Reviving the GDS Advantage: Maximizing Hotel Bookings through Travel Sellers
The last four years have seen new growth for the industry, with hotels in many regions and markets on par with or surpassing 2019 occupancy levels, according to Amadeus business intelligence data.
New hospitality trends have emerged this year as traveler expectations shift and evolve. Leisure travel is largely driving growth, as people combine business trips with sightseeing and tourism. And cost is more important than ever now, as a new segment of price sensitive shoppers has emerged in search of the best deals.
Hoteliers need to adapt to these trends and refine the ways they advertise to travel sellers. To do so, it’s important to understand how travel sellers' shop and book services for their customers. Historically, global distribution systems (GDSs), the platforms that source and aggregate all travel content – airline, hotel, rail operator, cruise, etc. - into one location have operated as a link between travel sellers and travel providers, providing unified access to products. But to what extent is the GDS still an effective channel for hoteliers when it comes to engaging with travel sellers?
The GDS Continues to Outpace Other Distribution Channels
To answer this question, Takedown Research surveyed approximately 1,000 travel sellers across the industry’s three major GDS providers – Amadeus, Sabre and Travelport – with the aim of measuring usage and overall travel satisfaction. The results of the survey can be benchmarked against a previous study, conducted in 2022, to measure how perceptions of the GDS have changed over the last two years.
Comparison between the responses shows that global distribution systems continue to outpace other reservation channels, with over 50% of travel sellers reporting that they are using it more now than they did two years ago. Travel sellers say they connect to the GDS an average of 6 times a day for nearly 9 hours.
This trend is consistent across various regions. North America leads the way with 91% of travel sellers saying that they are booking through the GDS the same as or more than they were two years ago. Other regions have also seen an increase in GDS usage. In Latin America, 51% of travel sellers say they are using the GDS more than they were two years ago, compared with 57% of sellers from Europe, the Middle East and Africa, and 56% from Asia Pacific. GDS usage is clearly rising on a global scale, making it an effective tool for hoteliers to reach travel sellers.
How Hoteliers Can Boost Bookings on the GDS
When it comes to GDS advertising, more than two-thirds of travel sellers state that it influences their buying behavior, making it a powerful channel for hotels looking to expand their reach. A comprehensive and accurate hotel description (HOD) is crucial for a hotel to be able to convert bookings and hoteliers must ensure it contains up-to-date details of their star rating, services and amenities. Adverts that include words such as “free’’ or “complimentary’’ are especially compelling for almost all travel sellers (93%). In terms of content, sustainability credentials are a key piece of information that travel sellers are looking for, with over 60% saying that it influences their booking decisions.
Alongside the keywords and credentials that resonate, hoteliers can leverage GDS advertising to expand international reach and visibility as it allows them to access a new audience of international travelers. As the GDS can be accessed on a global scale, hotels can attract travelers from all around the world. However, it is key that they understand how to provide compelling campaigns that will successfully engage travel sellers.
Developing an Effective Media Strategy
To enhance visibility and bookings, hoteliers should develop comprehensive media strategies that are attuned to their audience’s needs. To create these optimized campaigns, hoteliers should follow these steps.
- Identify the Audience: Hoteliers must understand travel sellers’ target markets and create tailored marketing strategies for maximum engagement. As the travel landscape is constantly shifting, flexibility is key. Hoteliers should look to market insights that can help them predict changes in traveler behavior. They should also identify travel sellers based on criteria such as geographic location, size, booking trends and client specializations.
- Build Targeted Marketing Strategies: Once this context is established, hoteliers should target sellers who specialize in the appropriate demographic with offerings that will live up to their travelers’ needs and preferences, as they are most likely to be interested in the hotel’s offerings. Hoteliers should then ensure that their offerings are visually appealing with high-quality descriptions tailored to a particular travel segment.
- Optimize Campaign Performance: Hoteliers should leverage GDS analytics tools to monitor the performance of ongoing campaigns. Analyzing data such as booking volumes, conversion rates and revenue generated can be invaluable in determining which campaigns are delivering the best return on ad spend.
- Building Lasting Relationships: Hoteliers should identify the travel sellers who book their property the most through the GDS, cultivating relationships with them to drive bookings and remain top of mind.
Hoteliers must expand their reach to engage with travel sellers, not just travelers. In the complex world of distribution, where more and more channels and technology players are emerging, the GDS remains one of the most powerful platforms for presenting hospitality offerings to a global network of travel sellers. Reaching travel sellers through this channel should become a key marketing strategy for hotels looking to convert bookings and reach a wide global audience. Hotels need to adopt a data-informed strategic approach to create compelling campaigns on the GDS and effectively connect with travel sellers.
ABOUT THE AUTHOR
Joerg is the Executive Vice President for Media, BI, & Distribution vertical in the Amadeus' Hospitality division. Since May 2020, he has been overseeing a €650M+ business, leading the global distribution of hotel, car rental, insurance, and destination activity solutions, and managing demand through media. With extensive experience in marketing and commercial operations, Joerg has held leadership roles across Amadeus since joining in 1997.