Thursday, 7 March 2013

Global Distribution Systems (GDS)

GDS linked airline ticketing systems are used by over 850,000 travel agents; both domestic Australian travel agents like Flight Centre, American Express as well as International travel agencies like Carlson Wagonlit.  Our GDS network distributes through SABRE, Apollo/WorldSpan, Amadeus, Galileo and Pegasus.

The GDS is a major sales channel for direct retail bookings through major travel websites. Accept real-time bookings from over 3,100 consumer travel websites, including ExpediaTravelocityTravel Hero,Trip AdviserZujiOrbitz and more. In the US, these sales channels have proven to be the most prolific source of bookings. Studies indicate that most travellers use the Internet to research travel options before booking. Over 40% of those buyers visit 3 websites - Expedia, Travelocity, and Orbitz. Perhaps more interesting, studies show that for every 1 booking made on those websites another 3 bookings were made by guests who contacted the property directly to book; either on their website or by phone. This would indicate that there are few advertising options available to match the power of this sales channel.

Australia has lagged behind the US in sales. The major websites have also neglected our market. In the coming months and years you can expect that to change. Already we see Expedia and Booking.com opening Australian Specific websites. Simple Google searches now regularly display links to Trip Adviser and others on the first page. Clearly, the GDS will soon provide significant sales to all participants.

Reasonable Cost
Those familiar with inbound tourism expect to pay high commissions. Various Australian State and Federal Government Tourism bodies promote inbound tourism programs that can be very expensive to maintain as well as cumbersome to manage. Normally, they require accommodations to give them fixed room allocations and +35% net rates with guarantees of lowest price. Most small operators would rather go bankrupt than pay those rates.

We have a better solution. Eliminates fixed allocations. Reduces commissions. Sell at whatever rate you like. You also have simple price controls that allow you to adjust the rate paid by guests on a channel by channel basis. We do not put you at disadvantage to please agents. You have total control.

Our GDS bookings cost you 15%, plus the travel agent has the option to bill an additional 10%.  In fact, few agents bill the extra 10%.  While that may seem like a lot, you have the option to charge more for these bookings and embed costs in the guest price.

Simple Management - It has to be Easy!
Managing GDS sales is simple because everything is integrated into the one system.  As you take bookings from any source availability automatically changes for the GDS and all other sales channels. If you adjust rates, block out availability, change a description or image - all sales channels including the GDS are automatically updated.

GDS is linked to many airline systems as you may already know. They help major sales from major travel websites such as Expedia and Orbitz. According to this article, over 40% of those buyers visit 3 websites- Expedia, Travelocity and Orbitz. Guests have directly contracted the company to book; either on their website or by phone. This indicates that there are few advertising options available to match the power of this sales channel. The major websites have also neglected the market. In the coming months and years you can expect that to change.
People tend to search regularly on websites such as Trip Advisor and others. Simple Google searches now regularly display links to Trip Adviser and others on the first page. 

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