The four GDSs command slightly more than 10% of all US hotel revenue (excluding an online travel agency (OTA) volume that is powered by a GDS), according to PhoCusWright. OTAs drive at most 9% of reservations in the US market, according to TravelClick, an e-commerce service provider. On a revenue base of $100 billion, the dollar value of fees hotels pay to facilitate transactions through GDSs is about $1.3 billion, according to a study by the American Hotel & Lodging Association (AHLA). A large share of those fees are passed on to the travel agents. The comparable figure for bookings made through online travel agencies (OTAs) is nearly double that figure, at $2.5 billion, on the same $100 billion base revenue. So GDSs have a cost advantage over OTAs. That’s partly because of the higher value of the transactions they typically process at volume, compared with the typical bookings that come through central reservation offices, OTAs, “brand.com” websites, and other direct channels. Business travelers tend to stay at properties with the highest average daily rates, elevating the average transaction value of GDS bookings. It costs about the same to process the higher value transactions, giving GDSs an economy-of-scale edge. Get the full story at Tnooz