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How to Use GDS Systems Profitably

The Global Distribution System, or GDS, is the computer system that 600,000 Travel Agents worldwide use to book travel, including hotel rooms. The airline industry created these systems to provide a means for travel agents to book airline tickets. Over time they added hotels, rental cars and other travel services into the systems to give travel agents a complete package of services to offer to the travelling public. GDS Systems are separate from the Internet, although there is some overlap, as some travel websites use GDS information to offer information to their users and to take bookings. The 4 major systems are Sabre, Galileo, Amadeus and WorldSpan.

It costs several hundred dollars to sign up to GDS and you do this through GDS Representatives, who will normally list you on all of the main GDS systems. The real costs of using GDS to get


Top Tip!


You pay a hefty commission on every booking taken through the Global Distribution System, so be sure to tell your guests to contact you directly via phone, email or your website to book their return visit.
reservations is that commissions on bookings taken via this channel are high. This is because both the travel agent and the GDS representative will take a commission on reservations made through the system. Travel agents usually take 10% and GDS representatives will take approximately another 10%, although the fee structures differ. Although GDS is shrinking in importance as the Internet grows, it is still a very important part of any hotel's marketing strategy. But it is not cheap.

The first step is to sign up to GDS if you haven't already done so. The simplest way of doing this is by using a GDS representative. You can find details and reviews of some of the main GDS representatives here.

You can maximise both the reservations and the revenue that you get from using GDS systems, especially by using it to attract new business only. You can do this by (a) marketing yourself well on the GDS system and (b) by encouraging your existing customers to make repeat bookings directly with you, either by telephone or via your own website. Remember, the goal is to minimise the commissions you pay.

The Global Distribution System carries a minimal amount of information about hotels, so it is important to give the time and attention necessary to make this information count. A simple way to see how your hotel looks on the GDS system is to drop in to a friendly travel agent and ask for a look. You'll see that, in the world of GDS, lists are important and you are judged against your competitors based on a few words and numbers - the most important being price. It is therefore important to keep an eye on your competition's hotel placements and rates on the GDS system.





Make sure that your Hotel's description (HOD) on the GDS system you use is up to date and is as attractive and comprehensive as possible.

Its very important to keep your GDS information current, especially your hotel descriptive data (called your 'HOD'). In fact, its a good idea to review and update this information regularly. Other information about your hotel that the GDS system will carry includes address, phone, fax, hotel specific policies, descriptions of special features and amenities and, of course, room types and rates. The main GDS systems also allow you to set 'negotiated rates' for corporate and other preferred customers. ReservProperty is a GDS representative that sets you up with a web-based account that allows you to change your hotel's description and details (and the number of your rooms available to the GDS system) as you wish.

You can also increase your hotel's attractiveness on the GDS system by advertising. The main GDS advertising opportunities are:

  • POS (Point of Sale) messages. These are promotional messages, which appear on GDS availability screens (air, hotel & car), for a certain destination, during a specified date range. The most successful Point of Sale Messages are ones that provide promotions to travellers and travel agents.
  • Sign-on messages. One or two line messages which appear on GDS users' screens when they log onto their terminals. These paid advertisements may be targeted to a global audience or focused on one or more specific geographic areas.
  • Featured Property. Advertisers appear in bold, are represented with detailed property descriptions and are automatically plotted on a map to entice travel agents to book.
  • Broadcast Messages. These are system-wide or area messages (basically electronic mail) sent to GDS users, at a fee. Sort of like GDS spam!
  • Headline Messages. These are one or two line advertisements, sometimes with associated descriptions, that appear at the top or bottom of a specific city display, at a fee.
The GDS confirmation received by travel agents after placing a booking can also be used as a promotional vehicle, as can GDS Electronic Notice Boards where two, three, or four line messages describing either single property, area, or chain-wide events, promotions, or special news can be listed, free of charge, for a week.

Of course, if you attract a lot of bookings via GDS you'll be paying a lot of commissions as well. However you can minimise the commissions you pay in several ways:

  • Tell your return guests to contact you directly via phone, email or your website to book their return visit. Discourage returning guests from using GDS to book with you.
  • If you get a lot of GDS bookings from one particular travel agent, contact that travel agent and encourage them to book with you directly by telephone or via your website. You'll still pay the travel agent commission, but you'll save the GDS commission.
Just because the GDS distribution channel is technical and specialised doesn't mean that you shouldn't spend time at it. If you prepare clear, focused and regularly updated descriptive information, market strategically and focus on getting return customers to book directly you can increase and grow your business substantially.


Take Action!


1. Read our reviews of GDS representatives and look at the websites of the main GDS system operators.
2. Sign up to a GDS system, if you haven't done so already.
3. Think out and carefully prepare your GDS property description and other details.










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