Fare Constructions

UNIT 12 GLOBAL DISTRIBUTION SYSTEMS

(GDS)
Structure

12.0 Objectives
12.1 Introduction
12.2 Evolution of CRS to GDS - History of SABRE
12.3 Major GDS systems in the industry
12.4 Global Distribution Systems (GDS) and Tourism Industry
12.4.1 Importance of GDS to Travel Agents
12.4.2 Benefits of GDS to Travel Agents
12.4.3 Benefits of GDS to End Users (Flyers)
12.5 Application of Global Distribution Systems
12.5.1 Low - Cost Carriers and GDS
12.6 Technology Base of GDS
12.6.1 API Integration
12.6.2 NDC support
12.7 Future of GDS
12.8 Let Us Sum Up
12.9 Further Readings
12.10 Clues to Check your Progress Exercises
12.11 Activities

12.0 OBJECTIVES
After reading this unit you will be able to:
 define GDS,
 identify the importance of GDS to travel agents,
 explain the evolution of CRS to GDS,
 identify major GDS systems in the industry,
 discuss how Global Distribution Systems work,
 examine the application of global distribution systems in tourism; and
 discuss the future of GDS

12.1 INTRODUCTION
Technological development has brought about changes in almost all aspects of our life.
Travel and tourism industry is no stranger to technological advancement and application.
Information technology has revolutionised the distribution system of hospitality and
187
Airport Handling travel services. Global Distribution System is one such computer-based application
that offers access to the services of a service provider, directly to a customer. Evolution
of airline reservation systems of individual airlines have gradually led to the development
of modern Global Distribution Systems (GDS).
Global Distribution System(GDS) is a primarily a reservation tool for travel agents.
This computerized reservation network electronically connects suppliers or carriers
with customers. GDS is a network/platform that enables travel agencies and their clients
to access travel data, shop for and compare reservations options and then book travel.
GDS networks generate billions of dollars in global travel sales. It is a computerized
network system which provides real-time information to and about companies such as
airlines, hotels, car rental and travel agencies. Each of these sectors uses GDS to view
real- time inventory of services offered in the travel industry. For example, using GDS,
a travel agency can find the availability of hotel rooms, flight seats or cars on behalf of
their clients and book through the same GDS. Through GDS travel agents can access
scheduling and inventory of hotels, airlines, car rentals, and (some) railway and bus
reservations – in real time. GDS links all those services across the three primary travel
reservation sectors (airline, hotel, and ground transportation, i.e., car rentals), and
activities. GDS provide a speedy, efficient, and secure means of access to travel and
tourism information; and booking via the Internet or a direct connection. Their services
are provided for consumer (end users), bricks and mortar travel agencies, and OTAs
(Online Travel Agents).
In this unit, we discuss the evolution of the Global Distribution System (GDS) and the
present application of GDS. The use of GDS in the travel and tourism industry and
benefits thereof are explained. The airline industry created the first GDS in the
1960stotrackflightschedules, availability and prices. In fact, the GDSs were actually
among the first companies that aided B2B (Business-2-Business) e-commerce in the
world. They were used by the airline industry to automate the booking system, but
later travel agents were also given access. GDSs have since then evolved and offer
more than just airline seats for the tourism industry. We will discuss them in the
subsequent sections.

