As per the latest findings of Future Market Insights, GDS technology market revenue is expected to be US$ 4,956.0 Million by the end of 2023. In the long-term, market is estimated to reach at around US$ 7,407.0 Million in 2033.
| Attribute | Details |
|---|---|
| Travel Gross Revenue (2023) | US$ 4,956.0 Million |
| Projected Market Size (2033) | US$ 7,407.0 Million |
| Value CAGR (2023 to 2033) | 4.1% |
| GDS Technology Market Top Players Share in 2022 | 25 to 30% |
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The global need for travel technology is being significantly fueled by significant expansion in the travel and tourist industry as well as a rising need for automation across sectors. Additionally, the industry is expanding due to the increasing use of SaaS-based models and artificial intelligence (AI). With the use of interactive conversational systems like chatbots and virtual customer service representatives, AI can better serve customers by addressing their requirements directly.
The rise in online reservations for travel as well as the growing tendency toward personalisation in the travel sector are some of the factors boosting the growth of the GDS market. Additionally, efficiency and scalability are anticipated to increase as a result of GDS enterprises' embrace of cloud-based systems. The market for GDS technology grew between a CAGR of ~7.6% from 2018 to 2022.
Cloud-Based Platforms Boost Efficiency and Scalability for GDS Companies
The increased need for improved GDS in the highly competitive hotel and tourist industries is expected to bring up new opportunities. During the projected period, the hotel and tourist industry is estimated to account for a worldwide distribution system market share. Historically, a lack of technological connectivity has precluded independent and small- to mid-sized hotels from engaging in the standard GDS channel. Technological advancements and the use of meta-search technology to acquire hotel information from online travel agencies have created opportunities for many sorts of distribution strategies in the hotel industry.
According to AltexSoft, many hotel businesses make use of the Sabre, Amadeus, and Travelport Global Distribution Systems (GDS), which are the three most prominent systems in the market. The utilization of these systems allows for real-time access to a hotel's reservation system, thereby improving communication and streamlining the booking process.
Furthermore, hotel businesses are significantly investing in marketing strategies to enhance customer acquisition and retention. The integration of GDS with hotels can assist in reducing marketing costs, making it a cost-effective option for marketing. By providing real-time access to inventory, pricing, and availability information, GDS can help hotels to increase their visibility and reach a wider audience. As a result, GDS integration can assist hotels in expanding their customer base and boosting their revenue.
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Blockchain Technology Implementation in GDS to Enhance Security and Transparency in Reservations
The Global Distribution System (GDS) technology market is witnessing a plethora of key trends that are propelling its growth trajectory. One of the most significant trends is the New Distribution Capability (NDC) initiative by the International Air Transport Association (IATA), which aims to modernize the air distribution process by providing airlines with more control over the distribution of their products, pricing and ancillary services. This initiative is expected to boost the GDS market by providing a more efficient and cost-effective way of distributing airline products.
Another trend that is driving the market growth is Direct Connect, which enables travel companies to connect directly with GDS systems, bypassing intermediaries such as travel agents. This results in a more efficient and cost-effective distribution of products and services. Cloud-based GDS systems are also gaining popularity, as they offer cost-effectiveness and scalability. These systems allow travel companies to access GDS functionality without the need for expensive hardware or software.
The increasing use of mobile devices for travel bookings is driving the demand for mobile-compatible GDS systems. These systems allow travel companies to offer their products and services to consumers’ on-the-go. Additionally, GDS systems are increasingly incorporating big data and analytics to provide more accurate and personalized recommendations to customers, which is expected to boost the market by providing more efficient and cost-effective distribution of products and services.
GDS Enterprise Leverages Global Expansion to Fuel Substantial Increase in Revenue
The growing usage of technology in the travel and hospitality sectors will cause the worldwide GDS (Global Distribution Systems) technology market to expand at a rapid rate in the years to come. The market is being pushed by variables including the rise in internet travel reservations, the rise in mobile device bookings, and the appeal of non-traditional lodging choices. The market is also anticipated to gain from the growing number of alliances and partnerships formed between GDS suppliers and other market participants. Amadeus IT Group, Sabre Corporation, and Travelport Worldwide are significant market participants.
The rapidly growing use of technology in the travel and hospitality industries is one of the key factors propelling growth in the GDS technology industry. Customers are looking for easier and effective ways to organize their trip plans as the number of internet travel reservations rises. The use of GDS technology enables travel agencies to provide clients with a seamless booking experience, allowing them to browse and contrast a wide range of travel alternatives and make bookings quickly and easily.
