Is GDS right for you?

In the hospitality industry we focus a lot on rates and distribution channels. Are you offering the right rates? Do you have different rates for different types of guests or rooms? Are you using multiple channels to advertise your rates? It’s a lot to think about and balance appropriately for your property and it’s also a lot of work to update rates and availability on multiple sites.

Why not simplify things by adding the Global Distribution System (GDS) to your marketing strategy? If you’re unfamiliar with the GDS, watch our quick introductory video below:

 

 

The GDS allows you to market your property with OTAs and travel agents and has a two-way connection with RezStream’s reservation software so you don’t have to manually update reservations or availability.

Many hoteliers are paying attention to the OTAs as news continues to roll out regarding the Expedia and Orbitz merger. Expedia has already acquired Travelocity, Hotels.com, Hotwire.com, Trivago, and other online travel agency sites in the past and many of their OTAs require exclusive agreements. Some consumer and hotel watchdog groups have urged the U.S. Department of Justice to stop the merger, while other groups claim the merger is nothing to worry about

A letter from dozens of small, independent properties and state and industry associations stated that:

“Small, independently owned, and economy hotels are particularly subject to the anticompetitive effects of this merger. In many markets, small businesses and independent hotels rely on online travel agencies (OTAs) to fill 30-40 percent of their rooms, with some as high as 60-70 percent. Yet, smaller businesses with fewer than 30 properties face the most serious consequences because they often times pay in excess of 25 percent more in online travel agency commissions. They must do business with these OTAs but will have virtually no leverage to resist any commission rate increase imposed by Expedia.”

It’s known that using OTAs comes with a commission cost but we do see value and benefit for many of our clients in using the GDS. Like any product or tactic though, it’s good to ensure your property is a good fit for it. So, GDS is right for you if:

  • You have 10+ Rooms
  • You are located in a popular travel destination
  • You want to grow your client base
  • You need to increase occupancy
  • You have mid-week and off season holes to fill
  • You want to attract business travelers
  • You want to increase visibility in a new channel
  • You have a lower ADR

GDS can also be a good fit to gain exposure for your property without signing exclusive contracts with Expedia, Booking.com, and others. In Q2 of 2015, TravelClick saw increases in OTA, brand.com, and GDS bookings (9.7%, 5.8%, and 2.2% respectively). They also found that the “GDS channel has the highest growth in the quarter, up 4.9 percent year-over-year.”

Learn more about GDS online or call us at 866-360-8210 to see if GDS is a good fit with your property!

Already using GDS? Share your success stories with us below!