12.2 EVOLUTION OF CRS TO GDS - THE HISTORY

OF SABRE
In the year 1960, American Airlines (AA) along with IBM Inc. developed Sabre on a
main frame computer. This was in response to the opportunities that emerged post
World War II, and due to the struggle of managing airline inventory and passenger
reservations, which sparked the creation of SABRE (Semi Automated Business
Research Environment). The ideas of C R Smith, President of AA and R. Blair Smith
from IBM led to the development of a data processing system that could create and
manage airline seat reservations. Thus, making the data available electronically to any
agent anywhere in the world. This idea of airline automation was born during 1960-69
with the invention of SABRE.
In the year 1964 SABRE demonstrated to the airline industry that real time processing
of reservations is the solution to passenger reservations problem. Gradually, the success
of Sabre encouraged IBM to develop and market its own system to airlines – PARS
(Programmed Airline Reservation System). The realisation by airline companies about
188 the efficiency of distribution through electronic reservations systems prompted the
industry to embrace the Customer Reservation System (CRS). Later CRS technology Global Distributions
Systems (GDS)
emerged as Global Distribution Systems (GDS). Though the airlines were benefitted
through electronic reservation systems, travel agents were still contacting airlines to
make reservations for their customers. It gradually led the company(1970-79) in
providing an integrated travel agency system to make available efficiencies of automation
to travel agents. During 1980-89 SABRE introduced Bargain Finder pricing, which
automatically offered the lowest fare for an itinerary. Initially SABRE focused on
corporate customers, though eventually to provide consumers direct access to SABRE
systems, Easy SABRE services was introduced. Through Easy SABRE consumers
could access airline, hotel and car rental and make reservations directly. During the
same period SABRE provided similar services to other airlines as well. During 1990-
1999 the World Wide Web became a viable channel for distribution of services. In
1996 SABRE became the first Global Distribution system (GDS) to create a consumer
facing online booking engine, and launched Travelocity. Millions of registered members
are using these service till date. During this period to expand into operations in Asia,
SABRE joined hand with ABACUS International.
During 2000-2009, SABRE built its own air travel shopping engine to enable finding
the lowest available fare. Travelocity, SABRE owned online travel Agency (OTA)
offers competitive advantage of numerous itinerary options and flexible shopping
capabilities, and provides global service to online agencies. Sabre Sonic Customer
Sales and Service (CCS) introduced by SABRE is industry’s first real intersection of
customer focussed solutions and revenue generation across every distribution channel.
During this period Sabre Airline Solutions has also introduced large crew systems, as
a solution for complex crew paring problems of long-haul flights. Sabre airline Solutions
also developed the Aerodynamic Traveller suite which introduced curb side check in,
roving agents and self-serve kiosks.
The strategic acquisition in SynXis Corporation renamed as Sabre Hospitality Solutions
expanded the company’s operations to reservation management, distribution and
technology service for hotels.

12.3 MAJOR GDS SYSTEMS IN THE INDUSTRY

GDS industry has come a long way since the 60s; while SABRE is still a major player,
several new GDS companies operate today. The major global distribution systems for
travel reservations include:
1. Amadeus GDS
Amadeus is the world’s largest GDS, accounting for about 40 % of GDS
transactions, and is especially popular in Europe. Though many of these reservations
are for airfare, it’s still a powerful tool for hotels, with over 600,000 hotels
connected.
While looking at market share for global distribution systems, Amadeus GDS
ranks as the market leader with a major share of all travel agency bookings.
However, most of these bookings are linked to flights, rather than hotel rooms.
Nonetheless, Amadeus can provide the hotel industry with excellent access to the
European market, in particular, as its database is hosted in Germany and its company
headquarters is situated in Germany.
189
Airport Handling 2. SABRE GDS
Sabre is the second-largest GDS, accounting for about 35% of travel agency
bookings. Around 175,000 hotels are connected to Sabre, but its portfolio in
North America is larger than its competitors.
The SABRE Global Distribution System is the closest competitor for Amadeus
when it comes to total market share, and it is actually more proportionally reliant
on the hotel industry than Amadeus is. In total, it is estimated that more than
200,000 hotels use the network to connect with travel agencies. The company
itself is situated in the U.S. state of Texas, and is comparatively stronger in the
North American market.
3. Travelport GDS
Travelport is a company that owns the Worldspan, Galileo and Apollo systems.
While the parent company is based in the United Kingdom, Worldspan and Galileo
GDS databases are situated in the United States. Travelport provides GDS services
and a variety of other travel industry solution and it offers access to diverse markets,
including those in the Americas, Asia and Europe. Galileo is slightly more popular
with hotels, as Worldspan is more closely associated with airlines.

Name of the Founded Founded by Headquarters No of Revenue

GDS in Employees

Amadeus 1987 Air France, Iberia, Madrid, Spain 16,785 €4.9439

Lufthansa and SAS billion
(2018)

Travelport 2001 Founded through Langley, Approxi US$ 2.5

(Subsidies the acquisition of Berkshire, UK mately 3,700 billion
include -Apollo, Galileo International (2018)
Galileo, and by TDS’s parent,
Worldspan) Cendant Corporation

Sabre 1976 Initially founded by Southlake, Around US$3.87

American Airlines. Texas, United 10,000 billion
Currently, Sabre is a States (2018)
separate entity owned
by AMR Corporation

Table 1: Major GDS Systems in the Industry

Independent travel agents, online agents, and travel agencies now increasingly use
190 more sophisticated GDS systems to search for the best available travel and
accommodationsratesfortheirclients.Agentswillmakeairlineandhotelreservations (in real Global Distributions
Systems (GDS)
time) for clients, and they will complete their research and bookings within minutes.

