The system aims to ‘put the lifecycle of a booking on the blockchain’ to reduce the amount of payment disputes. The blockchain was designed with input from IBM, travel management company BCD Travel, and three unnamed hotel chains.
The blockchain will track, manage, and account for commissions owed to booking agents on behalf of hotel chains. Blockchain tech will ensure that payments are more accurate and quicker than the current, manual method.
If successful, this may improve business for travel agents, who at the moment wait 60 days after their clients check out to earn their commission. Moreover, 34% of travel agents find commission reconciliation and collection difficult, according to Travelport industry surveys.
Currently the project is in the proof-of-concept phase, and while doing the testing, IBM will host the nodes. If the project gets off the ground, hotels will be able to host their own nodes.
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