December 28, 2024
Are you looking for ways to boost your hotel’s reservations and reach a broader audience? If so, consider using a hotel global distribution system (GDS).
Nowadays, it’s not just about how many guests stay at your hotel—it’s about how many potential customers know about it. Visibility and accessibility are key to standing out from the crowd.
A hotel global distribution system (GDS) can be the gateway to expanding your business. It can connect your hotel to travel agents, online booking platforms, and corporate clients worldwide.
Hotel GDS can increase your reach, making it easier for travelers to find and book your services. In this article, we’ll explain how a hotel GDS works and its major benefits for your hospitality business growth.
Hotel GDS (Hotel Global Distribution System) is a powerful tool for connecting your hotel with travel agents, online booking platforms, and other travel service providers.
Initially developed for the airline industry, the global distribution system soon expanded to assist the hospitality sector. It quickly became indispensable by providing real-time access to a hotel’s inventory, pricing, and room availability.
The hotel global distribution system has significantly transformed the hospitality industry. It enables hotels to reach a broader customer base and allows travel agents to efficiently book rooms for potential clients.
With hotel GDS software, you get a centralized hub for your hotel information, sharing tiered offerings with other travel services, such as flights or car rentals. This makes bookings through travel agents simpler and more streamlined.
Currently, the second-largest GDS is used by approximately 35% of travel agencies worldwide, demonstrating its reach. This number will grow, regarding the demand for higher audience reach. In this case, getting a hotel global distribution system is a must.
Additionally, GDS software improves hotel visibility and helps hotels create a more personalized and seamless experience for their guests, enhancing customer satisfaction.
Recently, the hotel global distribution system has evolved significantly because of technological advancements and changing consumer behavior.
A big trend is the rise of cloud-based GDS solutions that streamline hotel operations by integrating booking management, rate adjustments, and customer relationships. These solutions improve efficiency with real-time updates and accuracy.
The increasing use of GDS software and machine learning is transforming how hotels operate. AI-driven algorithms predict booking patterns, optimize pricing, and enhance personalization. By analyzing real-time data, hotels can tailor recommendations, improving guest satisfaction and revenue through dynamic pricing.
Mobile booking channels have also influenced the hotel GDS area.GDS providers are focusing on mobile optimization to ensure user-friendly interfaces with features like instant booking confirmations and mobile wallet integration.
The shift toward direct bookings is reshaping GDS dynamics. Many hotels aim to reduce reliance on expensive third-party channels, driving traffic to their websites. However, the hotel global distribution system remains vital for capturing corporate travel and bulk bookings. These platforms enhance worldwide connectivity and incorporate advanced analytics for data-driven decision-making to stay competitive.
A hotel global distribution system is compatible with your hotel's smart or central reservation systems (CRS).
This integration allows you to manage room availability and bookings in real-time, creating a smoother workflow and enhancing the overall guest experience. Studies show that GDS systems are responsible for almost 90% of travel bookings, emphasizing their importance.
A global distribution system simplifies room management by sharing real-time information about your inventory. This ensures that your agents are always aware of room availability, making the booking process seamless and efficient.
Streamlining inventory management allows your servers to run more fluently, creating a better experience for agents and guests.
With a hotel GDS, your staff can easily manage the booking process. After a reservation, your team can instantly check which rooms are booked and ensure they are clean and ready for guests. This real-time access to booking data improves operational efficiency and enhances customer satisfaction.
The global distribution system allows for quick and easy price adjustments. Whether responding to changes in demand or running special promotions, you can update your room rates in real-time. These updates are automatically communicated to your travel agents, eliminating the need for manual calls and speeding up the booking process.
Using GDS, your hotel can reap numerous benefits that significantly enhance your hospitality operations.
Joining a global distribution system exposes your hotel to thousands of travel agents, vastly improving your visibility. You’ll attract customers worldwide, increasing both your bookings and revenue. This international reach is a key benefit of hotel GDS integration.
Most corporate clients book their travel accommodations through hotel GDS systems via their agencies. This presents an excellent opportunity to build credibility with corporate clients and secure steady bookings, especially during events or conferences near your location.