12.4 GLOBAL DISTRIBUTION SYSTEMS (GDS)

AND TOURISM INDUSTRY
Global Distribution Systems, at times also referred to as Computer Reservation System
(CRS), were originally set up for use by the airlines but were later on extended to
include the travel agents. Today, the systems allow users to purchase tickets from
multiple and different providers or airlines. Global Distribution Systems are also the
back end of most Internet-based travel services. However, different global distribution
systems still service only a limited number of airlines. For example, SABRE is used by
American Airlines, PARS by USAir, Travel Sky by Air China, Worldspan by Delta, so
on and so forth. Other major Global Distribution Systems include Galileo, and Amadeus.
Travel companies use GDS to find the best airline ticket, car rental, hotel rooms, etc.
for their clients. Information is customized by the travel companies, based on the
preferences and itinerary. When a traveler requests information from a travel company,
agent will find the most accurate and cost-effective itinerary which can be supplemented
by GDS; thus giving the client real time price and availability of options. Travel companies
are charged every time they access the GDS or they can buy the license of a GDS
from the company on an annual subscription. Importantly, an average person can never
access the GDS without the help of a travel agency or a vendor.

In short, a GDS functions as a middleman between a travel agent and a hotel’s (or
airline’s) central reservation system. Travel agents can see real-time rates and inventory
for a given hotel via the GDS, though the GDS doesn’t actually hold its own inventory.
It’s simply a window into the hotel’s system, which shows available room types, rates,
and restrictions. When a travel agent books a room, GDS transfers the reservation
information to the hotel’s system and removes that room from the hotel system’s
inventory. The travel agent does not need to talk to anyone from the hotel, and the
hotel’s reservations agents don’t need to enter any data manually. It’s much more
efficient less dependent on human intervention than earlier.
To see how Global Distribution Systems work, let’s take a closer look at one of the
largest GDS in the industry—Amadeus. Amadeus was created in 1987 as a joint
venture between Air France, Iberia, Lufthansa, and SAS and has grown considerably
over the past twenty-five years. Amadeus is used by over 90,000 travel agency locations
and over 32,000 airline sales offices for the distribution and selling of travel services.
The service processes more than 480 million transactions per day, and over 3 million
total bookings per day. Business travellers benefit from Amadeus by being able to 191
Airport Handling purchase a complete itinerary all at once, rather than having to negotiate with individual
service providers. As many as 74 million passenger name records can be active at the
same time on Amadeus. In terms of airline partners, Amadeus services leading airlines
such as British Airways, Qantas, Lufthansa, and more. By using the system, reservation
options with airlines, hotels and travel services can be accessed in real time and can be
coordinated into one itinerary. It’s fast and replaces the cumbersome systems of the
past which required phone calls to each individual service provider to check for rates,
determine availability, and make a reservation.

12.4.1 Importance of GDS to Travel Agents

Let us visualise how was the travel trade was done earlier - a large room with tables
and reservation executives are seated around each table. As a ticketing request is
called in, a reservationist reaches out toward a very large rotating Lazy Susan placed
on each table. The Lazy Susan has cubbyholes that house index file cards; each card
represents an airline flight. The reservationist pulls a card, marks it to indicate a seat is
booked; a ticket is manually written, the phone call is completed, and the index card is
returned to its cubbyhole. The process for one airline reservation took anything between
90 minutes to 3 hours. Add to it the process of booking tickets for a multi destination
itinerary and hotel rooms at each destination. The difficulty of handling all the arrangements
for a trip created a need for the travel agent profession.
The modern GDS system evolved from this early labour-intensive manual system,
thanks to the collaborative team efforts of American Airlines (AA) and IBM. The
result of that collaboration is the first airline industry mainframe-based system, SABRE.
Today we also have additional GDS like Amadeus and Galileo and others promoted
by Travelport.
Besides savings the time, GDS also allows travel agents to tap into reservation systems
for a world of travel providers. Today you can book not only airfare and hotels via the
GDS, but also rental cars, cruises, rail tickets, and tours. For a travel agent who is
booking a vacation package that might include all of the above, they can complete the
reservations in just a few clicks, rather than calling each individual provider.
For hotels, airlines, and the like, the GDS offers massive marketing power. Before the
GDS became popular, hotels would need to undertake huge marketing efforts in order
to be seen by travel agents. GDS effectively democratized this process, with chain
hotels getting the same visibility on the GDS as independent hotels. GDS also give
hotels access to new segments of guests, such as corporate travellers via companies
like American Express and Carlson Wagonlit, who most likely would not book directly.
While hotels do need to pay a fee per booking to use the GDS, that fee is often less
than the average OTA(Online Travel Agency) commission. At the same time,
Promotional messages to agents through GDS cores alert agents to special rates, fares,
and travel packages – an effective marketing tool for passing savings on to agents, and
from agents to their customers. GDS systems also support high traffic portal travel
sites like Booking.com, Travelocity or Trip Advisor.

