Share this article
Travelport, IBM Collaborate on Blockchain for Hotel Commissions
Blockchain will reduce the amount of discrepancies in booking data caused by hotel no-shows, overstays, and room modifications.
By Daniel Kuhn
Updated Dec 10, 2022, 9:46 p.m. Published Aug 21, 2019, 6:00 p.m.
Make us preferred on Google
Travelport, a business and consumer travel services provider, announced it is using IBM’s Hyperledger Fabric to guarantee commissions paid to travel agencies.
According to a statementhttps://www.travelport.com/company/media-center/press-releases/2019-08-20/travelport-ibm-and-bcd-travel-develop-blockchain released on August 20, the blockchain was designed with input from IBM, travel management company BCD Travel, and three unnamed hotel chains. The system aims to “put the lifecycle of a booking on the blockchain,” to reduce the amount of payment disputes.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In 2018, Travelport processed over $83 billion of travel spend over $2.4 billion in net revenue.
“Traveler 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,” said Ross Vinograd, Travelport’s Senior Product Director.
“The traveler can modify their booking multiple times, leaving room for information to go missing. For example, if a traveler arrives and then extends a hotel stay, that information might not make its way back to us as booking data," said Marwan Batrouni, Vice President of Global Hotel Strategy, BCD Travel. Additionally, blockchain will help close the "gaps" made by different payments systems.
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 currently wait 60 days after their clients check out to earn their commission. Thirty-four percent of travel agents find commission reconciliation and collection difficult, according to Travelport industry surveys, as reported by Ledger Insights.
Still in the proof-of-concept phase, during the coming pilot testing IBM will host the nodes. If the project gets off the ground, hotels will be able to host their own nodes.
In a separate statement anticipating the official announcement, Vinograd said:
“With travelers having endless options for accommodations, a booking alone is not enough to provide a commission to an agency... With blockchain, we’re able to reduce costs and ease burdens for all parties involved by improving transparency, accuracy and efficiencies to enhance the process.”
IBM image via CoinDesk archives
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Circle’s biggest bear just threw in the towel, but warns the stock is still a crypto roller coaster
Circle’s rising correlation with ether and DeFi exposure drives the re-rating, despite valuation and competition concerns.
What to know:
- Compass Point’s Ed Engel upgraded Circle (CRCL) to Neutral from Sell and cut his price target to $60, arguing the stock now trades more as a proxy for crypto markets than as a standalone fintech.
- Engel notes that CRCL’s performance is increasingly tied to the ether and broader crypto cycles, with more than 75% of USDC supply used in DeFi or on exchanges, and the stock is still trading at a rich premium.
- Potential catalysts such as the CLARITY Act and tokenization of U.S. assets could support USDC growth, but Circle faces mounting competition from new stablecoins and bank-issued “deposit coins,” and its revenue may remain closely linked to speculative crypto activity for years.
Top Stories
