ASTA 2010 GDS report finds continued movement to no-minimum GDS contracts
American Society of Travel Agents released (23-May-2011) the results of its 2010 Global Distribution System (GDS) Report. The study found that movement of travel agencies away from fixed-rate based contracts to "no-minimum" and productivity-based contracts is continuing, and that the vast majority of agencies still use a GDS system. Other key findings.
- GDS users mostly maintain long-term relationships their providers, with the average agency-GDS relationship being 18 years.
- Most agencies contract directly for their GDS.
- 31% of agencies saw improvements in number of segments booked.
- 63% of agencies receive an incentive or credit.
- Three-year and five-year GDS contracts remain most popular.
- Agencies are most likely to have itinerary invoicing as a product included in their contract.
- The majority of respondents felt that GDS air content and GDS functionality were the most important factors to consider when selecting a GDS.
- 63% of agencies plan to renew their current GDS contract when it expires, even though most agencies do not receive incentive for re-signing.
- Dropping ARC accreditation was the most common reason cited among travel agencies that dropped their GDS contracts.
- Corporate agencies more likely to use "productivity pricing" method for monthly GDS pricing.
- Corporate agencies are less likely to be "very satisfied" with their GDS provider. [more]