12.4.2 Benefits of GDS to Travel Agents

GDS undoubtedly is the most important channel of distribution for airlines, hotels and
car rental companies. We can list some of the major benefits of using GDS:

192  Effective in attracting and retaining international travellers

  24/7 access to inventory by the travel agents Global Distributions
Systems (GDS)
 Enables business models of both retail travel agency as well as OTA
 Offer consumers increased pricing transparency
 Travel agents can get a global platform with a strong market penetration
 Provide best rates to the customers which no other system can provide
 Place travel services to many clients without affecting the marketing budget
 Reduces marketing costs of hotels since both chain and independent hotels
get equal visibility
 Promotional messages can be sent directly to agents and alert them to special
rates, fares, and travel packages.

12.4.3 Benefits of GDS to End Users (Flyers)

Undoubtedly GDS is beneficial to both stakeholders in the travel and tourism industry;
and many a time the benefit trickles down to the end user, the customer and in case of
airlines, the flyers. One of the customer friendly initiative of airlines is the Frequent
Flyer Programme(FFPs) which is offered to the loyal customers of an airline to reward
and encourage customer loyalty and patronage has benefited a lot from the GDS.
FFPs award points, which are also referred to as Ticketed Point Miles (TPM) or
miles, are awarded to the members of FFP on the purchase of revenue air tickets.
These points can be used by the customer or family for
 free travel on the airline or on its FFP partners,
 upgrades or discounts on flight,
 car rentals,
 and/ or hotel booking.
The FFP system integrates with airlines’ computerized reservation system(CRS), which
has two permeable sections — the departure control system (DCS) and the reservation
(RES) system. The DCS mainly deals with flight operations while the RES records a
history of bookings, ticket details, special requests such as upgrades in the PNRs, etc.
The FFP application gets updates in a batch processing mode on crediting miles when
a passenger checks in, unlike the real time operations of the CRS. FFP’s serve as a
powerful marketing tool for airlines and is a major cash generating option for the carriers
through the sale of miles to banks credit cards and other program partners (hotels,
cabs, restaurants). There are two accrual structures for counting the points of FFP.
They are - 193
Airport Handling i Mileage based– It is based on the actual miles traveled by a flyer as followed
by airlines like Lufthansa, Singapore Airlines, and others.

ii Revenue Based- Miles are accrued based on the amount spent by a member
for the purchase of a ticket, as practiced by United Airlines, Delta Airlines,
and others

iii Mix Model (Mileage + Revenue) - Based on best elements of both Mileage
and Revenue based structures are also followed at times by few airlines.

FFPs have evolved since the world’s first airline mile-based loyalty program was
launched in 1981. Today, most airlines tie up their FFPs with their diverse alliance
partners ranging from other airlines, credit card providers, mortgage, car hire and
finance companies to fuel companies, hotels and even grocery supermarkets. More
than half of all miles are now earned on the ground, notably on credit cards linked to
airlines’ programs. Miles also gets added when customers travel with an alliance partner
airline or buy co-branded products. Close integration of FFPs with dominant airlines
help overcome seat awarding and upgrading challenges on airlines that operate in a
different geography. This offers a win-win for both customers as well as the airlines;
and has thus resulted in the formation of Airline Consortium or Alliance.

An airline alliance is an agreement between two or more airlines to cooperate on a

significant level in the aviation business. Customers benefit from the wider network,
seamless connections, easy baggage transfers, and the convenience of reserving itineraries
across several cities or countries through a single, consolidated network. Similarly,
airlines are able to offer lower fares, increase flight options, and offer promotions to a
wider customer group. Travelers using inter - airline code share connections within
countries may benefit from alliance marketing branding. It is the GDS which has helped
both the airlines and flyers with the integration of information on a single platform.
FFPs of one airline can be used for another airline as airlines have now started code
sharing and forming alliances and consortium among themselves using the GDS. Few
popular Airline Alliances which also have successful FFP’s are:

i Star Alliance: The first airline alliance was founded on May 14, 1997, when
Air Canada, Lufthansa, SAS, Thai Airways and United Airlines came together
in a globe-spanning partnership. From its first day, Star served every inhabited
continent. Star has since grown to 26 members, flying 727 million passengers.
It’s the biggest alliance by most metrics.

