What are the common pitfalls and challenges of managing GDS contracts and relationships?

1 Negotiating terms and fees

One of the main challenges of managing GDS contracts is negotiating the terms and fees that suit your business needs and budget. GDS providers often have complex and rigid pricing models, based on factors such as segment volumes, booking channels, market share, and incentive schemes. You may also have to deal with multiple contracts for different regions, currencies, and products. To negotiate better contracts, you need to understand your current and projected GDS usage, compare different options and offers, and leverage your bargaining power and relationships.

2 Optimizing performance and quality

Another challenge of managing GDS contracts is optimizing the performance and quality of the GDS services that you use and provide. GDS are constantly evolving and updating their features, functionalities, and standards, which may affect your integration, compatibility, and compliance. You also need to monitor and measure the quality and accuracy of the data, content, and transactions that flow through the GDS, and address any errors, discrepancies, or disputes. To optimize your GDS performance and quality, you need to stay updated on the latest GDS developments, implement best practices and quality controls, and communicate effectively with your GDS providers and partners.

3 Managing changes and disruptions

A third challenge of managing GDS contracts is managing the changes and disruptions that may occur in the dynamic and competitive travel market. GDS are influenced by factors such as consumer preferences, industry trends, regulatory changes, technological innovations, and competitive pressures, which may require you to adapt your GDS strategy, operations, and contracts. You also need to be prepared for any unexpected events or emergencies that may affect your GDS availability, functionality, or security. To manage your GDS changes and disruptions, you need to be flexible, proactive, and resilient, and have contingency plans and backup solutions.

4 Balancing distribution channels

A fourth challenge of managing GDS contracts is balancing your distribution channels and maximizing your revenue potential. GDS are not the only way to distribute your travel products and services, as you may also use direct channels, online travel agencies (OTAs), metasearch engines, or alternative distribution systems (ADS). Each channel has its own advantages, disadvantages, costs, and requirements, and you need to find the optimal mix that suits your target market, value proposition, and competitive edge. To balance your distribution channels, you need to analyze your customer segments, booking patterns, and channel performance, and optimize your pricing, inventory, and marketing strategies.

5 Enhancing customer experience

A fifth challenge of managing GDS contracts is enhancing your customer experience and satisfaction. GDS are not only a source of information and booking, but also a touchpoint for your customer journey and relationship. You need to ensure that your GDS display and content are attractive, relevant, and consistent with your brand identity and values. You also need to provide your customers with seamless, convenient, and personalized service and support through the GDS, and respond to their feedback and expectations. To enhance your customer experience, you need to understand your customer needs, preferences, and behavior, and leverage your GDS capabilities and features.

6 Collaborating with stakeholders

A sixth challenge of managing GDS contracts is collaborating with your internal and external stakeholders. GDS involve multiple parties and processes, such as travel suppliers, agents, customers, intermediaries, regulators, and technology providers. You need to coordinate and align your goals, expectations, and responsibilities with your stakeholders, and foster trust, transparency, and cooperation. You also need to manage any conflicts, disputes, or complaints that may arise from your GDS contracts and relationships, and seek win-win solutions. To collaborate with your stakeholders, you need to communicate clearly, frequently, and respectfully, and build long-term partnerships.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?