📘 CodingMarble Learn

Global Distribution System (GDS)

A Computer Reservation System (CRS) is one supplier's own computer system for its seats, rooms or cars. A Global Distribution System (GDS) is a big network that joins many CRSs to thousands of sellers, such as travel agents, online travel sites and company travel desks. The seller sees live availability and fares, books, and gets a PNR (booking record). The three big GDS companies are Amadeus, Sabre and Travelport. Suppliers pay the GDS a fee for each booking.

🎬 Step-by-step story

  1. Long ago, a travel agent had to phone or telex every airline and hotel separately. Look at all those lines.
  2. Then each airline built its own computer, a CRS (Computer Reservation System). It stores its own seats and fares.
  3. A GDS is one hub. It links the CRSs of many airlines, hotels, car rentals and railways to many sellers.
  4. Watch a booking: the agent asks the GDS, the GDS asks the airline, the seat is held and a PNR code comes back.
  5. The seat count drops from 5 to 4. Every agent on the network sees the new number straight away.
  6. Your turn: pick a service and press Book. Watch the request travel and the stock go down.

Tip: drag the 3D scene to turn it. Use two fingers to zoom.

🤔 Common doubts, cleared

How did agents book before computers?

By phone, telex and paper records. It was slow and seats could be sold twice.

Is a CRS the same as a GDS?

No. A CRS is one supplier's own system (the blue box). A GDS links many of them.

Why not just book on each airline's website?

You can, but an agent would have to visit dozens of sites. A GDS shows them all at once and puts everything in one PNR.

What is a PNR?

The booking record with a short code. It holds phone, who booked, itinerary, names and ticketing details.

How do two agents avoid selling the same last seat?

The stock is live. When one books, the count drops at once for everyone.

Why were reservation systems needed?

Before computers, airlines kept seat records on cards and paper. Agents phoned or sent telex messages to check seats. It was slow, and the same seat could be sold twice.

In 1960 American Airlines and IBM started SABRE, one of the first computer systems to keep seat stock live. Other airlines soon built their own.

Computer Reservation System (CRS)

A CRS is a computer system that one supplier (an airline, hotel chain, car rental firm or railway) uses to store and sell its own stock: seats, rooms or cars, with their prices.

India example: Indian Railways sells train seats through its own Passenger Reservation System, built by CRIS. It is the railway's CRS.

Global Distribution System (GDS)

A GDS joins the CRSs of hundreds of suppliers and shows them to sellers all over the world on one screen. Distribution means getting the product to the buyer.

Who is connected?

The big three

Amadeus (started in Europe), Sabre (started in the USA) and Travelport (which runs Galileo and Worldspan).

What can a GDS do?

PNR, fees and benefits

PNR (Passenger Name Record)

A PNR is the booking record. It gets a short code, usually 6 letters and numbers. Its five must-have parts spell PRINT: Phone (contact), Received from (who asked for the booking), Itinerary (flights, dates), Name of each traveller, Ticketing details.

Who pays?

The supplier usually pays the GDS a booking fee for each booked segment. The GDS may share part of it with the agent as an incentive.

Benefits

Today

Some airlines now also sell directly to agents through new links (such as NDC). GDSs are adding these too.

Try it: look at an old flight ticket or e-ticket at home. Find the PNR code and the itinerary part.

Key formulas and definitions

Worked examples

1. An airline uses a system only to sell its own seats. Is it a CRS or a GDS?

A CRS. It holds one supplier's stock. It becomes visible worldwide only when linked to a GDS.

2. An agent books a flight to Paris, a hotel and a car for one client. How does the GDS help?

The agent sees all three suppliers on one screen, books them together and all three go into one PNR.

3. A PNR is missing the traveller's phone number. What happens?

It cannot be completed. Phone (contact) is one of the PRINT must-have parts.

4. Why might a hotel chain in Kerala join a GDS?

Agents in many countries can then see and book its rooms, so it sells more without opening foreign offices.

Common mistakes

Practice quiz

1. GDS stands for:
2. A CRS belongs to:
3. Which of these is a GDS company?
4. The booking record in a GDS is called a:
5. Who usually pays the GDS booking fee?

Practice: answer these yourself

Type or choose your answer, then press Check. Use a hint if you are stuck; the full solution appears after you answer.

Frequently asked questions

What is GDS in tourism?

A Global Distribution System: a worldwide network that lets travel sellers see and book flights, hotels and cars from many suppliers.

What is the difference between CRS and GDS?

A CRS is one supplier's system. A GDS connects many CRSs to sellers around the world.

Which are the main GDS companies?

Amadeus, Sabre and Travelport (Galileo and Worldspan).

Where this is taught

CBSE (India)Class 12Global Distribution System

Learn first

Related lessons

All Business Studies lessons