ii Sky Team: The newest alliance, founded in 2000 by Aeromexico, Air France,
Delta Air Lines and Korean Air, has since grown to be the second largest by
airline members and people carried on its planes. Its 19 members, based on
all continents except Australia, and fly 630 million passengers a year.

iii One World: The second alliance to be formed in 1998, by American Airlines,
British Airways, Cathay Pacific and Qantas— is the smallest, with 14 carriers
and 535 million passengers in 2018.

These airline alliances have been helpful to the passengers as now they can fly on any
of the airlines of an alliance with common FPP in place, all due to the sharing of
information on the GDS platform.
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 Global Distributions
Check your progress - 1 Systems (GDS)

1. Differentiate between CRS and GDS

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2. Discuss the evolution of CRS to GDS
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3. Explain the major GDS systems
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4. What are the major uses of GDS?
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12.5 APPLICATION OF GLOBAL DISTRIBUTION

SYSTEMS
The first computerized reservation system (CRS) was created in the 1960s by the
airline company. CRS provided basic information concerning the schedule, prices and
availability of seats of an airline since CRS is a reservation system used by the service
providers (also known as vendors). It is the predecessor of today’s distribution system
through which the work of agents is facilitated and their productivity is increased. GDS
is different from a CRS, as GDS holds no inventory as the inventory is held on the
vendor’s reservation system itself. Primary customers of GDS are travel agents(both
online and office-based) who make reservations on various reservation systems run by
the vendors. AGDS system will have real-time link to the vendor’s database. For
example, when a travel agency requests a reservation on the service of a particular
airline company, the GDS system routes the request to the appropriate airline’s computer
reservations system.
Let us briefly examine the inventory and coverage of services and products of major
GDS companies.
1. Amadeus inventory and coverage
Amadeus is considered the most versatile GDS. It consolidates around 490 airlines,
770,000 hospitality properties, 69 car rental companies and transfer carriers in 195
Airport Handling 42,000 locations, 43 railway carriers, and 53 cruise and ferry lines. The main area
of Amadeus distribution is the EMEA region (Europe, Middle East, and Africa).
Both North and South America and the APAC region (Asia-Pacific) are equally
popular.
 Flights: The classic flight search and booking functionality is presented in all
GDSs,Amadeusincluded.Amadeusalsohasservicesforbusinesstravel(useful for
TMCs) and packaged rail and air booking.
 Hotels: Not offering much in terms of content, Amadeus gives basic hotel
booking capabilities, with search and pricing details. It also owns an iHotelier
GDS, that offers connectivity to all main GDS, combined.
 Car rentals: Apart from basic car booking, Amadeus has rich visual content
and airport shuttle/transfer options.
 Cruises: Amadeus Cruise Web Services provides extensive cruise booking
availability with transfers, special services, excursions, bus availabilities, and
more. Apart from regular booking, it supports modifications and cancelation
opportunities.
 Railways: Acceptable rail bookings using Amadeus consists of regular search
and ticketing, plus some additional services like accommodation.
 Insurance: One of the distinguishing features of Amadeus compared to other
GDSs is that it offers insurance shopping along with booking. It connects
both OTAs and retail agencies with dozens of global and local insurance
providers and allows them to create insurance documents with pre-filled
information.
2. SABRE inventory and coverage
SABRE, a global distribution system with a strong background, has descended
from a computer reservation system initially developed by American Airlines. So,
it’s fair to assume that Sabre mostly serves the Americas. In the Asia-Pacific, this
GDS was less popular until it bought the largest GDS in Asia – Abacus.
 The SABRE distribution channel unites around 440 airlines, 50 railway carriers,
37 car rental companies across 40,000 destinations, 20 cruise lines, and more
than a million hotel properties.
 Flights: SABRE offers extensive functionality for flight booking, including
mileage count, seat maps, queue activity, and more.
 Hotels: Similar to Amadeus, SABRE has limited hotel data availability that
provides basic search, booking, cancelations, and access to loyalty program
data.
 Car rentals: SABRE has several APIs for car rentals, which allows for building
a comprehensive search and booking platform. Calculating rate depending
on length and fees, precise geo search, search by special requirements, and
so on.
 Cruise: Despite the smallest inventory of cruise providers, SABRE gives
access to full cruise content, including interactive maps and cabin images.
196
