IBM And Travelport Partner To Launch Hotel Commission Reconciliation on Blockchain With BCD Travel
In an exclusive press release to our team on August 20, Travelport, a travel commerce company is launching a blockchain solution to enhance the travel industry – specifically hotel commission reconciliation. The launch was unveiled in a meeting earlier in the month at the GBTA Convention in Chicago. The travel firm partners BCD Travel, a travel management company, and IBM Services (reported in October 2018) as well as three unnamed high level hotel chains.
A Solution for Hotel Commissions Reconciliation
The hotel industry faces a number of challenges when it comes to reconciling their commissions and balancing books. Processes such as lack of audit trails and manual data mapping contribute to increased costs and financial impairment of revenue forecasting. In a bid to offer customers an optimal travel experience, enhance the reconciliation process and ensure all stakeholders in the process are compensated, the travel company is launching a blockchain solution.
Blockchains provides a distributed, immutable and secure ledger that allows participants in the network to share data on a trustless platform. The launch of a blockchain solution will optimize the process of recording hotel commissions by
“by managing reconciliation, tracking and accounting for commission payments owed from hotel chains for services purchased by travelers via booking agencies.”
Blockchain to Increase Transparency
The partnership with IBM and BCD Travel will open up a gateway for the hotels using the Travelport platform to easily collect reconciliation data. The companies are looking to launch an active pilot program in the coming months.
The senior product director at Travelport, Ross Vinograd is looking forward to implementing blockchains to increase transparency, trust from customers, and their market share. He further 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. “
IBM representative in the deal with Travelport, Kurt Wedgwood, was equally thrilled at the launch of the blockchain solution. Kurt 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 traveler.”