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held in various airline reservation systems. The GDS system has links to all major airline
&56:KHQDWUDYHODJHQF\WHUPLQDOUHTXHVWVDUHVHUYDWLRQRQWKHVHUYLFHRIDSDUWLFXODU DLUOLQHWKH*'6V\VWHPURXWHVWKHUHTXHVWWRWKHDSSURSULDWHDLUOLQH&RPSXWHU5HVHUYDWLRQ 6\VWHP 7KLV HQDEOHV D WUDYHO DJHQW ZLWK D FRQQHFWLRQ WR D VLQJOH *'6 WR ERRN ÀLJKWV and associated services on virtually all the airlines in the world. The major GDS systems are Amadeus, Sabre, Galileo & Worldspan.
8.2 The Evolution of Global Distribution Systems
*OREDOGLVWULEXWLRQV\VWHPV*'6KDYHHYROYHGIURPWKH¿UVWFRPSXWHUEDVHGUHVHUYDWLRQ systems implemented by several U.S. airlines in the late 1960s and early 1970s. American
$LUOLQHV$$ZDVWKH¿UVWFRPSDQ\WRGHYHORSDUHDOWLPHFRPSXWHUL]HGUHVHUYDWLRQV\VWHP In a joint venture with International Business Machines (IBM), the Semi-Automatic Business Research Environment (SABRE) was launched in 1964 and helped process nearly 26,000 UHVHUYDWLRQUHTXHVWVSHUGD\%\WKHODWHVDQGHDUO\VYLUWXDOO\DOORIWKHPDMRU carriers, including United, TWA and Delta were operating their own central reservation systems (CRS). It was not, however, until 1976 that these systems were installed in travel agencies, allowing agents to both book and change reservations directly in the system using remote access terminals. Clearly, the ability for airlines to operationalize their booking systems in geographically dispersed markets was a major competitive advantage for those who participated.
This distributed system was paralleled by increases in computing and storage power; by 1978, SABRE was available in over 130 locations and could store 1 million airfares. After deregulation in 1978, the importance of computerized reservation systems became even more apparent. The rapid entrenchment of CRSs with travel agents enabled bias in the reservation process. For example, SABRE might decide to withhold inventory from other CRSs in an effort to gain a competitive advantage. Further, a CRSs owned by a particular airline could be programmed to display their airline’s information ahead of their competitors in an effort to distort consumer choice. This was compounded by the natural tendency RI WUDYHO DJHQWV WR ERRN ÀLJKWV ZLWK WKH FDUULHUV SURYLGLQJ WKH &56 WHUPLQDOV ± NQRZQ DV WKH³KDORHIIHFW´$VDUHVXOWLQWKH&LYLO$HURQDXWLFV%RDUGEHJDQWRUHJXODWHWKHVH systems to insure a free and competitive market for both travelers and airlines.
By the early 1990s, CRSs had evolved into more complex systems. In part, this was motivated by strategic alliances and mergers between U.S. and European carriers, laying true global distribution systems. In addition, the ability to leverage the Internet as a tool for expanding the presence of these booking systems was promising. In response to these developments, the United States Department of Transportation (USDOT) increased
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regulation of the GDS industry, mandating that GDS owners:
&DQQRWIDYRURUGLVIDYRUDQ\DLUOLQHLQVHWWLQJWKHGLVSOD\RUGHURIÀLJKWVRUERRNLQJ fees;
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As the GDS industry continued to evolve in the 1990s, the availability of public interfaces to these systems greatly expanded, particularly with the rollout of the Internet and World Wide Web. As a result, consumers gained unprecedented access to information concerning price, travel times and schedules. Today, airlines no longer have an ownership interest in GDSs and the regulation provided by the USDOT is expired. There are currently four major GDSs in operation, Amadeus, Galileo, Sabre and Worldspan, all of which provide UHDOWLPH ÀLJKW LQIRUPDWLRQ WR WUDYHO DJHQWV DQG FRQVXPHUV 7KH SXEOLF LQWHUIDFHV WR WKH GDSs can be categorized in the following way: 1) airline websites; 2) GDS-based online WUDYHODJHQFLHVVXFKDV7UDYHORFLW\([SHGLD7UDYHODQG2UELW]RSDTXHVLWHVWKDWUHTXLUH some type of bid/payment before knowing the actual travel schedule such as Priceline;
4) specialty low-fare sites which are analogous to a tip-sheet for selected bargains; and ³VFUHHQVFUDSHU´ VLWHV ZKLFK DFWXDOO\ UHDGV IDUH LQIRUPDWLRQ IURP WKH VFUHHQV RI RWKHU sites and reports them to the consumer.
