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Skift
22-05-2025
- Business
- Skift
How GDS Commission Shares Impact Global Hotel and Agency Revenue
Part one of this two-part series explores the global landscape for GDS commission shares, which represent tens of millions of dollars in revenue for travel management companies and agencies. A better understanding of gaps by region, country, and hotel class can lead to competitive advantages in global distribution. This sponsored content was created in collaboration with a Skift partner. It's 5:59 a.m. on a rainy Monday in Chicago. A corporate traveler scans her company's booking tool, hits 'book,' and locks in a room at an upscale hotel in Auckland. That single click unleashes the Global Distribution System (GDS): reservation messages, credit‑card authorizations, and once the guest checks out, a commission to the travel management company (TMC) that facilitated the sale. Multiply that chain by hundreds of millions of transactions, and you begin to see why the GDS agency model remains one of hospitality's most durable revenue engines. Roughly 200 million hotel bookings flow through the three big GDS networks (Amadeus, Sabre, Travelport) every year, primarily from corporate travel. Corporate travel, and by extension, GDS channels, continue to be critical in the hotel booking ecosystem at a time when hotel companies are clinging to stable, predictable revenue streams. GDS Commissions in the Booking Universe: A One‑Slide Crash Course Hotel demand splits into two macro buckets. Direct bookings flow through voice/central‑reservation lines, and walk‑ins. Indirect bookings spread across online travel agencies (OTAs), wholesale, group blocks, and the GDS. Within GDS, two commercial models dominate: Agency / Post‑Pay : The hotel gets paid after the stay and owes a commission to the TMC. : The hotel gets paid after the stay and owes a commission to the TMC. Merchant / Net: The hotel is paid a wholesale rate, and the TMC then upsells the room to travelers to earn a margin on the markup. According to Skift Research data, global hotel bookings from these two models represented about 25% of global gross hotel bookings revenue in 2024. This article zeros in on the Agency/Post-Pay model because it generates commissionable revenue, or GDS Commission Share. GDS Commission Share: A Global Perspective According to OnyxInsights data, hotels paid an estimated $2.1 billion in commissions to TMCs through the GDS networks in 2024. However, GDS commission share, which represents the share of total hotel commissions incurred by GDS bookings, is unevenly distributed. Understanding gaps can lead to competitive advantages for players in the hotel bookings game. Region by Region: How GDS Commissions Differ North America (5% GDS commission share) has spent decades wiring corporate travel programs into back‑office systems. Deep links between TMCs, payment providers, and hotel CRS platforms keep agency bookings fast and relatively cheap. Europe (4.3%) enjoys dense cross‑border business and stringent duty‑of‑care rules, pushing travelers into managed channels. Yet, powerful direct booking campaigns from hotel companies limit GDS growth. Asia‑Pacific (4% and climbing) currently lags but has significant momentum. Multinational companies are scaling hubs in Singapore, Sydney, and Bangalore; local TMCs are modernizing; and card adoption is broadening, together fueling the steepest year‑over‑year gains globally. Country by Country: Where GDS Commissions Carry Higher Shares New Zealand (11% GDS commission share) and Australia (10.5%) top the league table, powered by resource‑sector compliance, lengthy domestic flight sectors, and dominant regional TMCs. The United States (5.1%) tracks just above the global mean of 4.8%, representing the tug‑of‑war between enormous corporate demand and loyalty‑fueled direct‑booking campaigns. Belgium (4.4%) shows how mid‑size economies can under‑index when large corporations negotiate static, direct deals with preferred chains, sidestepping the GDS entirely. How Room Class Drives GDS Commission Share Luxury and upper‑upscale hotels capture 6% to 7% of stays via GDS because they sit at the epicenter of managed‑travel itineraries: meeting space, negotiated last‑room‑available clauses, and premium loyalty tiers. Midscale and economy properties earn less than 3% GDS commission share. Their price‑sensitive guests flock to OTAs, metasearch sites, and air‑hotel bundles. Chain scale magnifies the gap: mega‑brands amortize connectivity costs and lock in global preferred suppliers, while independents shoulder higher fees or skip the channel altogether. Why GDS Commission Share Matters Why do these slight differences matter, if agency/post-pay GDS commissions comprise only about 5% of global hotel commissions? Indeed, hotels more broadly have been making efforts to migrate to direct-heavy distribution strategies since the dawn of the internet age, and Skift Research expects those efforts to intensify in the next several years, according to the 'Hotel Distribution Outlook 2024.' However, Skift Research also estimated in the report that agency bookings are expected to grow 125% by 2030. With every percentage point in GDS commission share representing millions of dollars, there's a significant amount of money on the table for hotels and agencies. Part 2: GDS Commission Implications at the Property Level Region, country, and hotel class explain only part of the variance in GDS commission share. The next Data Snap, coming out in July, will zoom into the property level — branded vs. independents, location, hotel persona — and show how hotels are turning hidden white space into high‑margin bookings. Stay tuned. 'The Data Snap' is a recurring article series that paints a clearer picture of the dynamic hotel booking landscape, empowering hotels and agencies to make data-driven decisions that help them build productive partner relationships and drive more revenue. OnyxInsights offers a comprehensive view of the industry landscape, enabling hotels and TMCs to make well-informed decisions and better serve their clients and partners. Onyx CenterSource processes over 100 million transactions annually on behalf of 200,000 agencies and 150,000 hotels globally, representing nearly $2.1 billion in hotel commission payments. Visit to learn more. This content was created collaboratively by Onyx CenterSource and Skift's branded content studio, SkiftX.
