What is a global distribution system (GDS)?
A global distribution system (GDS) is a platform that acts as a bridge between travel agents and service providers like hotels. By uploading your inventory, availability, and rates to the GDS, your hotel's information becomes accessible in real-time to OTAs and travel agents, allowing them to book rooms directly through an integrated system.
What are the benefits of a GDS?
There are several advantages to using a GDS. Let's explore some of the key ones:
Grow different segments
GDS platforms help you tap into corporate travelers who often prefer booking their entire trip - flights, car rentals, and hotels - in one place. With the right GDS, you can attract this market segment, which may otherwise be difficult to reach. Additionally, a GDS expands your reach by allowing you to target clients in different markets or at different price points. When availability and rates are updated in real-time, you can also capture price-sensitive guests who may book during high season when your rates are competitive.
Increase booking volume and revenue
A GDS connects your hotel to a wide network of OTAs and travel agents, which means more opportunities for bookings. This increased exposure can lead to a significant boost in revenue, as more guests are able to find and book your rooms through these global channels.
Simplified distribution
A GDS allows you to easily upload your rates and availability, giving travel agents and OTAs real-time access to your hotel's booking options. This streamlined distribution makes it simple to reach a global audience and expand your property's visibility without the hassle of managing each distribution channel separately.
How does a GDS work?
A GDS works by enabling service providers like hotels, airlines, and car rental companies to upload their inventory and pricing information to the platform. Travel agents with access to the GDS (through software or web interfaces like Amadeus or Sabre) can then search for availability and pricing based on specific criteria such as dates, destination, or rates.
Once a booking is made through the GDS, the system communicates with the hotel's reservation system to confirm the booking and issue the necessary confirmations. The GDS updates availability in real-time, ensuring that travel agents always have the most up-to-date options available.
It's important to note that a GDS is different from a central reservation system (CRS). A CRS manages room availability and rates, then relays this information to various distribution channels, including GDS platforms.
The must-haves of a global distribution system
When choosing a GDS for your hotel, there are a few must-have features to consider:
- Global coverage: Ensure the GDS reaches the markets you serve or plan to serve, helping you expand into new territories or strengthen your position in existing ones.
- Integration: Look for GDS platforms that can easily integrate with your existing toolkit (like your PMS or CRS). Seamless integration will help ensure efficient management of your hotel's data across systems.
- Pooled inventory and commission-free structures: Pooled inventory allows you to sell your rooms across multiple channels simultaneously. Commission-free structures can help you retain more of your revenue.
- Comprehensive reporting: A good GDS should offer detailed reporting features so you can track performance across different distribution channels and make informed decisions.
Which is the best GDS on the market?
With so many global distribution systems on the market, how do you choose the best one for your property? Don't worry - we've got you covered. Here are some of the top GDS platforms that can help expand your reach and bookings (all of which integrate seamlessly with Mews PMS).
Amadeus
Amadeus operates in over 190 markets and reaches millions of travelers, with a strong presence in Europe. Widely used by hoteliers, it excels in airline distribution, making it ideal for properties targeting both flight and hotel customers. By integrating Mews with Amadeus iHotelier, you can distribute availability and rates across multiple channels, enabling direct bookings and eliminating overbooking risks through automation and real-time updates. You can read about the full Amadeus x Mews partnership here.
OpenGDS
OpenGDS is a strong choice for distributing availability and rates. It integrates easily with your PMS via APIs, allowing real-time updates of prices, availability, and restrictions. The platform also supports managing and receiving reservations and handling add-ons and extras, which can boost your revenue.
Sabre
Sabre is one of the leading global distribution systems, used by over 200,000 hotels. It's particularly strong in the North American market, enabling hotels to share their inventory with travel agents worldwide, significantly expanding their reach.
GlobRes
GlobRes is a high-end e-solution designed to maximize your hotel's visibility and sales opportunities. It allows you to send pricing, inventory, and restriction updates to your channel manager and receive bookings and modifications. Operating globally, GlobRes is a key partner of Sabre/SynXis, helping expand its reach and distribution capabilities.
HotelRez
HotelRez is a reliable tool for managing rates, availability, and content on your GDS and top travel websites. It integrates seamlessly with your PMS, ensuring real-time updates of pricing, inventory and restrictions across all channels.
How to choose the best GDS for your property
When selecting the best GDS for your property, start by asking: "Does it integrate with my existing toolkit, such as my PMS or CRS?" If the answer is yes, the next step is to consider the reach of the system. Is it widely used in the markets where you already operate? And does it cover new markets you want to enter? If so, it's likely a solid choice.
Additionally, ensure that the GDS offers robust reporting capabilities. This will help you track how your distribution efforts are performing on a global scale and allow you to make data-driven decisions. Lastly, look for a system that's intuitive and easy to use, enabling seamless updates for rates, availability and add-ons. The goal is to automate the process so you can focus on delivering an exceptional guest experience.
Conclusion
global distribution systems are powerful tools for expanding your property's reach. When choosing a GDS, make sure it integrates smoothly with your PMS. By leveraging the right GDS, you can increase visibility, boost occupancy and optimize your distribution strategy.
Download our guide 'The Hotelier’s Guide to Changing PMS'
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