The interaction flow between Global Distribution Systems (GDS), consolidators, and airlines in the travel industry involves a complex flow of information and transactions. Here’s a simplified overview of how they work together:

  • Global Distribution Systems (GDS):
  • GDS are centralized platforms that provide travel agencies and other intermediaries with access to vast inventories of travel products such as flights, hotels, rental cars, and more.
  • Examples of GDS include Amadeus, Sabre, Travelport are the most popular among others.
  • GDS aggregates information from various airlines and other travel service providers, making it easier for travel agents to compare and book travel options for their clients.
  • Airlines:
  • Airlines are the providers of air travel services.
  • They distribute their flight inventory through multiple channels, including their own websites, direct sales offices, and through intermediaries like GDS and consolidators.
  • Consolidators:
  • Consolidators are intermediaries that buy flight tickets in bulk from airlines at discounted rates and then resell them to travel agencies at a markup.
  • They typically focus on specific routes, regions, or types of travel (e.g., business travel, international flights).
  • Consolidators help airlines fill up unsold seats and also provide travel agencies with access to discounted fares that may not be available through the GDS or directly from the airlines.

Now, let’s outline the flow of how these entities work together:

  • Inventory Management:
  • Airlines manage their flight inventory, setting prices and allocating seats for various routes and flights.
  • Airlines also provide their flight inventory to GDS, which then aggregates this information along with other travel services.
  • Consolidators purchase bulk tickets from airlines at discounted rates based on negotiated agreements.
  • Access and Distribution:
  • Travel agencies access the GDS platform to search for available flights, accommodations, and other travel services.
  • GDS provides a user-friendly interface for travel agents to compare prices, schedules, and availability across multiple airlines and consolidators.
  • When travel agents find suitable options for their clients, they can make bookings directly through the GDS.
  • There are two kind of access you can go with. Standalone Softwares / Web Service Licence (APIs).
  • Web Service Licence is needed for the Website Building.
  • Booking and Ticketing:
  • When a travel agent makes a booking through the GDS, the request is sent to the respective airline or consolidator.
  • The airline or consolidator confirms the booking and issues a ticket, which is then sent back to the travel agent through the GDS.
  • Travel agents can also manage changes, cancellations, and other modifications to bookings through the GDS platform.
  • Payment and Settlement:
  • Payments for bookings made through the GDS are typically settled between the travel agency and the GDS, with commissions or fees paid to the GDS for facilitating the transaction.
  • Consolidators may have separate payment and settlement arrangements with travel agencies based on their agreements.

The flow involves a seamless exchange of information and transactions between airlines, consolidators, GDS, and travel agencies, enabling efficient booking and management of travel services for customers.