Travel Daily News
12-05-2025
- Business
- Travel Daily News
Sabre appoints Jennifer Catto as Executive VP
Sabre appoints Jennifer Catto as EVP and CMO to lead global marketing strategy, enhancing brand presence and customer engagement. SOUTHLAKE, TEXAS – Sabre Corporation, a leading global travel technology company, announced the appointment of Jennifer Catto as Executive Vice President and Chief Marketing Officer. As a member of Sabre's Executive Leadership Team, Jennifer will shape the company's global marketing strategy and brand, supporting growth, enhancing customer engagement, and positioning Sabre for future success. Jennifer joined Sabre in February 2025, bringing over 25 years of experience helping companies navigate and accelerate through periods of transformation. A strategist at heart and a natural disruptor, she has built and repositioned brands at the intersection of technology and customer needs, leading integrated marketing and growth strategies at Travelport, Telaria, Travelocity, Condé Nast and SAY. Throughout her career, Jennifer has championed data-driven insights, compelling storytelling and cross-functional collaboration to unlock new market opportunities and drive lasting brand relevance in dynamic industries. 'A brand is a promise you make to the market that the business must uphold. I'm thrilled to lead a strong brand for a company that has truly committed to innovation and product excellence – keeping customers at the centre of every solution it develops,' said Jennifer Catto. 'Sabre has achieved what many only claim – modernising its foundations. It is now a unified, intelligent travel marketplace that prioritises performance over promises. I'm here to craft a brand that precisely reflects that transformation – instilling confidence in the market and strengthening Sabre's presence across all channels and customer experiences.' A respected industry leader, Jennifer has been nominated for a Cannes Lions Award, won the AdAge Brand Leader Award, and was named a GBTA WINiT Top 50 honouree. She is also a regular speaker and commentator for major media outlets, and is passionate about redefining how companies engage audiences and build lasting value through innovation. 'Jennifer's appointment demonstrates our commitment to bold, strategic leadership as we accelerate Sabre's evolution into the premier technology platform for travel,' said Kurt Ekert, President and CEO of Sabre. 'She combines creativity, operational discipline, and deep expertise in digital transformation – an increasingly rare mix. With Jennifer at the helm of marketing, we will elevate Sabre's brand, strengthen ties with customers and partners, and sharpen our competitive edge in the market.' With this appointment, Sabre continues to reinforce its leadership team and focus on delivering innovative technology solutions that shape the future of travel.
Fox News
20-02-2025
- Business
- Fox News
Costco expands travel benefit by rolling out use of artificial intelligence
Costco is rolling out new ways to deliver perks to its customers while tapping into the travel industry's knowledge and insight. In collaboration with Travelport, a global technology company that connects travel suppliers, Costco Travel has introduced some new features. The partnership will expand the flight options that are available to consumers. It will introduce artificial intelligence through Travelport+ with the goal of making trip searches faster and more convenient — ultimately benefiting members. Costco Travel provides travel services throughout the U.S., Canada and the U.K. The Costco Travel website says the warehouse club "offers everyday savings on top-quality, brand-name vacations, hotels, cruises, rental cars, exclusively for Costco members." Jason Toothman, Travelport's chief commercial officer, announced the new deal in a press release. "Costco Travel is focused on delivering more value to its members by giving them more choice and better offers when planning their trips, and Travelport provides the seamless, modern travel retailing experience that their customers have come to expect," said Toothman. "We're focused on making it easy for consumers to pinpoint the best options based on their preferences," Toothman added. Costco Travel will also be using Travelport Insights for its analysis of market demand. The membership warehouse club has 139 million members internationally. Fox News Digital reached out to Costco for comment.
