OpenHotel Blog
20 GDS words and meanings
20 GDS words and meanings
- GDS - stands for Global Distribution Systems and consists primarily of travel agent systems including Sabre, Galileo, Amadeus and Worldspan all of which offer a reservation platform to travel agents worldwide. Agents book reservations for multiple types of bookings whether it be airline, hotel, car, or other travel arrangements for their customers.
- OTA - stands for Online Travel Agencies which include portal websites which offer a place for consumers to shop for hotel rates, and other multiple type reservation solutions. Example of these are Expedia, Priceline, Orbitz, etc. a travel shopping and reservation solution to consumers.
- IDS - stands for Internet Distribution Channel whereby distribution is done through the use of the Internet, Extranet, World Wide Web, and any other On-Line services.
- Chain Code - consists of a two-letter character used to identify hotel chains with a GDS and may very according to each system. For OpenHotel GDS clients we use chain code UI which indicates Pegasus Direct Connect.
- What is Consortia - a rate negotiated between a hotel company and a travel agency group. The group consists of travel agency who have joined together in an organization to increase marketing and to provide better rates for their clients based on an RFP process.
- RFP - stands for Request for Proposal and is a solicitation of bids on business from suppliers such as travel agencies and is used primarily with Consortia.
- Interface - connection between two networks without intermediary.
- Pooled Inventory - refers to a consolidation of your available inventory on multiple GDS channels. This allows the elimination of having to enter inventory separately for each distribution source if they are the same. For example, a room is given an inventory of 5 for GDS Rack, Priceline and Orbitz, if pooled, the inventory of 5 would be applicable to each channel without having to specify.
- Occupancy - indicates number of bed nights allowed. This is important when determining how many persons are allowed in a room based on the bedding type and can also be in conjunction with extra persons charges.
- Travel Agent Commissions - a percentage of the total reservation cost that is paid to travel agents. Industry standard is 10% and is always recommended.
- Standard Discounts - include the industry standards of AAA, ARP, Senior, Military, Government, Corporate, Promotion, and is almost always recommended to be 10% off rack rate. However, the rate can be at the hotels discretion.
- Negotiated Rates - a term used to describe rates negotiated between hotel companies and specific clients, via a contract, whereby viewership of these rates is restricted and may be booked only by an identification code.
- Best Available Rate - the lowest non-restricted rate bookable by any consumer..
- ROH - stands for Run of House and is considered a basic room type with no guarantee on specific amenities.
- Net Rate - a rate provided to wholesalers and tour operators that can be marked up to sell to consumers.
- Mark Up - difference between the hotels selling rate and the merchant's priced offered to consumers.
- Merchant Rate Program - a net rate program for OTA's whereby the program commonly includes marketing and preferred placement for hotel participants.
- Channel Management - a place providing efficient allocations of hotel inventory and rates to be managed across all distribution channels including GDS, website and third parties.
- Rate Parity - a strategy that enforces hotels to reflect the same rate conditions for a particular room type among all distribution channels in order to encourage guests to book directly with the hotel whereby terms and policies may be more flexible.
- Switch Company - an organization that provides communication, data, and data reformatting services and connections to link GDS system. Switch Letters are created in order to assure hotels are displayed on distribution systems accurately.