GDS for Hotels: How to Optimise This Powerful Distribution Channel

Hoteliers rightly dedicate significant effort to driving direct website bookings. However, a truly resilient and profitable hotel distribution strategy requires a diversified approach that looks beyond just the consumer-facing channels.

While metasearch and OTAs fight for leisure travellers, our Global Distribution System (GDS) remains a distinct, powerful, and often-misunderstood pillar for securing high-value corporate travel bookings supplementing your direct strategy.

Why GDS Remains a Critical Revenue Stream for Hotels

The GDS network continues to be the bedrock of corporate travel. Travel Management Companies (TMCs) and large-scale travel agents booking for global corporations operate almost exclusively within this closed environment.

This distinction with internet booking is crucial: if your hotel is not visible and bookable on the GDS, you are simply invisible to an entire segment of bookers.

Key Insight: This is not traffic you risk cannibalising from your website. It is purely incremental business from a segment that does not shop on standard B-to-C channels. Failing to connect to the GDS means these high-value bookings will default to your competitors, who likely are present.

Moving Beyond Cost: The Strategic ROI of GDS

A common misconception surrounding GDS relates to its cost structure. Hoteliers may perceive the combination of transaction fees and agent commissions as complex (and expensive) compared to a “simple” OTA commission. However, this view overlooks the strategic return on investment (ROI).

• Lower Cost Per Acquisition (CPA): When managed correctly, the blended CPA for GDS bookings is frequently and significantly lower than commissions paid to OTAs. This is because not all bookings attract agent commissions.

• Higher-Value Guests: GDS delivers a premium corporate guest. These travellers typically secure higher Average Daily Rates (ADR) and generate considerably more ancillary revenue through food and beverage, meeting space, and other hotel services.

The strategic value is not in the cost of the booking alone, but in the total revenue and profit generated per stay and potential build of repeat corporate business.

How to Build an Active GDS Optimisation Strategy

GDS is not a passive, "set it and forget it" channel. Like building your direct channel, maximising GDS potential demands an active, intelligent strategy focused on two key areas.

1. Master the RFP and Consortia Process

An active strategy includes managing consortia relationships and participating in the annual Request for Proposal (RFP) season. RFPs are where corporations select their preferred hotel partners for the coming year as part of their budgeting and planning ahead. This historically intensive process is where modern technology now brings a significant simplification  advantage.

2. Leverage AI for Smarter Distribution

The integration of AI in distribution now allows for sophisticated analysis and automation of the RFP process. AI-driven tools, integrated within a managed GDS service, help hoteliers identify and respond to the right RFPs, strategically optimising rates and inventory for maximum yield without overwhelming internal teams.

Integrate GDS into Your Profit Strategy

It is a mistake to dismiss the GDS as a legacy system. GDS business has actually grown in recent years, not diminished. View it as a primary, direct-access channel for high-margin corporate business that complements your website-direct efforts. When professionally managed and optimised, GDS for hotels is an essential component for building a more profitable and diversified revenue base.

Is your GDS strategy delivering high-value corporate business? Contact Bookassist today to learn how our GDS managed services and technology can optimise your global distribution.