Travelport, IBM and travel management firm BCD Travel are jointly developing a blockchain platform for hotel commission reconciliation.
Artificial intelligence-enabled travel platform Travelport, IBM and travel management company BCD Travel are jointly developing a blockchain platform to streamline hotel commission reconciliation.
Per a press release on Aug. 20, the companies are collaboratively working on the creation of a blockchain-based platform in a bid to optimize hotel commission processing. Specifically, the product will purportedly allow users to track and account for commission payments hotels owe for services that travelers bought through booking agencies.
Travelport and IBM are working within the framework of the IBM Garage — a consultation program for customers that want to experiment with new technologies and find new ways to build apps — with the participation of industry stakeholders aiming to bring the project to an active pilot program. Commenting on the project, Travelport’s senior product director Ross Vinograd said:
“Traveler modifications at property, no shows, and complimentary room nights are just a few examples that drive commission discrepancies which in turn generate escalations, cost, and revenue loss. Our aim is to put the lifecycle of a booking on the blockchain and we believe doing so will drive transparency, trust, and ultimately booking volume.”
Yesterday, Cointelegraph reported that Glenn Fogel — who was recently appointed CEO of Booking.com — addressed blockchain and crypto alongside with major issues in the travel industry, including over-tourism. When asked about the future of payment systems in travel, Fogel emphasized that it needs to be seamless, adding that data security must be prioritized.
World leaders in the travel industry are gradually turning to blockchain technology for its purported benefits. Recently, the national carrier of the United Arab Emirates Etihad Airways partnered with blockchain-based travel platform Winding Tree to explore how blockchain can aid in distribution.