Tourism (Class 12)
Unit 8
Global Distribution System
Q1. What is GDS?
Ans. Global Distribution System is a Travel Agency Network that enables interconnectedness
between Airline Computer Reservation Systems and travel agency terminals.
Q2. How is GDS different from CRS in its functioning?
A Computer Reservation System (CRS) is a reservation system used by Airlines
and the Global Distribution System (GDS) is used by travel agents to make
reservation on various airlines’ reservations systems.
A Global Distribution System (GDS) differs from an airline CRS in one critical
aspect; a GDS holds no inventory of its own. The inventory is held in various airline
reservation systems.
Q3. What does a GDS do?
Ans. The GDS system has links to all major airline CRS. When a travel agency terminal
requests a reservation on the service of a particular airline the GDS system routes the
request to the appropriate airline Computer Reservation System. This enables a travel
agent with a connection to a single GDS to book flights and associated services on
virtually all the airlines in the world.
Q4. Name some major Global distribution systems?
Ans. There are currently four major GDSs in operation all of which provide real-time
flight information to travel agents and consumers.
Amadeus
Galileo
SABRE
Worldspan
Q5. Write a note on the evolution of Global Distribution Systems.
Global distribution systems (GDS) have evolved from the first computer-based
reservation systems implemented by several U.S. airlines in the late 1960s and early
1970s.
American Airlines (AA) was the first company to develop a real-time computerized
reservation system.
In a joint venture with International Business Machines (IBM), the Semi-Automatic
Business Research Environment (SABRE) was launched in 1964.
1978, SABRE was available in over 130 locations and could store 1 million airfares.
By the late 1960s and early 1970s, virtually all of the major carriers were operating their
own central reservation systems (CRS).
It was not, however, until 1976 that these systems were installed in travel agencies,
allowing agents to both book and change reservations directly in the system using
remote access terminals.
The ability for airlines to operationalize their booking systems in geographically
dispersed markets was a major competitive advantage for those who participated in
GDS.
Q6. What is the “halo-effect”?
Ans. The rapid entrenchment of CRSs with travel agents enabled bias in the reservation
process. For example, SABRE might decide to withhold inventory from other CRSs in
an effort to gain a competitive advantage. Further, a CRSs owned by a particular airline
could be programmed to display their airline’s information ahead of their competitors in
an effort to distort consumer choice. This was compounded by the natural tendency of
travel agents to book flights with the carriers providing the CRS terminals – known as
the “halo-effect”.
Q7. Which regulation system was introduced to curb the “halo-effect”? What were its
mandates?
Ans. In 1984 the Civil Aeronautics Board began to regulate these systems to insure a free and
competitive market for both travellers and airlines. Later the United States Department of
Transportation (USDOT) increased regulation of the GDS industry, mandating that GDS
owners:
That they cannot favor or disfavor any airline in setting the display order of flights or
booking fees;
Must provide data to all carriers on a non-discriminatory basis;
Must participate in all other CRS systems (for airline CRS owners); and
Must offer travel agents contracts of three years or less.
Q8. What are the various public interfaces Global Distribution System categories?
Ans. The public interfaces to the GDSs can be categorized in the following way:
1) Airline websites
2) GDS-based online travel agencies such as Travelocity, Expedia Travel and Orbitz
3) Opaque sites that require some type of bid/payment before knowing the actual travel
schedule such as Priceline
4) Specialty low-fare sites which are analogous to a tip-sheet for selected bargains; and
5) “Screen-Scraper” sites which actually reads fare information from the screens of other
sites and reports them to the consumer.
Comparison between the major Global Distribution Systems:
Amadeus Galileo SABRE Worldspan
1 Leading Global Distributor Diversified global technology One of the first GDS to be Global leader in web based
leader launched travel e-commerce
2 Serves the marketing, sales Provides electronic global Leading provider of technology Provides travel technologies
and distribution needs distribution services and services
3 Has the Largest database Leading edge products and Enables travel e-commerce Provides worldwide electronic
innovative internet based and services distribution of travel information
solutions
4 217 markets worldwide, over -------------- Enhances operations Does global travel distribution
100 million visitors per month and transaction processing
Connects to-
5 90,274 travel agency 49,000 Travel agencies in 50,000+ Travel agencies 21,000 Travel agencies in
locations 116 countries including the fortune 500 nearly 90 countries
companies
6 75,284 Hotel Properties 70,000 hotel properties 77,000 Hotel properties 210 Hotel companies
7 490 Airlines 450+ Airlines 400 Airlines 421 Airlines
( covers 95% of the world’s
scheduled airline seats)
Q9. How does the display airlines schedules & availability work?
Users access an airline’s inventory through an availability display.
It contains all offered flights for a particular city-pair with their available seats in the
different booking classes.
This display contains flights which are operated by the airline itself as well as code share
flights which are operated in co-operation with another airline.
If the city pair is not one on which the airline offers service it may display a connection
using its own flights or display the flights of other airlines.
The availability of seats of other airlines is updated through standard industry interfaces.
Depending on the type of co-operation it supports access to the last seat (last seat
availability) in real-time.
Reservations for individual passengers or groups are stored in a so-called passenger
name record (PNR)
