Reservation Resources And Distribution Channels Essay

1413 Words May 26th, 2016 6 Pages
4. Reservation Resources and Distribution Channels
4.1 CRS and GDS
Reservation sources and distribution channels are bread and butter for hospitality industry as the room sales is the major revenue source of this industry. The Global Distribution System (GDS), which was one of the first e-commerce companies dealing with B2B transactions, began in the airline industry in 1960s to keep track of flight schedule, availability and prices, then expanded to hospitality industry. GDS today is like a one-stop-store of travel products such as airline seats, hotel or other forms of accommodation, car rental, tickets of sports and theaters, etc. (Jones, 2008, p144), which provides all the information travel agents need. However, designed for the airline seats, GDS could not store much information of diverse hotel products. Therefore, hotel chains created their own Computerized Reservation System (CRS), also called Central Reservation System, which linked to GDS interfaces and gave access to travel agents.

CRS is usually used by the hotel chain. Each property in the chain has its own PMS, and CRS of the hotel chain needs to monitor room inventory in each PMS and tries to achieve the 100% occupancy. As the Worldwide distribution system, GDS receives the inventory and information of hotel rooms from CRS and gives access to numerous travel agents. CRS and GDS work together and play important roles in revenue management.

4.1.1 Seamless Connectivity of Real-Time Information
In 1989, the…

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