribution System) in Travel?

November 15, 2024

So, what is GDS in Travel? In the travel industry, a Global Distribution System or GDS for short is a computerized network system that enables travel agencies and other travel-related businesses to access and book travel services like airline tickets, hotel rooms, car rentals, and other travel-related services.
In short, a GDS acts as a bridge between travel suppliers and travel sellers.
Through GDS, travel agents and other intermediaries can view real-time information about availability and pricing across multiple services. This system has revolutionized the travel booking process by providing a one-stop solution for all travel-related services, improving efficiency and accuracy.

How does a GDS work and how is it used?

Although a GDS might sound highly technical, its operation can be simplified into the following key components:
Centralized Inventory Access: A GDS consolidates services across multiple airlines, hotels, and car rental companies. Travel agents and online platforms use it to check real-time availability and make reservations.

 

Key GDS Providers:

Some of the largest GDS providers include: 

• Amadeus: Primarily serves Europe and Asia however is making a strong push entering the US market in 2024. 
• Sabre: Strong presence in North America but has grown tremendous support and usage around the world. 
• Travelport: Includes Galileo (Travelport+), Worldspan, and Apollo, providing a global reach.

What are the benefits of a GDS?

Time Savings: A GDS provides access to multiple service providers in one system, saving time and improving efficiency.

Real-Time Updates: It offers live data on availability, prices, and exclusive offers, ensuring up-to-date information.

Global Reach: Travel agents can book services from anywhere in the world, opening opportunities for seamless global travel booking.

Broad Range of Services: Not just flights, but hotel rooms, car rentals, cruise bookings, and even rail services can be accessed through a GDS.

A GDS offers travel agencies the ability to compare options quickly and efficiently for their clients. It empowers them with an all-in-one platform to manage bookings and adjust travel itineraries as needed.

The History and Background of the GDS.

The Global Distribution System (GDS) traces its origins back to the 1960s, when airline reservation processes were slow, cumbersome, and primarily manual. Airlines recognized the need for a more streamlined process. American Airlines, in collaboration with IBM, introduced the Sabre system, the first Computerized Reservation System (CRS). This CRS would later evolve into the GDS we know today.

GDS transformed the airline industry, making it possible for travel agents to manage reservations from multiple airlines in real time. This development allowed travel agencies to offer more options, improving service quality and customer satisfaction. Over the years, GDS expanded beyond airline reservations to include hotel bookings, car rentals, and other travel services, becoming a key infrastructure in the global travel ecosystem.

In the 1980s and 1990s, Amadeus and Travelport entered the market, further diversifying the travel booking landscape. Today, the GDS is not just a tool for booking, but a robust system that connects the supply chain across the travel industry, allowing airlines, hotels, car rental agencies, and even cruise lines to manage their inventory and reach a global audience.

Expansion and Modernization of GDS.

The success of early systems like Sabre spurred further developments and competition in the travel tech space. As the demand for real-time access to booking data grew, companies like Amadeus, Travelport, and Galileo entered the scene, each offering unique functionalities and expanding GDS capabilities. This competition encouraged rapid innovation, allowing GDS platforms to handle more complex transactions, manage multiple forms of travel services, and provide cross-functional support. As a result, GDS became more accessible and functional, catering to a wider range of travel providers and end-users.

The arrival of the internet in the late 1990s significantly impacted GDS technology. Online travel agencies (OTAs) like Expedia and Priceline emerged, and GDS providers adapted to allow OTAs to access their systems, providing consumers direct access to travel inventory. This development marked a major shift, transforming GDS from an industry tool into a consumer-facing technology, where travelers could compare fares, check availability, and make bookings independently.

Adapting to the Digital Era and NDC Integration.

As digital transformation advanced, GDS platforms adapted to include the latest technology. Recently, the rise of New Distribution Capability (NDC) standards developed by IATA has enabled airlines to distribute rich content more effectively, offering more tailored booking options. NDC represents a shift from traditional GDS models by providing airlines with more control over inventory, allowing them to offer more flexible and personalized options, such as bundled services and ancillary products.

