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The Role of Global Distribution Systems

Digital world map with connected cities symbolizing global distribution systems in the travel industry

Back in the 1960’s, businesses and travelers demanded faster automation when it came to booking flights. At the time, each booking involved phone calls, paperwork, and manually recording details on ledgers or index cards. Once a booking was confirmed, a clerk would create a handwritten or typed paper ticket, which was posted to the customer. American Airlines and IBM revolutionized this process by creating SABRE, the world’s first centralized airline booking system.

Other airlines followed suit, eventually collaborating to develop major GDS platforms which expanded to include hotels, car rentals, cruises and other services. Today, the role of Global Distribution Systems is to act as a computerized business-to-business network, allowing travel providers real-time access to a huge travel inventory.

How APIs are Changing GDS Integrations for Travel Agencies

Online hotel booking with mobile payment confirmation representing travel API and GDS integration

It’s hard to believe, but for many years, airlines used a manual paper card system to book flights. This laborious, time-consuming task was replaced after computers became available in the 1960s and 70s. The Global Distribution System replaced manual, outdated methods by communicating live product, price and availability data to travel agents, tour operators and eventually, online booking engines. Thanks to GDS, travel agencies can offer their customers a streamlined booking process, with access to real-time, personalized content. But how does this happen in practice? With the majority of travel booked online and via mobile devices, how can travel agents connect their customers with this live stream of travel data?

A typical travel agent or online travel agent connects their own software to GDS data via an Application Programming Interface (API). This crucial piece of technology allows customers to view live data through a user-friendly, branded booking platform.

The API connection grants access to the travel agency to the vast inventory of travel services from numerous suppliers. Using the same GDS integration, agents can then make bookings and manage reservations directly through their software.

GDS and NDC: What’s The Difference?

Technology is crucial within the travel industry today. For a travel business to survive, customers must be matched with airlines, hotel businesses and other suppliers quickly and efficiently. The Global Distribution System (GDS) and New Distribution Capability (NDC) are two significant systems that have evolved to meet the demand for streamlined search and booking capabilities.

GDS came first, revolutionizing the industry with its huge database and centralized inventory. Through a single interface, GDS links travel agents with a large network of airlines, hotel rooms, car rentals and other ancillaries, enabling reservation management, payments and ticket issuing. GDS emerged in the 1970s and is deeply embedded in the travel industry. It provides access for a wide range of travel options in an organized, consistent way.

Developed by the International Air Transportation Association (IATA), the New Distribution Capability (NDC) is a further advancement for the travel industry. Using a standardized set of XML-based data transmission principles, it enables airlines to distribute and sell their products in a more personalized and efficient way. NDC enables richer content through dynamic pricing and the option to tailor baggage, seat selection and other ancillary services leading to a more customized travel experience.

How Your Travel Agency Can Benefit

As a travel agent, Global Distribution Systems are a vital tool to access a wide variety of travel content easily and efficiently. A GDS booking system provides travel agencies with a centralized platform to search and book travel services from multiple providers, streamlining the booking process. GDS delivers real-time data on inventory and availability, meaning travel agents always have current information to offer their customers. By connecting with the vast travel network, travel agents can create personalized itineraries with instant and reliable booking confirmations, which enhances customer experience and satisfaction.

How Do Travel Agents Access GDS?

Travel agents rely on Global Distribution Systems (GDS) to connect clients with flights, hotels, and experiences worldwide.

A travel agent accesses a Global Distribution System (GDS) through specialized software or web interfaces. Larger travel agencies may enter into a direct agreement with a GDS provider, but this is very costly and not generally required for smaller agencies. Smaller or online travel agents can use a third-party technology provider or a software-as-a-service (SaaS) platform that integrates GDS functionality. Because the third party oversees the technical aspect, this method of accessing GDS is often a much more cost-effective way to access GDS. Once the travel agent has access, they can integrate the data into their own booking technology.

At Traveltek, we offer API connections within our suite of cutting-edge travel technology. Our travel APIs facilitate access to our vast network of suppliers, including air travel, hotels, cruise lines, payment services, and ancillaries. We also provide support for SABRE, Travelport and Amadeus. Expand your reach with Traveltek.

Frequently Asked Questions

What is the International Air Transport Association?

IATA is a trade association of around 300 airlines and around 80% of global air traffic. IATA is seen as the industry standard, defining best practices and policies to promote safe transport in aviation.

Can travel agencies use both GDS and NDC?

Yes, travel agencies can apply to use both systems. Using GDS and NDC means travel agents can leverage both systems to satisfy customers’ needs efficiently and effectively.

Is NDC required as part of IATA certification?

No, however it is recommended that an airline, IT provider, or distributor become NDC certified, as this provides assurance that they have the technical ability to send and receive NDC messages.

Will NDC replace the Global Distribution System?

NDC is evolving as a new standard and gaining in popularity within the industry, but it is unlikely to replace GDS in the foreseeable future. GDS is deeply integrated within the industry and it is more likely that the two will offer an integrated approach to benefit travelers and travel sellers.

What are the major GDS systems?

SABRE, Amadeus and Travelport are the primary GDS platforms used by travel agents and other online service providers.