Global Distribution System Market 2024 Increasing Focus on Technology to Offer Seamless Booking Experience to End Users

The global distribution system market will grow at an above-average pace during 2019-2027, despite being challenged from direct sales channels, on account of high-speed Internet connections and the high infiltration rate of smartphones, as found by a recent study published by Transparency Market Research (TMR). Global distribution systems have been bridging the gap between travelers and tour operators through centralized services that cover the bookings of airline tickets, hotels, and even car rentals, which will serve as a valuable driver to the growth of the GDS market.

Rise in the demand for travel agents as a means of getting the desired reservations for businessmen and leisure travelers has been increasing the relevance of global distribution systems across the world. Since technology is integral for the development of global distribution platforms, travel agencies are seen entering into contracts with leading tech companies to offer a seamless end-user experience.

global distribution system market infographic

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Travel Agents Favor Software-based GDS over Services

According to the report, travel agents prefer software-based global distribution systems over service-based systems, given the ‘anywhere, anytime’ ease to access and managing of the platform. The advent of cloud-based distribution systems will eliminate the high cost of physical hardware, and further uplift the popularity of the software for the development of global distribution systems. However, hassles regarding frequent software upgrades are gradually instigating a shift of market players towards outsourced global distribution systems, which is likely to advance at an exponential rate during the forecast period.

The study also finds lucrative opportunities in hotel and resort booking global distribution systems, owing to the proclivity of consumers for leisure travel coupled with their increased spending on ‘experience’ over ‘objects’. In addition, market players will continue to witness high gains from the aviation sector, since an increasing number of airlines have significantly influenced airfares, and travelling overseas has become easier than ever.

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Key Strategies by Market Participants to Consolidate their Position

Market players approach competition with a keen eye on customer sentiments. Since the smart customers of today compare their options before they make a choice, market players need to rethink their booking flows and search criteria to guide customers in finding the right products. They are also seen leveraging up-selling and cross-selling opportunities, which serve as crucial media to secure high revenue. Besides this, market players are making sizeable efforts towards increasing the simplicity of global distribution systems in an otherwise complicated environment.

In the consolidated landscape, Amadeus IT Group, Travelport Worldwide Ltd., and Sabre Corporation account for ~95% of the market share. Since the global distribution system market is a consolidated space, acquisitions, mergers, and collaborations are common strategies implemented by market players to gain exposure in overseas territories. For instance, eDreams ODIGEO collaborated with Amadeus IT Group to offer extra baggage and seat selection, as a part of its product offering. This strategy helped the company gain traction in the market by offering more personalized products and services, and achieve revenue diversification targets.

global distribution system market segmentation

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