Global Distribution Systems

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  • Topic: Computer reservations system, Sabre, Travel agency
  • Pages : 6 (2051 words )
  • Download(s) : 76
  • Published : March 11, 2012
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Contents

Executive Summary………….………………………………………………………….. 3 Introduction …….……………………………………………………….………………...4 What are the internal and external factors that have lead to the innovation?.....4 What time frame has the innovation existed within? ………………………………5 At what point in the innovation process does the example exist? ………………...6 Who has been responsible for the innovation? ……………………………………….7 What is the overall effectiveness of the innovation? ……………………………...…7 What are the future applications for the innovation? ………………………………8 Conclusion …………………………………………………………………………………9 References ………………………………………………………………………………..10

Executive Summary
Global Distribution System (GDS) is a network channel used to reserve items. It is a system used globally, dominated by four main systems Amadeus, Sabre, Galileo and Wordspan. Having been developed in the late 1950’s, by chance, to solve one airlines troubles of overwhelming amounts of information, a technological structured software system was created, Sabre. These GDS’s have shaped the way the travel industry operates and its growth, however new and advanced technology and new innovations have come along that pose a threat to GDS’s. With the Internet becoming a dominate part of peoples lives and becoming more advanced in its capabilities and offerings, it did not take long for airlines to grasp the potential benefits it would have for them. GDS is a true innovation that has changed and advanced over four decade, it has revolutionised the way airlines and travel agents operate.

Introduction
Global Distribution System (GDS) is a reservation network used as a single point of access by multiple channels. It is used mainly by travel agents to fulfil the required needs and demands of travellers, GDS’s allows the user to reserve airline seats, hotel rooms, rental cars and many other travel needs (Business Dictionary). It is considered to be a sales channel allowing users real-time access to direct information relating to a variety travel products. This report will focus on GDS’s and how it has progressed and developed into what it is now, the effect it has made on airlines, travel agents and its future outlook.

What are the internal and external factors that have lead to the innovation? Before there was any sort of reservation system, airline companies were required to store and sort through enormous amounts of information. This was a timely process, as new information relating to a flight would change within minutes due to new reservations and seat availability consistently changing (O’Connor, 2004). For a seat to be reserved on a flight a lengthy process would begin. The travel agent would need to contact the airline, the airline would then have to confirm seat availability and pricing, the agent would then convey the information to the customer and if they agreed the travel agent would then recall the airline confirming the booking (O’Connor, 2004). Therefore, one airline company, American Airlines decided that a system had to be developed that would better assist them in their reservation process. In 1964 Sabre (Semi-Automated Business Research Environment) was completed and installed in American Airlines after years of trails (Sabre Holdings). However, despite American Airlines developing this system, they chose to keep it internal, only for the benefit of their airline company. Sabre fulfilled all that American Airlines could hope for at the time, a computerised system that stored all flight information and could be accessed anywhere within the company (O’Connor, 2004). Although, American Airlines soon realised that it would be easier to place the reservation system, Sabre in the travel agencies, allowing them direct access to the information and to be an “extension of the airlines sales force” (Das, 2002). This was a benefit for both organisations as it cut costs immensely as it meant less communication expenses (O’Connor, 2004). The airline companies did not need as many...
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