GDS FULL FORM – History, Benefits, and Drawbacks of GDS

GDS Full Form: Understanding the Global Distribution System

GDS FULL FORM – GDS is a network of computer systems that enables travel agents and travel companies to book airline tickets, hotel rooms, rental cars, and other travel-related services for their customers.

In this article, we will discuss the GDS full form, its history, how it works, its benefits and drawbacks, and its impact on the travel industry. We will also answer some common questions about GDS to provide a comprehensive understanding of this vital system.

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What is GDS?

GDS stands for Global Distribution System. It is a computerized network that connects travel agencies and travel companies worldwide, providing real-time inventory and pricing information for airlines, hotels, rental cars, and other travel-related services. GDS enables travel agents to search and book travel services for their customers from a single point of access.

GDS is used by travel agents to compare prices and availability, make reservations, and generate itineraries. It is also used by travel suppliers, including airlines, hotels, and rental car companies, to distribute their inventory and reach a global audience.

The History of GDS

GDS traces its roots back to the 1960s when airlines started using computer reservation systems (CRS) to manage their ticketing and booking operations. These early systems were mainly internal, designed to automate airline ticketing and reservation processes.

In the 1970s, travel agents started using these CRS systems to book flights for their clients. The systems were eventually connected to other travel-related services, such as hotels and rental cars, leading to the birth of the Global Distribution System.

The first GDS was Sabre, launched in 1976 by American Airlines. Today, there are four major GDS providers: Sabre, Amadeus, Travelport, and Galileo.

How GDS Works

GDS connects travel agents and travel companies worldwide through a computerized network that enables them to access real-time inventory and pricing information for airlines, hotels, rental cars, and other travel-related services.

Travel agents use GDS to search and book travel services for their clients from a single point of access. The system compares prices and availability across multiple travel suppliers, allowing travel agents to find the best deals for their clients.

Travel suppliers use GDS to distribute their inventory and reach a global audience. They provide real-time pricing and availability information to GDS, which is then accessible to travel agents worldwide.

Benefits of GDS

GDS offers several benefits for travel agents, travel suppliers, and travelers. Some of these benefits include:

• Increased reach and visibility for travel suppliers
• Real-time access to inventory and pricing information
• Reduced operational costs for travel suppliers and travel agents
• Increased efficiency and productivity for travel agents
• Enhanced customer service for travelers
• Access to exclusive deals and discounts for travel agents and travelers

Drawbacks of GDS

Despite its many benefits, GDS also has some drawbacks. Some of these drawbacks include:

• High fees for travel suppliers and travel agents
• Limited customization options for travel suppliers
• Dependency on GDS for distribution

Impact of GDS on the Travel Industry

GDS has had a significant impact on the travel industry. It has revolutionized the way travel services are distributed, making it easier and more efficient for travel agents to book travel for their clients. It has also provided a global marketplace for travel suppliers, enabling them to reach a wider audience.

However, GDS has also led to increased competition and consolidation in the travel industry. It has made it harder for small, independent travel agents and travel suppliers to compete with larger, more established players.

GDS vs. Online Travel Agencies (OTAs)

GDS is often compared to online travel agencies (OTAs) such as Expedia, Booking.com, and Airbnb. Both GDS and OTAs offer travel booking services, but there are some key differences between the two.

GDS is primarily used by travel agents to book travel services for their clients, while OTAs are used by consumers to book travel services directly. GDS offers real-time inventory and pricing information for multiple travel suppliers, while OTAs typically offer their own inventory or inventory from a limited number of suppliers.

GDS in the Future

As the travel industry continues to evolve, GDS is likely to face new challenges and opportunities. The rise of new technologies, such as artificial intelligence and blockchain, could potentially disrupt the GDS market.

However, GDS providers are also adapting to new trends, such as the growth of mobile travel booking and the increasing importance of sustainable travel. GDS is likely to remain a vital component of the travel industry for the foreseeable future.

How to Choose the Right GDS Provider

Choosing the right GDS provider is an important decision for travel agents and travel suppliers. When choosing a GDS provider, it is important to consider factors such as:

• Coverage: Does the GDS offer inventory for the destinations and services you need?
• Cost: What are the fees and commissions charged by the GDS?
• User Experience: Is the GDS easy to use and navigate?
• Support: What kind of support and training is offered by the GDS provider?

Conclusion

In conclusion, GDS is a vital component of the travel industry, enabling travel agents and travel suppliers to connect and distribute travel services worldwide. Understanding the history, workings, benefits, and drawbacks of GDS can help businesses and travelers make informed decisions. As the travel industry continues to evolve, GDS is likely to face new challenges and opportunities, but its importance is unlikely to diminish anytime soon.

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