GDS Meaning: The Role of a Global Distribution System in the Hotel Industry

What is GDS in Travel and its meaning

How?!

Through Global Distribution Systems, hotels can distribute information on rates, room availability, and other relevant details in real time, making the booking process easier for travel agents and enabling hotels to reach a potentially global audience.

For instance, have you ever been to a travel agency and noticed how your travel agent can book flights, hotels, and other tourist services with a few clicks? Well, he or she was most likely using a GDS. Among the most famous ones, we find Amadeus and Galileo, which are concrete examples of how these systems can improve and simplify the distribution of hotel rooms, further expanding the GDS meaning in the hospitality industry.

What are the benefits of a GDS in hospitality?

Using Global Distribution System in Hospitality offers several advantages in the travel sector.

Firstly – as mentioned – it allows hotels to increase their visibility and reach a wide network of travel agents and potential customers. This translates into greater exposure of the hotel and an increase in bookings.

In addition, a Global Distribution System simplifies the booking process for travel agents, allowing them to quickly compare rates and room availability of different hospitality structures. This encourages more effective collaboration between travel agents and hotels, reinforcing the role of it in hospitality.

How to leverage GDS in hospitality

To make the most of GDS in the travel industry and truly comprehend the GDS meaning, it’s important to adopt some key strategies.

Firstly, hotels should integrate a Booking Engine that interfaces with the Global Distribution System. This allows the management of direct bookings and automatic synchronization of rates and room availability on distribution channels.

Additionally, collaborating with travel agencies and participating in marketing programs with GDS can increase hotel visibility and attract a wider clientele, further emphasizing the importance of the GDS meaning.

Finally, implementing a property management system (Hotel PMS) compatible with the Global Distribution System simplifies the management of bookings and data synchronization, solidifying what GDS means in travel.

OTA vs GDS: What are the differences?

An important question that arises when talking about distribution channels in hospitality is: what distinguishes a GDS from an OTA (Online Travel Agency)?

OTAs, like Booking.com or Expedia, are online platforms directly accessible by travelers. These travelers can search and book flights, hotels, and other tourist services without necessarily going through a travel agency (as the OTAs themselves act as intermediaries between hotels and potential customers, allowing the latter to compare rates and reviews on a structure to make an informed decision).

On the other hand, the GDS is primarily used by travel agencies to book flights, hotels, and car rentals on behalf of their clients. It’s a kind of backstage in the travel booking industry, a hub where travel agencies have access to a vast catalog of travel options.

Therefore, the main difference between GDS hotel and OTAs lies in their nature and approach to distribution.

Global distribution systems are mainly aimed at travel agents and group bookings, facilitating distribution on various channels and providing tools for managing bookings and data synchronization. OTAs, on the other hand, focus primarily on direct booking by travelers, offering a unified platform to find and book rooms in different hotels.

GDS codes: the language of Global Distribution Systems

To function properly, the GDS uses specific codes, known as GDS codes. These codes are used to uniquely identify each hotel within the global distribution system. This means that each hotel has its unique GDS code, greatly simplifying the booking process and reducing the possibility of errors.

Harness the Potential of GDS Hotel with Octorate

The hospitality and tourism industry is a sector in constant evolution. Today, it is essential for hotel to be present on the main distribution channels like the GDS, as you’ve understood from what you’ve read so far.

Did you know that the Channel Manager of Octorate Hotel Division – Octorate’s Hotel Management Software – thanks to robust integrations with some of the most important Global Distribution Systems, allows you to instantly share prices and availability on GDS?!

This way, whether you manage a small B&B or a large resort, you can maximize your online distribution on booking channels worldwide, exploiting all the advantages ensured by Global Distribution Systems!

Book a demo now or start your free trial to see how Octorate can improve your Hotel’s performance!

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