Blockchain Solution For Hotel Commission Reconciliation Developed By Travelport, IBM And BCDAugust 22, 2019
Travel technology company Travelport has teamed with tech giant IBM and travel management firm BCD Travel to develop a blockchain solution for hotel commission reconciliation.
According to a press release, the solution aims to optimize hotel commission processing on a distributed ledger by managing reconciliation, tracking and accounting for commission payments owed from hotel chains for services purchased by travelers via booking agencies.
“Hotel commission reconciliation processes include a range of challenges from the operational lack of audit trails driving escalations and manual data mapping, to the financial impairment of revenue forecasting, to the more commercial impact on commission flexibility and duty of care,” said Travelport. “Solving for this current friction is critical to ensure all stakeholders in a hotel transaction are duly compensated and ultimately to ensure customers receive an optimal travel experience; and, blockchain is an ideal solution to address this. Travelport and IBM are currently working in partnership with industry stakeholders to evolve the solution into an active pilot program.”
Ross Vinograd, Travelport’s Senior Product Director, said that blockchain technology applied to commission reconciliation has the potential to deliver real ROI to both a travel agency and the hotel.
“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,” Vinograd said. “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 that 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 traveler.
“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 traveler,” Wedgwood said.
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