Cryptocurrencies or virtual currencies are fast penetrating to varied domains and are becoming the channelizing mode to facilitate transactions.
With the announcement of travel commerce and technology company Travelport using IBM’s Hyperledger Fabric has deepened the scope of cryptocurrencies in the modern era.
The travel service provider firm, Travelport, made the heads turn when it revealed that it uses Hyperledger Fabric of tech-giant, IBM, to allocate commissions to travel agencies.
Based on a statement released on August 20, the concerned blockchain was a deliberated joint effort of IBM, global corporate travel management company BCD Travel, and other three anonymous hotel conglomerates.
The primary purpose of going to the blockchain-way was to “put the lifecycle of a booking on the blockchain,” which in turn will bring the number of payment issues to a minimal size.
Precisely, the blockchain-based product is created to keep track of the commission transactions that hotels are indebted to pay when customers purchase travel packs through booking agencies.
Travelport’s esteemed product director Ross Vinograd quoted:
“Traveler modifications at the 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.”
Blockchain technology, which is totally decentralized and thoroughly secured, is expected to put an end to the disparities that often pop up with the usage of different payment systems. This decentralized platform will ensure accurate and time-saving transactions.
Currently, the travel agents have to wait for a long period of 60 days to get their commission credited. According to a survey of Travelport, thirty-four percent of travel agents have to face a tough time while reconciling their commission and collecting it from the respective hotels. But with the employment of blockchain platform, the agents will get their payments at a fast rate.
To keep things easy, IBM has decided to host the nodes of the platform during the pilot testing, which, after the success of the plan, can be carried on by each hotel all by itself.
Travel industry giants are fast turning towards the exploitation of blockchain technology to prosper the arena. Recently, UAE based, Etihad Airways, collaborated with blockchain-centered, travel platform, Winding Tree, to aid their business module.
With the world leaders exploring decentralized blockchain system, the future of virtual currency seems to prosper in leaps and bounds.