What is a GDS (Global Distribution System)?

A Global Distribution System (GDS) is a vast, computerized network that serves as the backbone of the travel industry. For decades, it has been the primary marketplace connecting travel suppliers—like airlines, hotels, and car rental companies—with travel agencies and corporate booking tools. The three main GDS players are Amadeus, Sabre, and Travelport.

How Does a GDS Work?

Think of a GDS as a giant, real-time inventory database. Airlines and hotels feed their available seats and rooms, along with their prices, into the GDS. Travel agents and booking tools can then tap into this system to search for and book travel on behalf of their clients. It aggregates massive amounts of data, allowing a travel agent to book a complex multi-leg trip on different airlines in a single transaction.

The Limitations of the GDS

The GDS was built on a technical language that predates the modern internet. While incredibly reliable for basic fare and schedule data, it has struggled to keep up with the way airlines want to sell their products today. The GDS is not good at handling "rich content" like photos of a hotel room, or ancillary products like paid seat selection, priority boarding, and Wi-Fi access.

The Future: GDS and NDC

This limitation is what led to the development of NDC (New Distribution Capability). NDC is a new technical standard that allows airlines to connect directly to sellers, bypassing the GDS's limitations.

However, the GDS is not going away. GDS companies are actively integrating NDC content into their platforms, aiming to create a "hybrid" system that offers the best of both worlds: the reliability and scale of the GDS, combined with the rich content and personalization of NDC. For travel managers, it's crucial to partner with a TMC that can access content from all of these sources to ensure you're always getting the best options.