Monday, February 23, 2015

Bitcoin Technology and Travel

Like Bitcoin or not, the technology behind it and travel have an intersection point in the not so distant future.  What I am really talking about is blockchain technology.

Blockchain technology allows for a public ledger of all transactions.  Maintenance of the ledger is performed by the network of communicating nodes or computers.

 

What does this mean for Travel?

Blockchain technology and the decentralization it brings can eliminate $100s of millions of dollars in travel related fees that exist today on a global basis. There are clearly Business to Consumer (B2C) applications and we read about those ventures today.  It is the Business-to-Business (B2B) that will have significant impact on the travel industry.

The real value of blockchain technology will be the adoption to the travel commission reconciliation process.  Today, there is a complex sequence of reconciliation between hotel, airline, car, tour, and cruise to commissionable agents.  Currency exchange, cross border taxation, and consolidation all trigger an average of 3%-5% fee the agent must pay in order to receive payment.  This is a valuable service, but one that can be simplified by leveraging blockchain technology.

The game changer reference the travel industry is that there is no central authority or intermediary.  Intermediaries charge fees for the collection, aggregation and conversion of currencies.  These fees are now minimized leveraging this technology.

So, while Bitcoin’s future is unknown, the technology it uses to operate will travel forward.


Posted via OnFast - http://www.OnFast.com

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