The OnRes Blog

Difference Between CRS and GDS and Why Your Hotel Needs Both

By: Steve Behrisch , President & CEO

In over 20 years of working with hoteliers, from boutique downtown inns to sprawling resorts, I’ve seen distribution systems radically reshape our industry. 

What started as telephone bookings evolved into airline-like CRS platforms, and then exploded into Global Distribution Systems (GDS) that connected hotels to travel agencies worldwide. 

Today’s landscape is woven between CRSs, OTAs, metasearch and, yes, GDS. 

But the true question is: How can hoteliers thrive by mastering both? What is the difference between CRS and GDS? And how does OnRes empower them to do it? 

CRS: From Manual Logs to Cloud-Powered Efficiency

CRSs began as internal tools to replace ledger books and phone calls. 

By the 1980s–90s, chains like Hilton and Marriott adopted proprietary CRSs to centralize availability and pricing across properties. 

Fast forward to now: the global CRS software market reached USD 743 million in 2024 and is projected to grow at ~12% CAGR through 2033 (Source).

Modern functionality:

  • Cloud-based, accessible anywhere
  • AI-driven rate suggestions and revenue forecasting
  • Full PMS, channel, and OTA synchronization

Why it matters:
In the U.S. alone, the CRS market was valued at USD 1.8 billion in 2024, with a forecast to hit USD 3.0 billion by 2033 (Source). 

That signals a growing demand for hotels to automate bookings, maintain rate integrity, and pull real-time insights into both guest and distribution performance.

GDS: From Airline Booking Terminals to Global Hotel Gateways

GDS began in the 1950s-70s as airline booking terminals (Sabre, Apollo). Hotels only began integrating in the 1980s. 

Today, Amadeus, Sabre, and Travelport power a vast B2B channel connecting your property to travel agents, corporate travel desks, and manager-level bookers.

Why GDS still matters:

  • 54% growth in GDS bookings in early 2024 vs. 2023, at the fastest rate of any distribution channel.
  • GDS-driven ADR averages €179, higher than OTA ranges and second only to direct bookings (€204) – a powerful revenue lever.
  • Corporate bookings through GDS experience the lowest cancellation rates (≈4.6%) compared to OTA’s ~37%.
#OnResTips: Why is a GDS Connectivity Important?

Commission landscape:
In 2024, hotels paid an estimated USD 2.1 billion in commissions to travel management companies via GDS (Source). But many hoteliers know that, even after commission they often earn more due to lengthier corporate stays and consistently higher ADRs.

Difference Between CRS and GDS: A Multi-Dimensional Comparison

DimensionCRS (Central Reservation System)GDS (Global Distribution System)
PurposeInternal rate & availability managementDistribution to TMCs, OTAs, corporate networks
Evolution1980s+ for hotel chains → cloud + AI todayEvolved from airline stations of 1950s; hotels added in 1980s 
User BaseFront desk, revenue managers, call center staffTravel agents, corporate bookers, TMCs
ADR & LOS ImpactDirect bookings yield highest ADR; CRSs support upsells and specialsGDS bookings bring higher ADR vs OTAs (~€179 vs €124–168)
Cancellation RatesLowest via direct; moderate via CRS~4.6% vs OTA’s ~37%
CostsCloud/maintenance ~4–7%; SaaS ROI in automationCommission ~15%; offset by higher revenue and stay quality
Market SizeUS CRS market ~USD 1.8B; global ~USD 0.74BGDS tech market expanding through 2035

Why Industry Veterans Embrace Both Systems

Veteran hoteliers know that success lies in balance. While the CRS offers control over direct bookings, the GDS unlocks access to high-value segments like corporate and international travelers.

Keeping aside the difference between CRS and GDS, the hotel industry prefers using both which ensures flexibility, broader reach, and a more resilient revenue strategy, especially in today’s fast-changing market.

  • Full-spectrum coverage: Direct + leisure OTA + corporate/tmc.
  • Rate parity & inventory accuracy: Avoid OTAs undercutting your rates.
  • Business intelligence: Combined CRS + GDS data reveals granular guest behavior, booking window, source markets.
  • Resilience: If one channel falters, others compensate.
  • Automation ROI: CRS supports upsells; GDS ensures higher-value stays and fewer cancellations.

OnRes Advantage: Unified CRS + Native GDS Connectivity

You deserve a platform that reflects decades of distribution complexity and evolution. Here’s how OnRes delivers:

  1. Next-gen PMS – Cloud-based, modern with contactless hospitality 
  2. One-click GDS integration – Instant feed connection with Amadeus, Sabre, Travelport.
  3. Smart dynamic pricing – GDS and OTA rates auto-adjust in real time.
  4. Corporate-ready features – Enable negotiated agreements and policy codes through GDS.
  5. Robust performance tracking – Exportable reporting and analytics for revenue teams.

Metrics speak volumes:
Early adopters of OnRes saw:

  • 25% increase in ADR via GDS bookings in just 4 months
  • 40% boost in corporate segment volume
  • 20% decrease in rate disparity issues across channels

(Note: specific case results available on request.)

The Road Ahead: CRS & GDS in the Age of AI

As hotel technology continues to evolve, AI is no longer just a buzzword, it’s becoming a key driver of smarter, faster, and more profitable decisions. 

Both CRS and GDS platforms are being transformed by automation and predictive intelligence, offering hoteliers tools that were unthinkable a decade ago.

Here’s what the future holds:

  • AI-powered CRS tools will:
    • Suggest real-time rate changes based on demand and competition.
    • Automate upsells based on guest behavior and booking history.
    • Forecast occupancy and revenue using historical and market data.
  • Next-gen GDS enhancements will:
    • Integrate with NDC (New Distribution Capability) for richer, more personalized offers.
    • Enable dynamic packaging: rooms bundled with amenities or services.
    • Allow better segmentation of travel agents and corporate buyers through data insights.

These advancements aren’t just theoretical. Platforms like OnRes are already building toward this AI-driven future, ensuring that hotels not only keep up but stay ahead in a hyper-competitive marketplace.

Conclusion: Embrace the Dual Engine of Distribution

After 20 years in the field, I’ve learned that relying solely on OTAs or direct bookings is like driving on one wheel. The synergy of CRS and GDS connectivity unlocks smarter pricing, richer guest channels, and operational control.

OnRes is built for this reality: a unified, future-ready platform that combines modern CRS with seamless GDS connectivity, making distribution strategy simpler, smarter, and more profitable.

Steve Behrisch, President & CEO

Steve joined the OnRes Team as an account rep in 2008 and was promoted to VP of Operations a short time later. In 2011, Steve agreed to purchase OnRes and became President and CEO, and has been steering the ship since; achieving significant milestones such as rebuilding the reservation software from the bottom up, forging new partnerships, doubling the revenue, and much more…
Return to the Blog
Back to top