GDS is a cost-effective distribution channel for hotels: D-EDGE

D-EDGE Hospitality Solutions, a provider of Central Reservation Systems (CRS) and GDS connectivity for thousands of hotels worldwide, has released new findings showing that the Global Distribution System (GDS) is more cost-effective than widely believed. With the business travel sector making a strong recovery post-pandemic, D-EDGE highlights the opportunities hotels may miss by underusing the GDS.

Drawing from comprehensive booking data and interviews with hoteliers across Europe and Asia Pacific, D-EDGE’s research reveals that GDS bookings consistently outperform other channels in key areas such as average daily rate (ADR), length of stay, and cancellation rates. By analysing this data and incorporating feedback from its hotel clients, D-EDGE found that net commissions on GDS bookings average between 18% and 20%—significantly lower than the commission rates of many Online Travel Agencies (OTAs), which can reach up to 28%.