Travelport has developed blockchain solution to enhance the hotel commission reconciliation process with IBM Services, BCD Travel and number of hotels. The blockchain technology solution aims to optimise hotel commission processing on a distributed ledger by managing reconciliation, tracking and accounting for commission payments owed from hotel chains for services purchased by travellers via booking agencies. The platform creates an accurate and shared view of the booking status and commissions, which benefits all parties concerned. Blockchain technology behaves like an online ledger with the ability to collect data, build upon that data in real-time, and then independently and securely report information to any number of parties based on permission. Following an IBM Garage engagement, Travelport and IBM Services, together with partner BCD Travel, developed an MVP solution using distributed ledger technology to streamline commission reconciliation between BCD and three high profile hotel chains. 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. 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.
Sandeep Dwivedi, Chief Operating Officer at InterGlobe Technology Quotient (ITQ) commented: “Blockchain is a disruptive technology with enormous potential to improve hotel commission reconciliation process and Travelport’s blockchain solution will certainly address various challenges surrounding it. Further, as we are in the industry that revolves around customer satisfaction, the technology will surely impact their experiences in the best possible way.”