1.

Mr. Mohan is a travel agent, He is well aware about the GDS system and implementing in his day to day reservations. The GDS has linked to all major airlines CRS. But he wants to know the history and evolution of GDS. As a Travel Agent How will you explain him the Historical Background of GDS.

Answer»

GDS have evolved form first computer based reservation systems implemented by several U.S. airlines in the late 1960s and early 1970s. 

  • This distributed system was paralleled by increases in computing and storage power; by 1978, SABRE was available in over 130 locations and could store 1 million airfares. 
  • After deregulation in 1978, the importance of computerized reservation systems became even more apparent. Further, a CRSs owned by a particular airline could be programmed to display their airline’s information ahead of their competitors in an effort to distort consumer choice.
  •  This was compounded by the natural tendency to travel agents to book tickets with the carriers providing the CRS terminals - known as the “halo-effect”. As a result in 1984 the civil Aeronautics Board began to regulate these systems to insure a free and competitive market for both travelers and airlines. 
  • By the early 1990s, CRSs had evolved into more complex systems. In part, this was motivated by strategic alliances and mergers between U.S. and European carriers, laying true global distribution systems. In addition, the ability to leverage the Internet as a tool for expanding the presence of these booking systems was promising. In response to these developments, the United States Department of Transportation (USDOT) increased regulation of the GDS industry.
  • As the GDS industry continued to evolve in the 1990s, the availability of public interfaces to these systems greatly expanded, particularly with the rollout of the Internet and World Wide Web. 
  • There are currently four major GDSs in operation, Amadeus, Galileo, Sabre and Worldspan, 

GDSs can be categorized in the following way: 

1) airline websites; 

2) GDS-based online, travel agencies such as Travelocity, Expedia travel and orbitz. 

3) opaque sites that require some type of bid/payment before knowing the actual travel schedule such as Priceline; 

4) specialty low-fare sites which are analogous to a tip-sheet for selected bargains; and 

5) Screen scraper sites which actually reads fare information from the screens of others sites .



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