More than 87% of GDS hotel bookings are related to business travel. GDS bookings have recovered from the COVID-19 period and exceeded the previous peak set in 2019 in 2024.
This growth has resulted in a significant increase in the number of hotels listed on the GDS. Hotels considering listing on a GDS should therefore seek expert advice to determine if this is right for them.
Let’s examine some of the factors that can guide your hotel decision.
Defining GDS: What is it?
Global Distribution System (GDS) As a network, more than 600,000 travel agencies around the world have real-time access to your hotel's availability and prices. For hotels, GDSs provide a channel to interact with corporate travel planners and international agents who often rely on these systems to make accommodation reservations.
Assessing Hotel Compatibility: Key Considerations
Evaluating a hotel's suitability for GDS: Summary of criteria
Before integrating with a global distribution system (GDS), it’s important to determine if your hotel can actually take advantage of the platform. Consider the following key factors:
1. Target group: If your hotel frequently receives business travelers, using a GDS can be very beneficial. Many business travel agents and large organizations prefer to book through their travel agencies and GDS platforms.
2. Location and requirements: Is your property located in a high-demand commercial location?
Properties located in vibrant urban areas, near major transportation hubs or popular tourist destinations can benefit significantly from enhanced exposure through the GDS. To maximize your property's visibility, consider the following:
- Major Companies
- AIRPORT
- Hospital
- Light Industrial Park
- Government departments
- Court/Bank
- Business Center
If your hotel is close to these key locations, you can use this to your advantage through the GDS to increase exposure and attract more guests.
3. Room vacancy: Hotels with a larger number of rooms (40 or more) are better suited to using the GDS because they can effectively meet the demand generated by this distribution channel.
4.GDS Fees: Hotels participating in a GDS are required to pay fees, such as hosting fees, transaction fees, and possibly commissions. It is important to consider these costs and take good advice from the GDS host you choose.
5. Technical capabilities: It is critical to have a reliable connection between your channel manager and your property management system (PMS) to provide rate and availability information to the GDS. Your technology must support real-time updates to prevent issues such as overbooking.
GDS Listing: Is It Right for Your Property?
To help you decide whether to list your property on a Global Distribution System (GDS), we have compiled a list of questions to ask. Each question is accompanied by an explanation to help you make your decision.
1. Does your target audience include a large number of business travelers?
GDSs are particularly beneficial for hotels that serve corporate clients, as more than 87% of GDS bookings are related to business travel.
2. Do you have enough room inventory to meet increased demand?
Having a larger inventory allows you to manage the increase in bookings that a GDS may bring.
4. Consider the fees charged by GDS hosts
Evaluate all relevant costs, including Monthly fees and transaction fees.
5. Are your competitor hotels listed on the GDS?
If your main competitor hotel has joined the GDS, please consider and listen to the advice. This is a sign that the hotel should consider joining the GDS.
in conclusion
Choosing to list your property on a global distribution system is not a one-size-fits-all solution; it requires a thorough evaluation of a variety of factors, including your target audience, geographic location, available inventory, financial resources, and technological infrastructure. Utilizing the checklist provided can help you make an informed decision to support your business goals.
If your hotel meets the above criteria, the GDS can be an effective means of increasing visibility and driving bookings. Conversely, if your hotel does not meet these requirements, exploring other distribution channels may yield better results. It is critical to carefully evaluate your options to determine the strategy that best suits your hotel.
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Is a Global Distribution System (GDS) right for my property? Last modified: August 27, 2024 go through
