Global Distribution System (GDS): What Are the Benefits for Hotels?
By David Tonny
Published 1 year ago
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     Global Distribution System (GDS) is a computerized network that enables travel agencies and online travel agents to access real-time inventory, availability, and pricing information of travel products, including hotel rooms. GDS has become an essential distribution channel for hotels that want to expand their reach and increase their bookings. Here are nine benefits of your hotel using Global Distribution System:

  • Increased Visibility: GDS connects hotels to travel agents and travel management companies worldwide. This means that your hotel will be visible to a global audience of travel agents, tour operators, and corporate travel managers who can book your rooms for their clients. This increased visibility can help your hotel reach new markets and generate more bookings.
  • Higher Revenue: GDS enables hotels to sell their rooms at a higher rate. The system provides real-time information on room availability and pricing, allowing hotels to adjust their rates dynamically based on demand. This ensures that hotels can maximize their revenue potential by offering competitive rates at the right time.
  • Efficient Distribution: GDS is an efficient and cost-effective way for hotels to distribute their inventory. Instead of relying on individual travel agents or online travel agencies, hotels can use GDS to distribute their inventory to a global network of travel partners. This means that hotels can reach a wider audience with minimal effort and cost.
  • Access to Corporate Travelers: Many companies use travel management companies to book their corporate travel. These companies use GDS to access a vast inventory of hotels, flights, and rental cars. By using GDS, hotels can gain access to this lucrative market of corporate travelers who typically have higher budgets and longer stays.
  • Easy Integration: GDS can be easily integrated with hotel property management systems (PMS). This means that hotels can automate their distribution process and reduce the time and effort required to manage inventory and rates. Integration with PMS also ensures that room availability and pricing information is accurate and up-to-date.
  • Reduced Overbooking: GDS can help hotels reduce overbooking by providing real-time information on room availability. This ensures that hotels can avoid double bookings, which can result in lost revenue and unhappy guests. GDS also provides a centralized system for managing room inventory, which can help hotels avoid overbooking in the first place.
  • Increased Loyalty: GDS allows hotels to offer their guests a seamless booking experience. This can increase guest loyalty and encourage repeat bookings. By providing real-time availability and pricing information, hotels can also offer their guests a more personalized and efficient booking process.
  • Improved Market Intelligence: GDS provides hotels with valuable market intelligence. Hotels can use GDS to track booking trends, monitor competitor rates, and analyze their own performance. This information can help hotels make informed decisions about pricing, marketing, and distribution strategies.
  • Cost-Effective Marketing: GDS is a cost-effective way for hotels to market their inventory. By using GDS, hotels can reach a global audience of travel agents and corporate travel managers without incurring high marketing costs. GDS also provides a targeted marketing platform, allowing hotels to promote their inventory to specific markets and audiences.

     Summarily, using a Global Distribution System can offer significant benefits for hotels. It provides increased visibility, higher revenue potential, efficient distribution, access to corporate travelers, easy integration, reduced overbooking, increased loyalty, improved market intelligence, and cost-effective marketing. By using GDS, hotels can expand their reach and maximize their revenue potential while providing a seamless booking experience for their guests.