2011 GDS Report


January 31, 2012
63 Pages - SKU: ASTA3860493
License type:
The GDS reports covers travel agency distribution trends related to GDS usage from how travel agencies book travel to how they negotiate their GDS contract.  Agencies evaluating their current GDS contracts and industry suppliers wanting to understand GDS usage better will find this report essential.


Additional Information

Survey data was collected through the 2011 ASTA Research Family. The ASTA Research Family is comprised of a representative sample of ASTA member travel agency owners and managers. The Research Family reflects ASTA members in key agency demographics including sales volume, leisure/business mix, number of part-time and full-time employees and geographic location. Members of the Research Family were recruited randomly and were contracted to complete at least seven out of nine surveys every four to five weeks from January 2011 through November 2011. The Family’s size varies from survey to survey due to non-response, agency closings, mergers and changes in membership status, but is designed to yield a response representative of all ASTA agency members. References to (travel) agencies in this report pertain to ASTA member agencies only.

The survey data was collected online via www.surveygizmo.com in May 2011. 391 of the 472 family members, completed the survey. This reply level indicates a minimum of 95% confidence with an error rate +/-4.6% representing the total ASTA agency membership. This is considered to be a good sample with reliable results.
Introduction
Executive Summary
75% of Agencies Used a GDS in 2011
Between 1999 and 2011 Agencies Using a GDS Has Dropped 23 Percentage Points
Shift Between 2001 and 2010 in Share of Air Sales by Firm Size Consistent with Movement of Small Leisure Away from GDS Use
GDS Users
GDS Share and Usage
The Sabre System Has Largest Share of ASTA GDS Users
Market Share per GDS Has Fluctuated with Sabre Seeing the Most Sustained Growth in Share
Each GDS Has a Very Different Mix of Agencies When Broken Out By Company Size
Business Model Mix Is Different for Each GDS
Two-Thirds of Agencies Have Used the Same GDS for 16+ Years
The Agency-GDS Relationship Is Very Stable with 19 Years Being the Average Length of GDS Usage
Very Few Agencies Changed GDS Provider in the Past Three Years of Tracking
The Few Agencies That Did Change GDS Mostly Changed to Amadeus
Most Agencies Do Not Use an Additional GDS
In the Late 2000’s a Trend Seemed to be Building for Having a Second GDS - That Has Stopped Now
Most ASTA Agencies Contract Directly for Their GDS with Only a Small Percentage Contracting Through a Host
Agencies Most Likely to Book Air and Car Rental Using Their GDS
Bookings and Booking Tools
Percentage of Bookings through GDS Decreased for All Segments
Most Agents Occasionally Check GDS Prices Against Those Found on the Internet
Most Agencies Do Not Use any Online Booking Technology with their GDS
Agencies Seeing Increased Bookings in 2011 Larger Percentage than Those Seeing a Decrease - First Time in Several Years
Contract Characteristics
“No-minimum” Pricing Plans Remains Dominate in 2011
Pricing Plans Vary Widely Based on GDS Used
42% of Agencies Using Productivity or Fixed Monthly Pricing Have a “Minimum-use” Clause
Very Few Agencies Fall Below Contracted Monthly Bookings with Many Not Having a Minimum Monthly Goal at All
3-Year Contracts Remain Most Popular - Although % Share has Dropped Since 2005
Most Agencies Do Not Receive Incentive for Re-Signing
Agencies Most Likely to Have Itinerary Invoicing as a Product Included in Their Contract
Incentives, Credits & Costs
67% of Agencies Can Receive an Incentive or Credit based on Their Contract
Agencies Using Sabre and Amadeus Most Likely to Have a Contract That Includes Credits or Incentives
63% of the Agencies with Credits/Incentives in their Contract Must Exceed a Specified Number of Bookings to Get Credits/Incentives
Sabre Users More Likely Dependent on Hitting a Certain Booking Level to Receive Incentives and/or Credits
Annually the Largest Segment of Agencies Receive Very Little Revenue from GDS
Over 80% of Agencies Pay Under $1,000 Annually for Their GDS – 46% Paid No Fees at All
Only a Small Segment of Agencies Make Revenue from their GDS Credits/Incentives
Many Larger Agencies Receive Net Revenue from Their GDS– But Some Smaller Agencies Also Do Well
Agencies Using Travelport GDSs More Likely to Make $20,000+ from Credits and/or Incentives
Most Agencies Receives Credits Per Segment in the $1 Range
Revenue from GDS Incentives/Credits Drops in 2011 as a Percentage of Total Revenue
Selecting and Negotiating
Value of Functionality Increases While Many Other Factors Rated Less Important Than in 2010
Most Agencies Negotiate GDS Contract without Assistance or Networking
61% of Agencies Plan to Renew Their Current GDS Contract When It Expires
GDS Satisfaction
Ease of Booking Still Primary Reason for Renewing GDS Contract
Satisfaction with GDS Content Varies Based on Segment as Expected
The Percentage of Agencies Rating Content “Very Satisfied” Drops Across All Travel Categories between 2008 and 2011
Higher Percentage of Sabre Users “Very Satisfied” with their GDS Content for Most Travel Categories
The Largest Group of Agencies Are “Somewhat Satisfied” Customers
GDS Non-Users
Most of the Current Non-GDS Agencies Did NOT Use a GDS in the Past
Dropping ARC Accreditation Is a Primary Reason for Dropping Their GDS
Non-GDS Agencies Depend on Phone, Supplier Sites, and Online Booking Tools
Appendix 1 – 2011 Research Family Demographics

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