Origins of the Global Distribution Systems (1925–1983)

This chapter commences by discussing the origins of civil aviation and airline reservation systems, which ultimately led to the development of the first global distribution system (GDS) in 1976. It examines the leading roles played by airlines such as American Airlines and later British Airways in launching both domestic and international versions of the IBM reservations system. Additionally, it explores the pioneering parallel efforts made by British European Airways and Scandinavian Airlines System with the UNIVAC reservations systems. The early years of the airline industry were marked by the significant contributions of organizations like the Civil Aeronautics Board, International Air Transport Association, International Civil Aviation Organization, American Society of Travel Agents, and several other. The launch of GDSs in 1976 gave birth to the automated travel agency, serving as an extension of an airline’s sales force. Several airline owned GDSs came into existence that gave them a competitive edge. Subsequently, airline deregulation occurred in 1978, followed by the introduction of airline frequent flyer programs in 1981 The regulatory period began in 1983 when smaller airlines filed complaints with the CAB, alleging that major airlines were leveraging their computer reservations systems (the GDSs) to gain an unfair competitive advantage.