Module 3 - Travel Intermediaries Tpc2

APPLIED BUSINESS TOOLS &
TECHNOLOGIES
(TPC2/HPC2)
PROF. ANNIE C. GUAB, MMAS

Subject Instructor
This presentation was prepared by the College of Tourism Management; Edited by: Prof. Annie Guab
TOPIC MODULE 3:
Travel Intermediaries
&
Information Technology
Learning Outcomes:
1) Compare and contrast traditional and digital travel tourism

distribution system;
2) Understand the evolution, role and features, primary and

secondary functions of Global Distribution Systems (GDSs)
as travel intermediaries and analyze the challenges faced
by GDSs as a result of technological change and innovation.
Key Concepts
Travel distribution system
Computer Reservation System(CRS)
Global Distribution System (GDS)

Define
Travel Intermediaries.
– are firms that connect travel suppliers with customers
- are intensive users of information;
and IT plays an important role in managing this information
- real-time information on travel products, destinations,

schedules, fares, rates and availabilities is critical to the services
offered by intermediaries
What are the
6 different types of travel
intermediaries?
1. Global Distribution System
2. Tour Operators
3. Traditional Travel Retailers
4. Travel Management Companies
5. Online Intermediaries
6. Channel and Reputation Managers
Travel Distribution Systems
- consists of intermediaries, or ‘middlemen’,
who facilitate the sale and delivery of tourism
services from suppliers to travelers
What are the 2 ways for
travellers to source and book
travel experiences?
Two ways for travellers
to sources and book travel experiences:
1. Directly:
Travellers can access information and make bookings directly
with suppliers through:
 advertising brochures,
 call centers,
 supplier websites,
 Social Media or
 in person at the point of sale (POS).
2. Indirectly:
Travellers can access information and bookings through

third- party intermediaries such as:
- traditional travel retailers,

- travel management companies (TMCs),
- online travel agents (OTAs),
- tour operators and
- travel wholesalers.
What are the
2 types of
Travel Distribution System?
Two Types of Travel Distribution System:
1) Traditional Travel Distribution System

2) Digital Travel Distribution System
1. Traditional Travel Distribution System
Suppliers – Airlines, Rail, Cruise, Car Rental, Hotels,

Tours
Computer Reservation Systems (CRSs)- stored rates and
availability for products(seats, rooms, tours, cars),
maintained by large suppliers
Airline Reservation Systems (ARS) – used by individual

airlines
Connections – provides links between suppliers
and touch points where travellers can book travel
experiences.
Global Distribution Systems(GDSs)- were developed to

provide connectivity between airlines and travel agents
Switch – acts as a bridge between the GDSs and hotel

CRSs
2. Digital Travel Distribution System (1990s)
Suppliers – Airlines, Rail, Cruise, Car Rental, Hotels, Tours
Connections – GDSs and Switch
Channel Managers – specialize in helping suppliers manage

the bewildering array of distribution channels
Connections – GDSs and Switch
Internet Booking Engines (IBEs) –
- connect directly with travellers through their own websites,

Social media and mobile apps,
- linked with payment gateways which process transactions

securely
GDS new entrants (GNEs)
– provide similar services to GDSs but use new
technologies and open architecture to provide
connectivity without investment in costly legacy
systems.
Destination Management Systems (DMSs)

– which consolidate and distribute travel products and
services for a particular destination.
Booking
– POS, Call Center, traditional travel agent, tour operator or wholesaler
Travel Management Companies (TMCs)
– are a specialist type of travel retailer focused on the corporate travel
market
Online Travel Agencies (OTAs)

– who sell travel products online and through mobile apps,
they source travel inventory from the GDSs and GNEs as Well as
directly from tour operators and suppliers
Booking –
Affiliates
– sell OTAs products on third-party websites
Metasearch Engines
– allow travellers to search and compare prices from
multiple sources, including OTAs, tours operators,
GDSs, GNEs and DMSs
Travel Intermediaries –
Global Distribution System (GDS)
let. get
– Enable suppliers to obtain bookings from markets they
could not reach
- Assist travel retailers by aggregating and homogenizing

supplier information and inventory and by providing a
booking capability
FIGURE 3.3 American Airlines
Advertisement showing seat
availability on wall charts
Source: American Airlines

CHARACTERISTICS OF MAJOR GDSS
Market
GDS Founded Founders Locations
Share
Sabre 1960 American Airlines 36.4% 57,000 travel agency locations. Global
Acquisition of Abacus presence, strong in US & Asia Pacific
Amadeus 1987 Air France, Lufthansa, Iberia & SAS 42.4% 102,000 travel agency locations.
Mainly Western Europe, Middle East &
Asia Pacific
Travelport 2006 Galileo-Worldspan merger 21.2% 65,000 travel agency locations. Global
presence, strong in US & Western
Worldspan 1990 United Airlines Europe
Galileo 1987 Nine European airlines
Apollo 1971 Delta, TWA & NW Airlines
Source: American Airlines

CORE GDS FUNCTIONS
Passenger
Information
Booking Rates and
Requests Conditions
Core E-ticketing
GDS & Itinerary
Availability
Function Managemen
s t
SECONDARY GDS FUNCTIONS
Decision
Financial
Support
Management
Systems
Integrated
E-Commerce
Travel
Tools
Management
Passenger Corporate
Document Travel
Requirements Management
Booking Secondary
Communicatio
Ancillary GDS n & Scheduling
Services
Functions
FIGURE 3.5 TRADITIONAL GDS
‘GREEN SCREEN’ DISPLAY
112MAYLCAATH«
12MAY TUE LCA/Z‡2 ATH/‡0
1CY 322 J7 C7 D7 I7 Z4 Y7*LCAATH 0700 0845 319 S 0 123 DCA /E
B7 N7 S7 M7 T7 W7 L7 X7
2A3 903 C4 D4 Z0 A0 I0 J0*LCAATH 0830 1010 321 B 0 DC /E
Y4 B4 M4 K4 W4 S4 H4 L4
FIGURE 3.6
SABRE RED GRAPHICALWORKSPACE
SELF
CHECK!!
QUIZ!!

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APPLIED BUSINESS TOOLS &

PROF. ANNIE C. GUAB, MMAS

1) Compare and contrast traditional and digital travel tourism

2) Understand the evolution, role and features, primary and

Computer Reservation System(CRS)

Global Distribution System (GDS)

- real-time information on travel products, destinations,

Travellers can access information and bookings through

- traditional travel retailers,

1) Traditional Travel Distribution System

Suppliers – Airlines, Rail, Cruise, Car Rental, Hotels,

Airline Reservation Systems (ARS) – used by individual

Global Distribution Systems(GDSs)- were developed to

Switch – acts as a bridge between the GDSs and hotel

Suppliers – Airlines, Rail, Cruise, Car Rental, Hotels, Tours

Connections – GDSs and Switch

Channel Managers – specialize in helping suppliers manage

Internet Booking Engines (IBEs) –

- connect directly with travellers through their own websites,

- linked with payment gateways which process transactions

Destination Management Systems (DMSs)

Online Travel Agencies (OTAs)

- Assist travel retailers by aggregating and homogenizing

Source: American Airlines

Source: American Airlines

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