Learning Objectives
After completing this chapter the students will be able to
➢➢ Understand various models of the GDSs and the developments therein
➢➢ Will gain information about various factors those influence the GDSs in the dynamics
of their business models
➢➢ Acquire knowledge on the factor influencing the model of the GDSs.
➢➢ Know the importance of Business Model to attain efficiency.
Introduction
The previous unit offers information about major GDSs operating across the world.
It clarified their services and solutions apart from their special features and the corporate
structure and various other components in order understand the operations of those
companies. Following that unit, here it is offered to understand their business models being
used to operate in their given environment apart from explaining the changes happened in
their business design and its features.
Many organisations do not work with same business models due to the environmental
pressure that keeps changing rapidly. In order to cope up with the changing pace and
expectation of the markets these GDSs keep aligning or changing their business models
to ensure offering products and services that matches the needs and requirements of the
customers across the
World.
It is not just the company decides to change or redesign the model overnight, it
takes time in doing so and involves lots of analysis and input from various critical factors in
designing the new models of the business. This unit will offer the dynamic of the changes
and existence of the business models of various GDSs and its critical factors. To explain
the changing models, the examples of various major GDSs are taken into consideration for
better understanding.
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Traditional Models-Hospitality Distribution Systems
According to Emmer et al. (1993) the models includes different EDCs, e.g. Switch
and GDSs. They divided the ED process into five phases. These phases were: hotels; CRO or
Rep Company; Switch Method; computer-reservation system (they identified in this phase
telephone link); and travel retailers and corporations (see figure). However Emmer et al.
(1993) did not include many types of channels which appeared later in the market (e.g.
online travel agencies and hotel website)