Fox News
19-02-2025
- Business
- Fox News
Costco expands travel benefit by rolling out artificial intelligence to members
Costco is rolling out new ways to deliver perks to its customers while tapping into the travel industry's knowledge and insight. In collaboration with Travelport, a global technology company that connects travel suppliers, Costco Travel has introduced new features for members. The partnership will expand the flight options available to members. It will introduce artificial intelligence through Travelport+ with the goal of making trip searches faster and more convenient. Costco Travel provides travel services throughout the United States, Canada, and the United Kingdom. The Costco Travel website says the warehouse club "offers everyday savings on top-quality, brand-name vacations, hotels, cruises, rental cars, exclusively for Costco members." Jason Toothman, Travelport's chief commercial officer, announced the new deal in a press release. "Costco Travel is focused on delivering more value to its members by giving them more choice and better offers when planning their trips, and Travelport provides the seamless, modern travel retailing experience that their customers have come to expect," said Toothman. "We're focused on making it easy for consumers to pinpoint the best options based on their preferences," Toothman added. Costco Travel will also be using Travelport Insights for its analysis of market demand. The membership warehouse club has 139 million members internationally. Fox News Digital reached out to Costco for comment.
Yahoo
19-02-2025
- Business
- Yahoo
Travel Software Market Growing at a CAGR of 10.65% From 2024-2032
Acquiring Deem allows Travelport to improve its corporate travel offerings, broadening its market presence and reinforcing its role in the global travel technology United Kingdom, London, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Introspective Market Research is pleased to announce the publication of its latest report, Travel Software Market. This in-depth analysis shows that the Global Travel Software Market, valued at . This anticipated expansion reflects a strong from 2024 to 2032. Global Travel Software Market is set for substantial expansion from 2024 to 2032, Travel software advances efficiency in the travel sector by restructuring bookings, reservations, and managing client interactions. By incorporating features such as itinerary planning, real-time notifications, and modified suggestions, it enhances user experience while utilizing AI, machine learning, and blockchain to facilitate digital transformation and improvement customer Industry Insights: Driver Increasing Desire for Customized Travel Experiences: The travel software industry is undergoing significant expansion, by the increasing desire for customized travel experiences. Customers are gradually looking for personalized travel plans, distinctive lodging options, and attractive cultural activities that match their benefits. Travel software utilizes data analytics and AI to deliver personalized suggestions, boosting user appointment and satisfaction. The movement towards genuine experiences in travel drives interest in apps that offer local knowledge and unique sites. As companies invest in AI-based personalization and smooth booking systems, the market is anticipated to grow, enhancing customer loyalty and bolstering the competitive dynamics of the travel sector. Restraint Issues Related to Data Security: A key restraint in the travel software industry is the rising concern regarding data privacy and security. As digital platforms become more important, businesses must follow to strict data protection laws like GDPR and CCPA. Not adhering to these standards may lead to serious legal significances and harm to one's reputation. The risk of cyberattacks, such as data breaches and phishing structures, presents a challenge for travel software companies, necessitating significant investments in cybersecurity systems. Implementing strong encryption, protected payment systems, and protection user data increases operational expenses, hindering the growth of smaller companies. Opportunity Growth of the Travel Sector in Developing Economies: The instant growth of the travel sector in emerging economies offers a main chance for the travel software industry. The demand for seamless digital travel solutions is being by increasing urbanization, higher disposable proceeds, and expanding internet contact. An expanding middle-class demographic desires effective booking systems, itinerary organization, and customized suggestions, leading to the use of travel software. The rise of international tourism in these areas is driving investments in infrastructure and hospitality, which in turn increases the demand for travel management tools. The broad use of smartphones improves accessibility, enabling travel software companies to leverage mobile solutions and build a robust market presence. "Research made simple and affordable – Trusted Research Tailored just for you – IMR Knowledge Cluster" Challenge Complexity of Software Integration: A major challenge in combining new travel software with current systems is guaranteeing smooth compatibility. Numerous organizations depend on outdated systems that might struggle to integrate with