When it comes to reserving your rooms, there are several distribution channels which help you to book the room with the best prices. Whether it is reserving room via hotel’s booking platform, through online travel agency booking sites, or using other booking channels that helps to grow your business. Hotel distribution channels are the platforms that sell rooms either online or offline to possible customers.
Global distribution system (GDS) helps you to book your rooms anywhere in the world. Whereas direct booking helps you to book through the hotel’s own booking platform.
In this article let us see GDS vs. Direct Booking and choosing the best channel mix for your hotels.
Understanding Global Distribution Systems
Global distribution systems or GDS are large, worldwide networks that are basically designed for the purpose of booking airlines but now it has reached the hotel industry as well. They help hotel businesses to reach a global audience through travel agencies or online booking platforms. By connecting travel professionals like travel agents with hotel inventories, GDS allows real-time booking.
Understanding Direct Booking
Direct booking is a platform where a customer makes direct reservations with hotels through calls, email, online, walk-in, etc.
In olden days, a direct booking used to be done offline or through email and paid after arrival. But today you can do direct booking via the hotel’s own website.
Benefits Of Global Distribution Systems
- Global Reach:
GDS allows you to connect your hotel with travel agencies, corporate bookers, and online travel providers all over the world.
- Increased Bookings:
It is a great choice of bookings especially for corporate travelers and travel agencies.
- Real-Time Updates:
Price, availability, and inventory are all synced across every channel in real-time.
Benefits Of Direct Booking
- Price Match Guarantee:
It ensures guests that they are getting the best deal and lower prices.
- Exclusive Packages:
They will get added benefits including a short tour, outdoor yoga classes, etc.
- Best Room Selection:
It enhances their stay experience by providing the best rooms and views.
- No Hidden Fees:
It shows transparency in pricing by clearly showing all fees upfront and no hidden charges.
- Personalized Service:
It offers a personalized services for guests
- Flexibility:
The booking options are flexible whether it is a cancellation or changes in the booking
- Loyalty Points and Rewards:
It encourages repeat bookings for loyal customers.
GDS vs. Direct Bookings: Choosing The Right Channel Mix For Hotels
When To Opt For GDS?
- Targeting the Corporate Segment:
If you like to serve business travellers or corporate travelers, then GDS will be your best partner. As large businesses and corporate travel agencies use GDS for their booking, having your business listed in GDS will increase the chances of bookings.
- Seeking a Global Reach:
GDS is for a worldwide audience and if your property wants to attract international travelers and if you want to reach global markets, then GDS will surely enhance your reach.
- Large Inventory:
Hotels having a large number of rooms available can benefit from GDS. It helps in managing high room availability and provides real-time info to travel agents, ensuring that every room is booked.
When To Opt For A Direct Booking?
- Targeting the Local And Smaller Segment:
When you want to serve local travelers or a smaller number of people, then direct booking is your way to success. Your guests can enjoy the book through calls, emails, your website, or directly upon visiting.
- Want To Attract More Guests:
If you want to reach all the local travelers, then direct booking will be a better choice. They can get many perks after booking that improves the chances of direct bookings.
- Smaller Inventory:
Hotels with a smaller number of rooms available benefit from direct bookings. No third party agents, no OTAs, thus builds loyalty among guests.
Choosing the Right Channel Mix for Hotels
When you combine GDS with direct booking platforms, it improves your global reach, you can attract more audiences both locally and globally. It enhances your revenue and improves your ROI.
Tools like UNO RateGain make it easy to handle both GDS and direct bookings. They help you check your room prices on different websites, improve your booking plans, and keep your prices the same everywhere using smart technology.
Conclusion
Whether it is a booking through GDS or through Direct Booking, it needs to align with your hotel’s distribution strategy and motives. Knowing the benefits of each will help you reach your targeted customers, improve your booking strategies, optimize your revenue, and enhance customer experience.
In this blog, we have discussed GDS vs. Direct Booking: Choosing the right channel mix for hotels.