Global Distribution Systems for the Taxi_PHV Industry

Global Distribution Systems
Global Distribution Systems (GDS) are common practice in the Travel & Hospitality
industry, responsible for about a third of all airline tickets sold in 2019. Despite some
controversy on fair competition and sovereignty (Amadeus started in Europe as an
alternative to the dominant American SABRE), the market is now mature, balanced
in a healthy competitive environment between various global and regional GDS
platforms.
GDS platforms have contributed to Travel & Hospitality growth by providing a
convenient, real-time access to structured information allowing for better decision
making by travel agents and, ultimately, customers (demand side). Today GDS’ are
used by operators (supply side) to widely communicate availability and maximize
revenue opportunities on various distribution channels using state-of-the-art yield
management strategies.
Similar digital distribution systems have been implemented in Retail, referred
to as “multi-channel listing solutions” and feeding marketplaces and shopping
comparators straight from retailers’ inventory and price management backends.
Savvy ecommerce players are multichannel and multiplatform, even the greatest
consumer brands, because they know it’s more efficient to look for buyers where
they are, instead of trying to make them move from their favourite channels.
At Karhoo, we believe that the Taxi/PHV industry will be no exception and will adopt
global digital distribution with at least two immediate benefits: (1) open distribution
will disrupt the disruptors and prevent market consolidation around a limited set of
global e-hailers capturing all of the passenger demand and aggregating all of the
drivers (2) open distribution will ease the accessibility of regulated local companies
for customers who ask for more convenient and socially distanced transport in a
post-Covid world.
OUR ADVICE TO FLEETS
Embrace change and test alternative
channels. Early adopters climb the
learning curve ahead and build a
competitive advantage for the long run!
Global Distribution Systems for the Taxi/PHV Industry
2