The Impact of Evolving Business Models on Global Distribution Systems

The commercial revenue model revolves around the flow of cash between the airlines (suppliers), global distribution system (GDS), travel management company, and online travel agencies. This chapter explores the different significant moments in the history of GDSs and the journey towards disintermediation. Throughout this period, the revenue model has evolved in terms of how intermediaries are compensated by suppliers. We delve into the traditional GDS revenue model, which includes the GDS imposed full content access fee from participating carriers to travel agents, GDS surcharges first imposed by Lufthansa in 2015, preferred channels by the International Airline Group in 2017, and the wholesale model by SAS in 2022. In the hybrid era, where both traditional GDS bookings and NDC bookings exist, two revenue models will continue to coexist.