Global Distribution Systems Research Articles

The Emergence of Hybrid Online Distribution Channels in Travel, Tourism and Hospitality

This article takes a comprehensive approach to summarize the four digital eras in the travel and tourism space since 1960s. The four eras discussed can be characterized as GDS (global distribution systems), Internet, SoLoMo, and Hybrid periods. Key components of each era are discussed in this paper with respect to the hospitality industry’s distribution intermediaries. The article concludes by listing some of the important upcoming trends in the online distribution channels for the hospitality industry.

The role and potential of global distribution system Amadeus for tourism development at the global level

Globalization, development and implementation of new technologies, new consumer trends, concern for the natural environment and other factors, have emphasized the diversity and complexity of the tourism industry. For these reasons, the tourism industry in recent years has focused its activities towards the information and technological infrastructure and global electronic connection in order to overcome border barriers and establish relationships with providers and tourists as well as with travel agencies and tour-operators. The development of information technology and evolution of airline reservation systems of individual airlines have led to the development of the Global Distribution Systems (GDS), recognized as a worldwide computerized reservation network that electronically connects the tourist offer with the tourist demand. As a result of the recognized challenge tourism has been facing in recent years, the main goal of this review would be to emphasize the role and importance of the leading GDS Amadeus in order to highlight its potential for the tourism development at the global level. The research and methodology of this review are based on the analysis of data collected from primary and secondary sources, through which we shall, by using deductive approach to theoretical assumptions and analytical approach to quantitative indicators, reach significant individual findings. At the end of the review through summary conclusions, we shall attempt to give a scientific justification of the research, and draw attention to the importance of continuous monitoring and adjustment to changes in the tourism market, in order to highlight the main potential of information technology applications for tourism development.

Development of information technologies, travel business and case of global distribution system: AMADEUS

Bilgi teknolojileri ve küreselleşmenin beraberinde getirdiği değişimlerden seyahat işletmeleri de etkilenmektedir. Bilgi teknolojileri, işletmelerin rekabet üstünlüğü elde etmelerine yardımcı olmaktadır. 1980’li yıllarda gelişen küresel dağıtım sistemleri seyahat işletmeleri üzerinde önemi bir yere sahiptir. Bu sistemlere dâhil olmayan işletmeler ise ciddi sorunlar ile karşı karşıya kalmaktadır. Bu araştırmanın amacı seyahat işletmelerinde bilgi teknolojilerinin önemini önde gelen küresel dağıtım sistemlerinden biri olan Amadeus örneği ile değerlendirmektir. Betimsel analiz yapılan araştırmada literatür taranarak seyahat işletmelerinde bilgi teknolojilerinin rolü açıklanmıştır. Örnek olarak Amadeus incelenmiş ve küresel dağıtım sisteminin işleyişi değerlendirilmiştir. Amadeus, küresel seyahat ve turizm sektörünün önde gelen bir işlemci ve ileri teknoloji çözüm tedarikçisi olarak seyahat sağlayıcılarına ve seyahat acentalarına son teknoloji çözümler sunmaktadır.

Simulación en el laboratorio de agencia de viajes

Hoy en día, el uso de la tecnología en la práctica docente es de suma importancia, debido a que el estudiante debe conocer y aplicar los diversos sistemas de reservaciones que se utilizan en el sector turístico, para el caso de servicios de viajes, estos sistemas de reservaciones se denominan globalizadores (GDS), que son softwares para reservar servicios aéreos, principalmente, hoteles, cruceros, renta de autos entre otros.En este caso, se utiliza un simulador denominado AMADEUS, que a través de codificadores y decodificadores realiza los estudiantes reservaciones aéreas.

The Future of Peer Review: Four Possible Options to Nothingness

Peer review faces its biggest challenge over the next few years. This is saying a lot for an activity that has been excoriated as sexist, racist, biased, incompetent, and an accomplice before the fact in theft and skullduggery. We are at a crossroads. We must act, and act now. All that stands in our way to step forward and make the change necessary to save some form of the academic in academic works is our willingness to face the issue with resolve and the rectitude to create a new, better model. We have made all the arguments against change, and, protected in the past by economic barriers that no longer exist, we were certain that even if the arguments failed, the excessive cost to publish and distribute would prevent “less than acceptable” research from reaching the masses. Lacking the cost to publish that existed 20 years ago and facing zero-cost global distribution systems, we must now either create a responsible, guided path for academic publishing, or we will see the landscape change without us. We must act now.