contemporary travel management solutions, resulting in technical challenges and operational interruptions. The integration process may take a lot of time, necessitating extensive customization, data transfer, and system testing to avoid inefficiencies or inconsistencies in data. Organizations might need to allocate extra financial and human resources for software setup, staff training, and continuous technical assistance. Insufficient planning can lead to delays in implementation and obstruct the expected advantages of the new software. Key Players to Watch: Airbnb (U.S.) Amadeus IT Group SA (Spain) Booking Holdings (U.S.) Certify (U.S.) Dolphin Dynamics (UK) Egencia (U.S.) Expedia Group (U.S.) Lemax Ltd. (Russia) Navan (U.S.) Oracle Corporation (U.S.) Rydoo (Belgium) SAP Concur (U.S.) Sabre Corporation (U.S.) TravelBank (U.S.) Travelport Worldwide (UK), and Other Active Players. Recent Development: In April 2024, Travelport, a global frontrunner in travel technology, purchased Deem, a top corporate travel management platform. This strategic action enhanced Travelport's offerings and supports its commitment to innovation, subsequent to the introduction of its sophisticated marketplace. The integration advances Travelport's ability to facilitate smooth travel bookings for international suppliers. In January 2024, Sabre Corporation, a prominent software and technology provider for the global travel sector, entered into a multi-year distribution contract with International Airlines Group (IAG). This partnership will advance contemporary travel retailing methods and bolster Sabre's partnership with IAG, fostering innovation in airline Segments of Market Report – By Deployment Model Cloud-based On-premises By Application Personal Corporate By End-User Hotels Travel Agencies Airlines Cruise Lines By Region: The Asia Pacific Region is poised to lead the expansion of travel software, by growing economies, heightened urbanization, and a burgeoning middle class. The increase in interest for digital travel options, such as online reservation systems and trip planning applications, emphasizes the area's swift technological progress. Consumers are progressively looking for convenience and tailored experiences, positioning Asia Pacific as a key market for growth. Firms investing in this sector can utilize the area's innovation and entrepreneurship to create a robust presence in the competitive travel software Offerings: Strategic Points Covered in Table of Content of Travel Software Market: Executive Summary : Into the market research report, the executive summary highlights the most critical market findings, including key trends and actionable insights, offering clients a snapshot of the report's core takeaways. Market Landscape: This section is crafted to include a detailed analysis of Travel Software Market Dynamics, Growth Trends, And Regulatory Frameworks. Tools like PESTEL Analysis, Value Chain Analysis, and Investment Pockets are employed to present a thorough market outlook and future growth projections. Travel Software Market Competitive Analysis: The competitive analysis examines the Key Players, Their Positioning, Strengths, And Opportunities. By mapping competition, we provide actionable intelligence for clients to strategize effectively. Travel Software Market Segmentation Analysis: In segmentation, we break down the market into Key and Sub-Segments, focusing on their growth potential, demand patterns, and overall market contribution. Regional Analysis: Through in-depth global, regional, and country-level insights, we analyse key growth drivers and challenges specific to each geography. Travel Software Market Analyst Viewpoint and Conclusion: The concluding section consolidates the findings, offering strategic recommendations and emphasizing practical, client-centric strategies to navigate market complexities. Thematic Research Methodology: Leveraging primary and secondary research, we ensure data authenticity and reliability. Our reports follow the MORE Principle: Magnifying Insights: Delivering accurate and detailed research findings. Optimizing Strategies: Customizing strategies for client needs. Refining Solutions: Continuously enhancing research processes. Elevating Client Impact: Creating measurable value for client success. About Us: Introspective Market Research (IMR) is a global market research firm specializing in big data and advanced analytics to provide actionable market insights. Our experts help clients forecast trends, assess demand, analyze competition, and evaluate macroeconomic factors. With a client-centric approach, IMR offers tailored research and subscription reports designed to meet individual needs. We deliver reliable, data-driven solutions that empower businesses to make informed decisions, spot opportunities, and maintain a competitive edge. By upholding strong work ethics and providing dedicated support, IMR helps clients achieve their business goals with confidence. Contact Us: Canada Office Introspective Market Research Private Limited, 138 Downes Street Unit 6203- M5E 0E4, Toronto, Canada. APAC Office Introspective Market Research Private Limited, Office No. 401, Saudamini Commercial Complex, Kothrud, Pune, India 411038 Ph no: +91-81800-96367 / +91-7410103736 Email: sales@ in to access your portfolio
