What is GDS Travel and Who Needs It
The Global Distribution System (GDS) is essentially the central nervous system for travel agents when it comes to booking flights and other travel services like hotels and car rentals. While it’s a powerful tool, it might be surprising to learn that many travel agents, especially those focused on leisure travel, may not actually need to use a GDS.
That’s correct. If you specialize in leisure travel, chances are high that you can thrive without ever touching a GDS. However, if your ambition is to become a corporate travel agent, then understanding and utilizing a GDS becomes significantly more important. We’ll delve deeper into this distinction later, but first, let’s take a quick journey through the history of the GDS to understand its origins and evolution.
Before the Rise of GDS Travel
It’s easy to confuse the GDS with earlier systems like Central Reservation Systems (CRS) or Computerized Reservation Systems. CRSs were automated systems designed to track inventory, and they were initially owned and operated by individual travel vendors such as airlines, hotels, and car rental companies.
American Airlines pioneered the first CRS system in 1946. While this innovation automated inventory management for vendors, travel agents lacked direct access. To book a flight, agents had to call the airline’s booking center, who then contacted a CRS operator, and finally relayed the information back to the agent over the phone – a literal game of telephone! Booking even a single airline ticket was a labor-intensive process, and direct booking for individual travelers was virtually unheard of.
Booking airline tickets manually before GDS travel systems, circa 1943
Thanks to advancements led by IBM, CRS systems became increasingly sophisticated from the late 1950s through the 1970s. Simultaneously, travel agents grew increasingly frustrated with the cumbersome booking process. They sought more automation on their end to streamline their workflows.
Today’s GDSs act as an overarching platform, integrating numerous CRS systems. Think of it as a CRS motherboard, where many vendors even outsource their CRS operations to a GDS.
GDS Travel in the Modern Era
The GDS began as a distribution channel primarily for airline carriers, but it expanded over time to include hotel and car rental inventories. For the purpose of this article, we will concentrate on the airline aspect of Gds Travel.
Numerous GDS options exist, each providing access to a unique, yet often overlapping, pool of carriers. The three major GDS providers in the travel industry are:
- Amadeus
- Sabre
- Travelport (the parent company of Apollo/Galileo and Worldspan)
Hundreds of airlines feed their data into each GDS system, which in turn is accessible to countless travel agents worldwide. This creates a mutually beneficial scenario: travel agents gain access to a vast array of airline fares, and airlines can reach a wide network of agents booking flights for their clients.
For airlines, the GDS reduces the burden of direct marketing to individual consumers. Their inventory is readily available to thousands of agents who book through the GDS network. Travel agents benefit because the GDS consolidates fares from multiple airlines, offering in-depth information about each flight in one place. This includes carrier details, flight times, costs, seat class, aircraft type, and much more. It’s a comprehensive resource, especially valuable for agents handling high volumes of bookings who need detailed information from multiple carriers efficiently.
Sounds simple, right? Just point, click, and book tickets. Unfortunately, the reality is far more complex.
The Evolution of GDS Interfaces: From Green Screen to GUI
Understanding GDS Travel Interfaces
Modern GDS systems present a dual interface: the traditional, text-based “green screen” and the more contemporary “point and click” or GUI (Graphical User Interface). The GUI is designed to be a more visually appealing and user-friendly version of the GDS.
However, the transition isn’t seamless.
1. The Green Screen: GDS Travel for Experts
When industry professionals talk about “the GDS,” they’re often referring to the green screen interface. Job postings in travel agencies that mention Sabre proficiency typically mean expertise in navigating the green screen version, not just the GUI.
Let’s be clear: GDS green screens are notoriously user-unfriendly, especially for beginners. They are unlike intuitive online booking platforms where you can easily compare prices and select options. Mastering a GDS green screen is akin to learning computer coding; it’s a technical skill, and true proficiency is often considered an art. The complexity is significant, demanding considerable respect for travel agents skilled in this system.
To truly grasp the intricacies of the green screen, extensive training is necessary. Becoming proficient requires consistent, daily practice, ideally with a mentor, for at least six months to a year. Occasional use is insufficient to maintain fluency. It’s much like learning a new language – constant practice is key to speed and accuracy.
The steep learning curve is a major reason why many host agencies and travel agencies are hesitant to offer GDS training, even if they provide GDS access. It’s a challenging system to learn and teach effectively. To illustrate the complexity, consider what a booking in an Amadeus green screen looks like – a series of cryptic commands and codes.
While experienced GDS users can execute these commands rapidly, the initial learning phase is daunting for most.
2. GUI: Is Point-and-Click the Future of GDS Travel?
The GUI represents the point-and-click evolution of the GDS, with platforms like Sabre Red 360 and TravelPort+ aiming to simplify the booking process. However, widespread adoption is not yet complete. Even GUI users often need a foundational understanding of the green screen language. As Ann Waters, President of Conference & Travel agency, an Apollo user, explains:
Ann Waters, President of Travel Leaders-Conference and Travel, discussing GDS travel challenges
“It’s not inputting the information new agents have problems with, it’s interpreting what the GDS is sending back to the agent.”
—Ann Waters, President of Travel Leaders-Conference and Travel
The GUI technology is still evolving, and its development is both costly and complex. While GUIs offer advantages like visual clarity and the ability to book airline ancillaries, they are not a complete replacement for green screen knowledge. For instance, after inputting a simple flight search in a GUI, the system often returns responses in the form of green screen-style command lines. These codes contain critical information about fare types and rules that agents must understand. Consequently, many agents still find it necessary to learn the green screen to fully utilize the GDS, even when primarily using a GUI.
