For decades Global Distribution Systems (GDS) have been the workhouse of the travel industry. A worldwide network of computers allows travel agents to make reservations from service providers like airlines, hotels and car rental companies.
The GDS provides real-time information so that agents can be confident that they have up to date details about flights, rooms and cars. The GDS allows the agent to compare prices, check availability and make reservations with lots of different providers from a single point of access.
The main aim of a GDS is to streamline the booking process for agents. If an agent inputs a customer’s preferences – including travel date, destination and budget – the GDS will do the rest. The results enable the agent to make the necessary reservations through the GDS, which will issue tickets and confirm the bookings.
The GDS marketplace is very competitive but essentially dominated by only three companies. In Europe Amadeus is the most popular system while in North America it is Sabre. The final main player is Travelport which has two platforms Galileo and Worldspan.
In recent years, the growth of platforms allowing travellers to book direct with airlines, hotels and various other accommodations has led many travel experts to question the viability of GDSs. Some went as far as to foresee their decline and disappearance by now. Although the predictions didn’t come true, there is no denying the landscape is changing.
Take New Distribution Capability (NDC) for instance. This travel industry-supported program was launched about ten years ago by the International Air Transport Association (IATA) to develop a new standard for distribution of airline products. NDC improves communication between airlines and travel agents, allowing for more dynamic and personalised offers. Global Distribution Systems are integrating NDC into their platforms.
As platforms evolve, there is a need for new technology to deliver better results. Journey Mentor works with both NDC and GDSs to offer travel agents and TMCs the best of both worlds. The agent can see what is on offer and then choose the best product for their customer.
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