To stay competitive, GDS providers like Sabre, Amadeus, and Travelport have incorporated NDC into their systems, allowing airlines and travel agents to offer clients more choice, customization, and transparency. This integration helps agencies better serve travelers with customized itineraries and specific preferences, reflecting a growing trend toward personalization in travel services. At the same time, the data generated through these transactions has become invaluable for travel management, providing insights into consumer behavior, spending patterns, and travel trends.

Future Prospects for the Global Distribution Systems

Looking forward, the GDS industry is expected to continue evolving alongside advances in artificial intelligence, machine learning, and predictive analytics. These technologies promise to enhance GDS functionality by improving demand forecasting, optimizing inventory management, and offering proactive customer support. Furthermore, as sustainability becomes a priority, GDS providers are beginning to incorporate eco-friendly travel options and carbon offset tracking, allowing travelers to make more sustainable choices.

 

What are the different types of GDS and who are their users?

There are three major types of Global Distribution Systems (GDS) in travel, each with its own unique strengths and focus areas:

Amadeus: 

Founded in 1987 by a group of European airlines including Air France, Lufthansa, Iberia, and SAS. 

• Focus: Strong presence in Europe and Asia.
• Services: Provides booking for flights, hotels, cars, cruises, and railways, among other travel services.
• Key Users: European and Asian travel agents, airlines, and hotels frequently use Amadeus for their global bookings.

Sabre: 

Developed in the 1960s by American Airlines and IBM.

• Focus: Dominant in North America, with a growing global footprint.
• Services: Sabre includes flight bookings, hotel reservations, car rentals, cruises, and additional travel services.
• Key Users: U.S. travel agents, airlines, and large corporate travel management companies often utilize Sabre.

Travelport Brands: 

Travelport encompasses several systems, including Galileo, Worldspan, and Apollo.

• Focus: Global reach with a strong presence in North America, Europe, and Asia.
• Services: Like Amadeus and Sabre, Travelport provides access to flights, hotels, car rentals, and more.
• Key Users: Travel agents, airlines, and travel service providers around the world rely on Travelport for its comprehensive services.

What Travel Industries Are Using GDS? 

GDS is used across various sectors within the travel industry. 

Travel Agencies: 

Both traditional brick-and-mortar agencies and online travel agencies (OTAs) use GDS to book flights, hotels, and car rentals.

Corporate Travel Management: 

Companies that need to organize employee travel use GDS to streamline bookings and ensure cost-effective itineraries.

Airlines: 

Airlines rely on GDS to sell tickets via travel agencies and online platforms.

Hotels and Car Rental Companies: 

These businesses list their services on GDS to reach a broader, global audience.

Cruise Lines, Rail Services, and Tour Operators: 

GDS helps these industries reach wider audiences for bookings.

GDS acts as a comprehensive platform for various travel services, providing connectivity and inventory management for both suppliers and travel agencies. This allows a seamless travel booking experience for both leisure and business travelers.

 

Teplis Travel’s Take on GDS and What It Can Do for the Business Traveler

At Teplis Travel, we have over 50 years of experience leveraging Global Distribution Systems (GDS) to enhance our corporate travel services. By offering access to global inventory through GDS, we ensure our business travelers can access the best possible travel options, no matter their destination. Here are some key benefits that Teplis Travel sees in using GDS for business travelers:

