A beginner's guide to navigating Global Distribution System (GDS) software
If you’ve ever wondered how travel agencies, travel management companies, and even your corporate travel department find the best deals on flights, hotels, and car hire, the answer likely lies in a Global Distribution System (GDS).
But what exactly is a GDS, how does it work and how can it benefit your hotel? If you’re new to GDS software, then we’ve got you covered. This guide will break it down for you and provide five compelling reasons why connecting to these systems can be a lucrative additional revenue stream.
What is a Global Distribution System (GDS)?
Think of a Global Distribution System (GDS) as the backbone of the travel industry. It’s essentially a massive database that contains information about flights, hotel rooms, car hire, and other travel-related services. But it’s not just a static database – it’s a dynamic platform that allows travel providers to search, compare, and book travel products in real time.
Who uses GDS software?
Travel agencies, Travel Management Companies (TMCs), and corporate travel departments all utilise GDS software to secure the best possible rates for their clients or staff.
By leveraging GDS, these organisations can compare prices availability, and booking options efficiently, ensuring cost-effective and convenient travel arrangements.
How does a GDS software work?
GDS works by connecting travel services, such as airlines, hotels, and car hire companies, with travel providers. It aggregates real-time data on availability, pricing, and schedules, allowing users to search, compare, and book travel services seamlessly.
GDS operates as a centralised database that facilitates transactions between travel industry players, ensuring accurate and up-to-date information is accessible, thereby streamlining the booking process and optimising travel arrangements.
Five compelling reasons hotels connect to GDS platforms
#1. Access to a wide distribution network
Connecting to a GDS opens your hotel to a vast network of 750,000 travel agents, TMCs, online booking platforms, and corporate clients, expanding your reach, visibility, and potential customer base.
#2. Efficient inventory management
GDS platforms offer tools for centralised inventory management, making it easier to manage room availability, rates, and restrictions across multiple distribution channels.
#4. Dynamic pricing
GDS platforms allow for dynamic pricing strategies, enabling hotels to adjust rates based on demand, market trends, and competitor pricing to maximise revenue potential.
#4. Access to data insights
GDS platforms provide valuable analytics and reporting tools, offering insights into booking patterns, guest demographics, and market trends, which can inform strategic decision-making and marketing efforts.
#5. Competitive Advantage
By connecting to a GDS, hotels can gain a competitive edge by reaching new markets, attracting more guests, and optimising revenue potential in the highly competitive travel industry.
GDS Vs OTA Bookings
OTAs, such as Expedia and Booking.com, provide a user-friendly platform for consumers to search, compare, and book travel services directly online.
In contrast, GDS platforms act as intermediaries that connect travel service providers with travel agencies, TMCs, and corporate travel departments, offering comprehensive access to travel data and booking capabilities.
OTAs undoubtedly play a significant role in driving bookings, but overlooking the potential of the corporate travel segment can be a missed opportunity. And with GDS being in the top five revenue-generating channels in the UK, maintaining a diverse channel mix that includes both OTAs and GDS is key to optimising your property’s visibility and increasing direct bookings.
Choosing the right GDS provider for your hotel
Choosing a provider for GDS distribution is a crucial decision for hotels seeking to maximise their reach and revenue potential.
HotelREZ a High Level integration partner, stands out as a leading SaaS-enabled company for accommodation providers, offering comprehensive solutions to more than 2,500 independent hotels, apartments, and hotel groups in more than 100 countries, including private label GDS chain code solutions.
What’s more, its GDS software has an extensive reach, connecting to over 750,000 travel agents, TMCs, or corporate travel departments.
With an impressive portfolio of customers, including renowned names such as StayCity ApartHotels, Dorint Hotels & Resorts, and The Zetter Group, HotelREZ has established itself as a trusted partner in the hospitality industry. Its broad client base underscores the company’s ability to deliver results and support the unique requirements of various hoteliers.
In conclusion, connecting to a GDS can unlock a world of opportunities for hoteliers, offering access to a wider distribution network, increased visibility, and valuable data insights. And embracing HotelREZ GDS as another revenue stream can be a strategic move to drive growth and success in the dynamic travel industry.
To find out more download HotelREZ’s Insights Report or to talk to a member of the HotelREZ team, simply email info@hotelrez.com, and one of their GDS experts will call you back.
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