Review Questions:
1. What do you mean by global distribution system?
2. How the global distribution system has been evolved in due course of time.
3. Activity: Access any travel online portal. Understand the features of online tourism business services on portal.
8.3 Amadeus and GDS
Amadeus is a leading global distribution system and technology provider that serves the marketing, sales and distribution needs of the worlds ‘Travel and Tourism Industry’. It has a comprehensive data network and database that is among the largest of their kind in Europe serving more than:
217 markets worldwide, over 100 million visitors per month, 90,274 travel agency locations,
75,284 Hotel properties,
490 Airlines (95% of the world’s scheduled airline seats),
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22 Car rental companies, serving over 36,000 locations, 17 Cruise lines,
As well as other provider groups like ferry and rail services, tour operators and insurance agencies.
Galileo InternationalLVDGLYHUVL¿HGJOREDOWHFKQRORJ\OHDGHU,WVFRUHEXVLQHVVLVSURYLGLQJ electronic global distribution services for the travel industry through its computerized reservation systems, leading edge products and innovative internet based solutions. It also is a value added distributor of travel inventory dedicated to supporting its travel agencies and corporate customers, and through them, expanding traveler choice. Currently, the company is connected to :
49,000 travel agencies in 116 countries in 43,000 locations approximately, 70,000 hotel properties,
450+ airlines,
52 low cost carriers, 23 car rental companies,
And, a wide array of tour operators and cruise lines across the world.
Sabre is a leading provider of technology for the Travel Industry. It provides a broad range of innovative products that enable travel e-commerce and services, and enhance airline, supplier and travel agency’s operations and their ability to serve the traveler. Sabre connects to
50,000+ travel agencies, travel suppliers, Fortune 500 companies and travel websites in locations around the world,
77,000 hotel properties, approximately 400 airlines, 32 car rental companies, 11 cruise lines,
35 railroads,
220 tour operators,
Worldspan is the global leader in Web based travel e-commerce and a foremost provider of travel technologies and services for thousands of travel related companies worldwide,
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including airlines, travel suppliers, travel agencies, web sites and corporations. Worldspan transforms global travel distribution and transaction processing with industry leading fares, pricing, shopping and booking technologies, enabling travel companies to reduce costs, increase productivity and build revenues. Worldspan provides worldwide electronic distribution of travel information, internet Worldspan is currently connected to:
21,000 travel agencies in nearly 90 countries and territories, 421 airlines approximately,
210 hotel companies, 40 car rental companies, 39 tour and vacation operators,
44 special travel service suppliers.
8.4 Display Airlines Schedules & Availability
Users access an airline’s inventory through an availability display. It contains all offered ÀLJKWV IRU D SDUWLFXODU FLW\SDLU ZLWK WKHLU DYDLODEOH VHDWV LQ WKH GLIIHUHQW ERRNLQJ FODVVHV 7KLVGLVSOD\FRQWDLQVÀLJKWVZKLFKDUHRSHUDWHGE\WKHDLUOLQHLWVHOIDVZHOODVFRGHVKDUH ÀLJKWVZKLFKDUHRSHUDWHGLQFRRSHUDWLRQZLWKDQRWKHUDLUOLQH,IWKHFLW\SDLULVQRWRQHRQ ZKLFKWKHDLUOLQHRIIHUVVHUYLFHLWPD\GLVSOD\DFRQQHFWLRQXVLQJLWVRZQÀLJKWVRUGLVSOD\
WKH ÀLJKWV RI RWKHU DLUOLQHV 7KH DYDLODELOLW\ RI VHDWV RI RWKHU DLUOLQHV LV XSGDWHG WKURXJK standard industry interfaces. Depending on the type of co-operation it supports access to the last seat (last seat availability) in real-time. Reservations for individual passengers or groups are stored in a so-called passenger name record.
Review Questions:
1. How does the Amadeus created database.
2. Explain the role of Amadeus in integrating travel services across the world.
3. Activity: Visit travel agency and collect details of Amadeus. Take part in mechanism of using Amadeus.
Exercises:
1. Learn the usage of various GDS softwares in travel agency business.
2. Activity: Visit travel agency and identify the various GDS software’s used in their UHVSHFWLYH RI¿FHV
VI. Guidelines for Practical: