Multi-GDS strategy for OTAs and TMCs
Unlocking potential and staying ahead
Online Travel Agencies (OTAs) and Travel Management Companies (TMCs) constantly search for ways to stand out in today's competitive travel industry. Travelers expect seamless, flexible options, and one of the most effective ways for OTAs and TMCs to meet these demands is through a multi-GDS strategy. This approach allows businesses to leverage multiple Global Distribution Systems (GDS) instead of relying on just one—giving them broader access to travel inventory, better pricing, and reduced risks.
But what does a multi-GDS strategy look like? And why should your travel business invest in it? Let’s explore what it means, why it matters, and how to implement it to benefit your company and your customers.
What is a multi-GDS strategy?
A Global Distribution System (GDS) is like the backstage of the travel industry. The technology connects travel agencies to travel services—airlines, hotels, rental cars, etc., in real-time. Traditionally, travel businesses like to align with a single GDS, tapping into the inventory provided by that system. However, this one-size-fits-all approach often limits businesses' access to more competitive or region-specific options.
With a multi-GDS strategy, you connect to multiple GDS platforms at once. Why?
Because each GDS has its strengths in different regions or types of services. For example, Amadeus might have better options for European flights, while Sabre might offer stronger partnerships with North American hotels. Instead of choosing between them, a multi-gds approach allows you to leverage the best of both (and more), which means broader inventory, better pricing options, and greater reliability to offer your customers the best of everything.
Why should you consider a multi-GDS strategy?
A multi-GDS strategy isn’t just about checking more boxes—it’s about giving your business flexibility and giving your customers more choices. Here’s why it can be a game-changer for OTAs and TMCs:
Wider inventory access: meet all customer needs
Each GDS has different relationships with airlines, hotel chains, and rental services, and their inventories don’t always overlap. By using multiple GDS platforms, you can offer travelers a much wider selection of flights, hotels, and cars. This is particularly helpful when catering to budget-conscious travelers and those seeking premium experiences.
When travelers visit your site, they’re not just looking for a good deal—they want options. A multi-GDS strategy means you’ll never have to tell a customer you are unavailable in a certain region or service type. More choices mean more satisfied customers—and, ultimately, more bookings.
Better pricing flexibility: the power of comparison
Price is king in travel, and customers always look for the best deals. Different GDS platforms negotiate different rates with airlines and hotels. Connecting to several systems allows you to compare platform pricing and secure the best possible rates for your customers and your bottom line.
Imagine offering three different prices for the same flight, allowing your customers to choose the best. At the same time, your business benefits by optimizing profit margins, depending on which platform offers the most favorable commissions. A multi-gds strategy allows you to make the best possible offer in a market where competitive pricing is key.
Mitigate risk: have backup systems in place.
Ever had a platform outage at a critical moment? It’s every OTA and TMC’s nightmare. If you rely on a single GDS, an outage or system error could halt bookings completely, leading to lost sales and frustrated customers. A multi-GDS strategy reduces this risk. If one GDS fails, you can simply route traffic through another, ensuring continuous service. This protects you from data inconsistencies or contract issues with suppliers. Multiple GDS connections mean you’re never tied to just one supplier or system, keeping your business running smoothly, even when there’s a glitch behind the scenes.
Geographic flexibility: target regions with precision
Certain GDS platforms excel in specific areas. For instance, Amadeus is particularly strong in Europe, while Travelport may offer better options in Asia or Africa. With a multi-GDS strategy you can customize your offerings based on where your customers are and where they’re headed.
By leveraging the strengths of different GDS platforms, you can offer more relevant options to customers in other markets. This geographic flexibility ensures that your services are always competitive, no matter where your customers are coming from or where they’re going.
key considerations for implementing a multi-GDS strategy
It’s clear that the benefits of a multi-GDS strategy are significant, but implementing it isn’t without challenges. To make sure you’re getting the most out of your multi-GDS approach, here are some key things to keep in mind:
Seamless technology integration: avoid disruptions
Managing multiple GDS systems means integrating them into your existing booking engine without causing confusion or slowdowns. Your customers should never know (or care) that multiple GDS platforms are powering their booking. The key is ensuring your technology infrastructure can handle the additional data load while maintaining a seamless, unified user experience.
Working with the right technology partners will help you ensure that everything runs smoothly, from back-end operations to customer-facing interfaces.
Centralized inventory management: avoid double bookings
Managing inventory can become tricky with multiple GDS feeds coming into your system. To avoid overbookings or pricing errors, you must ensure that inventory data is consistent across platforms.
Centralized inventory management tools help streamline this process, ensuring that customers always get accurate, real-time information. You will have to track which platform performs best for different booking to make
It’s also important to track which platform performs best for different bookings to make data-driven decisions about which GDS to prioritize.
Train your team: expertise makes all the difference.
Working with multiple GDS platforms requires a learning curve. Ensure your team is fully trained on each GDS's different functionalities and strengths. The more your team understands how each platform works, the better they can optimize bookings and pricing. A well-trained team means fewer errors and more opportunities to secure the best deals for your customers.
Weigh the costs and benefits: more isn’t always better.
While a multi-GDS strategy opens up long-term opportunities, it also comes with costs. Each GDS connection typically requires additional integration and usage fees. Before diving in, conduct a thorough cost-benefit analysis. For some businesses, a full multi-GDS setup will make perfect sense; for others, a more selective approach—choosing only the GDS platforms that add real value—might be more cost-effective.
Staying competitive with a multi-GDS strategy
In the fast-paced travel industry, having the right tools can make all the difference. For OTAs and TMCs, a multi-GDS strategy offers the flexibility, inventory access, and pricing advantages necessary to stay ahead of the competition. While it demands careful planning and investment, the benefits (wider inventory, better deals, reduced risk, and geographic flexibility) are way too significant to be ignored.
When integrating multiple GDS platforms, OTAs and TMCs can offer their customers more choices, better prices, and a more reliable service. In a market where customer expectations keep on increasing, this could be the competitive edge your organization needs to thrive.
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