Complete Guide to Global Distribution Systems (GDS) in Travel
GDS systems - short for Global Distribution Systems - are a long-established but often misunderstood part of the travel and accommodation industry.
While OTAs dominate consumer bookings, GDS platforms still play an important role in corporate travel, travel agents, and group bookings, particularly for hotels and larger accommodation providers.
This guide explains what GDS systems are, how they work, how they differ from Online Travel Agents (OTAs), and whether a GDS connection makes sense for your accommodation business.
What Is a Global Distribution System (GDS)?
A GDS is a centralised network that allows travel agents and corporate bookers to search, compare, and reserve travel products - including flights, accommodation, car hire, and rail - in real time.
Unlike OTAs, which sell directly to consumers, GDS platforms are primarily used by travel agents, corporate travel managers, travel management companies, and tour operators.
When an accommodation provider connects to a GDS, their availability and rates become visible to these professional booking channels worldwide.
How GDS Systems Work
At a high level, a GDS acts as a global marketplace for travel inventory.
The accommodation provider connects to a GDS, usually via a channel manager or a GDS connectivity provider. Availability, rates, and booking rules are sent to the GDS, and travel agents search within the system to book on behalf of guests.
Once a reservation is made, the booking flows back into the property's booking system or PMS.
GDS bookings are often billed differently to OTA bookings, with costs structured around transaction fees, commissions, or a combination.
Major Global Distribution Systems
There are three main GDS platforms that dominate the global travel industry: Amadeus, Sabre, and Travelport.
Each serves thousands of travel agencies worldwide and integrates with airlines, hotels, and travel suppliers.
Accommodation providers rarely connect to all three directly. Instead, GDS distribution is often handled through intermediaries or channel managers that support GDS connectivity.
GDS vs OTAs: What's the Difference?
Although both GDS platforms and OTAs distribute accommodation inventory, they serve different audiences and booking behaviours.
GDS is aimed at travel professionals and corporate bookers, while OTAs are aimed at leisure travellers and consumers.
GDS bookings are often planned, policy-driven, and repeat, while OTA bookings are typically comparison-led and price-driven.
Because of this, GDS and OTAs are best seen as complementary channels rather than direct replacements for each other.
Why some hotels Use GDS Systems
GDS connections are most commonly used by city hotels, corporate-focused accommodation, properties targeting international business travellers, and hotels working with travel agents or tour operators.
The biggest benefit is access to corporate travel and agency markets that may not book through OTAs or direct channels.
Many GDS bookings are linked to negotiated or contracted rates, helping provide more predictable demand and often longer booking lead times.
The downsides of GDS Systems
GDS distribution can come with complex cost structures, including transaction fees, agency commissions, and connectivity fees.
Setup can also be more involved than standard OTA connections and may require specialist configuration and ongoing management.
For many leisure-focused or very small properties, GDS demand may be minimal, meaning the extra complexity may not deliver a strong return.
Do small accommodation businesses need to use GDS?
For many small or leisure-driven properties, GDS is not essential.
GDS tends to make the most sense if you actively target corporate travellers, work with travel agents or tour operators, operate in a business-travel destination, or want access to managed travel programmes.
If most of your bookings are leisure-focused, OTAs and direct bookings are often more effective and simpler to manage.
How GDS Fits With PMS, Channel Managers, and OTAs
GDS systems usually sit within a wider technology setup rather than operating alone.
The PMS manages daily operations and reservations, the channel manager distributes availability to OTAs and can also feed rates and inventory to GDS, and the GDS reaches corporate and agency booking markets.
When integrated correctly, this setup reduces manual work and helps keep availability accurate across channels.
GDS vs direct bookings
Unlike direct bookings, GDS reservations usually involve intermediaries and can include negotiated rate agreements.
Direct bookings remain the most profitable channel for most accommodation providers because they avoid commission and provide full control over the guest relationship.
GDS is best viewed as a specialised distribution channel rather than a replacement for direct sales.
When does a GDS connection make sense?
A GDS connection is most effective when corporate travel is a core target market, occupancy depends on weekday business stays, and you want exposure through travel agencies and managed travel programmes.
It is less effective when your business is mainly leisure-focused, driven by weekend stays, or you want to keep distribution simple and low cost.
GDS in a modern distribution strategy
GDS is no longer the default distribution channel it once was, but it still has a clear role for certain types of properties.
A balanced strategy often includes direct bookings for profitability, OTAs for visibility, and GDS for corporate and agency travel.
Knowing where each channel fits helps you build a healthier mix of bookings without unnecessary dependency on any single source.
Final thoughts: Is GDS right for your property?
GDS systems are powerful, but they are not for everyone.
For properties targeting corporate or managed travel, GDS can provide access to valuable, repeat business. For others, the added cost and complexity may outweigh the benefits.
Understanding what GDS is, who uses it, and how it fits alongside OTAs and direct bookings helps you make the right distribution decisions for your accommodation business.