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Sunday,  May 26, 2024 5:28 PM 

Why aren't more home-based agents booking with GDS?

  • Opinions
  •   12-20-2018  9:14 am
  •   ADVERTORIAL: Jill Wykes

Why aren't more home-based agents booking with GDS?

Home based agents are not booking much in Global Distribution Systems (GDS). 

That’s probably because, with one exception, most host agencies don’t split the GDS revenue with their agents.  So there is no incentive for most home-based agents to book in the GDS.  

Most host agencies do not use Global Distribution Systems (GDS) for booking.  They may use the accounting side but they are not using the GDS for booking air, at least not like they would have done 20 years ago.

In the past, many agencies used to make a lot of money on GDS revenue – and some still do. 

Most home-based agents who book air will use a consolidator, as it is quicker and easier and they make more money, as the consolidator has nets that the airlines don’t offer agents directly.

What is the future for the GDS?

So what is the future for GDS and home based agents? If the GDS don’t change their approach to this group who now make up to close to 35 per cent of all agents in Canada, these agents will probably end up mainly working with corporate agencies and consolidators. By no means will the GDS disappear, however you are seeing a lot of consolidating of corporate agencies and when this happens they will have one GDS leaving less retailers for the GDS to fight over.

It would be great if the GDS companies started to think outside the box, and go after home-based agents, as there are a lot of agents that don’t understand the amazing value of a GDS, from being able to book certain types of hotel rates, to car rentals, to cruises to ITC vacations. Additionally, many agents don’t understand that there is a great way to interface the booking made in a GDS back into most travel industry accounting systems.

So if you are a home-based agent and want to make more money while doing less work, you should look at a host agency that pays you for being smarter and working more efficiently.