Abstract

The purpose of this study is to analyze the competitive relationships among the four major Global Distribution Systems (GDSs), which are representative reservation systems in the tourism industry by using niche theory. To that end, niche theory, which presents the three core concepts of niche breadth, niche overlap, and niche superiority, was combined with gratification in the uses to apply the gratification niche analysis technique. Based on an extensive literature review, four factors (core functions, system functions, service functions, and additional functions) to measure user satisfaction levels by function with GDSs were extracted. Online/offline questionnaire surveys were conducted with travel agencies’ airline counter staffs who had experience using all four GDSs, and in total, 324 copies of the questionnaire were used in the analysis. The analysis results confirmed that Sabre had a competitive edge in general over the other three GDSs, while TOPAS (Amadeus) and Galileo had a comparative competitive edge in certain functions. This study suggested concrete implications that can help individual GDSs in terms of their development of functions or the establishment of marketing strategies by verifying user satisfaction by the function of individual GDSs.

Highlights

  • With regards to practical aspects of each Global Distribution Systems (GDSs), when the competitive relationships among the four largest domestic GDSs were comprehensively reviewed based on the results of the analyses set forth above, it could be seen that Total Passenger Service System (TOPAS) was more competitive than Worldspan in all functions and that it could replace Worldspan in core functions

  • It could be seen that TOPAS was more competitive than Galileo in system functions, additional functions, and core functions, but less competitive than Galileo in service functions

  • It could be seen that TOPAS was less competitive than Sabre in service functions, system functions, and additional functions, but no statistically significant difference was found in core functions

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Summary

Introduction

The Global Distribution System (GDS), one of the CRSs used in the tourism industry, began with the automation of transactions between airline ticket selling agencies and airlines in airlines such as American Airlines (AA) with the aim of enhancing efficiency through the computerization of airline reservations [7,8]. The GDS, one of the most effective information technologies used in travel agencies, is a distribution system that connects airlines and travel agencies; it plays an essential role in the aviation industry as well as in the travel industry by enabling travel agencies to provide value-added travel services to potential customers, and it is one of the most important tools for the sales of goods by all airlines and travel agencies [13,14,15,16]. Since more than 60% of the profits of CRS/GDS companies come from booking fees and ticketing by travel agencies, existing domestic airline-based GDS companies have been developing new systems to maintain their market shares in the domestic market, and they have been making efforts to maintain their competitive advantages through cooperation with overseas GDS companies

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