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Travel distribution system is a complex network of travel providers, intermediaries, and end-users that facilitate the distribution of travel products and services. It is the backbone of the travel industry and plays a vital role in connecting the supply and demand sides of the travel market.
What is Travel Distribution System?
Travel distribution system (TDS) is a network of companies and organizations that facilitate the distribution and sale of travel products and services. It includes travel suppliers (e.g., airlines, hotels, car rentals), travel intermediaries (e.g., travel agents, tour operators, online travel agencies), and end-users (e.g., travelers).
The TDS enables travel suppliers to market and sell their products to a wider audience through various channels, while travel intermediaries offer a one-stop-shop for travelers to search, compare, and book travel products and services.
Types of Travel Distribution Systems
There are three main types of travel distribution systems:
- Global Distribution System (GDS)
- Online Travel Agencies (OTA)
- Direct Connect
Global Distribution System (GDS)
A Global Distribution System (GDS) is a computerized network that connects travel suppliers (e.g., airlines, hotels, car rentals) with travel intermediaries (e.g., travel agents, corporate travel departments). It allows travel agents to search, compare, and book travel products and services in real-time.
Examples of GDS include Amadeus, Sabre, and Travelport. GDS is widely used in the corporate travel market and is also used by traditional travel agencies.
Online Travel Agencies (OTA)
Online Travel Agencies (OTA) are travel intermediaries that allow travelers to search, compare, and book travel products and services online. They offer a wide range of travel products and services, including flights, hotels, car rentals, and activities.
Examples of OTA include Expedia, Booking.com, and TripAdvisor. OTA is popular among leisure travelers who prefer to book travel products and services online.
Direct Connect
Direct Connect is a travel distribution system that allows travel suppliers to connect directly with travel intermediaries without using a GDS or an OTA. It enables travel suppliers to offer customized products and services and to control the distribution and pricing of their products.
Direct Connect is commonly used by low-cost carriers and hotels that want to offer exclusive deals and promotions to their customers.
How Travel Distribution System Impacts the Travel Industry
The travel distribution system has a significant impact on the travel industry. Here are some of the ways it affects the industry:
Increased Access to Travel Products and Services
The travel distribution system enables travel suppliers to reach a wider audience through various channels. This increases the access of travelers to a wide range of travel products and services that meet their preferences and budgets.
Improved Efficiency and Speed of Booking
The travel distribution system allows travel intermediaries to search, compare, and book travel products and services in real-time. This improves the efficiency and speed of booking, making it easier for travelers to plan and book their trips.
Increased Competition and Price Transparency
The travel distribution system creates a competitive market where travel suppliers offer their products and services at competitive prices. This increases price transparency, making it easier for travelers to compare prices and choose the best deal.
FAQ
| Question | Answer |
| What is travel distribution system? | Travel distribution system is a complex network of travel providers, intermediaries, and end-users that facilitate the distribution of travel products and services. |
| What are the types of travel distribution systems? | The types of travel distribution systems are Global Distribution System (GDS), Online Travel Agencies (OTA), and Direct Connect. |
| How does travel distribution system impact the travel industry? | The travel distribution system impacts the travel industry by increasing access to travel products and services, improving efficiency and speed of booking, and increasing competition and price transparency. |