Global Distribution System Connectivity

GDS Connectivity

GDS access is something that smaller accommodation providers have had to forgo, due to the initial cost of system access. Allotz.com has full connectivity to the GDS (Global Distribution Systems) networks for accommodation providers. This means Allotz.com can now distribute hotel room inventory on Sabre, Galileo/Apollo, Amadeus, Worldspan and their associated companies and networks. This connection alone puts a hotel's room inventory in front of over 600,000 travel agents globally, including high traffic sites such as Travelocity, Orbitz and Hotwire.

Examples of some of the direct channel resellers groups associated with GDS connectivity include the likes of: ratestogo.com, hotelclub.com, cheaptickets.com, expedia.com, orbitz.com, lastminute.com, opodo.com, zuji.com, worldchoicetravel.com, triptailor.com, travelocity.com, site59.com, igougo.com, getthere.com, priceline.com and many more.
 

Why consider the GDS?

Currently, there are more than 600,000 travel agents worldwide, making up a huge network of well informed travel sales professionals. For many years the service offered by travel agents remained constant, as there were no easy alternatives to finding information about suppliers and turning this information into a booking. The rise of Internet travel services has certainly made travel agents rethink their value proposition. Today the Travel Agent remains a relevant and trusted service provider, especially to clients undertaking long haul and high end travel.

Travel agents act as a source of expert advice and if a hotel has invested in brand and property marketing to the travel trade, then the GDS is a vital distribution channel for a property. Travel agents regard their GDS connection as a preferred booking channel for a number of good reasons. If the agency looks after business travellers, they require flexibility in their arrangements, as they often make last minute changes. A GDS booking can be paid on departure by the client using their account status with the agent, who has a credit facility with the hotel. The GDS system is also fast for those travel agents trained in operating it and so they will often make a booking at lower margins, as it is quicker and easier to access if changes need to be made.

It is safe to expect that the GDS booking system will continue into the future and not simply be replaced by Internet channels. Every hotel that has a guest profile which includes business travellers, long-haul leisure travellers or function and event guests needs to be in the GDS. Allotz.com makes this possible at a greatly reduced cost.
 

Costs for GDS transactions

The best margin is achieved by bringing the guest directly to your own booking engine (which is included in the Allotz.com hotel solution) and allows the hotel to develop a loyal customer base in the process. Allotz.com also makes an email marketing module available to hotels, as this contact information is best captured during the booking process.

Average GDS Fees
Room Rate   $75.00
Length of Stay 1.5  
Gross Room Revenue   $112.50
Typical 5% Internet Portal Fee 5.0% -$5.63
Typical GDS Pass Through Fee $5.50 -$5.50
Travel Agent Commission 10.0% -$11.25
NET REVENUE:   $90.13
Reservation Cost:   $22.38
Average Franchise Fees
Room Rate   $75.00
Length of Stay 1.5  
Gross Room Revenue   $112.50
Average 10.9% Franchise Fee 10.90% -$12.26
Travel Agent Commission 10.0% -$11.25
NET REVENUE:   $88.99
Reservation Cost:   $23.51
Average 3rd Party Discount
Room Rate   $75.00
Length of Stay 1.5  
Gross Room Revenue   $112.50
Net Discount 19% 19% -$21.38
(23% Mark Up for Sell Rate)    
Allowance Credit Card Processing 2% $2.25
NET REVENUE:   $93.38
Reservation Cost:   $19.13
WALK INS or PMS BOOKING
ENGINE DIRECT
Room Rate   $75.00
Length of Stay 1.5  
Gross Room Revenue   $112.50
     
NET REVENUE:   $112.50
Reservation Cost:   $0.00

 

The GDS join up process via Allotz.com

  1. The Agreement: The terms of the GDS agreement is on a monthly basis with a 30 day notice of cancellation/termination.
    This is a monthly fee associated by $22 per property to be connected to all four of the GDS companies (Sabre, Galileo/Apollo, Amadeus and WorldSpan)
  2. Property Information: While most of the information to become represented on the GDS is obtained from the Allotz property information, there is some additional information that is required to be represented on the GDS. Once you select the GDS channel you will automatically receive an electronic copy of your hotel information which Allotz will use to populate the GDS hotel / accommodation information form, (HIF). Just complete the additional information on line and it will automatically be forwarded for processing.
  3. Reservations / Reservations / Commissions / Fees: Once the agreement and property information is provided to our connection partner, and their team have set up your property to receive GDS reservations, Allotz will initiate your connectivity and you will start immediately to receive reservation via the method(s) you have indicated.
 

Allotz.com Limited Seriously Smart Travel Technology, Allotz, BookAllotz, RankAllotz, IntelliAllotz, MailAllotz, ConnectAllotz, and the "disc in concentric drops" image are registered Trade Marks owned by Allotz.com Limited and are protected by Australian federal and international intellectual property laws. Allotz.com Limited asserts its rights provided by these laws and will take all necessary legal action in relation to infringement.

Allotz is a proud member of the following associations...

Hospitality Sales and Marketing Association International Asian American Hotel Owners Association American Hotel & Lodging Association The OpenTravel Alliance