Another driver of expansion in the GDS technology market is the burgeoning use of mobile devices for bookings. The widespread adoption of smartphones and tablets has facilitated customers to book travel arrangements on-the-go. This has resulted in an uptick in mobile bookings, which is anticipated to drive expansion in the GDS technology market.
The escalating popularity of alternative accommodation options, such as vacation rentals and homestays, is also expected to drive expansion in the GDS technology market. GDS technology enables travel companies to access a wide array of alternative accommodation options, which they can then proffer to their clientele. This allows travel companies to differentiate themselves from their competitors and augment their revenue potential.
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GDS Providers in Germany Focus On Expanding Distribution through B2B and B2C Channels
Another driver of growth in the GDS technology market in Germany is the increasing use of mobile devices for bookings. The widespread adoption of smartphones and tablets has made it easier for customers to book travel arrangements on-the-go. This has led to an increase in mobile bookings, which is expected to drive growth in the GDS technology market in Germany.
The worldwide travel distribution system landscape in North America and Europe is still dominated by Amadeus, Sabre, and Travelport. With a self-reported 43.5% market share in 2017, Amadeus led the market for travel agency air reservations, closely followed by Sabre's 36.3%.
Fragmented Distribution Channels Hinder Growth of GDS Technology Market in India
During the projection period, it is anticipated that the GDS market in East Asia would expand quickly. Growing technology advancements in the hotel and civil aviation sectors create a demand for GDS to increase sales and client base. The market in India is anticipated to develop at the highest CAGR in the South Asia region.
Encouraging the adoption of technology by travel companies. The government has been promoting the utilization of technology in the travel and hospitality sector, including the use of GDS technology, to increase efficiency and improve the customer experience.
Chinese Travel Agencies and Tour Operators Increasingly Rely On GDS Technology
China is diversifying its GDS technology market by promoting domestic GDS providers such as Travelsky and Tuniu and encouraging foreign GDS providers such as Amadeus and Sabre to enter the market. Additionally, the use of new technologies such as blockchain, AI, and cloud computing is expected to improve the efficiency and security of GDS systems and create new opportunities for domestic and foreign GDS providers.
Tuniu Corporation is an online agency that provides GDS services for the Chinese travel industry. Tuniu’s platform includes flight, hotel, and package tour booking services, as well destinations-based travel services such as local tours and activities. The company has a strong presence in the Chinese market and has partnerships with major airlines, hotels and local tour providers. Travelsky’s GDS platform includes flight reservation, ticketing, and inventory management services for airlines, as well as hotel and car rental booking services for travel agencies. The company has a strong presence in the Chinese and has partnership with major airlines and hotels in the country.
New Distribution Channels Such As NDC and Social Media Gain Traction in GDS Technology Market
Although the industries are incompatible, there is frequently room for business crossover since the clients are comparable. A GDS may be used to collect reservations from various travel markets, and given that the tourism sector is now expanding, it provides a potential for hotels to share in the profits.
The majority of the time, travellers connect with GDS through middlemen like travel agents, tour operators, and online travel agencies (OTAs). On behalf of their clients, these intermediaries’ access and reserve travel inventory through GDS, including flights, lodging, auto rentals, and vacation packages.
There is fierce rivalry among several industry players fighting for a sizable portion of the global distribution systems (GDS) technology market. One of the most well-known companies in the GDS industry is the Spanish business Amadeus, which provides a wide range of travel-related goods and services, including reservations for flights, hotels, cars, and holiday packages.
Another significant competitor in the market, Sabre is an American company that offers comparable goods and services to Amadeus. The British company Travelport is a major GDS supplier and also works in the international travel sector. A leading GDS system, Travelport's Galileo segment gives travel agencies access to a wide range of travel-related goods and services.
Travel agencies, tour operators, and business travel managers may book flights, hotels, cars, and holiday packages using Abacus, an Asian GDS provider that primarily serves the Asia Pacific area. With the introduction of new technologies and channels for distribution, such as New Distribution Capability (NDC), which enables airlines and other travel providers to forego conventional GDSs and offer their goods and services directly to customers, the GDS industry is becoming more competitive. The industry is also being impacted by the growth of online travel agencies (OTAs) and other middlemen that offer access to a variety of travel-related goods and services without the requirement of a GDS system.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Russia, India, China, Japan, Malaysia, Singapore, Australia, UAE, KSA, Italy, Qatar, Oman, RoW |
| Key Segments Covered | By Direct Suppliers, By Indirect Suppliers, By Number of Bookings(Nationality, Type) |
| Report Coverage | Market Forecast, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives, Spending, |
| Customization & Pricing | Available upon Request |
The market witnessed a CAGR of 7.6% from 2018 to 2022.
