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Internet bookings gain headway over slowing GDS growth


RESEARCH conducted by the Hotel Electronic Distribution Network Association (HEDNA) has shown a slowing in growth of reservations through the GDS systems.



Figures from 65 hotel companies which took part in the study indicated an 18% year-on-year increase in reservations from the GDSs in 1998 compared to 23% in 1997 and 35% in 1996.



The association says although the GDSs remain the primary means of electronic reservation for hotels, use of the Internet as a channel for distribution has risen sharply.



The Internet is the cheapest method of distribution by far for hotel groups which are actively encouraging both the trade and the public to use their sites more.



HEDNA’s statistics on GDS use are backed up by another study it undertook with the US-based Hospitality Technology Consulting, which found GDS bookings growth was 22% in 1994 and had fallen to just 12% in 1998.



A HEDNA spokesman said: “The apparent slowdown in percentage growth of GDS bookings indicates that growth in bookings through this channel may be levelling out. Despite this, however, GDSs remain the premier channel for hotel bookings delivered electronically.



“It should also be remembered that GDSs act as booking engines for some of the major Internet sites, thereby ensuring they are likely to remain a significant source of bookings for hotels for some time.”


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