GDSs have got to adapt now to the "new realities", Worldspan chairman and ceo Rakesh Gangwal told a conference call with investment analysts.
He predicted that GDSs would have to undergo "major structural changes" to meet the needs of the world airline industry.
"The airlines are hard pressed. There is a rip-roaring need to change the whole model in how booking fees are established.
"We have to adapt to new realities, and it's not something we can do over the next three, four or five years. We've got to bring the booking fees down now," Mr Gangwal said.
He said that while airlines appreciated the GDSs, they were "not happy at all with booking fees."
He said it was "obvious" that when the current the DCA deals finished, the airlines would be looking for further cuts in GDS fees. He added: "But another 5% to 10% discount would not resolve the overall issue."
GDSs, he said, would have to look at things in their offering which did not add value to airlines.
* Worldspan reported revenue of $953.8m, an operating income of $116.1m and a net loss of $750,000 for 2005. Its loss for the last quarter of 2005 was $3.2m.
Hotel performance slows in Germany
Hotel performance "slowed markedly" last year according to the Deloitte HotelBenchmark Survey for the country in 2005.
Revenue per available room (revPAR) rose marginally by 1.6% compared with a 4.6% rise in 2004.
The survey said that at 1.6%, the German increase lagged behind the European average of 4.3%.
It said the 2.4% increase in occupancy in Germany was "very impressive, especially coming on the back of a 4.3% rise in 2004."
But added: "At 61.5% German hotels still achieve the lowest occupancy of any of the major European countries.
"This combined with a fall in average room rates of 0.8%, resulted in German hotels achieving a revPAR of just 50, the lowest revPAR across Europe."
But with the country gearing up to stage the World Cup this summer, Deloitte said its hotel prospects looked "bright."