Global Distribution System (GDS)

Global Distribution System (GDS) is now one of the most popular distribution channels in tourism and hospitality industry. It is a global platform that allows hospitality companies sell their products and services to travelers all over the world.

GDS is first created in airline industry. It is originally used by travel agents for checking the flight schedules from different airline companies. Nowadays, it has developed to be an online market for not only travel agents but travelers buying tickets and packages.

A table shows how GDS works

Members or participants of GDS




GDS is very useful for people buying tickets online. It groups the schedules and prices of different companies so it is easy for customers to find all the information they want and compare the products of different companies. It can help customers to save time too. They can just stay at their homes and search on the internet. After they have selected the most suitable products for themselves, they could even buy it online. By using GDS, people can do the whole purchase process at homes and it is very convenient for them. Nowadays people are very busy with their work and businesses so this system really helps a lot. GDS is very helpful for hospitality companies too. It provides them one more distribution channel to sell and promote their products. Also, the whole purchase process is computerized so the hospitality companies can lower the human errors and also the demand for staff.

However, there are some disadvantages too. For customers, as the whole purchase process is done in the internet and there is no staff to be directly contacted, it will be difficult for travelers to search for help if there are some problems. For the companies, they need high cost to run the GDS. They always need to keep updating the price and schedules. They also need someone to monitor it 24 hours. Moreover, as GDS are usually used by large chains or companies, it is difficult for some small companies to get into a system.

One more thing the travelers need to be alert is privacy. When travelers buy the products online, they need to give their personal details including phone number, address and credit number. It is a bit risky if the personal details are leaked or hacked.

GDS is undeniably a very convenient and useful tool for both sellers and buyers. However, there are some disadvantages and potentials when using this system. Therefore, both sellers and buyers need to be careful in order to make use of it.