1. Transparency and Efficiency: With GDS, we offer complete transparency regarding flight, hotel, and car rental options. Our clients have access to real-time updates, ensuring they always know their options and can make informed choices.
2. Comprehensive Content: GDS platforms provide access to a wide range of travel content, from traditional airfare to unique car rental offers and exclusive hotel deals. This comprehensive content is key to creating tailored itineraries that meet the specific needs of each traveler.
3. Global Coverage: Our GDS platforms provide worldwide access, ensuring our clients can travel wherever they need to go with ease. Whether it’s a last-minute booking or a planned trip, Teplis Travel uses GDS to cover all the bases.
4. Post-COVID Focus on Transparency: Since the COVID-19 pandemic, the travel industry has demanded more transparency, and GDS systems are at the forefront of this push. With detailed information about health protocols, cancellations, and refund policies, Teplis Travel ensures that business travelers can make well-informed decisions that align with safety and efficiency.
5. Customized Experience: Teplis Travel believes that content is king. GDS allows us to offer a personalized experience for each business traveler, ensuring that every itinerary is customized to fit their unique preferences, budgets, and schedules.
6. Efficiency for Corporate Travel: For corporate clients, GDS enables faster, more efficient travel management, helping companies save both time and money. Travel managers can access the best deals, track spending, and streamline the booking process.
7. Cost Savings and Control: One of the major advantages of GDS platforms is the ability to deliver significant cost savings for our clients. By accessing wholesale rates, negotiated fares, and last-minute deals, Teplis Travel ensures that clients receive competitive pricing without sacrificing quality or convenience. Furthermore, the ability to track expenses in real-time empowers corporate clients to monitor and control travel spending, making it easier to stay within budget.
8. Data-Driven Insights: Teplis Travel leverages the extensive data generated through GDS to provide clients with valuable insights. These insights help identify travel trends, optimize routes, and enhance decision-making for corporate travel managers. With detailed reports on travel patterns and expenditures, clients gain a comprehensive view of their travel activities, which aids in strategic planning and policy enforcement.
9. Enhanced Travel Support: GDS enables us to provide robust support throughout the entire travel journey. In the event of disruptions, our team can quickly make alternate arrangements, reducing downtime for travelers. This flexibility is crucial for business travelers who often operate on tight schedules and rely on seamless itineraries to maximize productivity.
10. Sustainable Travel Choices: Increasingly, companies are prioritizing sustainable travel options, and GDS supports these initiatives by offering access to green-certified hotels, fuel-efficient flights, and eco-friendly car rental options. Teplis Travel is committed to supporting clients who wish to reduce their environmental impact by integrating sustainable travel choices into itineraries without compromising quality or convenience.
11. Integration with NDC and Emerging Technologies: As New Distribution Capabilities (NDC) reshape the industry, Teplis Travel stays ahead by adopting and integrating these emerging technologies. Our agnostic approach to GDS platforms allows us to offer customized solutions, enabling clients to choose the best options available, whether through traditional GDS or NDC channels. This flexibility ensures that our clients benefit from the latest innovations, adding value to their travel experience.

The Future of the GDS:

As the travel industry continues to evolve, so does the role of GDS. For Teplis Travel, staying ahead of the curve means continuously adapting to new technologies and expanding the services we offer to meet the needs of today’s business travelers. GDS is more than just a booking system—it is a vital part of how we ensure our clients’ success, both in their travels and in their businesses. With the introduction of NDC (New Distribution Capabilities) into the travel industry, our agnostic approach ensures every client a choice that best meets their specific needs.

In Conclusion:

A Global Distribution System (GDS) is an essential tool for the travel industry, connecting travel agencies, corporate travel management firms, airlines, hotels, and many other service providers. With its roots in airline reservations, GDS has grown into a comprehensive travel booking platform that serves industries around the world. As a leader in the corporate travel industry, Teplis Travel fully integrates and supports the top GDS options offering our clients the best possible travel experience, whether for business or leisure. Contact us today to learn more about how our business travel services can help your company’s next travel experience be more cost effective and efficient. 

 

This blog was reviewed for accuracy by:

 

Elliott Stevens, Vice President of Sales 

 

Elliott is an expert in business travel with 20+ years of corporate travel experience including hotel management at Hyatt Hotels followed by multiple leadership roles at Frosch International Travel. Elliott brings experience in national and global managed travel programs while understanding the importance of high touch standards Teplis corporate travel clients have come to rely on for over 50 years.