GDS sytems, future of GDS systems, Galileo, Amadeus, Sabre,

1. Global Distribution Systems
(GDS)
Past, present and yet to come….
Magiel Venema
info@edutour.eu
© 2011-2017 Edutour (Netherlands)
Part 5 of 5: The Future
A comprehensive overview of Global Distribution Systems in
the travel industry

2. 2
Global Distribution Systems
(GDS)
1. GDS: The origins
2. GDS: The practice
3. GDS: The playing field
4. GDS: New kids on the block
5. GDS: The future

3. 3
Michael Porter’s Five Forces of
Competition
• Michael Porter developed a model for
analysing competition
• It is called the Five-Forces model
• It is a framework to analyse the competition
within an industry
• Based upon this analysis, a strategy for the
future can be devised

4. 4
Rivalry among existing
firms
Porters’s Five Forces Model
Potential Entrants
Substitute Products
BuyersSuppliers
Threat of New Entrants
Bargaining Power of Buyers
Bargaining Power of Suppliers
Threat of Substitutes

5. 5
Assignment 1
• Make an educated guess about the position
of the GDS (in general) 10 years from now
• Take the 4 external forces of competition of
Porter as a starting point
• First make an inventory of the influence of
each factor
• Then score each factoron a scale from 1 (low
influence) to 5 (heavy impact)
• Try to draw a conclusion

6. 6
Porters’s Five Forces Model

7. 7
Porter’s Generic Strategy
In order to gain competitive advantages,
enterprises can apply different approaches:
1. Cost Leadership
2. Differentiation
3. Focus on Market Segmentation (Niche <->
Mass)
• Depending on the market situation, a
choice has to be made

8. 8
Porter’s Generic Strategies
Competitive Advantage
Overall
Cost Leadership
Differentiation
Focus
Segmentation
Strategy
Focus Low Cost Differentiation
Market Focus
Broad
Narrow

9. 9
Assignment 2
• Today’s 4 major GDS are competing about
their markets and marketshare
• Make an educated guess how a GDS could
gain advantages over its competitors in the
near future
• Use the ‘Generic Strategies Model’ of Porting
as your point of departure to define actions
• Categorize each action how likely it will be a
success

10. 10
End of Part 5
1. GDS: The origins
2. GDS: The practice
3. GDS: The playing field
4. GDS: New kids on the block
5. GDS: The future