The GDS: A powerful yet overlooked hotel distribution channel

With leisure travel peaking worldwide, hoteliers are now focusing on the corporate segment to meet revenue goals and drive growth

For hotels, the GDS (Global Distribution System) is a critical source of business travel, with approximately 80% of bookings being corporate and 20% leisure. According to Amex GBT, business travelers are nearly twice as valuable to travel suppliers as leisure travelers.

Key takeaways

• This year, the GDS has outperformed all major distribution channels with a 54% year-over-year increase in bookings from January to May;
• The GDS has an average length of stay (LOS) of 2.55 days, second only to the wholesale channels;
• With a low cancellation rate of just 4.6%, the GDS allows hoteliers to better manage revenue strategies and occupancy forecasts;
• Contrary to perception, the GDS is cost effective, with distribution costs averaging 18-20%, making it the second most affordable option after direct bookings.

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