Factors that influencing the usage of global distribution system

Budiasa, I Made; Suparta, I Ketut; Nadra, Nyoman Mastiani

doi:10.1088/1742-6596/953/1/012053

Cited by 7 publications

(11 citation statements)

References 24 publications

(31 reference statements)

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“…GDSs needed to offer additional services to remain competitive due to the technological advancements to consumer trends that made GDS capture a decreasing share of the travel distribution market (Waksberg, 1997). Though the advancement of innovation in information technology influences the tourism industry, ease of use and awareness were the factors influencing the behavioral intention to use GDS in the industry (Budiasa et al, 2017). However, some of the individual airlines and hotel chains are trying to sell their products directly to their customers by overlooking GDS (Pan, 2015).…”

Section: Review Of Literaturementioning

confidence: 99%

New Distribution Capability (NDC) and its Effects on Travel Industry in Oman

Krishnamurthy¹,

Krishnan²

2021

Int. j. res. entrep. bus. stud.

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Purpose of study The objectives of the study were to analyze the effects of transformation from GDS to NDC from the perspectives of the travel agencies in Oman; to find out the concerns of the travel agencies in Oman with regards to the implementation of NDC and to compare the benefits of NDC content with GDS from the perspectives of the travel agencies in Oman. Design/Methodology/Approach A questionnaire survey, telephone, and personal interview were conducted with 19 top leading travel agencies in Muscat region, Oman. Each Travel agent manager was given the questionnaire through google forms for the questionnaire. The telephone/ personal interview was also conducted. Around 78 employees were targeted out of which only 13 responded. The data collected was analyzed using Statistical package. Findings The findings support the fact that Oman being a small market with many small and medium players’ implementations of NDC is slow. The current pandemic has slowed it down even further. But their help being offered in terms of training and awareness by the NDC platform and some major airlines to speed up the adaptation. The study showed that the high cost of technological implementation is going to be one of the major barriers to complete switch to NDC system. As of now, the travel agents will be settling for GDS with NDC. Research Implications The adaptation by NDS has been slow especially by airlines. With IATA pushing the implementation, major airlines are slowly but surely adapting it as they can see the benefits they can derive. The customers too are benefiting from direct buying. The travel agencies in Oman especially small and medium-sized travel agencies are the ones who are most affected and there is not enough research being done to find what is it that is stopping them from adapting. Social Implications The pandemic has devastated the travel industry overall. Many small and medium businesses have been forced to shut due to lockdowns. Further, more people becoming comfortable with online shopping and willing to spend less, it will be a while before travel agents can start earning the same level of revenue they were enjoying before the pandemic. This will have an impact on unemployment as well as the inability to meet loan commitments. This can have a ripple effect. Originality/Novelty Few academic research has been carried out on NDC, especially in the Middle East. This research is the first of its kind which is dedicated to travel agents from Oman. The fact that NDC is set to revolutionize the shopping experience for the consumer one cannot ignore the fact that it is set to blow a dent in the revenues of the Travel agents.

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Section: Review Of Literaturementioning

confidence: 99%

New Distribution Capability (NDC) and its Effects on Travel Industry in Oman

Krishnamurthy¹,

Krishnan²

2021

Int. j. res. entrep. bus. stud.

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“…These technological developments and transformations made the travel and tourism industry more competitive within a short span of time (Buhalis, 2016). Over the course of time, different GDSs have originated in the travel industry to facilitate the search and the availability of content with increased frequency, precision and speed (Budiasa et al, 2017). GDSs like Amadeus, Galileo and Sabre are the key flight aggregators since the mid-1990s, serving as the intermediaries between the suppliers of the travel and tourism content and the distributors, sellers or buyers of these travel products (Pan, 2016).…”

Section: Global Distribution Systemsmentioning

confidence: 99%

The trend of multisided platforms (MSPs) in the travel industry: reintermediation of travel agencies (TAs) and global distribution systems (GDSs)

Aamir

Atsan

2020

JTF

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Purpose The purpose of this paper is to shed light on the remarkable trend of multisided platforms (MSPs) in the travel industry with the help of which travel agencies (TAs) and global distribution systems (GDSs) can reinforce their intermediary roles. Orthodox TAs face the threats of disintermediation because of the ever faster-changing developments in information and communication technologies, such as the emergence of metasearch engines, online travel agencies, direct bookings on airline websites and the widespread of mobile applications for travel related bookings. GDSs face similar threats of disintermediation from low-cost carriers and legacy carriers, as these carriers promote and encourage direct bookings via their official websites or via the new distribution capability. Design/methodology/approach This is a casestudy-oriented research, and the case selected is a MSP based in Turkey. The data are gathered using semi-structured interviews conducted from 15 international representatives of this MSP in different countries. Interviews were conducted either physically at the MSP’s headquarters in Antalya, Turkey, or virtually using Zoom application from January to October 2019. Findings The paper portrays the significance of MSPs in terms of their contributions toward the reintermediation of the two important intermediaries, namely, TAs and GDSs in the travel industry supply chain. Both of them are prone to the dangers of disintermediation because of the developments in technology, networking and communication channels; the worldwide accessibility of the stakeholders to the internet; and the direct reach of suppliers to consumers. The deteriorating role of TAs and GDSs is reignited by the successful launch, deployment and adoption of MSPs in the ecosystem of the travel industry. Originality/value This paper offers an insight into the prevailing trend of MSPs in business to business (B2B) trading from the perspective of two main intermediaries, TAs and GDSs, in the supply chain of the travel industry. The paper in a novel way compiles the data from the interviews to shed light on the adoption of MSPs by intermediaries in their business models to reintermediate themselves because the sole reliance of intermediaries on orthodox business models is pushing them on to the verge of disintermediation.

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“…Information and Information and Communication Technologies (ICTs) have transformed the tourism industry within a brief span of time. The use of aforementioned Global Distribution Systems in the field of tourism industry can increase availability, frequency and the communication among the companies in providing services to potential tourists (Budiasa, 2018).…”

Section: Literature Backgroundmentioning

confidence: 99%

“…Furthermore, through removing the physical distance between the manufacturer and the sales mediator or the customer, they facilitate the transport of goods (Felicen, 2016). Global Distribution System can also be defined as a worldwide computerized reservation network used by travel agents, online reservation sites, and large corporations as a single point of access for reservation of airline seats, hotel rooms, rental cars and other travel related products (Budiasa, 2018).…”

Section: Literature Backgroundmentioning

confidence: 99%