Meta-search technology and cloud-based platforms to accelerate growth.
The premium type will remain preferred.
Using GDS enterprise and technology to fuel opportunities
In 2023, the GDS technology market is valued at US$ 4,956 million.
1. Executive Summary | GDS Technology Market 1.1. Global Market Outlook 1.1.1. Who Is Travelling? 1.1.2. Travel Gross Bookings 1.1.3. Travel Gross Revenue 1.1.4. How Much Do They Spend? 1.2. Market Evolution Analysis 1.3. FMI Analysis and Recommendations 2. Growth Parameters in Market 2.1. Cloud-based platforms boost efficiency and scalability for GDS companies 2.2. Block chain technology implementation in GDS to enhance security and transparency in reservations 2.3. GDS Enterprise Leverages Global Expansion to Fuel Substantial Increase in Revenue 2.4. GDS providers focus on expanding distribution through B2B and B2C channels 2.5. Fragmented distribution channels hinder growth of market 3. Supply to Demand: Todays Travel Distribution Network 3.1. Direct v/s Indirect Distribution 3.2. Travel Gross Revenues, by Channel, 2022 3.2.1. Supplier Direct 3.2.2. TMC 3.2.3. Tour Operator 3.2.4. OTA 4. Direct Suppliers in Market 4.1. Total Supplier Market, Share by Segment (%), 2022 4.1.1. Airlines 4.1.2. Hotel Companies 4.1.3. Car Rental 4.1.4. Train 4.1.5. Tour Operators 4.1.6. Government Bodies 5. Indirect Suppliers in Market 5.1. OTA (Online Travel Agency) 5.2. Traditional Travel Agencies 5.3. TMC's ( Travel Management Companies) 5.4. Corporate Buyers 5.5. Aggregators 6. Market Number of Bookings, 2022 6.1. By Nationality 6.1.1. Domestic 6.1.2. International 6.2. By Type 6.2.1. Budget 6.2.2. Standard 6.2.3. Premium 7. Country Shift, Key Countries in Focus, 2022 7.1. US 7.1.1. By Nationality 7.1.2. By Type 7.2. Canada 7.2.1. By Nationality 7.2.2. By Type 7.3. Brazil 7.3.1. By Nationality 7.3.2. By Type 7.4. Mexico 7.4.1. By Nationality 7.4.2. By Type 7.5. Germany 7.5.1. By Nationality 7.5.2. By Type 7.6. India 7.6.1. By Nationality 7.6.2. By Type 7.7. Rest of the World 7.7.1. By Nationality 7.7.2. By Type 8. Market Gross Revenue 8.1. Market Gross Revenue (US$ Million) and Forecast (2023 to 2033) 8.2. Number of Bookings (Million) and Forecast (2023 to 2033) 8.3. Total Spending Y-o-Y Growth Projections (2023 to 2033) 8.4. Number of Tourists Y-o-Y Growth Projections 9. Challenges & Looking Forward 9.1. Success Stories: Case Studies 9.2. FMI Recommendations 10. Market Stakeholders Landscape – Key Direct Suppliers 10.1. Airlines 10.1.1. Top Players 10.1.2. Market Concentration 10.1.3. Market Share 10.2. Hotel Companies 10.2.1. Top Players 10.2.2. Market Concentration 10.2.3. Market Share 10.3. Car Rental 10.3.1. Top Players 10.3.2. Market Concentration 10.3.3. Market Share 10.4. Trains 10.4.1. Top Players 10.4.2. Market Concentration 10.4.3. Market Share 10.5. Tour Operators 10.5.1. Top Players 10.5.2. Market Concentration 10.5.3. Market Share 11. Social Media Sentimental Analysis 11.1. Travel Influencers: A new Phenomenon in the world of Tourism 11.2. Social Media Platforms Preferred 11.3. Trending #Hashtags 11.4. Social Media Platform Mentions (% of Total Mentions) 11.5. Trending Subject Titles 12. Assumptions and Acronyms Used 13. Research Methodology
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