In the world of hospitality, landing high-value corporate bookings can feel like a race where big hotel chains have a big head start. But what if you could level the playing field and tap directly into the corporate travel market, filling rooms year-round and boosting your revenue? For hotels looking to break into this lucrative space, a Global Distribution System (GDS) might just be the game-changer you need.
Let’s uncover how GDS can help you compete with industry giants, attract more corporate clients, and turn your off-peak seasons into revenue goldmines.
Key challenges faced by hoteliers
The corporate travel sector holds great potential for hotels, yet certain barriers can make it difficult for smaller properties to effectively capture this market. Here are some of the primary obstacles hoteliers encounter when trying to attract corporate travelers:
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Difficulty in attracting corporate travelers: Unlike leisure travelers who tend to book directly, corporate clients typically rely on corporate travel platforms and established booking channels. Without a presence on these platforms, many hotels may be nearly invisible to corporate clients.
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Limited visibility on corporate booking channels: Corporate travel managers often mandate the use of GDS for booking their managed corporate program. TMCs and Consortia often use GDS platforms to deliver their own branded rate programs to streamline reservations and offer added value for business clients who may not have their own dedicated program in place. Hotels not listed on these channels risk losing out on valuable corporate bookings.
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Brand awareness and resource constraints: Competing against well-established chains that have dedicated corporate sales teams can be a significant obstacle for independent hotels. Without the resources or expertise to effectively promote their properties, many hotels find it challenging to establish a strong presence in the corporate market.
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Inclusion in a mandated travel program: Corporate buyers frequently require special rates or agreements to be rolled out to their travelers annually as their managed travel program to utilize. Without a streamlined platform like the GDS, loading the rates for selected hotels and ensuring the RFP accepted hotels are selected by the travelers can detract from other core business operations.
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Missed opportunities: Without access to the corporate travel network, hotels may struggle to fill rooms during off-peak or quieter seasons. This results in lower occupancy rates, especially during times when corporate travel could provide consistent bookings.
How GDS can address these challenges
A Global Distribution System (GDS) is a centralized network that connects hotels with a vast array of corporate travel planners, agencies, and online booking platforms. This powerful tool is designed to improve a hotel’s visibility and access to the corporate market by streamlining booking and rate management processes. Here’s how a GDS can specifically address the challenges faced by your hotel:
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Boosts visibility where it counts: By connecting to a GDS, hotels gain exposure to a network of corporate travel agents and travel managers, directly increasing their chances of being booked by corporate clients. This presence on GDS ensures that a hotel is visible on the same platforms where corporate travel decisions are made.
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Effortless rate management: GDS allows hoteliers to manage corporate rates, negotiated discounts, and contracted terms for various corporate clients. This automated management of rate agreements minimizes the time and complexity involved in manually handling these arrangements, ensuring quick and smooth transactions.
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Real-time availability and pricing: With GDS, hotels can instantly update their rates and availability, making it easy to accommodate corporate clients’ needs on demand. Whether adjusting prices due to seasonal shifts or updating inventory in response to demand, GDS provides the flexibility needed to stay competitive. A GDS enables hotels to reach a premium segment of travelers (e.g., business clients), particularly during off-peak periods.
Key benefits of GDS connectivity for hoteliers
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Expanded visibility: By joining a GDS platform, hotels gain access to thousands of corporate travel agents and managers worldwide, making it easier to be discovered and booked by corporate clients.
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Streamlined corporate rate management: GDS platforms allow hotels to manage negotiated rates directly, simplifying corporate relationships and allowing hoteliers to focus on delivering excellent guest experiences.
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Instant availability and dynamic pricing: A good GDS strategy ensures that inventory and pricing are updated in real time, allowing hotels to respond to demand fluctuations. This dynamic pricing capability ensures corporate clients see only the most up-to-date rates and availability.
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Access to high-value business travelers: With a GDS, you get direct access to premium business travelers who typically book extended stays and generate higher revenue. This not only boosts occupancy but also elevates the hotel’s overall revenue per available room.
Long-term benefits & efficiency of GDS connectivity
With a well-managed GDS strategy, hoteliers can expect a steady increase in some key outcomes over the long term:
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Sustainable growth in corporate bookings: Regular use of GDS can result in a steady flow of corporate clients, which provides a reliable revenue stream throughout the year.
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Improved occupancy rates: By leveraging GDS, hotels can attract corporate clients during off-peak times, helping to maintain steady occupancy rates throughout the year.
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Enhanced revenue management: With access to detailed data and insights from GDS bookings, hoteliers can refine their pricing strategies and maximize profitability.
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Stronger corporate relationships: GDS streamlines rate management and booking processes, helping hoteliers build lasting relationships with corporate travel planners. This translates into increased brand loyalty and repeat bookings from high-value clients.
Connecting your hotel with GDS can transform your hotel’s approach to corporate bookings, giving you the visibility needed to reach high-value business travelers and consistently fill rooms. By joining the GDS network, even smaller hotels can compete with major brands, offering competitive rates, real-time availability, and seamless access for corporate bookers. This connectivity not only drives steady revenue but also strengthens your hotel’s position in the ever-evolving corporate travel landscape, setting you up for sustained growth and adaptability in the future.
Cendyn GDS Connect
Cendyn CRS provides seamless connectivity to all the GDSs and our team of seasoned professionals having expertise in the business travel market helps hotels to intelligently manage their hotels’ ARI to maximize the GDS bookings. We also provide guidance to hotels to optimize their GDS presence by improving their property content such as rate descriptions and images. Once connected to GDS, Cendyn also offers Corporate Sales services which helps hoteliers to drive GDS demand with its long-standing relationships with over 500 global corporations and 30 consortia and TMCs to generate direct corporate agreements and strong transient GDS business. Click here to learn more
Cendyn is a global hospitality cloud-based technology company that enables hotels to drive revenue, maximize profitability, and create deeper connections with guests through its integrated solutions. Serving hoteliers for nearly 30 years, Cendyn drives commercial success for hotels through its Find, Book, Grow promise: find the right guests, drive them to book direct, and grow loyalty and revenue across the spectrum of digital guest interactions.
Cendyn has over 35,000 customers worldwide in more than 150 countries generating more than $20 billion in annual hotel revenue. The company supports its growing customer base from locations across the globe, including the United States, France, the United Kingdom, Singapore, Bangkok, and India. To find out more, visit cendyn.com
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