A GDS (Global Distribution System) can be described as a digital network that helps travel businesses, such as airlines, travel agents, car rental companies, and hotels to make bookings and transactions between each other. A GDS enables airlines and other travel businesses to better connect with their stakeholders, improving the booking process for all parties. For example, a GDS means that an agent can check live flight availability, helping them to secure a booking – profit for the travel agent, and the airline, thanks to the GDS. In this article, we’ll explain more about what a GDS is and how it works. We’ll look at the benefits and drawbacks of the system and meet the three major operators of GDS in the airline industry.
To put it as simply as possible, a GDS is a computerized platform that offers real-time and live information to travel businesses in areas such as availability, pricing, and scheduling. Originally, GDS were created to help travel agents to find the best flights for their clients. Whilst this remains a key use of GDS today, their role has also expanded. Online booking systems now also rely on GDS, and they can also be used to help manage and facilitate hotel reservations, car rentals, cruise bookings, and many more transactions across the industry.
A GDS pulls together data from numerous stakeholders and providers, allowing agents, and even consumers to view real-time accurate data. For example, if a travel agent books a flight ticket with an airline, the GDS immediately ensures that this reduction in availability is recognised across all platforms, from booking sites to comparison websites.
Specifically in the airline industry, airlines use a GDS to distribute their availability (seats on flights) to travel agents and booking platforms, such as Skyscanner.
This process begins with an airline inputting its flight schedule, seat availability, and fare structure into the GDS of the airline’s choosing. This data is kept up to date in real time, as flights are booked or cancelled. Dynamic pricing is possible because the GDS knows exactly how many seats are available and how many bookings have taken place. And a GDS enables airlines to boost revenue in other ways too, for example by selling in-flight meals or extra baggage options through the GDS.
Travel agents, meanwhile, will access the GDS to book clients onto flights. They can compare fares and availability across the GDS to help them choose the right flight for their client. Notice how the system works for both: the airline puts its flights out into a wide market, and the travel agent can compare all flights from this wide pool to find the best ones for clients.
Once a booking is made, the GDS also very helpfully transfers passenger information, such as name and date of birth, to the airline’s reservation system, ensuring that the booking is accurately made and ticketed.
Although not an exclusive list, there are three key GDS operators in the airline industry. For European travel businesses, Amadeus (based in Spain) is widely regarded as the best GDS. The dominant player in the North American market is Sabre, which is based in the United States and is one of the oldest and most trusted GDS. The third major GDS in travel is Travelport, a brand which also comprises other GDS, including Worldspan, Apollo, and Galileo.
Global Distribution Systems are crucial to the modern airline industry. They help airlines make bookings by giving all relevant stakeholders access to the latest and most reliable availability and pricing. There are some negatives to GDS, such as the cost of use, but these are far outweighed by the upsides, which have helped support the growth of airlines and the travel industry.