Travelport has developed new blockchain technology to manage hotel commission payments.
The tech firm has partnered with IBM Services, travel management company BCD Travel and a number of hotel chain with the aim of improving the hotel commission processing by managing reconciliation, tracking and accounting for commission payments owed from hotel chains for services purchased through booking agencies.
Travelport and IBM are currently working in partnership with industry stakeholders to “evolve the solution into an active pilot program”, the tech firm said.
Travelport’s senior product director, Ross Vinograd, said: “Blockchain technology applied to commission reconciliation has the potential to deliver real ROI to both a travel agency and the hotel. Traveller 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.”
Kurt Wedgwood, IBM blockchain leader – travel said: “Global distribution companies and providers would benefit from this use of blockchain technology to remove their never-ending work of reconciliation to spend that time adding new experiences and insights for the traveller. Eliminating the hours spent addressing dollars in dispute or the timeliness and accuracy of information allows all participants to focus on what matters most: the traveller.”