A global distribution system is one of the most important distribution channels for hotel owners and others in the travel industry. Amadeus GDS is one of the most important examples. In this article, you will learn more about the Amadeus GDS system and how it can benefit those in the travel industry.

What is a GDS System?

A global distribution system, or GDS for short, is a network that allows transactions to occur between service providers in the travel industry. Travel agencies primarily use them to gain real-time access to inventories and book hotel rooms, airline tickets, car rentals, and other travel products.

For example, for those operating in the hotel industry, global distribution systems remain a key distribution channel, because they connect hotels to a large number of travel agents all around the world. As a result, the hotel gains improved access to the global market and can potentially generate greater demand for bookings. You can read more detailed information about global distribution systems and the benefits for hotels in the article “Global Distribution System (GDS): What Are the Benefits for Hotels?”.

What is Amadeus GDS?

Amadeus GDS is one of the major GDS systems and was originally created by Air France, Lufthansa, Iberia, and SAS airlines as a European-based alternative to Sabre, a similar GDS system based in the United States. It was founded in 1987, and while it initially focused on connecting end users with airline inventories, it has since grown to offer access to other travel services, including hotel rooms and car rental services.

Global Distribution System Explained by Amadeus

 

What Are the Benefits of Amadeus GDS?

There are numerous benefits for hotel owners using the Amadeus GDS system, with the most obvious being distribution to travel agents and customers on a global level. The platform offers business-to-business (B2B) and business-to-customer (B2C) distribution and provides travel agencies with 24-hour access to hotel inventories.

Regarding market share, Amadeus is the largest GDS system, accounting for around 40 percent of travel agency bookings and using around 90,000 travel agencies. The company is based in Spain, while the central database is in Germany, meaning it can serve as an especially powerful gateway to the European market.

However, it is worth noting that a substantial percentage of Amadeus’ total bookings are airline tickets.

Similar GDS Systems to Amadeus GDS

While the Amadeus GDS system is the largest in terms of pure market share, it is not the only major global distribution system that hotel owners and others in the travel industry should be aware of. The main two alternatives are as follows:

1) Sabre

Sabre is a global distribution system based in the United States. Its history can be traced back to the 1960s, meaning it is an older GDS system than Amadeus. However, it currently has a smaller market share, serving somewhere in the region of 60,000 travel agencies worldwide.

However, while its overall market share is smaller than Amadeus’, a higher percentage of its bookings are hotel-based. Sabre is also comparatively strong in the lucrative North American market. You can read more detailed information about the Sabre GDS system in the article “What is Sabre GDS?”.

2) Travelport

Travelport is the third of the major GDS systems and was founded in the United States, although its headquarters are in the United Kingdom. Its history can be traced back to the 1970s, making it older than Amadeus, but younger than Sabre. Its subsidiaries include Galileo, Apollo, and Worldspan.

While Travelport’s main market is North America, it relies less on a single market than its rivals, with many of its bookings being spread across North America, Europe, and the Asia Pacific region. You can read more detailed information about the Travelport GDS system in the article “What is Travelport GDS?”.

How to Connect Your Hotel to Amadeus GDS?

The most common way to connect to Amadeus is through a GDS provider. Multiple companies provide these services, typically connecting a hotel to all major GDS systems at once.

Hotels can manage property information, such as descriptions, photos, and facilities, and distribute all inventory and rates from one place. Most GDS service providers connect with property management systems (PMS) and/or hotel channel managers. The usage of a GDS system can, therefore, be fully automated.

Amadeus GDS is one of the three main global distribution systems and can serve hotels through improved distribution. Connecting your hotel to the GDS system will allow travel agents to access live inventory information, enabling them to sell rooms on your property to their customers.

More Distribution Tips to Optimize Revenue

The distribution mix that hotels choose to use has a significant impact on their revenue management strategy, and on their overall success. In the following articles, you will find more distribution strategies to optimize your revenue:

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This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.