Understanding Global Distribution Systems (GDS)

In this age of technology, the journey commences even before one embarks on a flight or checks into a hotel. With travel services like flight booking and hotel reservation, you may already be engaging with a sophisticated global distribution system (GDS) that operates in the background.

To a consumer, it is invisible. People working in the travel sector are attuned to the workings of travel GDS in their business architecture—especially if they wish to grow their travel services in a highly competitive marketplace.

What is a GDS?

A GDS is a Global Distribution System which serves as a computer network that connects travel service sellers like airlines, hotels, and car rentals with their clients at agencies both physically and virtually.

It uses real-time application programming interfaces (APIs) to provide, price, and book travel services. In simple terms, GDS is a digital storefront where a traveler gets the correct item stock at the time of booking.

Notable GDS systems are:

• Amadeus

• Sabre

• Travelport (Galileo, Worldspan, Apollo)

These systems serve as the control center for millions of transaction activities per day from both sides, the travel providers and the travel agencies, OTAs, and corporate booking tools.

Importance Of GDS In Travel Technology Solutions

Travel apps and platforms like OTAs or even an enterprise travel tool require GDS integration to:

• Accumulate a comprehensive global inventory spanning millions of airlines and hotels.

• Provide customers with real-time availability options alongside competitive pricing.

• Enable multi-service bookings (flight + hotel + car).

• Maintain a consistent cross-platform GDS Central reservation system.

It also helps reduce manual effort for users in booking, automates transactions and response time for end users.

How GDS Operates

A GDS basically connects two entities together:

• Suppliers (Travel suppliers): these are the people who list their availability and pricing.

• Booking platforms: these are the people who request and process user bookings.

Their interaction generally follows this flow.

1. Upload Inventory- Suppliers will have to upload to the GDS databases available rooms, seats and prices.

2. Standardization: All data will have to be normalized to a unified format.

3. A booking agent or an API will search for results in their database. This is known as query and match.

4. Reservation- now GDS will process the booking and confirm with both parties.

5. Modern GDS have started providing RESTful APIs along side SOAP/XML based integrations alongside NDC support to enhance the user experience.

Use Case: GDS for Integration with Hotel and Flight Booking Systems

Think about starting a new business like corporate hotel bookings. Instead of manually partnering with hundreds of hotel chains, you integrate one GDS API which lets you access multiple providers at once. This allows you to:

• Provide instant booking access

• Implement real-time modification of system pricing

• Manage cancellations and modifications

• Instantly set room availability

Airlines, as well as car rentals, operate on the same logic. Therefore, GDS is known as a scaling shortcut for startups and even enterprises in the travel domain.

GDS and Modern APIs: Do they Compete or Co-exist?

With emerging trends such as direct connections, metasearch APIs, and booking through blockchains, many wonder: Has GDS become obsolete?

Not entirely.

GDS is integrating more with modern approaches to hybrid systems, although new APIs offer more personalization, GDS platforms are not static. They are evolving, and:

• Most of them now provide NDC

• There are more flexible integration solutions

• They are supported by years of trust in enterprise travel

GDS platforms are increasingly integrating with modern systems to build hybrid infrastructures rather than being supplanted.

Final Thoughts

More than a remnant of legacy travel, the Global Distribution System is the digital framework for vast segments of contemporary travel services. For developers and companies wishing to establish sophisticated, responsive, and internationally accessible booking systems, GDS integration remains essential.

GDS platforms, like all technology, are evolving to face the demands of a rapidly changing world driven by experiences.