The corporate geography of global container terminal operators

The terminal and stevedoring industry has expanded substantially in recent years with the emergence of global container terminal operators controlling large multinational portfolios of terminal assets. This paper deals with the emerging corporate geography in the container terminal industry with issues related to the similarities or differences among terminal locations, the processes leading to the expansion of these holdings and the interactions they maintain as nodes within the global freight distribution system. It will be demonstrated that terminal operators show varying degrees of involvement in the main cargo handling markets around the world and that business cycles and a changing world economic geography can alter the geographical orientation of operators’ investment strategies. We unravel the corporate geography of leading firms such as Hutchison Port Holdings, Port of Singapore Authority, DP World, and APM Terminals, but also operators that are more regionally focused, such as Ports America, Eurogate, SSA Marine, and ICTSI.

A stochastic model for the implementation of postponement strategies in global distribution networks

When designing global production and distribution systems an important aspect becoming more and more relevant is the question of how to deal with demand uncertainties. Due to the proliferation of product variants that have to be handled in production and distribution, long lead times due to overseas transportation and increasingly volatile, uncertain and market specific demands, an appropriate concept to deal with these problems has to be established. One concept that has been proposed but not yet been fully explored in this context is postponement. In this concept the customization and finalization of a product is procrastinated, i.e., the final products are not completed in factories but in facilities of a distribution network that are located on the network from factories to customers. This may also entail a resequencing of manufacturing steps.Until now, research has mainly focused on general statements regarding advantages and disadvantages of postponement strategies. In contrast, quantitative models that allow for decision making for specific postponement implementations are rare, particularly models that explicitly take into account stochastic demands and long lead times. In order to allow for decision making for specific postponement implementations in uncertain environments, we present a two-stage stochastic mixed integer linear programming model in this paper. We design a case study inspired by decision support issues in the apparel industry. By means of this case study we show that the presented model formulation can support managers to determine an appropriate production and distribution network in uncertain environments. Benefits from the concept of postponement are exemplified using (commercially) available mathematical programming software.

À la carte pricing and price elasticity of demand in air travel

Global distribution systems (GDSs) and online travel agencies (OTAs) have been providing critical intermediation services for the air travel services industry. Their systems services have eroded the airlines' revenue by encouraging consumers to do price comparison-based purchases though, which has caused the commoditization of air travel services. The airlines have begun to adopt à la carte pricing mechanisms in their direct distribution channel, especially through their Web sites. This way, they can provide travelers with an array of information for different airline product bundles and the flexibility to customize different bundles. This mechanism design may allow airlines to decommoditize their services in the minds of consumers. We analyze two years of data from a large international airline that sold airline tickets via several different direct and indirect distribution channels. Our results suggest that demand in the à la carte channel as a whole is less price-elastic. The results for price elasticity for different market segments and bundle types across channels were not altogether consistent with our predictions though. We find that, for some branded bundles of services, price elasticity is lower in the à la carte channel, and for others it is higher. We discuss the implications for managers and the design of à la carte selling mechanisms.

Concepts of Animal Health and Welfare in Organic Livestock Systems

In 2005, The International Federation of Organic Agricultural Movements (IFOAM) developed four new ethical principles of organic agriculture to guide its future development: the principles of health, ecology, care, and fairness. The key distinctive concept of animal welfare in organic agriculture combines naturalness and human care, and can be linked meaningfully with these principles. In practice, a number of challenges are connected with making organic livestock systems work. These challenges are particularly dominant in immature agro-ecological systems, for example those that are characterized by industrialization and monoculture. Some of the current challenges are partly created by shortages of land and manure, which encourage zero-grazing and other confined systems. Other challenges are created in part by the conditions for farming and the way in which global food distribution systems are organized, e.g., how live animals are transported, how feed is traded and transported all over the globe, and the development of infrastructure and large herds. We find that the overall organic principles should be included when formulating guidelines for practical organic animal farming. This article explores how the special organic conceptions of animal welfare are related to the overall principles of organic agriculture. The aim is to identify potential routes for future development of organic livestock systems in different contexts and with reference to the specific understanding of animal welfare in organic agriculture. We include two contrasting cases represented by organic livestock systems in northwestern Europe and farming systems in tropical low-income countries; we use these cases to explore the widely different challenges of organic livestock systems in different parts of the world.

In-transit distribution as a strategy in a global distribution system

Distribution has become a key factor in today's logistics system due to companies' desires to achieve considerable economies of scale in production, achieved by focused factories, as well as customers' demands for shorter lead-times and customer adapted products. The purpose of this research is to investigate if the in-transit distribution strategy may offer companies a competitive advantage and may be used as a complement to the centralised distribution strategy and/or the decentralised distribution strategy. This study shows that the in-transit distribution strategy can give major competitive advantages by offering rather short lead-times for customers without having to store products locally in warehouses. This, in turn, gives lower warehousing costs, lower tied-up capital, a less interrupted manufacturing, and steady and continuous production volumes. In order to be successful with this strategy, it takes good planning, working closely with customers, good market knowledge, and an enterprise resource planning (ERP) system that is able to support the strategy sufficiently. Among these factors, low variation in demand as well as manufacturing output is required, and furthermore distribution lead time needs to be predictable.

