GDS (Global distribution system)

A global distribution system is a computerized network that facilitates transactions between travel industry vendors (like airlines, hotels, or car rental companies), and travel agencies. Simply put, it accumulates data on vendors’ inventories and allows agencies to check it in real time, helping to avoid overbooking and maintain a consistent pricing strategy.

Here's how it works: a vendor signs up and connects their inventory to a GDS. After that, agencies can use various portals associated with the GDS to make necessary purchases.

Travel agencies can rely on GDS instead of establishing individual connections with each airline or hotel, saving time and providing multiple options to their customers. Another advantage of using a GDS is the instant updates on schedules, availability, and pricing, making it an excellent all-purpose tool.

Three core GDSs control the majority of the world's travel market: Amadeus, Sabre, and Travelport.