New developments in Global Distribution Systems (GDSs) for the airline industry: first-mover mechanisms that enabled incumbent firms to maintain a leading position

Resumen

Global Distribution Systems (GDSs) have served as the platform for electronic commerce in travel for decades, providing virtual real-time connectivity between thousands of suppliers of travel inventory and hundreds of thousands of retail sellers of travel products. After decades of leadership the GDSs were challenged in 2005 by a set of new players claiming to provide a costeffective distribution. Two years later these new entrants have not yet managed to change the travel distribution status quo. This paper analyses the GDS industry, provides an overview of the changing market dynamics, analyses the environment that led to the appearance of the GDS New Entrants (GNEs), and applies the sources and mechanisms identified in the’ first-mover advantages’ literature to explain why traditional GDSs remain to be the undisputable leaders in travel distribution. The paper drives its conclusions from extensive research in industry data sources and academic literature, as well as interviews with industry experts and affirms that in the case of travel distribution GDSs marketing capabilities have played a more vital role in their performance than technology. Keywords: Global Distribution Systems (GDSs); Airline industry; Information and Communication Technologies; First-mover advantages.