Organisational learning and Six Sigma deployment readiness evaluation: a case study

PurposeThe purpose of this paper is to provide a greater understanding of organisational learning in connection with assessment of Six Sigma readiness. Different forms that a possible deployment can take in the organisation's context based on the degree of readiness are explored.Design/methodology/approachThe empirical data are derived from 12 in‐depth semi‐structured interviews of selected employees having different functions in the studied organisation, a global distribution system and information technology (IT) solutions provider to the travel and tourism industry. In addition, they include participant observation and documentation. The interview questions were built based on a modified version of Kettinger and Grover readiness assessment framework.FindingsThe study shows that organisational learning can provide a useful framework for assessing Six Sigma readiness in an IT organisation. A synthesized model is proposed combining the frameworks of an adapted Kettinger and Grover model and the core disciplines of the learning organisation. Further, the results suggest that having Six Sigma as a company‐wide strategy may not prove useful or suitable in the current context. However, the analysis shows that having Six Sigma as an improvement programme provides a structure for the improvement work and the define, measure, analyze, improve and control methodology is needed to address some current inefficiencies and problems.Research limitations/implicationsThis is a single case study and the possibility of generalising this finding to other contexts remains uncertain. Therefore, more research is needed. The procedure of using organisational learning as an assessment framework for Six Sigma readiness has been shown to be useful.Practical implicationsImplementing Six Sigma means a large investment and therefore it is important to make the right deployment approach. Having one integrated readiness assessment model should be useful for companies when assessing their readiness.Originality/valueKnowledge of a Six Sigma readiness evaluation in an organisational learning context should be valuable for many organisations. In addition, research regarding Six Sigma in software companies is limited.

Interoperability and Open Travel Alliance standards: strategic perspectives

PurposeSince the advent of non‐proprietary technologies fostered by the internet, the travel distribution model has been subjected to significant changes. One of the primary changes has been the expanding potential of interoperability between systems brought about the advent of extended markup language‐based specifications developed and published by the Open Travel Alliance (OTA). The potential impact of the underlying technology (web services) in use for developing these standards is significant. The purpose of this paper is to evaluate strategic perspectives from key industry players over the potential of this technology and examine the factors pertaining to their adoption.Design/methodology/approachData for this came from a series of 30‐45‐minute interviews with senior executives of four major travel suppliers (included three major hotel chains and one leading car rental company) as well as three major intermediaries (comprised two global distribution system companies and one major online travel agency). Interviews were guided using two types of signposts – conceptual and industry‐level phenomena.FindingsFindings indicate that suppliers and intermediaries see distinctive levers of advantage from OTA messaging specifications. While suppliers seek to build flexibility to add/delete channels and subsequently leverage greater control over inventory distribution, intermediaries seek to consolidate on their aggregation capabilities through wider content and enhance dynamic packaging as value for end‐customers.Research limitations/implicationsThis is a qualitative study comprising in‐depth interviews with a selected few respondents that limit the generalizability of the results. Additionally, the perspective is limited to the larger players in the travel distribution space.Originality/valueThe study is the first in hospitality/travel marketing literature to examine the issues of interoperability specific to a major initiative such as the OTA.

Comparative North American and European gateway logistics: the regionalism of freight distribution

The global freight distribution system has been impacted by convergence in terms of technology, infrastructure, modes and terminals. Still, in spite of strong converging forces, it can be argued that logistical practices are far from being uniform. This paper analyses the regionalism in freight transport systems by providing a comparative analysis of gateway logistics practices in North America and Europe. It is demonstrated that Europe and North America are not walking the same paths when it comes to the configuration of transport and logistics networks, via operational decisions and the setting of a regulatory framework. The attributes of gateways, corridors, hinterlands, regulation, governance, value chains and labor provide an analytical framework to understand the regionalism of freight distribution in the North American and European contexts, as well as anywhere else.

Adoption of mobile commerce in the air travel sector: A qualitative survey of attitudes

The study presented in this paper examines the case of the customer adoption of an air travel innovation, namely delivering through mobile telephones electronic tickets as well as boarding passes and other related services for air travel, which may be viewed as an innovation in service delivery. The qualitative study reported here adopted Rogers' model of perceived innovation attributes and was augmented by Bauer's framework of perceived risk. Participants in focus groups were categorized according to their attitudes towards buying electronic tickets for air travel through mobile phones. The perceived innovation attributes were identified to be significant determinants of travellers' adoption decisions and practices. In addition, two more dimensions (compatibility with a person's values and previous experience with the product category) were found to influence travellers' adoption decisions, stressing the high complexity of the adoption decisions for mobile phone-based air travel service innovations. The findings have practical value for organizations in the air travel sector as well as for Global Distribution Systems (GDSs) and traditional travel agents. .

