Travelport provider Travelport has announced that it is using the IBM Hyperledger Fabric blockchain to guarantee payment of commissions to travel agencies.
According to a statement, the blockchain was designed with the participation of IBM, the management company of BCD Travel, and three unnamed hotel chains. The system aims to “put the life cycle of booking travel services on the blockchain” and reduce the number of payment disputes.
Note that in 2018 Travelport processed more than $ 83 billion in payments for travel services and received more than $ 2.4 billion in net profit.
“Changes in hotel rooms, late check-in and bonus nights in rooms are just a few examples that lead to discrepancies in commissions, which, in turn, leads to costs and loss of revenue,” said Ross Vainograd, senior product director at Travelport (Ross Vinograd).
Marwan Batrouni, Vice President of Global Hotel Strategy at BCD Travel, said:
“A traveler may change his reservation several times, and some of the information may be lost. For example, if a traveler extends his stay at the hotel, this information may not be returned to us as part of the reservation data. ”
In addition, the blockchain will help close the “gaps” allowed by various payment services. The system will track and account for commissions due to booking agents on behalf of hotel chains. Blockchain ensures that payments will be more accurate and faster than the manual method currently in use.
If successful, the technology can improve the business environment for travel agents who are currently waiting 60 days after their clients complete the tour to receive their commission. According to Ledger Insights, according to Travelport polls, 34% of travel agents believe that reconciliation and collection of fees are difficult.
Currently, the project is at the stage of proof of concept, and as part of a pilot test, IBM will manage the placement of nodes. If the project is launched, hotels will be able to host their own sites.
The use of blockchain in the tourism sector is gaining momentum. In March, Vietnamese travel operator Triip began offering customers the opportunity to monetize personal data. The company plans to use its own TriipMiles token to purchase information from customers about travel plans.