What Are the Different Types of GDS? Everything You Need to Know

• Travel agents access real-time inventory via GDS.
• Agents earn commissions on bookings.
• Personalized service for complex itineraries.
• Transparent pricing is visible to customers.

For instance, a family planning a multi-city vacation visits a local travel agency. The agents use Amadeus to check availability and prices instantly, then book flights and hotels tailored to the family’s preferences. The agent earns a commission, and the family benefits from the expert’s advice and bundled services. This model thrives on human interactions and trust, which remains vital despite digital advances.

In the merchant model, online travel agencies (OTAs) like Expedia purchase inventory from hotels or airlines at a discounted rate and then resell it to customers at a markup. This means OTA controls the price and handles customer payments, while the supplier gets paid after the booking is fulfilled.

In the merchant model, OTAs purchase inventory at discounted rates and resell it to customers, controlling pricing and payment.

• OTAs buy inventory upfront from suppliers.
• OTAs set retail prices and handle payments.
• Suppliers receive payment after service delivery.
• Enables flash sales and bulk sales.

When booking a last-minute hotel deal on Expedia, the OTA has already secured rooms at a lower price from the hotel. They resell these rooms at a marked-up rate, offering customers attractive discounts while managing the transaction flow. This model is common in travel CRM and requires sophisticated travel software to manage inventory and pricing dynamically.

The Opaque model adds an element of surprise: customers book without knowing the exact brand or property until after the purchase is complete. Sites like Priceline pioneered this approach, letting travelers bid on hotel rooms or flights based on price and general location, but not the specific provider.

The opaque model offers discounted travel products without revealing the exact brand or property until after purchase.

• Customers bid or select based on price and general location.
• Actual provider details revealed post-booking.
• Help suppliers sell unsold inventory discreetly.
• Offers deep discounts to price-sensitive travelers.

Priceline’s “Name Your Price” feature lets travelers bid on hotel rooms. A traveler might pay a fraction of the usual rate for a luxury hotel, but only learns the hotel’s name after booking. This model benefits hotels by protecting brand value while filling rooms that would otherwise remain empty.

NDC is a modern standard developed by IATA that enables airlines to offer richer, more personalized content directly to travel sellers, bypassing some of the limitations of traditional GDS. With NDC, airlines can showcase tailored offers, bundled services, and ancillary services products think seat upgrades, baggage, or lounge access in real time.

NDC is an IATA-developed standard that enables airlines to distribute personalized, rich content directly to travel sellers, enhancing the booking experience.

• XML-based data exchange standard.
• Real-time access to personalized offers and ancillary services.
• Supports dynamic pricing and bundled products.
• Improves transparency and customer experience.

A frequent flyer booking through a travel agency’s platform might see exclusive upgrade options and baggage bundles tailored to their loyalty status, thanks to NDC integrations. Airlines and travel technology solutions leverage NDC to create more flexible and customer-centric booking tools, revolutionizing how air travel is retailed.

The above breakdown shows how each GDS type serves different roles in the travel ecosystem, with travel app development playing a key role in enabling seamless integrations and enhanced user experiences.