Predictors of Customer Preference for Online Versus Offline Air Travel Booking

Airlines increasingly use their own websites to sell products directly to customers. Because Internet-based distribution is low cost, this means lower prices for the consumer. To compete with such sales channels, global distribution systems (GDS) firms have made ready-made online booking tools available for conventional walk-in travel agencies. This presents such agencies with a choice—to use online or more traditional offline methods in dealing with their customers. This study has two goals: to identify a small set of predictive factors that effectively forecast customer preferences, and to demonstrate the utility of such factors for predicting customer choices. We began by designing and executing a detailed questionnaire fielding some 300 respondents, then applied hypothesis testing to extract important factors from the data, and finally, used the logistic regression methods applied with these factors to efficiently predict customer choices. The findings indicate that the majority of customers believe that online booking is cheaper and faster than offline. However, booking choice is strongly influenced by whether cost or service is the paramount emphasis. If customers want lower prices, they will typically book online. If they want service—such as help making special travel arrangements—they will usually choose offline.

Progress in airline distribution systems: The threat of new entrants to incumbent players

For decades, distribution has been a key ICT (Information and Communication Technology) area for airlines and this sector has been dominated by four (now three) Global Distribution Systems (GDSs) whose primacy has been threatened over the last four years by a set of new players, the so called GDS New Entrants (GNEs). GNEs emerged with the advent of the Internet and open source technology as ‘disintermediation’ facilitators and generated vast interest from airlines because they promised to reduce the cost of distribution. This paper explores the impact of ICTs on airlines with a focus on GDSs. It provides an overview of the changing market dynamics, analyses the environment that led to the appearance of GNEs and pinpoints the issues behind their until now failure to provide a true alternative to the GDSs. This analysis complements existing academic research in that it clarifies critical issues in the air travel distribution field and provides an overview of current industry developments.

One Hundred Years of Progress in Food Analysis

Food and agricultural products comprise complex and diverse chemical mixtures that historically have presented challenges for assessing food safety, nutrient content, stability, and sensory qualities. The analysis of food composition has significantly evolved over the past 100 years, progressing from reliance on predominantly "wet chemistry" laboratory methods from the early to mid-20th century to their gradual replacement by modern instrumental techniques. Pioneering developments in pH instruments, spectrophotometry, chromatography/separations, and spectrometry often had immediate applications to food analysis. Continuous improvements in methodology over this period have led to significant enhancements in analytical accuracy, precision, detection limits, and sample throughput, thereby expanding the practical range of food applications. The growth and infrastructure of the modern global food distribution system heavily relies on food analysis-beyond simple characterization-as a tool for new product development, quality control, regulatory enforcement, and problem-solving.

Progress in airline distribution systems: The threat of new entrants to incumbent players

For decades, distribution has been a key ICT (Information and Communication Technology) area for airlines and this sector has been dominated by four (now three) Global Distribution Systems (GDSs) whose primacy has been threatened over the last four years by a set of new players, the so called GDS New Entrants (GNEs). GNEs emerged with the advent of the Internet and open source technology as ‘disintermediation’ facilitators and generated vast interest from airlines because they promised to reduce the cost of distribution. This paper explores the impact of ICTs on airlines with a focus on GDSs. It provides an overview of the changing market dynamics, analyses the environment that led to the appearance of GNEs and pinpoints the issues behind their until now failure to provide a true alternative to the GDSs. This analysis complements existing academic research in that it clarifies critical issues in the air travel distribution field and provides an overview of current industry developments.

The Internet Effects on Tourism Industry

This article aims to demonstrate the positive effects of the Internet on the tourism industry in three main areas: planning travel, commerce and industry structure. The document highlight that the journeyers have several tools provided by the Internet to receiving, looking for and sharing information to plan their travels. Also, Global Distribution Systems via the Internet have provided a new distribution channel for the retail of touristic products and services. Finally, the Internet has affected each actor of the value chain in the tourism industry. For the suppliers the Internet is providing directly information of their customers helping to increase their sales. Finally, the intermediaries have realized that they have to adapt to the new environment.

GDS capabilities, OD control and dynamic pricing

Airline revenue management has changed over the last years influenced by the advent of Internet distribution and global distribution system (GDS) functions like origin and destination control and seamless availability. The increased ability to price discriminate is seen as the main driver behind those changes. We analyse current GDS functionality under this aspect and describe how it can be used to implement dynamic pricing, similar to the possibilities of the Internet. We discuss shortcomings of current GDS distribution and propose solutions to improve the current capabilities. We present some ideas on how to overcome the booking class limitation, which is still the major drawback compared to direct Internet distribution.