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Understanding Global Distribution Systems

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20 views7 pages

Understanding Global Distribution Systems

Uploaded by

gustyamobile
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

What is a Global Distribution System?

A GDS is a type of software used by travel agents since the 1950s to connect them to their key suppliers
for flights, accommodation and car hire.

These systems originated from the Airline Industry with the introduction of commercial flights, the
airlines needed a system that would allow travel agents to make reservations for flights.

A GDS will have a real-time link to the vendor's database.

For example, when a travel agency requests a reservation on the service of a particular airline, the GDS
system routes the request to the appropriate airline computer reservations system. This enables a travel
agent with a connection to a single GDS, to choose and book various flights, hotels, activities and
associated services on all the vendors in the world who are part of that GDS.

Alike SiteMinders software - A GDS has integrations with other pieces of software which allow travel to
streamline their workflows. This commonly includes back office software which assists them with report-
ing and customer management.

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Key Global Distribution System Providers

It is these original, legacy GDS’s that today provide the backbone to the Internet travel distribution
system.

There are currently four major GDS systems:

1. Amadeus

2. Galileo

3. Sabre

4. Worldspan

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In addition, there are several smaller or regional GDS’s including: SITA’s Sahara, Infini (Japan), Axess
(Japan), Tapas (Korea), Fantasia (South Pacific), and Abacus (Asia/Pacific) that serve interests or specific
regions or countries. In this article, we will provide a closer look at the four major GDSs.

Amadeus

Founded in 1987 by Air France, Iberia, Lufthansa, and SAS, Amadeus is the youngest of the four GDS
companies. Amadeus is a leading global distribution system and technology provider serving the market-
ing, sales, and distribution needs of the world’s travel and tourism industries. It’s comprehensive data net-
work and database, among the largest of their kind in Europe.

As the youngest of the four GDS companies, Amadeus has done remarkably well during its short tenure.

Sabre

For more than 40 years, Sabre has been developing innovations and transforming the business of travel.
From the original Sabre computer reservations system in the 1960’s, to advanced airline yield
management systems in the 1980s, to leading travel websites today, Sabre technology has traveled
through time, around the world, and has touched all points of the travel industry.

Headquartered in Southlake, Texas, Sabre connects more than 60,000 travel agency locations around the
world. In addition to being one of the leading GDS companies, Sabre also provides a broad range of
products and services that enhance travel agency operations and their ability to serve the traveler.

Sabre-connected travel agencies use Sabre web-based technologies and low-fare finding solutions to
create new sales opportunities, drive operational efficiencies, and improve customer service.

Galileo by Travelport

Galileo International was founded in 1993 by 11 major North American and European airlines.

Based on its competitive strengths, Galileo is pursuing a strategy that includes expanding its global
distribution, strengthening customer loyalty, leveraging technology, and capitalising on opportunities
created by increasing Internet use.

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Galileo sees the GDS industry as having the ability and potential to provide electronic distribution and
many components of e-commerce to other industries, and is utilising its strengths to provide expanding
services to its growing customer base.

Worldspan by Travelport

In 1995, Worldspan advanced into the world of Internet technology for the travel industry. Worldspan has
successfully developed the strategies, solutions, and services to ensure the company’s long-term success
in the new web-based world of travel distribution.

Worldspan provides worldwide electronic distribution of travel information, Internet products and
connectivity, and e-commerce capabilities for travel agencies, travel service providers, and corporations.

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Global Distribution System Interfaces

Cryptic

A code driven interface.

Travel agents would need to learn a code language for the GDS provider their agency is using. Codes
allow them to search, price and book Hotels, Cars and Flights.

● Cryptic interfaces are the original way travel agents used the GDS

● Some Cryptic interfaces have integrated some point and click functions into these screens

● You might think it seems crazy that anybody would prefer to use a system that looks like this

● "Any good, strong GDS agent can sit side by side next to anyone who does GUI point-and-click
[booking] and just wipe them out"

● This interface allows agents to make travel bookings in the quickest way possible: Time = Money

Graphical User Interface (GUI)

A GUI is a point and click interface, newly developed so Travel Agents can be trained easily and sort
search result in an easy manner.

● GUI’s were introduced to make training agents on GDS a much quicker process. This booking
method has not been 100 percent because when an agent is trained on cryptic, it is unarguable that the
cryptic method is a quicker way to book for those who are skilled in the GDS language.

● There are pro’s and con’s to both methods


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Self Booking Tool

As leisure travel has become more focussed on self driven booking tools, so has corporate travel. These
booking systems are an interface for the GDS which can be accessed by a corporate customer to book
their travel.

Self booking tools are becoming more of a recurring theme in Corporate Travel.

Online self-booking tools serves every aspect of corporations’ travel needs through a single entry point.

Corporations keep the control of their corporate travel programme and satisfy travellers with the best
choices.

Employees can easily plan, book and purchase complete travel itineraries within their company’s guide-
lines.

Corporations integrate the elements of their global travel programmes, including travel policies, preferred
suppliers and negotiated rates, into one easy-to-use website while cutting their travel costs down.

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Why would a hotel sell their product via a
GDS?

• The GDS audience is a six-figure network of travel agents for unparalleled exposure of your room inven-
tory.

• That’s millions of potential guests that you might not reach otherwise. From leisure travelers seeking
unique tailored experiences, students seeking guidance on their first trip, to budget-conscious families,
to an enormous global population of high paying, high volume, business travelers.

