Global Distribution System (GDS) Market Forecasts to 2028 – Global Analysis By Component (Service, software/platform), Application (Hotel & Resort, Car Rental, Cruise, Aviation, Other Applications), Types (Loop, B2C, Network, Radial, B2B) and By Geography

Global Distribution System (GDS) Market Forecasts to 2028 – Global Analysis By Component (Service, software/platform), Application (Hotel & Resort, Car Rental, Cruise, Aviation, Other Applications), Types (Loop, B2C, Network, Radial, B2B) and By Geography

According to Stratistics MRC, the Global Distribution System (GDS) Market is accounted for $4.94 million in 2022 and is expected to reach $6.74million by 2028 growing at a CAGR of 5.3% during the forecast period. The Global Distribution System (GDS) computerised reservation network serves as a single point of access for accommodating aeroplane seats, hotel rooms, rental vehicles, and other travel-related goods for travel agencies, online booking services, and large corporations. They are owned and run as joint ventures by prominent airlines, car rental companies, and hotel chains and are also known as automated reservation systems (ARS) or computerised reservation systems (CRS). A worldwide distribution system is a computerised network owned or operated by a company that makes it easier for airlines, hotels, car rental companies, and other travel service providers to conduct business with one another.

According to AltexSoft, GDS systems provided by Amadeus, Sabre, and Travel port are used by various hotel properties. Furthermore, increase in integration of GDS with hotels helps provide real-time access to the hotel's booking system. Companies in the hospitality industry are significantly investing in marketing programs to increase their customer base. According to Euromonitor International, the hospitality industry is highly fragmented, representing less than 30% of room revenue by the top 10 players in the global hotel chain in every region, except North America and Australia.

Market Dynamics:

Driver:

Rise in the demand for travel agents

In order to locate hotel rooms that suit their demands, GDS helps travel agencies. By giving thousands of travel agents a single point of access to book rooms, it enables them to connect with a sizable customer base dispersed around the globe. Furthermore, deeper GDS connection with hotels enables real-time access to the hotel's reservations system. In order to grow their clientele, businesses on the hotel sector are heavily investing in marketing initiatives. Utilizing GDS can aid in lowering marketing costs. A less expensive marketing option is thus made possible by the integration of hotels with GDS.

Restraint:

More Revenue

A GDS increases hotel revenue because it prominently displays the hotel's details, pricing, and availability. It enables hotels fill every available room within a given time period, while also accessing significant travel markets that are prepared to shell out cash to reserve the best room available. This is restraining the growth of GDS market.

Opportunity:

Rise in Adoption of GDS in Hotel Industry

GDS helps tour operators and travel companies locate hotels that suit their requirements. It gives thousands of travel agents a solitary tip of access to book rooms, enabling them to get in touch with a lot of clients spread out all over the world. Additionally, deeper GDS connectivity with hotels enables real-time access to the hotel's reservation system. To grow their clientele, businesses in the hospitality sector are making large investments in marketing campaigns. The use of GDS can assist cut down on marketing expenses. As a result, the integration of hotels with GDS aids in offering a more affordable alternative to marketing.

Threat:

Declining audience

A GDS's ability to capture the corporate traveller market is one of its advantages, but business travel's growth is waning. When businesses book hotels and flights, they do it through travel agencies, which a GDS is good at catching. However, a business might prefer to approach one hotel chain in hard times to increase its negotiation power for reduced rates.

Covid-19 Impact

Because the general economic situation of the majority of people has been adversely impacted by this outbreak of covid-19, consumer demand has subsequently decreased as people are now more eager to cut non-essential expenses from their individual budgets. Over the anticipated period, the aforementioned factors are anticipated to have a negative impact on the global distribution system market's revenue trajectory. The Global Distribution System market is anticipated to rebound as soon as the relevant governing bodies start to relax these imposed lockdowns.

The Cloud based segment is expected to be the largest during the forecast period

The cloud segment is estimated to have a lucrative growth, due to the development of cloud-based distribution networks will lower the high cost of hardware resources while boosting the acceptance of software in the creation of global distribution networks. However, the challenges brought on by frequent software changes are gradually pushing market players toward outsourced global distribution systems, and this trend is anticipated to pick up speed throughout the projected period.

The Hotel & Resorts segment is expected to have the highest CAGR during the forecast period

The hotel & resorts segment is anticipated to witness the fastest CAGR growth during the forecast period, due to successful forays into resort and hotel booking global distribution networks, as well as consumers' desire for leisure travel and increases in spending on experience over things, the Hotel & Resorts reservation. Market participants will also continue to gain a lot from the aviation industry as new airlines have a significant impact on airfares and international travel is getting easier than ever.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to the rising demand for cloud-based GDS solutions. Leading GDS providers, SMEs, and travel agencies are all present in the US, which is anticipated to stimulate the market in each of these areas. The market in these areas is being boosted by the presence of large GDS providers in the U.S., as well as SMEs and the travel sector. During the forecast period, a rise in demand for cloud-based GDS solutions is anticipated to boost the market in North America.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to growing technology advancements in the hospitality and civil aviation sectors create a need for GDS to increase sales and customer base. The Asia Pacific market's growth engines are China and India.

Key players in the market

Some of the key players profiled in the Global Distribution System (GDS) Market include Amadeus IT Group SA, Siteminder Distribution Limited, Go First, Travelsky Technology Limited, Hotelogix, Sabre Corporation , Pegasus, Elexicon Energy , Infini Travel Information Inc., Air India, Travelport, Quick Travel Affiliate, Sharika Enterprises Ltd., HotelSimply, Travelomatix, Transcape Technology, FBT Adventures, SiteMinder, FlightsLogic and LuxuryRes.

Key Developments:

In July 2022, Go First, an Indian ultra-low-cost carrier, entered into a partnership with World Ticket, a GDS sub-hosting solution provider that helps Go First flights via their GDS. World Ticket acts as the marketing and validating carrier for Go First, thereby extending the global presence of Go First.

In May 2022, Sabre Corporation signed a new distribution agreement with Viva Aerobus. The new agreement enables the airline to accelerate revenue growth through agency sales.

In January 2022, Air India signed a partnership agreement with Amadeus after dropping Sabre to provide all domestic and international flight content from the carrier to its wide network of travel agents across the globe.

In October 2021, Sharika Enterprises Ltd. received a contract to design, supply, install, commission, and maintain the Feeder Automation System as part of the Distribution Management System to improve the reliability of the power distribution in Jammu and Kashmir, India.

In October 2021, Sabre Corporation signed a partnership agreement with Emirates to deliver the latter’s content with personalized offers to Sabre-connected travel buyers and agencies through Sabre’s GDS.

In May 2021, Elexicon Energy partnered with Marshall Homes and Opus’s One Solutions to create a living smart grid pilot community called Altona Towns in Canada. Ontario’s Ministry of Energy funds the project under the Smart Grid and Grid Innovation funds. The project will test, develop and launch the next generation of technologies to turn electricity distribution systems into modern, digitally-enabled grids.

Components Covered:
• Service
• software/platform

Applications Covered:
• Hotel & Resort
• Car Rental
• Cruise
• Aviation
• Other Applications

Types Covered:
• Loop
• B2C
• Network
• Radial
• B2B

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements