Understanding Amazon Redshift Distribution Styles and Internal Architecture

 

Amazon Redshift is a high-performance, fully managed data warehouse optimized for analytical queries on large-scale datasets. Its core strengths lie in its massively parallel processing (MPP) architecture and a robust data distribution mechanism that ensures efficient query execution. This article examines the key data distribution styles supported by Redshift—EVEN, KEY, and ALL—and their applicability in various scenarios. Additionally, we explore Redshift's internal architecture, which underpins its high scalability and performance, and its slicing mechanism for parallel query execution.

1. Introduction

Data warehouses serve as the backbone of analytical workload dealing with hot data requiring low latency access. It enables organizations to analyze massive datasets for business insights through Business Intelligence (BI) tools. Amazon Redshift is a leading solution in this space, especially for the organization having a data platform on AWS cloud, due to its scalability, flexibility, and performance. Redshift distributes data across compute nodes using customizable distribution styles, which directly influence query performance and workload balancing.

This article provides a detailed exploration of Redshift’s distribution styles—EVEN, KEY, and ALL—and explains how these styles align with different data processing needs. We also introduce Redshift's internal architecture, focusing on its MPP framework, node and slice organization, and query execution processes.

AWS Redshift as Low Latency DWH in AWS Data Platform

Image Source

2. Distribution Styles in Amazon Redshift

Redshift uses distribution styles to determine how table data is stored across the cluster's compute nodes. The chosen style significantly affects query efficiency, resource utilization, and data shuffling. Below, we detail the three distribution styles supported by Redshift:

2.1 EVEN Distribution Style

EVEN distribution spreads table data uniformly across all slices in the cluster, without regard to content. This ensures balanced storage and computation across slices.

Use Case: This style is optimal when:

-> No specific relationship exists between rows in a table and other tables.

-> Data lacks a natural key suitable for distribution

.-> Queries do not involve frequent joins with other tables.

For instance, in cases where a large fact table does not join with a dimension table, EVEN distribution minimizes data skew and avoids bottlenecks.

2.2 KEY Distribution Style

In KEY distribution, rows are distributed based on a column designated as the "distribution key." A hashing algorithm assigns rows with the same key value to the same slice, ensuring the colocation of related data.

Use Case: KEY distribution is ideal for:

-> Tables frequently joined or aggregated on the distribution key column.

-> Reducing data shuffling during query execution.

-> Scenarios involving large fact and dimension table joins.

For example, joining a sales fact table and a customer dimension table on customer_id benefits from specifying customer_id as the distribution key, improving query performance through localized data processing.

2.3 ALL Distribution Style

ALL distribution replicates the entire table across all nodes. Each node holds a full copy of the table, eliminating data movement during query execution.

Use Case: This style is best suited for small, frequently accessed tables, such as lookup tables. Typical scenarios include:

-> Small dimension tables joined with large fact tables.

-> Queries requiring broadcast joins to avoid redistribution costs.

Caution must be exercised when applying ALL distribution to large tables, as this can significantly increase storage overhead and reduce efficiency.

AWS Redshift Distribution Style

Image Source

3. Internal Architecture of Amazon Redshift

AWS Redshift Internal Architecture

Image Source

Amazon Redshift’s internal architecture is designed to support high scalability, parallelism, and fault tolerance. It is composed of three primary components:

3.1 Cluster Nodes

A Redshift cluster comprises a leader node and multiple compute nodes:

Leader Node: Manages query parsing, optimization, and coordination of execution across compute nodes. It does not store data.

Compute Nodes: Store data and execute queries. Each compute node is divided into slices, where each slice is responsible for a portion of the node's data and workload.

3.2 Slicing Mechanism

Each compute node is partitioned into slices, with the number of slices determined by the node's vCPU count. For example, an 8-vCPU node has 8 slices.

Key Functions:

1. Data Allocation: Data is distributed to slices based on the distribution style (EVEN, KEY, or ALL).
2. Parallel Query Execution: Queries are processed concurrently across slices to reduce execution time.
3. Load Balancing: EVEN distribution ensures that slices handle approximately equal amounts of data, minimizing hotspots.

3.3 Massively Parallel Processing (MPP)

Redshift’s MPP framework enables distributed query execution:

-> Queries are decomposed into steps executed in parallel by the slices.

-> Intermediate results are exchanged between slices through a high-speed network.

This architecture ensures efficient utilization of cluster resources and high throughput for complex analytical queries.

4. Conclusion

Amazon Redshift offers a highly optimized data warehouse solution tailored for large-scale analytics. By selecting an appropriate distribution style—EVEN, KEY, or ALL—users can optimize query performance based on their workload characteristics. Meanwhile, the slicing mechanism and MPP architecture enable Redshift to handle massive datasets efficiently.

Understanding the internal architecture of Redshift, including its leader and compute nodes, slicing mechanism, and MPP execution, provides a foundation for designing effective data models. With these features, organizations can leverage Redshift for scalable and high-performance data analytics.

For more such interesting articles please follow my blog The Data Cook

AWS HealthLake: Transforming Healthcare with AI and Big Data

The healthcare industry is quickly embracing digital transformation to effectively manage, analyze, and utilize large volumes of patient data. AWS HealthLake offers a powerful platform for healthcare and life sciences organizations to store, transform, and analyze health data at scale. Leveraging cloud computing and machine learning (ML) provides actionable insights that can greatly benefit these organizations.

What is AWS HealthLake?

AWS HealthLake is a HIPAA-compliant service designed for clinical data ingestion, storage, and analysis by aggregating and standardizing health data from various sources into the widely accepted Fast Healthcare Interoperability Resources (FHIR) R4 specification. This standardization ensures data interoperability across different systems and organizations. By breaking down data silos, HealthLake allows for seamless integration and analysis of previously fragmented datasets, those contained in clinical notes, lab reports, insurance claims, medical images, recorded conversations, and time-series data (for example, heart ECG or brain EEG traces. Additionally, the service enhances healthcare insights by incorporating machine learning capabilities to extract patterns, tag diagnoses, and identify medical conditions. With the assistance of AWS analytics tools like Amazon QuickSight and Amazon SageMaker, healthcare providers can engage in predictive modeling and create advanced visualizations, promoting data-driven decision-making. HealthLake is also integrated with Amazon Athena and AWS Lake Formation allowing data querying using SQL.

AWS HealthLake

Key Features

AWS HealthLake offers several notable features that enable healthcare organizations to derive maximum value from their data. To start with FHIR files, including clinical notes, lab reports, insurance claims, and more can be bulk imported to an Amazon Simple Storage Service (Amazon S3) bucket, part of the HealthLake, which can be used in downstream workflows. HealthLake supports using the FHIR REST API operations to perform CRUD (Create/Read/Update/Delete) operations on the data store. FHIR search is also supported. HealthLake creates a complete, chronological view of each patient’s medical history, and structures it in the R4 FHIR standard format. HealthLake's integration with Athena allows the creation of powerful SQL-based queries that can be used to create and save complex filter criteria. This data can be used in downstream applications such as SageMaker to train a machine learning model or Amazon QuickSight to create dashboards and data visualizations. Additionally, healthLake provides integrated medical natural language processing (NLP) using Amazon Comprehend Medical. Raw medical text data is transformed using specialized ML models. These models have been trained to understand and extract meaningful information from unstructured healthcare data. With integrated medical NLP,  entities (for example, medical procedures and medications), entity relationships (for example, medication and its dosage), and entity traits (for example, positive or negative test results or time of procedure) data can be automatically from the medical text. HealthLake then can create new resources based on the traits signs, symptoms, and conditions. These are added as new Condition, Observation, and MedicationStatement resource types.

Key Architectural Components of AWS HealthLake

AWS HealthLake provides a robust architecture designed to transform, store, and analyze healthcare data in compliance with the Fast Healthcare Interoperability Resources (FHIR) standard. Here are its key architectural components:

AWS HealthLake Architecture

1. FHIR-Compliant Data Store

The core of AWS HealthLake’s architecture is its FHIR (Fast Healthcare Interoperability Resources) R4-based data store. This allows the platform to handle both structured and unstructured health data, standardizing it into a FHIR format for better interoperability. Each data store is designed to store a chronological view of a patient’s medical history, making it easier for organizations to share and analyze data across systems.

2. Bulk Data Ingestion

HealthLake supports the ingestion of large volumes of healthcare data through Amazon S3. Organizations can upload clinical notes, lab reports, insurance claims, imaging files, and more for processing. The service also integrates with the StartFHIRImportJob API to facilitate bulk imports directly into the data store, enabling organizations to modernize their legacy systems.

3. Data Transformation with NLP

HealthLake integrates with Amazon Comprehend Medical to process unstructured clinical text using natural language processing (NLP). The service extracts key entities like diagnoses, medications, and conditions from clinical notes and maps them to standardized medical codes such as ICD-10-CM and RxNorm. This structured data is then appended to FHIR resources like Condition, Observation, and MedicationStatement, enabling easier downstream analysis.

4. Query and Search Capabilities

HealthLake offers multiple ways to interact with stored data:

• FHIR REST API: Provides Create, Read, Update, and Delete (CRUD) operations and supports FHIR-specific search capabilities for resource-specific queries.
• SQL-Based Queries: Integrates with Amazon Athena for SQL-based queries, allowing organizations to filter, analyze, and visualize healthcare data at scale.
  This dual-query capability ensures flexibility for both application developers and data scientists.

5. Integration with Analytics and ML Tools

HealthLake seamlessly integrates with analytics tools such as Amazon QuickSight for visualization and Amazon SageMaker for building and training machine learning models. These integrations allow organizations to perform predictive analytics, build risk models, and identify population health trends.

6. Scalable and Secure Data Lake Architecture

The platform is built on AWS’s scalable architecture, ensuring the secure storage and management of terabytes or even petabytes of data. Features like encryption at rest and in transit, along with HIPAA eligibility, ensure compliance with healthcare regulations.

 7. Data Export

HealthLake allows bulk data export to Amazon S3 through APIs like StartFHIRExportJob. Exported data can then be used in downstream applications for additional processing, analysis, or sharing across systems.

Real-World Use Cases

AWS HealthLake’s transformative capabilities have directly benefited organizations by addressing critical healthcare challenges. The platform has significantly improved data interoperability by consolidating fragmented datasets into a unified FHIR-compliant format. For instance, MedHost has enhanced the interoperability of its EHR platforms, allowing data to flow seamlessly between systems, while Rush University Medical Center uses HealthLake to unify patient data and enable predictive analytics that informs clinical decisions.

The optimization of clinical applications is another key advantage of AWS HealthLake. By enabling the integration of ML algorithms, the platform helps organizations like CureMatch design personalized cancer therapies by analyzing patient genomic and treatment data. Similarly, Cortica, a provider of care for children with autism, uses HealthLake to tailor care plans by integrating and analyzing diverse data sources, from therapy notes to genetic information.

HealthLake also empowers healthcare providers to enhance care quality by creating comprehensive, data-driven patient profiles. For example, the Children’s Hospital of Philadelphia (CHOP) uses the platform to analyze pediatric disease patterns, helping researchers and clinicians develop targeted, personalized treatments for young patients. Meanwhile, Konica Minolta Precision Medicine combines genomic and clinical data using HealthLake to advance precision medicine applications and improve treatment pathways for complex diseases.

Finally, AWS HealthLake supports large-scale population health management by enabling the analysis of trends and social determinants of health. Organizations like Orion Health utilize the platform’s predictive modeling capabilities to identify health risks within populations, predict disease outbreaks, and implement targeted interventions. These tools not only improve public health outcomes but also help reduce costs associated with emergency care and hospital readmissions.

Population Health Dashboard Architecture

Getting Started

Set Up: Create an AWS account and provision a HealthLake data store.

Ingest Data: Upload structured or unstructured health data for FHIR standardization.

Analyze: Use AWS tools for analytics and visualization.

Integrate ML Models: Apply predictive insights with Amazon SageMaker

Conclusion

AWS HealthLake is revolutionizing healthcare data management by enabling seamless interoperability, enhancing clinical applications, improving care quality, and empowering population health management. Its capabilities are showcased through organizations like CHOP, Rush University Medical Center, and CureMatch, which have used HealthLake to deliver better patient care, streamline operations, and advance medical research. As healthcare becomes increasingly data-driven, AWS HealthLake’s scalability, compliance, and advanced analytics make it an indispensable tool for turning health data into actionable insights. Whether improving individual outcomes or addressing global health challenges, AWS HealthLake is poised to shape the future of healthcare.

 

 Table Of Contents

1. Data Engineering
• AWS
• AWS Lake Formation
  
• AWS Serverless Data Lake Framework (SDLF)
  
• AWS HealthLake
  
• Amazon Redshift Distribution Styles and Internal Architecture
  
• Streamlining Data Retention (Data Governance) in AWS Data Lakes with Amazon S3 Lifecycle Policies
  
• Apache Spark on AWS
  
• Azure
• GCP
• Databricks
• Data Lakehouse: A Unified Platform for Data Warehousing and Analytics
  
• Snowflake
• Snowflake Architecture & Caching Mechanisim
  
• Multi-Cloud
• Multi-Cloud Storage Services for Analytical Workloads: Azure, AWS, and GCP
  
• ZooKeeper
• ZooKeeper, its importance and Installation
  
• Kafka
• Kafka Streams for Data Governance
  
• Messaging Platforms and Their Integration with the Big Data Ecosystem
  
• Spark
• Common Spark Applications
  
• Installing Spark in Ubuntu
  
• Spark-HIVE Metastore Integration
  
• Hive
• Configuring Spark as HIVE Execution Engine
  
• Installing and Configuring DbVisualizer in Ubuntu to Connect to a Remote Hive Warehouse
  
• Open Table Formats
• COW and MOR in Delta, Hudi, Iceberg
  
• Data Governance
• RoPA in Data Governance for Cloud Data Lakes
  
• Data Modelling
• Data Modeler: Half DBA and Half MBA
  
• Apache Superset
• Apache Superset Fundamentals & Installation
  
• Data Mesh
• Data Mesh – Starting Point
  
• Data Mesh vs. Data Fabric: A Comparative Perspective
  
2. Machine Learning
• NumPy
• Vectorization and Broadcasting: NumPy
  
3. Responsible AI
• Use Cases
• Balancing Pricing Analytics and Price Fixation in Hospitality
  
4. Generative AI (GenAI)
• Use Cases
• T5 for Hospitality Central Reservation System (CRS) Reporting Function
  
5. Robotics
• Use Cases
• Edge Robots and Federated Learning
  
6. Management
• Human Resource
• Effective Rewards and Recognition Framework
  
• Others
• Leveraging GCCs
  
• Status Quo in Global Capability Centres (GCCs)
  
• High-Impact Go-to-Market Strategy for Technology Consulting Firms in the Data and AI Space
  
7. Domain Knowledge
• Hospitality
• Hotel KPIs – In a Nutshell
  
• Front Office Management in a Hotel and Related IT Systems
  
• Global Distribution Systems (GDS)

Front Office Management in a Hotel and Related IT Systems

Front office is the focal point of a hotel. It’s the first point of contact between the guest and the hotel, and it plays a vital role in shaping the guest's experience. From reservations to guest check-out, front office management involves various tasks that ensure smooth operations and guest satisfaction. The primary job of a front office is that of a facilitator between the guest and other departments of the hotel, and it helps provide services to the guests. This article explores the key functions of front office management and the related IT systems pivotal for effectively managing the hotel’s front office. These systems help streamline operations and enhance overall efficiency.

The crucial functions the front office of a hotel deals with can be listed as follows: Sale of Rooms, Guest Registration, Room Assignment, Handling of guest requests, Maintenance of guest accounts, Cashiering, Handling mail, and providing information.

The number and type of interactions and/or transactions between hotel and guest determine the nature of front office operations, which depend on the stages of the guest's stay. The diagram below illustrates the stage of the customer's stay and the customer's possible transaction and service request. Different guest phases are: Pre-arrival, Arrival, Occupancy, Departure

The front office organizes itself into many subdivisions or functional/operational areas to carry out different transactions (part of different guest life cycle phases) between the guest and hotel effectively. A typical ODS (Organizational Design & Structure) in a hotel includes: Reservation Supervisor, Reception Supervisor, Information Supervisor, Night Manager, Guest Relation Officer, Cashier Supervisor

All these roles & responsibilities are under the umbrella of a front office manager apart from the cashier who is also aligned with the finance department of a hotel.

In the modern era, the different activities and workflows performed by different front office personnel are digitalized through multiple integrated IT systems, converting the front office to an Electronic Front Office (EFO). The central IT system for the EFO  is PMS (Property Management System) which integrates the functions of different departments of a hotel or property. The figure below illustrates the interdependencies of EFO with other departments and the integration of multiple IT systems with PMS.

Figure 1: EFO Ecosystem

Let us now discuss the significance of digitalization and the consequent interdependence of the front office with the other departments to perform the above-outlined functions.

Reservations Management

One of the core functions of front office management is handling reservations. This process involves receiving and confirming bookings made by guests either directly through the hotel’s website, over the phone, or via third-party booking platforms like online travel agencies (OTAs). Front office staff must ensure that reservations are accurately logged in the property management system (PMS), with details such as guest preferences, room type, arrival and departure dates, and any special requests. Efficient reservation management is crucial for optimizing room occupancy and ensuring that the hotel meets revenue targets. Overbooking and mismanagement of bookings can lead to guest dissatisfaction and revenue loss, making it essential for the front office to maintain an organized and updated system. Big hotel chains often strategically integrate PMS and CRS (Central Reservation System) to optimize hotel operations, especially reservations management. CRS is the central hub for managing reservations, allowing hotels to handle bookings from various sources efficiently. The integration enhances real-time data accuracy, streamlines processes, and elevates guest experiences by data sharing between PMS and CRS. Room availability across multiple distribution channels (e.g., hotel website, Online Travel Agencies (OTAs), Global Distribution Systems (GDS)) is updated in real-time. Whenever a room is booked or cancelled, the CRS automatically reflects the updated inventory in the PMS, ensuring no room is double-booked or oversold.

Figure 2: Reservation Data Sync in PMS with multiple channels

Yield Management:

Also known as revenue management, helps maximize room occupancy while at the same time realizing the best average room rate. Yield management combines a variety of data points like demand, availability, market trend, etc. with “what if …?” situations to suggest optimized room rates. Several software solutions i.e. Revenue Management Systems (RMS) are designed specifically for yield management in hotels e.g. IDeaS Revenue Solutions, Duetto, etc. The front office manager exploits one of these tools to make yield management decisions. Many of these yield management software integrates (through APIs) with PMS and CRS facilitating room price adjustment across different channels based on real-time market and availability data avoiding manual batch sync process which is error prone.

Figure 3: Yield Management System with the integration of PMS, CRS, and Demand 360

Registration

As the required guest information is taken in during reservation, modern hotels use integrated systems like PMS, self-service kiosks,  mobile check-in platforms, online booking platforms, and CRS to automate the process of guest registrations avoiding manual form filling. Mobile check-in platforms via Web or App interfaces can facilitate registration and verification of identity pre-arrival. Some hotels also install self-service kiosks for self-registration and verification. The PMS plays a central role in automating guest registration. Mobile check-in, kiosk check-in, or online registration system all share their data automatically with the PMS through integration. Thus, the guest only needs to sign-in and check out.

Figure 4: Digital guest registration and verification system

Guest Check-in and Check-out

The check-in and check-out processes are key aspects of front-office management and involve significant guest interaction. During check-in, front desk staff confirm the reservation, assign rooms, and provide information about the hotel’s services, policies, and amenities. The way a guest is welcomed at this stage sets the tone for their stay. A smooth and efficient check-in process, combined with warm hospitality, makes a positive first impression on the guest.

Similarly, the check-out process is important for leaving guests with a lasting positive experience. Front office staff handle the final billing, settle any outstanding payments, and ensure that feedback is collected. Delays or errors during check-out can lead to guest dissatisfaction, so speed, accuracy, and friendliness are crucial.

Computerized systems like Mobile check-in and self-service kiosks integrated with the PMS facilitate auto allocation of rooms according to the customer preferences (fetched from guest profile data). The guest receives their room number and instructions for accessing the room along with the information on policies and a list of amenities the guest can access. Thus, reducing human interaction and time for check-in formalities and increasing guest satisfaction levels. These integrated systems also automate the check-out process. PMS integrated with the mobile checkout system, self-service kiosks, in-room entertainment system, and payment gateways enable the hotels to automate bill processing, and room status updates. The guests can review the bills and check out of the hotel with a smartphone, kiosk, or in-room entertainment system without visiting the front desk.

These automated systems, enable hotels to streamline the check-in and check-out process, reducing manual intervention. This improves the operational efficiency of the hotels and boosts guest satisfaction.

Figure 5: Digital ecosystem for auto check-in, check-out and bill posting

 Posting

Posting refers to the process by which various charges for the different services (e.g. dining, laundry, etc.) consumed by a guest are recorded against his or her account during the stay.  POS (Point of Sale) systems installed in the hotel’s restaurant, bar, spa, and retail outlet when integrated with PMS post the charge directly onto the guest bill. PMS when integrated with the in-room entertainment system and guest service system can post the room service charges directly. By automating the posting mechanism, these computerized systems significantly reduce manual errors, enhance operational efficiency, and ensure that all guest charges are accurately captured and reflected in the final bill.

Auditing and Reporting

Auditing by the front office refers to the checks and rechecks of various posting of charges. Also known as the Night Auditing process, is the review and reconciliation of all the financial and non-financial transactions at night that have taken place during the day. PMS plays a crucial role in the night auditing process of a hotel by automating many of the tasks involved, reducing manual errors, and ensuring that the financial and operational data for the day is accurate and balanced. The PMS automatically tracks all transactions related to guest accounts (or folios), such as room charges, dining, spa services, and incidentals. At the end of the day, the PMS helps reconcile these transactions by ensuring that every guest's charges and payments are properly posted and that no discrepancies remain in the system.

The reporting function of the front office generates various reports (e.g. daily revenue report, Occupancy Report, etc.)  that provide valuable data and insights to hotel management. These reports help in decision-making, tracking performance metrics, and analysing trends. Reporting can be both operational (daily) and analytical (longer-term performance analysis). The reporting module of PMS and CRS helps auto-generate these reports in minutes by the front office which are further shared with the management to help them strategize the decision-making process.

Customer Service and Guest Relations

Customer service is a critical aspect of front office management. The front desk acts as a central point of contact for all guest inquiries, issues, and requests. Whether it’s arranging transportation, providing local recommendations, or resolving issues such as room complaints or billing errors, front office staff must be prepared to offer prompt and helpful solutions. GMS and CRS are two systems aim to enhance the guest experience and customer service. GMS focuses on in-stay interactions and operational efficiency, ensuring that guests receive the services they request during their stay. On the other hand, CRM focuses on building long-term guest relationships by managing loyalty programs, driving personalized marketing efforts, and ensuring guest retention through tailored post-stay communication.

Conclusion

Front office management is a multifaceted role that is crucial to the smooth functioning of a hotel. From handling reservations and guest interactions to managing billing and coordinating with other departments, the front office serves as the hub of hotel operations. By providing excellent customer service, ensuring accuracy in financial transactions, and fostering strong communication across departments through digitalization (by integrating multiple IT systems like PMS, CRS, GMS, CRM RMS, etc. ) the front office plays a pivotal role in creating a positive guest experience and driving the hotel’s success. As the hospitality industry continues to evolve, the integration of technology with PMS at its centre and a focus on guest-centric service will remain key to effective front-office management.

FLAN-T5-XXL a Potential Terminator of Hospitality Central Reservation System (CRS) Reporting Function?

Remember T-1000? The primary antagonist in Terminator 2, a highly advanced deadly assassin Robert, is sent by Skynet the Artificial Intelligence System to kill John Connor the future leader of the human resistance. Made of liquid metal, referred to as "mimetic poly-alloy" capable of morphing its shape, imitating other humans, and recovering quickly from damage. 

Figure 1: T1000 from Terminator 2

Well, we have to get there, or maybe hope, we will not be there! Let’s first understand what is FLAN-T5-XXL.

What is T5?

T5 a pre-trained Text-to-Text Transfer Transformer (encoder-decoder) Large Language Model (LLM) based on Transformer architecture, designed to handle diverse Natural Language Processing (NLP) tasks. T5’s unique ability is that it can formulate all NLP tasks i.e. classification, summarization, translation, or question answering as text-to-text problems, making it versatile across domains.

What is FLAN-T5?

A variant of T5, fine-tuned with FLAN (Fine-tuned Language Models on Annotated Natural Language Tasks) technique,  based on the same encoder-decoder architecture (Figure 2) as T5 but introduces additional fine-tuning on the instruction-based dataset. Hence effective at instructions following tasks, making it a suitable candidate to develop an explicit instruction understanding and answering system on top of it.

What is FLAN-T5-XXL?

FLAN-T5 has variants ranging from Small (60M parameters) to XXL (11B parameters). The models increase in complexity and resource demands, with XXL excelling in multi-step reasoning and long-form text generation, while smaller models prioritize efficiency for lightweight tasks. Larger models provide better accuracy and generalization. 

Figure 2: T5 Transformer Architecture

 What is a CRS in the hospitality context?

CRS, stands for Central Reservation System is an IT system used by hotels, resorts, and other accommodation providers to efficiently manage room inventory, pricing, and reservations. It ensures efficient booking management by aggregating data from various channels.  The key functions of CRS include (Figure 3): 

Figure 3: Key functions of a CRS

Central Booking Management: help manage all reservations in a single platform irrespective of the source of booking direct, third party, OTA (online travel agencies), or GDS (global distribution system).

Inventory Management: Ensures consistent room availability and pricing data across the booking channels

Rate Management: Facilitates dynamic upgradation of price plan and rate plan across all platforms

Channel management: facilitates integration with channel manager helping the distribution of inventory across multiple sales platforms example GDS, OTAs, and meta-search engines like Google Hotel Ads or TripAdvisor.

Reporting: Helps hotel operators make informed and strategic decisions by providing analytical and operational reports on booking, inventory, revenue, occupancy trends, price plans, rate plans, etc.

Many times, low on priority compared to other components, the Reporting function of CRS, is an essential utility for operation optimization, enhancing guest experience, and driving revenue.

Current State of Reporting function and impact of LLM on it

Travel tech industries offering CRS software make a significant investment in building data and analytical platforms to facilitate the reporting function of CRS or maybe any other hospitality products (GMS, PMS, etc.) for that matter. Many times, these are pre-defined KPIs or insights in the form of pre-developed bundled analytical or operational reports, or maybe APIs offering information required to facilitate hotel operations. The CRS (in general hospitality) software makers either choose the traditional application tech stack (e.g. Java full stack with angular etc.) or analytical tools (Qlik, Power BI, etc.) to develop the insights. Any additional KPIs / Report demand from the hotel operator goes through the tedious, time-consuming software development life cycle causing frustration among the hoteliers. The Advancement of GenAI especially the LLM like FLAN-T5-XXL having the ability to capture more intricate language patterns and contextual relationships can generate insights based on prompt (or command) on demand. This technological advancement will be a game changer transferring the responsibility of extracting insights (importantly what insights) from the tech provider to the hoteliers, letting the travel tech companies focus on building a data repository and periodical fine-tuning of the FLAN-T5-XXL. A typical deployment is demonstrated in Figure 4.

Figure 4: Deployment of a FLAN-T5-XXL as Reporting function

Conclusion

So, is the LLM like FLAN-T5-XXL going to kill the reporting function of CRS, or any other hospitality product, or maybe any ERP product for that matter? Well, it depends, if the reporting function of the product is purely operational in nature fetching only transactional insight or maybe a summary of it, yes sooner the hotelier will ask it to replace it with a GenAI model. But if the reporting function is rich in data visualization, slicing dicing, drill down, and what-if analysis instead of killing the reporting function LLM (FLAN-T5-XXL) is more likely to augment and enhance it, making it more accessible, intelligent, and user-friendly!

Either way, LLM adoption is inevitable for reporting functions. Hasta la vista!

 

Relevance of Global Distribution Systems (GDS) in Modern Travel Technology

 

1. Introduction

Global Distribution Systems (GDS) play a critical role in travel technology, enabling seamless integration of various travel services such as flights, hotels, and car rentals from multiple providers. GDS systems offer real-time access to inventories, pricing, and availability, catering predominantly to travel agencies, corporate travel management firms, and tour operators. Its architecture is complex, designed to support:

• Wide network reach
• High transaction volume
• Secure data exchange
• Real-time communication across systems

Despite evolving business models and new technologies, GDS remains a cornerstone in the travel industry’s technology ecosystem. This article explores the architecture, components, and current relevance of GDS within the rapidly evolving travel technology landscape.

2. Technological Evolution of GDS

The origin of GDS can be traced back to the 1960s when American Airlines, in collaboration with IBM, developed the first GDS, known as Sabre. Initially designed to handle airline reservations, Sabre paved the way for other systems like Amadeus and Travelport. These systems evolved beyond airline reservations, incorporating services such as hotel bookings and car rentals.

Over time, GDS platforms have embraced cloud computing and transitioned from traditional data formats like EDIFACT to modern standards such as XML and IATA's New Distribution Capability (NDC). EDIFACT, though crucial in GDS's early stages, restricts airlines from fully marketing their products and services. NDC, by contrast, enhances flexibility by supporting dynamic pricing, bundled offers, and personalized travel experiences. This shift allows richer content and greater control over the distribution process, benefitting both airlines and consumers.

3. Core Components of GDS

The GDS architecture comprises several key components:

Search, Booking, and Reservation System: GDS facilitates a unified search across multiple travel service providers, ensuring accurate inventory and availability. Its booking engine manages complex pricing, scheduling, and availability rules across different suppliers, handling the complete booking lifecycle, including cancellations and modifications.

Data Processing: With thousands of transactions processed per second, GDS requires robust data processing capabilities to ensure fast and reliable communication between suppliers and agents.

APIs and Integration: Modern GDS platforms provide extensive API support, allowing seamless integration with third-party systems like travel apps and websites. APIs enable developers to access flight schedules, availability, and booking systems, extending GDS functionality.

Payment and Settlement: GDS platforms handle payments through integrated payment gateways, facilitating the secure collection and disbursement of funds. They also generate invoices and receipts for service providers and customers.

Reporting and Analytics: GDS platforms offer reporting and analytics features, allowing stakeholders to analyze booking trends, sales, and market dynamics. This data is invaluable for travel agents and service providers in optimizing their strategies.

4. Overview of GDS Integration Architecture

Figure 1: Integration Architecture of GDS

The integration architecture (Figure 1) of GDS is a sophisticated system that connects various modules to facilitate efficient travel bookings and data management. Key components include:

• Central Reservation System (CRS): The central hub of GDS, where inventory, pricing, and availability are stored and updated in real-time by airlines, hotels, and other travel service providers.
• APIs: APIs allow real-time data exchange between GDS and external platforms, enabling travel agents and online travel agencies (OTAs) to seamlessly access data.
• Databases: GDS relies on highly scalable databases to store vast amounts of information, including customer data, booking details, and supplier inventories.
• User Communication Interface: Initially, GDS platforms utilized command-line interfaces for travel agents. However, these systems have evolved to offer more user-friendly graphical interfaces, enhancing usability. Examples include Amadeus's Selling Platform Connect and Sabre Red.

5. GDS in Action: Airline and Hotel Bookings

Figure 2: GDS and CRS Integration

GDS seamlessly integrates with airlines' and hotels' CRS systems (Figure 2) to access availability data and manage reservations. In a multi-segment booking scenario involving multiple airlines and a hotel, the GDS holds the complete itinerary, while each service provider maintains relevant segments. For instance, if a passenger books an itinerary containing air segments of multiple airlines and hotel booking through a travel agency, the PNR (Passenger Name Record) in the GDS system would hold information on their entire itinerary, while each airline they fly on and the hotel they stay would only have a portion of the itinerary that is relevant to them. This would contain flight segments on their services and inbound and onward connecting flights (known as info segments) of other airlines in the itinerary. Let’s say a passenger books a journey from Mumbai to Hongkong on Cathay Pacific, Hongkong to Vancouver on Air Canada, and Vancouver to New York on Delta and a hotel stay in New York at Marriot through a travel agent, and if the travel agent is connected to Amadeus GDS, the PNR in the Amadeus GDS would contain the full itinerary, while the PNR in Cathay Pacific would show the Mumbai to Hongkong segment along with the Air Canada flight as an onward info segment. Likewise, the PNR in the Delta system would show the Vancouver to New York segment with the Air Canada flight as an arrival information segment. Finally, the PNR in Air Canada’s system would show all three segments, one as a live segment and the other two as arrival and onward info segments. Marriot CRS will store the passenger's hotel reservation details. This is illustrated in Figure 3.

 

Figure 3: GDS and CRS PNR System in a Multi-Segment Journey

6. Relevance of GDS in Modern Travel

Global Reach: GDS systems provide unparalleled global connectivity, giving travel agencies—both traditional and online—access to a wide range of suppliers. This allows customers to compare prices and availability in real-time across numerous travel service providers.

Efficiency: GDS enables quick comparison of flight schedules, room availability, and pricing, making the booking process faster and more efficient. Real-time updates ensure that travel agents have the latest information regarding availability and pricing.

Revenue Generation: For travel agencies, GDS is a significant source of revenue, integrating commissions and booking fees into the platform. Dynamic pricing models can also maximize revenue based on demand. For many hotels, GDS remains a major contributor (Table 1) to their overall revenue.

7. Challenges and Future Directions

Current Challenges: Despite its advantages, GDS faces increasing competition from direct booking channels, where travellers can bypass intermediaries. Low-cost carriers often avoid GDS due to high subscription fees, opting for direct sales to reduce costs. Additionally, the GDS workflow is complex and requires specialized training.

Future Prospects: The future of GDS will likely see deeper integration with artificial intelligence, predictive analytics, and personalization engines. As the travel industry recovers post-pandemic, GDS will continue to play an essential role in demand management, price optimization, and streamlining operations in an increasingly digital-first world.

8. Conclusion

GDS is a great tool for disposing of inventory last minute, adding to the revenue of Hotels and Airlines. However, the architecture of GDS is complex and requires heavy expenditure in IT infrastructure (cloud cost) and operations from the GDS providers, as it requires enabling efficient and real-time communication between suppliers and agents while providing travelers with the convenience of accessing a wide range of services. These costs are subsequently passed on to the travel service providers in terms of brokerage or subscription charges. This leads, the airlines and hotels to explore a new business model of direct selling to their wholesale and retail customers, moving away from GDS. To reduce the cost of maintaining GDS and ultimately pass on the benefit to the service providers, some travel tech companies establishing significant offshore capability. Also, as GDS platforms evolve and integrate new technologies like AI and predictive analytics to make it smart to offer a personalized experience, their relevance in the travel domain will continue to grow, offering both opportunities and challenges in the rapidly changing landscape of global travel.

Leveraging GCCs: A Blueprint for Technology Consulting Firms

 

Global Capability Centres (GCCs) play a pivotal role in the global operations of multinational corporations (MNCs), acting as hubs for innovation, operational excellence, and strategic support. Maintaining the status quo—preserving proven operational, organizational, and cultural practices—is a foundational pillar of their success. The status quo enables stability while providing a platform for sustainable growth and innovation, ensuring GCCs remain valuable assets in global business ecosystems.

Operational Stability

Maintaining the status quo in operational frameworks ensures that GCCs consistently deliver on their mandates, including IT services, business analytics, finance, and R&D. This operational stability fosters trust between GCCs and their parent companies, ensuring reliable service delivery and minimizing risks. Standardized processes aligned with global standards allow for seamless integration with broader corporate goals, while predictable performance builds resilience in rapidly changing business environments.

Cultural Cohesion

GCCs often operate in diverse geographies, requiring them to align with the cultural and organizational ethos of their parent corporations. Preserving the status quo ensures that the GCC’s work culture and operational principles mirror those of the larger organization, reducing friction and fostering collaboration. Such alignment enhances communication across teams, enabling GCCs to function as strategic extensions rather than mere outsourcing units. This cultural synchronization is particularly critical in driving teamwork and achieving long-term strategic objectives.

Talent and Economic Ecosystems

The success of GCCs often hinges on leveraging local talent pools and cost advantages. Maintaining the status quo in these areas ensures continuity and reinforces a geographic location’s reputation as a leading GCC destination. Stable workforce policies, investment in employee development, and adherence to globally standardized practices create an environment where talent thrives. Moreover, preserving GCC's competitive edge as a low-cost, high-value hub contributes to sustained confidence from global stakeholders.

Balancing Stability with Innovation

While the status quo provides a foundation for stability, GCCs excel by introducing innovation within this framework. The consistent processes and cultural alignment serve as a bedrock for digital transformation and innovation in emerging fields like artificial intelligence, cloud computing, and advanced analytics. This balance ensures that change is introduced incrementally, without disrupting core operations.

Long-Term Strategic Value

By maintaining the status quo, GCCs contribute to the strategic goals of their parent companies. This consistency provides a stable base from which organizations can scale operations, test new strategies, and expand capabilities. The status quo thus acts as a stabilizer in a volatile global business environment, ensuring that GCCs remain integral to their parent companies’ success.

Conclusion

The importance of the status quo in the success of GCCs lies in its ability to provide stability, reliability, and alignment with global corporate goals. While fostering innovation is essential, the stability provided by the status quo enables GCCs to deliver consistent value, build trust, and support sustainable growth. It ensures that GCCs remain not just cost centers but strategic partners in the global ambitions of multinational corporations.