The GDS or Global Distribution Systems is a computer network that enables travel
agencies to book your rooms directly on behalf of their clients. Developed in the
60s and 70s this pre-Internet technology consists of four reservation systems Amadeus,
Galileo, Sabre and Worldspan. With more travelers booking lodging on the Internet,
one might think that this would signal the end of Travel Agencies (TA). So far,
this has not been the case. While TA may handle more business or corporate accounts
than leisure travel, if you have excess room availability, then this is one option
to explore.
The standard commission that lodging properties pay when a travel agent books a
room reservation is 10%. However in order to physically enter your room availability
into the GDS computer system, you need to work with a 3rd party company that provides
"GDS Representation Services." These companies charge an additional fee above and
beyond the 10% to TA. A list of these companies and some of their contact and pricing
information can be viewed below.
While there are several pricing models (monthly minimum, minimum charge per booking,
straight percentage of the full price of the reservation, percentage plus a flat
per booking fee, etc.) ultimately they connect you to the same GDS. This is much
like choosing an Internet provider, where they all connect you to the same Internet.
Some of the differences that are most apparent (besides the pricing) is the actual
web site interface where you list your rooms and modify your availability. Ask to
see the interface (similar to your availability calendar) so that you know what
type of system you will be working with on a regular basis.
We are in the midst of negotiating a preferred rate for GDS representations services
for all Inn Strategy members.
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