According to a news release on Aug. 20, the companies are collaboratively working on the creation of a blockchain-based platform in a bid to optimize hotel commission processing. Specifically, the product is designed to track and account for the commission payments that hotels owe when travelers buy services through booking agencies.
Artificial intelligence-enabled travel platform Travelport, IBM and travel management company BCD Travel are jointly developing a blockchain platform to streamline hotel commission reconciliation.
Travelport and IBM are working within the framework of the IBM Garage – a consultation program for customers who want to experiment with new technologies and find new ways to build apps – with the participation of industry stakeholders aiming to bring the project to an active pilot program.
Travelport’s senior product director Ross Vinograd said:
“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. Our aim is to put the lifecycle of a booking on the blockchain and we believe doing so will drive transparency, trust, and ultimately booking volume.”
On Aug. 20, Cointelegraph reported that Glenn Fogel – who was recently appointed CEO of Booking.com – believes blockchain-based currencies will continue to grow and could become more popular. When asked about the future of payment systems in travel, Fogel emphasized that it needs to be seamless, adding that data security must be prioritized.
World leaders in the travel industry are gradually turning to blockchain technology. Recently, the national carrier of the United Arab Emirates, Etihad Airways, partnered with blockchain-based travel platform Winding Tree to explore how blockchain can aid in distribution.
Treadway Commission to Issue Blockchain Security Guidance in 2020
An organization that combats corporate fraud will issue guidance for firms using blockchain technology.
The Committee of Sponsoring Organizations of the Treadway Commission (COSO), commonly referred to as the Treadway Commission, will issue guidance to strengthen controls over uses of blockchain in supply chain management and financial services.
The Wall Street Journal reported first on the guidance, which is due in the first quarter of 2020.
The Treadway Commission was founded in 1985 to advise on corporate governance and risk management in the private sector. Its recommendations are opt-in and serve to provide “reasonable security.”
In a report Dec. 17, COSO said that, as companies adopt new technologies including blockchain, artificial intelligence, and cloud computing, cyber attackers “will take advantage of new vulnerabilities that allow information systems and controls to be exploited.”
The report cites hackers demanding ransoms paid in cryptocurrency.
“Cyber risks cannot be avoided, but such risks can be managed through careful design and implementation of appropriate responses and recovery processes”, COSO writes.
Paul Sobel, COSO’s chairman, told the WSJ it’s a “very different view of the world” when companies use distributed ledgers, as control over the database isn’t maintained internally.
The organization did not respond to a request for comment