“In today’s world, where travel has become an essential part of our lives, the Global Distribution System (GDS) has become a vital tool for travelers and travel companies alike. GDS Full Form in Hindi is “”वैश्विक वितरण प्रणाली,”” which literally means the global distribution system. In this blog, we will dive deeper into what a GDS is, how it works, and its importance in the travel industry.
What is a GDS?
A Global Distribution System (GDS) is a computerized network that provides travel agencies with real-time access to inventory, availability, and pricing of travel-related products such as flights, hotels, rental cars, and other travel-related services. GDS companies aggregate data from various suppliers and consolidate them into a single platform accessible to travel agents worldwide.
History of GDS
The first GDS was created in the 1960s by American Airlines, who created a computerized reservation system known as Sabre. Other airlines soon followed, creating their reservation systems such as Apollo, Galileo, and Worldspan. In the 1990s, the GDS expanded to include hotels, car rentals, and other travel-related services.
How Does a GDS Work?
A GDS functions as a central reservation system that allows travel agents to search, compare and book travel-related products from different suppliers. The process of booking through a GDS involves the following steps:
- Search: The travel agent inputs the search criteria into the GDS, such as the travel date, destination, and preferred travel class.
- Availability check: The GDS queries multiple suppliers simultaneously to check availability and pricing for the search criteria.
- Comparison: The GDS presents the results of the search to the travel agent, who can compare and choose from various options.
- Reservation: Once the travel agent selects the preferred option, the GDS facilitates the booking process by reserving the product on behalf of the agent.
- Ticketing: The GDS generates the necessary tickets and sends them to the travel agent.
Benefits of GDS
GDS offers numerous benefits to both travel companies and travelers. Here are some of the key advantages of using a GDS:
- Streamlined booking process: GDS provides travel agents with a centralized platform that allows them to book travel-related products from various suppliers efficiently.
- Global access: GDS allows travel agents to access inventory from various suppliers worldwide, providing them with a vast range of options.
- Competitive pricing: GDS offers real-time pricing and availability, allowing travel agents to compare prices from various suppliers and choose the best option for their clients.
- Cost-effective: GDS saves time and reduces costs for travel companies, as they do not have to create and maintain individual connections with multiple suppliers.
- Efficiency: GDS offers a quick and seamless booking process, which can lead to increased customer satisfaction and loyalty.
Challenges of GDS
While GDS offers many benefits, there are also some challenges associated with its use. Here are some of the key challenges faced by travel companies using GDS:
- High costs: GDS charges travel companies for accessing their platform, which can be a significant expense.
- Limited flexibility: GDS can be restrictive for travel companies, as they are limited to the suppliers listed on the platform.
- Competition: The travel industry is highly competitive, and many suppliers may not want to participate in GDS to maintain their competitive advantage.
- Dependency: Travel companies may become too reliant on GDS, which can limit their ability to innovate and explore new opportunities.”