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 …show more content…
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, the GDSs were among the pioneering e-commerce corporations in the world. Before this, travel agents used an excessive amount of time entering reservations manually and pricing itineraries consulting tariff books issued by ATPCO (O 'Connor & Piccoli, 2003). Airlines recognized that by computerizing the process of reservation for travel agencies, they could make travel agents more industrious and in essence turn into an airline’s sales force extension. These original, legacy GDSs are the backbone of the modern Internet travel distribution …show more content…
GDSs are a natural outlet for resorts, hotels, and even undersized inns that aspire to increase online marketing exposure and revenue (Pizam, 2010). Besides, the GDS allows independent properties the chance to afford special “dynamic packages” (i.e., bundled services, which include hotels, special events, airfare, etc.) to their clients. With progressively more customers making travel reservations electronically, dynamic packaging has become a growing trend. Studies show that itinerants who book their packages in real time stay longer on tour and spend more cash while in their