GDS: Legacy technology still drives all the revenue in travel
interactivetravel.org
interactivetravel.org
* The GDS companies powered more than $268 billion in worldwide travel revenue in 2008 through 1.1 billion transactions – or more than 2,100 transactions per minute.
* In the U.S., the GDSs processed 449 million travel transactions in 2008, representing $98.7 billion in total travel sales, or 35% of total supplier revenue (gross bookings).
* GDS bookings represented $81 billion of U.S. airline revenue in 2008, or 64% of total U.S. airline passenger revenue.
* Travel revenue powered by GDSs in the U.S. rose from $93.6 billion in 2006 to $98.2 billion in 2007 and $98.7 billion in 2008, despite the recession.
* The GDSs processed nearly three-quarters of all intermediary (online and traditional travel agency) sales in the U.S. in 2008.
* Although lower than in the U.S., GDSs also account for a significant portion of all European travel revenue, with 21% of all revenue and 47% of airline bookings in 2008.
* GDS companies power the reservations and technology infrastructure for more than 163,000 travel agency locations and nearly half a million travel agents worldwide.
* The GDSs provide access to more than 550 airlines, 90,000 hotel properties, 30,000 car rental locations, and hundreds of major tour operators and cruise lines.
* The three major GDS companies, Amadeus, Sabre, and Travelport, had combined corporate revenue of $9.624 billion in 2008 and employ more than 23,000 people.
* “If the transaction value enabled by the GDS industry went to a single company, it would rank third on the Fortune 500 list, behind only Wal-Mart and Exxon Mobil,” said Arthur Sackler, Executive Director of the Interactive Travel Services Association, which commissioned the study.
* “Transactions powered by GDS companies are the financial lifeblood for tens of thousands of travel agents, tour operators, hotels, airlines, car rental agencies, and other participants in the travel industry. We must continue to support policies that allow the GDS industry full access to travel provider data without unreasonable restrictions, so travelers can continue to get the information they need to make informed travel choices, and the travel industry can benefit from the efficiency of a GDS-based distribution system.”