  Railways: Besides standard features, on SABRE a traveler can purchase rail Global Distributions
Systems (GDS)
cards, find station codes, and manage rail tours.
3. Travelport inventory and coverage
Travelport GDS aggregates and distributes information across channels on access
to airlines, rails, cruises, and carrentals. Additionally, it allows for parsing information
on available hotels and tours. Travelport GDS is likely to be the only GDS equally
covering all directions and continents. It’s evenly represented in the Americas,
though to a greater extent in South America, EMEA and the APAC region.
 In its distribution channel, Travelport combines 650,000 hotel properties,
400+ airline partners, 125 low-cost carriers, car rental units in over
38,000 locations, 50 cruise lines, and 19 railway carriers.
 Flights: Travelport gives access to booking direct flights, connected air
and train routes, and also ancillary services, such as baggage, meals, and
insurance.
 Hotels: Apart from basic hotel content and booking, Travelport offers
deals from non-GDS providers: Agoda, Tourico, and others. It also has
support discounts for corporate clients.
 Car rentals: Travelport’s car rental functionality is standard: search,
pricing, images, vehicle details, and cancelation.
 Cruises: Important to note, currently Travelport provides cruise booking
opportunity only to travel agents who request direct booking via a web-
based platform.
 Railways: Travelport is heavily focused on providing combined air and
train booking availability, including data on optimal connections with flights,
ticketing air-rail as a single ticket, and offering train transfers directly to
and from an airport.
Which GDS is the Best?
No one GDS can be called the “best” travel service provider, since they all provide
similar functionality and have their own unique differences. As a travel professional, if
you are wondering how to choose a GDS, you’ll want to consider a few variables –
i. The system’s presence in the markets where your guests come from,
ii. The system’s functions and which travel websites that GDS connects into.
Travelport, for example, supports more options for discounts for corporate
travellers.
iii. In addition, you should ensure your existing property management system
offers integration with the GDS that you choose.
iv. One will also have to consider the price. Each system has a different fee
structure that varies by property and market, so you’ll need to contact the
Company to find out which fees apply to your hotel. GDS fees can skyrocket
quickly in the hotel management world and it’s important to understand how
rates and commissions are structured to ensure that your e-commerce channel
on GDS networks can be profitable.
197
Airport Handling 12.5.1 Low-Cost Carriers and GDS
The integration of GDSs among low-cost carriers was neglected for a long time, mostly
because of extra fees charged by GDSs that carriers tried to eliminate. This means that
OTAs had to contact LCCs directly if they wanted to give access to budget flights.
However, currently, we see a gradual growth in opportunities for LCC shopping via
GDSs. Partially, because it’s becoming more beneficial for GDS providers to share
low-cost resources and partially because of the growing rivalry among distribution
channels for low-cost carriers. Currently, GDSs suggest some products that have been
adjusted for the low-cost model.
Amadeus is currently connected with over 90 LCCs. It offers three ways to book a
flight from its dedicated resource. Amadeus e-ticketing involves full integration of the
airline with the same booking capabilities as full-service airlines have. According to
Amadeus, this type of ticketing is used by West Jet, Vueling, and Norwegian Air
Shuttle.
Light ticketing from Amadeus is an e-ticketing type of booking that enables immediate
ticket issuing. It allows for removing ATPCO from the distribution network with the
usage of the XML interface. Light ticketing is now available through several airlines
like EasyJet, Transavia, Spring Airlines, and Air Asia. For OTAs, this type of distribution
means that LCCs are directly integrated into their middle- and back-office systems.
Amadeus ticketless booking is via SSR e-pay. Here, the booking system uses the
customer’s credit card instead of issuing a ticket. Such airlines as Jetstar, Spirit Airlines
and TUI fly are using it.
Travelport offers access to low-cost carriers via a Smart point solution. It returns
information on branded fares and ancillaries and lists LCCs along with other airlines
for quick comparison. The platform is available only for manual booking via travel
agents.
SABRE offers LCC booking with common conditions, but with the help of its
merchandising technology, some of them can sell their ancillaries via the platform. For
now, it supports Transavia, easyJet, NorwegianAir Shuttle, Ryanair, WestJet and more
in the program.

12.6 TECHONOLOGY BASE OF GDS

We now understand that the GDS is viable and accessible globally in the same manner
due to the advancement in information technology. The sharing of information among
many CRS of airlines, hotel, taxi service and others is possible due to the various
technological interfaces being used.

