Essay on Global Distribution System ( Gds )

853 Words 4 Pages
With the hospitality industry expanding rapidly, today, the travel market has developed into a global arena for sellers and buyers to exchange travel services. The internet is an ideal platform for such transactions because it pools widely dispersed customers and an enormous network of suppliers and round them up to a centralized market (Bidgoli, 2014). On this line, this paper’s goal will be to explore the global distribution system (GDS) with respect to the hospitality industry.
Global Distribution System (GDS)
Global Distribution Systems (GDSs), which are also called Global Electronic System in the Hospitality sector are like electronic supermarkets that link buyers and sellers as well as allow a reservation to be made easily and quickly. They are reservation tools travel agents make use of when making a hotel, car or other hospitality service booking (Pizam, 2010). GDSs do not only power the ‘traditional’ travel agency platforms content they also offer pricing, reservation and availability functionality to a lot of hoteliers. The GDSs comprise of data collected by Galileo, Sabre, Amadeus, Pegasus and World span. They joint ventures operated and owned by major airlines, hotel groups, and car rental companies.
From a historical context, the first GDS was created by the airline industry in the 60s. It was a way to keep track of flight schedules, availability, and prices. Even though blamed for being “dinosaurs” because of their legacy system technology use,…

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