How Important Is the GDS Revenue Channel for Independent Hotels?

people-networkGlobal Distribution System (GDS), as a revenue channel, refers to the reservation tool used by travel agents to make hotel, air and car rental reservations on behalf of their customers. The four distribution channels that make up the GDS are Sabre, Amadeus, Worldspan and Galileo.

Every year I hear the same come comments from some hoteliers in our industry –

 “The GDS is out-dated and old… it is losing relevance as a channel.’’

“Travel agents are a dying breed… everything is booked through OTA’s now.’’

These comments are often rooted in a misunderstanding of what the GDS is and how it works. Here’s why GDS is still as important today:

Annual relevance and growth: GDS production continues to grow year on year by as much as 5% to 10% worldwide.  I can also attest from the various trade shows that I attend that Travel Agents are an ever-growing, influential force in the travel industry.  The GDS as a viable revenue channel is not going away any time soon.

World-wide exposure: There is no easier way to give your property global reach than through the GDS. This is especially when partnered with companies like ResNet World that specialize in making the GDS a very easy channel to implement for independent hotels. We take time to first assess if the channel is right for your hotel and if it is… we do all the work for you!

Significant revenue stream: Is the GDS a good fit for every hotel?  No.  Should every hotel at least look at the GDS as a potential source of revenue?  Absolutely.  I advise that hotels should not let a misunderstanding of the channel get in the way of potential significant revenue stream for their property.  If you trying to increase your corporate business, the GDS is a HUGE corporate booking   source.

Make sure you seriously look at the GDS as potential source of revenue for your hotel. Don’t let misunderstanding the channel be a reason for missing out on an opportunity to maximize your bottom line profits.

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