12.6.1 API Integration

API(Application Programming Interface) is the exchange of data sources among two
or more applications, using their own APIs. API is just an interface, a point where two
systems, subjects, organizations, etc. meet and interact. It is a part of almost everything
that share information / data in the digital world. APIs offer flawless operation and
performance of applications and web systems regardless of the business or the size of
the company. API connectors provide data synchronisation, increased efficiency and
198 income generation across various sectors as well as layers of an organisation. API
(Application Programming Interface) connectivity is still one of the main methods of Global Distributions
Systems (GDS)
data exchange in the travel industry.
However, achieving effective and automated business processes and procedures that
interact and share essential data requires something extra; this iswhere API integration
comes in. API connection and integration enables programmes to share data and
communicate with one another without the need for humans to intervene. It enables
businesses to automate systems, improve data exchange, and integrate existing apps.
Here’s a recap of APIs main GDSs offer and the data they provide.
1. Amadeus APIs
Amadeus for Developers introduces two types ofAPI sets, with different levels of
access. Self-service APIs provide the testing platform for young booking websites
that allow them to start building apps fast and prepare them for production. They
cover the following:
 Flight and fare search (booking, flight utilities, and flight choice prediction)
 Hotel search and shopping, hotel ratings
 Destination location
 Trip utilities
Enterprise APIs are the main representatives of the Amadeus API family. They
cover nine inventory types:
 Airlines
 Railways
 Hotels
 Car mobile options
 Transfers
 Cruise lines
 Travel insurance booking
 Utilities
 Customer profiles
Each of these includes multiple APIs. Some are of informative value, such as the
lowest fares search. The other part is built for booking. Regarding technology,
Enterprise APIs are built for exchange both in REST/JSON and SOAP/XML
formats. Pricing and conditions on access are made available only upon direct
contact with the Amadeus team.
2. Sabre API
Sabre APIs provide almost the same set of functions as Amadeus does. Sabre
breaks its APIs into eight groups:
 Airlines
 Ground transportation (car rentals and rails) 199
Airport Handling  Cruises
 Hotels
 Profiles
 Trip management
 Session management
 Utility
At the moment, the system doesn’t offer insurance and airport transfer options.
The access to the system is also provided by contacting the Sabre team. Both
REST and SOAPAPIs are available.
3. Travelport API
Travelport combines three GDSs: Apollo, Worldspan, and Galileo. They are all
merged into a single Travelport Universal API. In contrast to Amadeus and Sabre,
the universal API is a package of the following functions:
 Air API connect
 RailAPI connect
 Travelport rooms
 Fares and ancillaries
 Customer profiles
Access to the API, as always in the cases of GDS providers, is available after
direct contact with the Travelport team. It’s available via a single SOAP/XML
interface.

12.6.2 New Distribution Capability (NDC) Support

New Distribution Capability or NDC is a recent initiative that comprises a technology
for providing rich content and selling ancillary services in flight booking. Currently, the
problem with third-party air booking lies in the lack of shopping for extra services –
you can purchase meals or extra luggage only directly. NDC aims to change that by
implementing a new XML standard for data exchange between suppliers and booking
platforms. GDSs have also started working on NDC adoption.
Amadeus is developing and promoting its own NDC-X program and has already
gained dual Level 4 certification from IATA as an NDC aggregator and IT provider.
This means that Amadeus API users can support an end-to-end ancillary booking flow
with selected airlines.
Upon launching its Beyond NDC program, SABRE has been recognized with Level 3
NDC certificate both as an IT-provider and an aggregator in short order. The
certification means that Sabre’s technologies and capabilities totally match IATA’s
standards and can provide a full scope of services.
Travelport was the first GDS to achieve Level 3 certification from IATA. Travelport
has presented its NDC solution in its 2017 roadmap. Initially introducing it for airlines
200 only, Travelport has been taking action to integrate it for OTAs in the coming stages.
 Global Distributions
12.7 FUTURE OF GDS Systems (GDS)

