FREMONT, CA: The clockwork methodology of taking traditional trends and redefining them to sell it to the next generation millennials have been the main motto of major manufacturing industries. The past treads have resurfaced from interior designs to hotel booking and rental system, causing a sizeable shift in the market and business procedures. However, the technology industry remains segregated as the true potential is focused on overdrive and achievement of unknown parameters, enhancing the business-to-business and business-to-consumer experience. The technological advancements in the hospitality industry are still in an embryonic stage, even though the booking platform and traveling preferences have had a complete turnover.
The global distribution system (GDS) is gaining speed as consumers, and corporate level bookers tend to shift their focus on travel agents once again. The GDS technology is an age-old method that provides a link between travel agents and corporate travel bookers with a centralized reservation system of any hotel. The platform arranges a detailed index extending from property room rates to inventory reports, helping clients to evaluate, monitor, appoint, and explore a vast array of travel options based on their calculated preference. Common reporting standard (CRS) companies act as a medium for GDS in the completion of booking hotel process, providing a seamless route for hoteliers.
The online travel agency (OTA) and GDS both stipulate to an identical commission-based revenue model, but what separates the two is the nature of commission payment. The OTA facilitates its commission payment by allotting them into two separate entities whereas the GDS provides a commission payout depending on the contract between the hotel and the travel agent. The many payment modes like percentage-based fee, flat-rate fee, monthly membership fee available for GDS transactions depends on the contract between the CRS provider and the hotel management.
GDS was one of the universally utilized distribution channels until OTA started gaining popularity with customers and dethroned GDS to become the new favorite of hoteliers. OTA assisted many hoteliers to survive during the famine of the entire tourism industry. The ease of gaining information about any hotels, destinations, and personal priorities made customers prefer OTA. However, in 2016, GDS channels regained its stature with a 60 percent increase in consumer usage than its counterpart.