Global Distribution System
A global distribution system (GDS) links reservation inventory under one computer-based network. The most common uses for GDSs is in the tourism industry, mainly for airlines, hospitality companies, and car rental companies. In this way, service providers, such as travel agencies and online travel agencies can all sell tickets for the same flight, hotel, or car rental.
Global distribution systems are an intermediary between vendors, such as hotels and airlines, and service providers, such as online travel agencies. While most big GDSs are linked to the major travel agencies, smaller, less expensive GDSs may offer a limited amount of travel agencies.
The most common users are both online and traditional travel agents. Global distribution systems allow travel agents to automate the process of verifying availability with vendors.
A computer reservation system is operated by the original vendor, usually an airline or a hotel. However, a GDS only shows the vendor’s inventory. All actual purchases are made through the vendor’s computer reservation system.
Airlines and hospitality companies pay a fee to be a part of a GDS. This can often mean that customers get a better deal when purchasing directly from the vendor. It also leads to many vendors investing in their own selling portals in order to avoid GDS admin costs.
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