Glossary

GDS (Global Distribution System)

The technology backbone connecting airlines, hotels, and travel agents — Amadeus, Sabre, and Travelport are the three main systems that power most flight searches.

What is a GDS?

A Global Distribution System (GDS) is a computerised network that connects airlines, hotels, car hire companies, and other travel service providers with travel agents and online booking platforms. The three dominant GDS providers are Amadeus (headquartered in Madrid, used by most European airlines), Sabre (US-based, dominant in American markets), and Travelport (which operates Galileo and Worldspan systems).

Airlines load their fares, availability, and seat inventory into the GDS, and travel agents and booking sites query the GDS in real-time to show search results and complete bookings. When you search for flights on Expedia, Skyscanner, or a travel agent's terminal, the results typically come from one or more GDS feeds.

How GDS affects prices

GDS connections add a distribution cost to every ticket sold through them. Airlines pay a booking fee (typically €3–€12 per ticket) every time a GDS completes a booking. This is one reason airlines prefer direct bookings on their own websites — and why you sometimes find exclusive web-only fares on airline.com that are not available through third-party sites.

Budget airlines like Ryanair and easyJet largely bypassed the GDS system entirely when they launched, forcing customers to book directly on their own websites. This reduced distribution costs significantly and is part of the structural reason why their fares can be lower than full-service airlines.

NDC and the changing landscape

IATA's New Distribution Capability (NDC) standard is gradually replacing the legacy GDS model. NDC allows airlines to offer richer, more personalised fares — with upsell options, ancillary products, and dynamic pricing — directly through travel agents without going through the traditional GDS infrastructure. Several major airlines (British Airways, Lufthansa, American) have already moved significant fare content to NDC-only distribution, meaning some fares are no longer available on traditional booking tools.

For travellers, NDC means richer booking experiences but also more fragmentation. Some search tools cannot yet display NDC fares, which is why a fare might appear on the airline's own site but not on a comparison engine.