Travelport partners with IBM on blockchain

Travelport, a travel platform that supports artificial intelligence, is collaborating with IBM and travel management company BCD Travel to develop a blockchain platform. The platform aims to store booking information such as prices and dates on the blockchain to reduce the number of payment disputes.

Travelport, a consumer travel services provider, recently announced a collaboration with IBM's Hyperledger Fabric to work on blockchain technology. The two companies are working together to develop a blockchain-based platform that, in addition to the mentioned functionalities, can track and calculate commissions owed when customers purchase services through other booking agencies.

According to statistics, in 2018, Travelport processed over $83 billion in travel spending and generated over $2.4 billion in net revenue. This is a significant figure, and blockchain can enhance asset security and reduce disputes.

Ross Vinograd, Senior Product Director at Travelport, stated that changes in customer bookings or varying discounts across different booking sites may sometimes result in discrepancies in the commissions we receive. He added:

Customers during travel can make multiple adjustments to their bookings, leaving room for data loss. For example, if a traveler has arrived and extended their hotel stay, this information may not be transmitted back to us as 'booking data.' Additionally, blockchain will help bridge the gap between different payment systems.

If successful, this could improve the business for travel agencies, as currently, agencies have to wait approximately 60 days after customer checkout to receive commissions. According to Ledger Insights' report, based on an industry survey by Travelport, 34% of travel agencies find commission reconciliation and collection challenging.

According to a recent report, Glenn Fogel, recently appointed as CEO of Booking.com, believes that blockchain-based tokens will continue to grow and become more popular.

When asked about the future of payment systems in travel, Fogel emphasized the need for seamless and hack-proof systems, adding that data security must be a top priority.

Currently, this project is in the proof-of-concept stage, and during the upcoming pilot testing phase, IBM will host nodes. If the project officially launches, hotels will be able to host their own nodes. The official statement reads:

With an endless array of accommodation choices for travelers, relying solely on bookings is no longer sufficient to provide commissions to institutions. We believe that through blockchain, we can enhance transparency, accuracy, and efficiency to reduce costs and alleviate burdens for all parties involved.

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