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GDS History

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on June 20, 2007 at 11:47:13 am

GDS, CRS and channel management


The GDS have long been the primary source of travel agents bookings in the world. Today they do much more and supply content rates and hotel inventory to thousands of On-line Travel website.


The GDS systems are a huge network of thousands of computers set up originally by companies like Sabre, WorldSapn. Amedeus, Galileo and Pegasus. They provided Computer Based Reservations (CRS) services to all travel agents long before the Internet. These system are still in place and are used by more that 480,000 agents worldwide.


When you visit a Travel Agent you will see them at the CRS to find and book flights and resorts.


It has traditionally been an expensive distribution system requiring setup fees in the thousands of dollars as well as booking fees, transaction fees and agents commissions. As a result many smaller hotels are not represented in the GDS and GDS have not been too interested in this sector as they problem of coordinating inventory has been too great (a small hotel just does not have a sufficient supply of rooms to justify the effort of cost them up).



With the advent of new technology this has changed. Now there are GDS agent companies who specialise in supplying content to the GDS computers. The Internet also makes it easier to get the information and distribute it. This has made GDS widely available to hotels of all size. An inovator in opening up the Market was Tom Egan of reserv, who single handedly changed the face of distribution by offering an easy to use system with no setup fees and no minimum charges. His system worked on next Generation technology meaning that the entire process of setting up a hotel was done on-line, no manual entry. Alas Tom sold out and his ideas hot the dust.




Axses' e-commerce systems (arcRes Bookings-Expert, arcRes-pms and ArcRes-CRS) are integrated with the GDS agent system to make it even easier and more affordable and accessable for hotels to market throught GDS. Axsesarcres  integration makes it easier to setupo and to manage rates and inventory in multiple channels.

A major problem facing the industry now is the proliferation of vendors. Whereas before we had a few key Tour Operators, now there are numerous Internet companies, like Expedia, Travelocity, Hotel.com, Priceline and many others that have vastly more exposure that the traditional Tour Operators. Getting products onto these system and maintaining rates, content and inventory requires full time management and is not feasible for many small resorts. Axses' arcRes Bookings-Expert will provide a single system to maintain. It also makes rates management easier by allow suppliers to specify any rate in any channel as a % of another rates or a markup on costs.


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