• From a home based travel manager in Dallas to the leading travel agency in Australia. Reaching a high-
touch high-service travel management company in Dubai to a destination specialist in Japan. From lei-
sure agencies across Latin America to bright travel startups in South Africa…. it is safe to say the net-
work of traditional travel agents is still broad and vast.

Common questions

Powered by AI

Global Distribution Systems (GDS) such as Sabre, Amadeus, and Galileo provide a comprehensive platform for travel agents to make reservations for flights, accommodations, and other services through real-time connections to vendors' databases . These systems allow travel agents to streamline their workflows by integrating with back office software to assist with reporting and customer management . For instance, Sabre's technologies enable travel agencies to use web-based booking solutions and low-fare finding solutions, which drive operational efficiencies and improve customer service . This integration facilitates new sales opportunities and enhances the ability to serve travelers effectively .

Corporations greatly benefit from integrating self-booking tools into their travel management systems as they provide a single entry point for managing comprehensive travel itineraries . These tools incorporate a corporation's travel policies, preferred suppliers, and negotiated rates, thereby ensuring compliance and consistency . Additionally, they allow employees to plan, book, and purchase travel within company guidelines efficiently, which can lead to significant cost savings . Moreover, self-booking tools provide convenience and flexibility, enhancing employee satisfaction while maintaining control over travel expenditures .

Founded in 1987, Amadeus is the youngest among the major Global Distribution Systems but has established itself as a leading technology provider for the travel and tourism industries . Distinguished by its comprehensive data network and database—the largest in Europe—Amadeus effectively serves marketing, sales, and distribution needs globally . Its substantial integration capabilities and rapid technological advancements allow it to maintain a competitive edge, setting it apart in a market dominated by legacy providers like Sabre and Worldspan . This focused approach has enabled Amadeus to become a primary choice for travel agencies seeking advanced technology solutions .

Global Distribution Systems (GDS) offer hotels unparalleled exposure to a vast network of travel agents, reaching millions of potential guests worldwide who might otherwise be inaccessible . The GDS audience includes diverse segments such as leisure travelers, students, families, business travelers, and a wide range of agencies across the globe . By selling their products through GDS, hotels can target a global population of high paying, high volume business travelers as well as various niche markets, thereby significantly broadening their reach and increasing potential bookings .

Sabre's position as a leading Global Distribution System (GDS) provider is attributed to its longstanding history of innovation and comprehensive service offerings . With over 40 years of experience, Sabre has been at the forefront of transforming travel technology, from pioneering computer reservation systems in the 1960s to developing advanced YM systems and web-based solutions . Headquartered in Southlake, Texas, Sabre connects a vast network of over 60,000 travel agency locations globally . Its broad product range enhances travel agency operations and improves efficiency, making it a preferred option for many agencies .

Galileo has pursued several strategic actions to expand its influence in the GDS industry, including enhancing its global distribution capabilities and leveraging technology advancements . Founded by major North American and European airlines, the company has focused on strengthening customer loyalty and capitalizing on growing opportunities related to internet use . Additionally, Galileo sees potential in providing electronic distribution and e-commerce solutions to industries beyond travel, increasing its service offerings to tap into emerging markets . These efforts aim to fortify its position in the competitive GDS sector and broaden its customer base .

Travel agents using graphical user interfaces (GUIs) benefit from an easier learning curve, allowing for faster training and intuitive navigation of Global Distribution Systems (GDS). However, GUIs can be less efficient than cryptic interfaces, which provide experienced agents with quicker booking capabilities due to the use of specialized codes . The primary challenge with cryptic interfaces is the steep learning curve, requiring agents to learn a unique coding language that can be complex . Thus, while GUIs offer simplicity and ease, cryptic interfaces remain superior for efficiency when used by highly skilled agents, presenting a trade-off between accessibility and speed .

Cryptic interfaces in Global Distribution Systems (GDS) are code-driven, allowing trained agents to make bookings more quickly than with graphical user interfaces (GUIs). While GUIs allow for easier training and use through point and click functions, cryptic interfaces are preferred by skilled agents who can efficiently use GDS language to book services, thus saving time . The speed and efficiency provided by cryptic interfaces is a key advantage, particularly for experienced agents who value quick booking processes as time is equated with money in the industry .

Cryptic interfaces have played a crucial role in the evolution of Global Distribution Systems (GDS) by providing a foundational code-driven platform that enabled efficient booking processes . Although the introduction of graphical user interfaces (GUIs) made training more accessible by simplifying interactions through point and click functions, cryptic interfaces remain valuable for experienced agents due to their speed and efficacy . This dual-interface availability allows GDS to cater to both novice users and seasoned professionals, ensuring a comprehensive service offering that accommodates different levels of user proficiency . Such versatility has been key to GDS's sustained relevance and adaptation in the continually evolving travel industry .

Worldspan has effectively utilized internet technology to secure success in travel distribution by developing strategies and services tailored to a web-based market . Founded in 1995, Worldspan has focused on providing worldwide electronic distribution of travel information and connectivity, facilitating e-commerce capabilities for travel agencies and service providers . By embracing internet technology early, Worldspan positioned itself to serve the evolving needs of the travel industry, ensuring long-term viability through innovative solutions and global outreach . This strategic foresight has enabled Worldspan to maintain a competitive edge in the digital era of travel distribution .

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