Why are airlines abandoning GDSs and What does it mean?

Why are airlines abandoning Global Distribution Systems and what are the implications?

Barely a week goes by without an airline announcing it’s removing some or all of its data from a Global Distribution System (GDS) like Amadeus, Sabre or Travelport. The relationships between airlines and GDSs are constantly fluctuating – with carriers flouncing off only to strike a deal later and return.

So, what are the main reasons carriers have for withdrawing from GDSs? The primary motivation is often financial. GDS platforms traditionally charge airlines fees for every booking. In an effort to reduce distribution costs and gain more control over their pricing strategies, airlines are exploring alternative distribution channels and travel technologies.

Another reason is that airlines are looking for other ways to connect with passengers. Their preference is through direct channels like their websites but they’ve also been sharing fare and flight information through the industry’s New Distribution Capability (NDC), a technology standard developed by the International Air Transport Association (IATA).

This shift towards embracing NDC which enables airlines to distribute their content directly to travel agencies, corporations, and other travel service providers. Airlines adopting NDC gain more flexibility in displaying and selling their products, allowing for enhanced customisation and personalisation.

However, the consequences of airlines abandoning GDS systems are multifaceted. Travel agencies, which heavily rely on GDS for comprehensive information and bookings, may face challenges accessing the full spectrum of flight options. This can lead to fragmented content, requiring travel agencies to engage with several sources to provide clients with a comprehensive range of choices.

Moreover, the shift away from GDSs raises concerns about standardisation and interoperability within the industry. GDS has long served as a centralised hub for standardised information, ensuring a uniform and efficient booking process. With airlines adopting for diverse distribution strategies, achieving a standardised approach to content delivery is more challenging, potentially leading to inconsistencies in information across various channels.

As you can see, while the move away from GDS systems reflects airlines’ pursuit of cost-effectiveness and greater control, it also introduces challenges for the broader travel ecosystem. That’s why we have developed a simple range of tools at Journey Mentor, including Trip Mentor, to give the industry a much better view of the information available on carriers’ websites, GDSs and through NDC. We can deliver integrated information speedily and seamlessly overcoming the issue of fragmentation.