Travelport Announces Blockchain Solution to Hotel Commission Reconciliation
By Harvey Chipkin
Travelport announced the development of a blockchain solution to enhance the hotel commission reconciliation process. Working with IBM Services and BCD Travel as well as a number of hotel chains, 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. By creating an accurate and shared view of the booking status and commission, said the announcement, “all parties stand to win.” Ross Vinograd, Travelport’s senior product director, said blockchain technology applied to commission reconciliation has the potential to deliver a real return on investment to both a travel agency and the hotel. He said traveler modifications at property, no-shows and free room nights drive commission discrepancies that generate escalations, cost and revenue loss. The aim of the solution is to put the life cycle of a booking on the blockchain, thus driving transparency, trust and ultimately booking volume.