GDS booking has increased worldwide over the last few years yet some industry
observers suggest that GDSs may become nearly obsolete soon but the likelihood of
GDS like many technology/software-based systems, to evolve is more. GDSs may
become more of a “direct corporate booking tool” instead of a system used exclusively
by Travel Management Companies. For example, to recoup additional money, over
the past few years many airlines have incentivized travellers to purchase tickets directly
from the airline websites. Some airlines are even imposing additional fees for tickets
booked through a Global Distribution System, rather than the airline’s website.
While such changes will definitely impact the future growth opportunities for GDS,
there will continue to be a role for them as they evolve to meet the needs of travel
planners, travel websites, airlines and groups of individuals. Most of the Online Travel
Agencies are powered by GDS. GDS companies play a crucial role in the functioning
of travel, tourism and aviation industry. The traditional role of GDS is changing and
being challenged by the changes taking place in the travel industry. Many online travel
websites are pushing and encouraging consumers to make bookings directly via their
website since airlines are already doing it.
For example, Southwest Airlines do not work with the GDS Company Worldspan;
Sabre is used by American Airlines; PARS by USAir; Travel Sky by Air China; and
Worldspan by Delta. If you are an agent who uses WorldSpan, you cannot book with
Southwest Airlines or you need to look for pricing directly on their website. Another
newsworthy information is, agreements signed between airlines and GDS is on a renewal
basis. Many in the travel industry are wondering if the airlines will renew their relationship
with certain GDSs.
Technology may refine and tailor engines to target specific travel interests like corporate
or leisure travel. Integration methodologies may change, blurring or merging nearly
separate functions like booking and in-flight processes. Technology may also produce
new solutions to make data more useful and practical for customers (travel agents) and
expand to cover new industries. GDS is probably not going to fall into disuse anytime
soon. Rather, it will continue to evolve as it did from the Lazy Susan system of the 1950s.
In 2006 the volume of internet reservations exceeded GDS reservations for the first
time, thanks to the growing popularity of online booking channels and the decline of
brick-and-mortar travel agencies. Does the GDS still serve a purpose when travellers
can easily book directly with the airline or hotel? In many cases, yes, the GDS still
delivers value, especially for airlines and corporate travel companies. Airlines still
distribute their inventory to OTAs via the GDS, and corporate travel planners continue
to use the GDS to find corporate rates. However, with so much innovation happening
in the travel space, the GDS’s legacy technology definitely faces competition from
other booking systems.

Check Your Progress - 2

1. Explain the inventory and services of any one GDS.

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Airport Handling 2. Discuss about the emergence of GDS s new applications in today’s word.
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3. Examine the future of GDS
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12.8 LET US SUM UP

AGDS connects multiple vendors of services with intermediaries or end users. During
1960s individual airlines and hotels developed Central Reservation systems (CRS) to
manage their inventory of services. Gradually the need of the industry became linking
the inventory of multiple service providers. This has led to the emergence of GDS
which is a multi-product, multi service distribution network solution for travel tourism
and hospitality services. The ‘Big Three’ Global Distribution Systems, which are
responsible for the vast majority of travel agency bookings, are Amadeus, Sabre and
Travelport. Global Distribution System (GDS) is a computerized network system owned
or operated by a company that enables transactions between travel industry service
providers, mainly airlines, hotels, car rental companies, and travel agencies. The GDS
mainly uses real-time inventory (e.g. number of hotel rooms available, number of
flight seats available, or number of cars available) of service providers. Travel agencies
traditionally relied on GDS for services, products and rates in order to provide travel-
related services to the end consumers. Thus, a GDS can link services, rates and bookings
consolidating products and services across all three travel sectors: i.e., airline
reservations, hotel reservations, car rentals. There’s no doubt that global distribution
systems will play an important part in the travel landscape for many years to come, but
their traditional role is changing and is being challenged by all the changes taking place
in the travel industry. Two important considerations impacting the role of global
distribution systems are the growth of online travel websites that offer price comparisons
and the increased push from airlines and other travel service providers to encourage
consumers to make bookings directly via their websites.

12.9 FURTHER READINGS

https://tripactions.com/glossary/gds
https://amadeus.com/en/topic/travel-platform/global-distribution-system-gds https://
www.sabre.com/insights/tag/gds/
https://www.travelperk.com/corporate-travel-glossary/global-distribution-system/

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 Global Distributions
12.10 CLUES TO CHECK YOUR PROGRESS Systems (GDS)

EXERCISES

Check Your Progress-1

1. See section 12.1 and 12.2 to frame your answer

2. See section 12.2 and frame your answer
3. See section 12.3 and frame your answer
4. See section 12.4 and frame your answer

Check Your Progress-2

1. See section 12.5 and frame your answer

2. See section 12.6 and frame your answer
3. See section 12.7 and frame your answer

12.11 ACTIVITY
Visit the following website and discuss in the class “How GDS Integrates Travel
Industry”
Website: https://www.flightslogic.com/benefits-of-global-distribution-system.php

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