The GDS's are a high-performing distribution channel
The Global Distribution System (GDS) is a pivotal tool for hotels, especially those targeting the corporate travel segment. As business travel rebounds post-pandemic, the GDS presents a significant opportunity for hotels to capture a growing market. This article explores the advantages of the GDS, its current performance, and considerations for hotels when integrating this channel into their distribution strategy.
The Importance of GDS for Corporate Travel
The GDS is particularly crucial for hotels aiming to attract corporate travelers. With business travel on the rise, leveraging the GDS can help hotels tap into this lucrative segment. The corporate travel market is expected to grow substantially, making it an opportune time for hotels to focus on corporate bookings through the GDS.
Corporate bookings dominate the GDS, accounting for approximately 80% of its total bookings. These bookings are significantly more valuable to travel suppliers than leisure bookings, often yielding higher revenue. Travel management companies (TMCs) and travel consortia primarily use the GDS for managing corporate travel, underscoring its importance in this segment.
Performance and Growth of the GDS
The GDS has demonstrated remarkable growth, with a 54% increase in bookings compared to the previous year. This growth rate surpasses that of other major distribution channels, highlighting the GDS's effectiveness in the current market. Additionally, GDS bookings tend to have higher average daily rates (ADR), longer lengths of stay (LOS), and lower cancellation rates. These factors make the GDS an attractive option for hotels seeking to maximize revenue and occupancy.
Considerations for Hotels
While the GDS offers numerous advantages, it may not be suitable for all hotels, particularly those focused on leisure travel. Hoteliers must evaluate whether GDS customers align with their business mix and consider the net contributions and relative value of different distribution channels. This assessment is crucial to ensure that the GDS complements the hotel's overall strategy and enhances its profitability.
Selecting the Right GDS Connectivity Provider
Choosing the right GDS connectivity provider is essential for hotels looking to optimize their distribution strategy. The article highlights the features and benefits of D-EDGE's Central Reservation System (CRS), which simplifies GDS distribution for hotels. A reliable CRS can streamline the process, making it easier for hotels to manage their GDS bookings and maximize their potential.
Conclusion
The GDS is a high-performing distribution channel that many hotels overlook, yet it offers significant benefits, particularly for those targeting the corporate travel segment. As business travel continues to recover, the GDS provides a valuable opportunity for hotels to capture a growing market. However, it is essential for hoteliers to carefully assess their business mix and select the right connectivity provider to fully leverage the advantages of the GDS. By doing so, hotels can enhance their distribution strategy, increase revenue, and improve their competitive position in the market.
