Airline Group Adopts Blockchain To Circumvent Entrenched Distribution Systems – Blockchain News Today


A new Blockchain
experiment by Airlines Reporting Corps could lead to more efficient
distribution alternatives to circumventing the global distribution systems.

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A potential
bypass of distribution incumbents will happen
soon to be very clear. The demise of global distribution systems like Amadeus,
Sabre, and Travelport have been predicted prematurely for more than twenty
years now. Also, they make up a large part of travel commerce online and
offline and on a global basis. They are not going anywhere soon despite the
intermittent disruptions.

The announcement

The Airlines
Reporting Corp, ARC based in the United States announced that it fielded a private
Blockchain proof of concept this week. They did so with Blockchain solutions
provider Blockskye and United Airlines. Using Ethereum technology through Blockchain,
United and ARC reported and settled ticket transactions of United Airlines.

ARC
vice president and chief information officer, Dickie Oliver, says the organization makes use of relational databases,
which tie into front-end applications to handle transactions such as ticket
modifications. Next, ARC sends reports to customers and exchanges information
through application programmable
interfaces.

Blockchain to streamline and democratize the process

Oliver
said,

We provide a ledger-based solution that
ensures the highest level of data quality because nothing gets on the
blockchain unless everyone participating on the chain agrees that a new
transaction is legitimate… Our customers will have instant access to
transactions on the blockchain and can work with those transactions through
their own systems
.”

He also
said that the Blockchain could offer travel agencies corporate and leisure,
easier access to better quality data where it is
agreed that the airline and the agency are searching for the same data.

Managing
director of distribution as well as ancillary piecing at United Airlines, Jeff
Christensen, said the proof of concept, when implemented, could save business travelers some time
when taking receipts for expense reports to make them more productive.

Oliver
of ARC added that when providing travel agencies and airlines with access to high-quality data,
we believe that airlines will have access
to more efficient and cost-effective distribution alternatives that will be
advantageous to corporate customers, as well. The use of smart contracts on the
blockchain will also drastically reduce the reconciliation efforts that exist
today between all parties.”

Different
travel industry sectors are adopting Blockchain to gain an edge on
distribution. Airlines like Lufthansa, Travelport, global distribution systems and operator TUL group are
planning to use Blockchain to streamline and make travel distribution for
travel.

Fritz
Joussen, the CEO of TUI group, made waves two years ago and he argued that Blockchain
removes monopoly of some platforms.

Impact of this technology

This ARC
Blockchain and other similar initiatives can impact the sector in so many ways.
The American Society of Travel advisors said,

If ARC can successfully record and settle
transactions using blockchain in the future, it would be faster, more secure
and more efficient… This would apply across
the board to agencies of all shapes and sizes using ARC’s settlement and
payment products.

It does
not matter whether it is a home based agent who sells luxury vacations or big
names in travel management. The travel trade advisor group says agents are not
going to be able to see the transaction being
settled through traditional means of Blockchain.



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