E-Tourism Topic: Global Distribution Systems and Channels Overview: Introduction Global distribution system (GDS) Importance of GDS Developing a distribution channel strategy Trends in hotel and resort gds

1. E-Tourism
Global Distribution Systems and
Channels

2. OVERVIEW
• Introduction
• Global distribution system (GDS)
• Importance of GDS
• Developing a distribution channel strategy
• Trends in hotel and resort gds

3. Introduction
• The area of global distribution is one of the most
complex aspects of the hospitality business and
an area that has been greatly impacted by
technology change with the rise of new channels
or sales outlets.

4. Introduction
• The term global distribution can be defined in
this case as attaining the broadest possible
reach to the largest available audience meeting
a company’s target market segments at the most
affordable cost and with the highest potential for
winning conversion (i.e., generating bookings).

5. Introduction
FIGURE 8-1 Common Channels Used When
Booking Lodging Accommodations

6. Global distribution system (GDS)
• The thrusts of distribution are market reach and
penetration, branding, merchandising, and
revenue generation.
– Supporting the global distribution function is a
global distribution system (GDS), that, in
effect, has become the circulatory system of
the lodging organization

7. Global distribution system (GDS)

8. IMPORTANCE OF GDS
• The roles played by a
GDS have evolved
over time—from one of
transaction-based
emphasis to one of
strategic value—but at
any one point in time, a
GDS fulfills five
important roles. FIGURE 8-3 The Many Roles of a GDS

9. IMPORTANCE OF GDS
FIGURE 8-4 GDS-Related Core Competencies Essential for Competitive Advantage

10. DEVELOPING A DISTRIBUTION
CHANNEL STRATEGY
• Finding and Competing for Electronic Shelf
Space
• Cost Implications
• Understanding Share of Distribution
• Maintaining Inventory Control: A Daunting
Challenge
• Inadequate GDS Technology Infrastructure
• Inventory and Rate Management Issues

11. DEVELOPING A DISTRIBUTION
CHANNEL STRATEGY
FIGURE 8-5
Distribution Channel
Evaluation Criteria

12. DEVELOPING A DISTRIBUTION
CHANNEL STRATEGY
Commissions and Transaction Fees Erode Profit
Margins
• Commission-based agency model
• Merchant or wholesale model
• Opaque pricing model
• Auctions
• Pay per click

13. DEVELOPING A DISTRIBUTION
CHANNEL STRATEGY
• Rise in Number of Electronic Intermediaries
• Shift in Balance of Power from Supplier to
Customer
• New Models of Distribution and Pricing
• Accelerated Rates of Change
• Relinquished Control of the Customer
Relationship

14. TRENDS IN HOTEL AND
RESORT GDS
• Disintermediation and Reintermediation
• Digital Divide
• Transparency: A Hope for the Future
• Bypassing Airline GDSs
• Leveraging Technology to Reduce Overhead
• Mobile Apps (Applications)
• Shopping Bots

15. E-Tourism
Global Distribution Systems and
Channels