Without a solid grasp of these underlying codes, agents risk making costly errors.
The Financial Risks of GDS Travel Bookings
To book through a GDS, travel agencies need accreditation numbers from IATA/IATAN and, in the United States, ARC. New agents typically cannot obtain these directly due to experience requirements. Instead, they often operate under a host agency, leveraging the host’s accreditation.
However, gaining access to a host agency’s GDS is not automatic. The complexity of GDS bookings, particularly for air travel, creates a significant potential for errors. These errors can lead to financial penalties, not to mention the risk of fraud associated with GDS transactions.
This is where travel agency debit memos come into play. Debit memos are essentially fines issued to travel agencies for booking errors made within the GDS. Even minor mistakes or typos can result in these charges. While individual debit memos might seem small, they can accumulate rapidly, especially for agencies processing hundreds of tickets. In 2015 alone, debit memos amounted to a staggering $530 million issued to ticketing agencies.
This financial risk is why host agencies are extremely cautious about granting GDS access to new agents without rigorous training. Since the ARC accreditation is tied to the host agency, they are ultimately responsible for covering debit memo costs.
The financial risks extend beyond debit memos. Agencies using GDS systems must negotiate intricate contracts with GDS providers, often committing to sell a minimum number of air segments. Failure to meet these sales targets can result in further financial penalties.
Even seasoned agents with GDS skills might find it more advantageous to operate under a host agency’s accreditation to mitigate these risks.
Is GDS Travel Necessary for You?
Despite its complexities and risks, GDS travel remains essential in specific scenarios. Here are key instances where a travel agent might need to utilize a GDS:
- Corporate Travel Advisors: For agents specializing in corporate travel, GDS access is almost indispensable due to the high volume of air travel bookings they handle. This includes agents booking travel for corporate clients or designated corporate travel bookers managing employee travel arrangements.
- Complex Travel Itineraries: Agents who frequently book intricate itineraries like round-the-world trips or multi-stop flights will find a GDS crucial for managing these complex bookings efficiently.
- High-Volume Air-Only Bookings: While less common outside corporate travel, some agents specializing in niche markets, such as air travel to specific international destinations, may also require GDS for high-volume air-only bookings.
If you fit into any of these categories, exploring resources on becoming a corporate travel agent, which often includes GDS training strategies, would be beneficial. However, for most leisure travel agents who don’t book airline tickets daily and lack formal GDS training, it’s likely unnecessary.
Leisure agents often find that air travel is included in vacation packages or booked through cruise lines, negating the need for direct GDS access.
For agents who only occasionally need to book flights, alternative methods exist that bypass the complexities of the GDS.
Booking Flights Without Relying on GDS Travel
If GDS travel isn’t practical for your agency model and you need to book air-only reservations not included in packages, consider these alternatives:
- Airline Consolidators: Upon becoming a travel agent, you gain access to airline consolidators. These wholesalers specialize in international airfares and work directly with travel agencies, not the general public. Consolidators offer net fares, published fares (publicly available rates), and commissionable fares.
- Direct Airline Booking and Service Fees: Booking directly through airline websites and charging a service fee for your time is a viable option, especially for complex or time-consuming requests.
- Client Self-Booking: For simple air-only bookings, directing clients to book their own flights can save time and effort.
- Host or Consortium Online Booking Tools: Many host agencies offer user-friendly online booking engines, like Revelex, linked to their GDS. These tools allow agents to leverage the host’s airline contracts and GDS access without needing direct GDS skills.
- Ticketing Desks: Some host agencies provide ticketing desk services that book flights on behalf of agents. These services usually involve fees and specific service hours, but can be valuable, especially for international or premium class bookings where commissions might be available. Always check ticketing desks and consolidators for commission opportunities before booking independently, particularly for international first or business class travel.
Are You Missing Out on Airline Commissions by Avoiding GDS Travel? (Probably Not)
While airline commissions do exist, they are less prevalent than many believe. For domestic, non-premium economy seats, commissions are generally not applicable. International flights, especially in first and business class, offer a possibility of commissions, but it’s not guaranteed.
For most leisure travel agents, the time investment required to master GDS travel to potentially earn airline commissions is often not worthwhile. Focusing on service fees and other revenue streams is often a more efficient business strategy.
In Conclusion
GDS travel is a powerful but complex tool that is not universally necessary for all travel agents. Its steep learning curve and associated risks mean it’s best suited for agents specializing in corporate travel, complex itineraries, or high-volume air bookings. Leisure agents can often thrive using alternative booking methods that are less demanding and more efficient for their business models.
Do you use a GDS? What are your experiences? Are there other preferred methods for booking air-only reservations through your consortia or host agency? Share your insights in the comments below!
Finally, we extend our sincere thanks to Marc Casto, CEO and President of MVC Solutions; Ann Waters, President of Travel Leaders—Corporate and Events; Sandy Armstead and Christy Young, corporate agents at Safe Harbors Business Travel, a branch of Tzell Travel Group; and Jason Block, CEO & Managing Partner of WorldVia, a division of Tzell Travel Group, for their invaluable contributions and expertise shared for this article on GDS travel.
