How GDS can increase your hotel's revenue?
April 21, 2020|Hotel Marketing
How can the GDS increase your hotel's revenue?
If you are a flagged hotel, you are already connected to the global distribution system (GDS) because that is one of the first things your franchise would require from you. If you are an independent hotel, you are probably not connected yet to the GDS — and that alone will drastically reduce your chances of succeeding in this business.
GDS is a platform that connects a network of hotels to a network of travel agencies worldwide. Hotels can feed real-time inventory to the travel agency network. Conversely, agents can search the hotel network for the best accommodations, rates and availability for their client.
Imagine two office spaces in different parts of town. Each office has a group of computers that share a common communications line or a Local Area Network (LAN). The computers that share a LAN can seamlessly share data. However, for one computer to share data with another computer belonging to the other office, it would need an internet connection.
The internet connection in this case is the GDS. The GDS distributes your data to a network of travel agencies and OTAs like Expedia, Hotels.com, and Travelocity. Conversely, travel agencies and OTAs can access your real-time inventory to find the best deals for their clients.
Let’s say you are an independent property in Philadelphia, Pennsylvania that is connected to the GDS. A travel agent across the globe in Tokyo, Japan who is arranging a group tour to your city will look into the GDS to find a partner hotel in your market. If you are not connected to the GDS, the only way for the agent to know your property’s availability, accommodations and rates is by calling your hotel directly. In this day and age, chances are you will not be getting that call.
If you are not connected to the GDS, it would be virtually impossible for you to manually feed your data to OTAs s and make real-time updates on your inventory. You would have to hire an entire department to sit down and update your property’s availability, rates and accommodations on over 500 vendors and websites. If you connect to the GDS, this happens in just milliseconds.
Again, if you're an independent property competing against international brands that have established networks, connect to the GDS today. Otherwise, you are leaving ridiculous amounts of money on the table.
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