A global distribution system simplifies inventory management by providing real-time updates on your hotel’s bookings. This prevents overbooking and ensures more accurate room management, contributing to a smoother, more efficient workflow.
While fees are associated with using a hotel global distribution system, it is a cost-effective solution in the long run. Compared to other booking systems like OTAs (online travel agencies), GDS often provides better value for its wide-reaching capabilities.
In addition to its many advantages, a hotel GDS helps reduce manual entry errors, freeing up your staff to focus on more important tasks. This leads to a more engaging and stress-free workflow, improving operational efficiency.
Here is a simple comparison to help you understand and choose a service based on your company's needs.
| Services | Global Distribution System (GDS) | Direct Booking | Online Travel Agencies (OTAs) |
|---|---|---|---|
| Market Reach | Bigger reach because of travel agents. | Limited to the hotel's own site | Bigger reach because of the multiple platforms |
| Commission Structure | Usually has lower fees per booking | No commissions | High commission rates |
| Control Over Pricing | Less control because of the dynamic pricing | Full control | Limited control depending on OTA policies |
| Target Audience | Corporate clients & agencies | Individual travelers | Leisure travelers |
| Booking Process | Automated by agents | Manual on the hotel website | Automated by OTA platforms |
As you can see, direct booking gives you complete control over the pricing and helps you build relationships with guests. However, it doesn’t offer nearly the same level of reach and visibility you get with a global distribution system.
On the other hand, OTAs (online travel agencies) help hotels reach a wider audience but often come with high commission fees. For this reason, many hotels combine global distribution system strategies with OTAs to create a more balanced, cost-effective approach to their business.
Here is a list of GDS systems. It’s essential to know that every GDS hotel booking system is made with specific needs in mind, helping hotel owners meet their requirements.
Key Features: Worldwide reach, user-friendly interface, easy analytics tools, and access to over 770,000 hotels.
Pricing: Usually involves transaction fees, and sometimes pricing varies based on hotel size and volume.
Key Features: Known for its distribution, it has access to over 1.6 million lodging options and advanced technology solutions for travel agencies.
Pricing: Charges per booking with additional fees for premium services; costs can vary by hotel agreement.
Key Features: Simplifies hotel inventory management and connects to multiple sales channels, including OTAs and direct bookings.
Pricing: Offers competitive commission rates, and setup fees vary based on service.
Key Features: RateTiger is an advanced Hotel Channel Manager offering 99.5% system uptime and security certified under ISO and PCI, and GDPR compliant.
Pricing: Same as Pegasus, has set up fees with varying pricing depending on included features.
Key Features: Simplifies hotel inventory management and connects to multiple sales channels, including OTAs and direct bookings.
Pricing: The structure is similar to the previous two.
So, what is GDS all about? Now you know! A global distribution system transforms your hotel’s visibility, connecting you to travelers worldwide and driving more bookings to boost revenue. By simplifying room availability management, a GDS frees your staff to focus on what matters most—creating memorable guest experiences.
A hotel global distribution system (GDS) is a centralized digital network that connects hotels with travel agents, online booking platforms, and other travel service providers. It allows real-time access to room availability, pricing, and reservations.
The GDS streamlines the booking process by consolidating travel inventory and automating transactions, helping hotels expand their global reach and increase bookings.
With a GDS, your hotel's visibility in worldwide markets increases, leading to revenue growth.
Yes, hotel GDS mainly improves booking during busy seasons by automating various tasks.
The pricing varies depending on different factors like providers, included features, your hotel’s size, and more. However, on average, commission charges are 12-22% for each reservation.
Co-founder / CTO
Hi, I'm Armen, the CTO and Co-Founder of inoRain OTT, as well as the Co-Founder of HotelSmarters. With 15+ years of background in digital streaming technology, I specialize in OTT strategies and interactive TV solutions, helping businesses maximize their revenue potential. At HotelSmarters, I focus on leveraging tech to transform hotel operations, while at inoRain, I drive innovation in end-to-end OTT solutions. Let’s connect and explore new opportunities!
