Should Travelers Worry If GDSs Are Really Moving Towards Extinction?
December 2nd 2010 11:31
In the past few months, we have noticed a growing trend in the travel media speculating on the ‘bleak’ future for the Global Distribution Systems (GDS). I've often wondered, how would it affect us, normal travelers? I have since spoken to many experts - and the bottom-line is: leisure travelers won't be affected as much as business travelers in the above scenario. Even they would find new models of reservations, because the market always adapts and evolves. Here's a guest post for those interested in this discussion:
When the Google-ITA deal was announced, the media were quick to write an obituary for major GDS/OTAs. While the Google-ITA deal is still under anti-trust review, the wider perception remains that the ‘traditional’ GDS, with it’s age-old technology and failure to adapt to growing market needs, has lost it’s relevance and market share to the point of no return.
As an example of this, in June Business Travel News (BTN) reported that, despite considerable effort by hoteliers, the accuracy of the hotel rates loaded into the global distribution systems has only slightly improved. It is estimated that approximately 25% of the rates loaded are inaccurate, leading to incorrect bookings and billing errors.
American Airlines (AA) recently stirred things up, when it tried to get travel agents to hook up to AA Direct Connect and bypass global distribution systems. Many believe that AA’s move is just the tip of the iceberg, and other large airlines would also go forward with their direct connect plans. If proven true, this trend would seriously undermine the whole GDS model.
Read the full blogpost at Online Hotel Reservation System - Hotelhub
When the Google-ITA deal was announced, the media were quick to write an obituary for major GDS/OTAs. While the Google-ITA deal is still under anti-trust review, the wider perception remains that the ‘traditional’ GDS, with it’s age-old technology and failure to adapt to growing market needs, has lost it’s relevance and market share to the point of no return.
As an example of this, in June Business Travel News (BTN) reported that, despite considerable effort by hoteliers, the accuracy of the hotel rates loaded into the global distribution systems has only slightly improved. It is estimated that approximately 25% of the rates loaded are inaccurate, leading to incorrect bookings and billing errors.
American Airlines (AA) recently stirred things up, when it tried to get travel agents to hook up to AA Direct Connect and bypass global distribution systems. Many believe that AA’s move is just the tip of the iceberg, and other large airlines would also go forward with their direct connect plans. If proven true, this trend would seriously undermine the whole GDS model.
Read the full blogpost at Online Hotel Reservation System - Hotelhub
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