Webjet and Microsoft claim the build of a “first-of-kind” travel industry blockchain proof-of-concept (POC) solution has the potential to transform the way the entire travel industry processes and manages online payments for hotel bookings.
Webjet, an Australia and New Zealand online travel agency, claims the POC blockchain has the potential to create a new industry standard, improving customer experiences and reducing costs across the travel industry.
Blockchain is an emerging way for businesses to almost instantaneously make and verify transactions in order to streamline processes, save money and reduce the potential for fraud. It is a digital transaction ledger shared among a distributed network of computers, showing all historical updates in the transaction chain.
Initially, Webjet aimed to boost efficiencies in its own supply chain through the blockchain PoC, but the company says it quickly became apparent the technology had the potential to transform transactions across the entire travel industry.
{loadposition peter}“Blockchain eliminates transaction errors by having an indisputable record of truth,” Webjet managing director John Guscic says.
“As we’ve tested the technology, we quickly realised it had the potential to improve processes with the rest of our travel partners who face similar complexities. It didn’t just benefit the Webjet environment; it could potentially assist every one of our partners in the supply chain to improve their efficiency.
“We realised facilitating bookings in the travel industry through blockchain could become an additional business we could enter in the future, and the same technology could also help solve problems outside the travel industry. Undoubtedly, the blockchain technology built with Microsoft is an exciting opportunity for us over the next few years.”
The blockchain PoC between Webjet and Microsoft has built Smart Contracts that resolve issues created by data mismatches, and has proven the ability to create shared, independent and trustworthy documents that:
• Remove the risk of data inaccuracies – ensuring all parties are paid the correct and agreed amounts and boosting customer experiences as bookings are not lost or inaccurate
• Streamline payment processes – invoices are captured and paid in a timely manner with significantly reduced reconciliation costs
• Boost data security – made of individual data nodes and as a read/write-once database, blockchain reduces fraud and establishes trust and accountability
• Resolve pain points in the payment process – wholesalers and hotels can focus on improving the customer experience, rather than addressing issues in the booking process.
Webjet is rolling out the blockchain platform in three phases. The first phase involves the PoC now live, with Webjet’s Lots of Hotels and Sunhotels brands trialling the platform. The second will see the same brands trial blockchain’s automated features, processing thousands of transactions weekly. Following this, Lots of Hotels and Sunhotels will invite selected external parties to use the platform to demonstrate the benefits it delivers to the industry.
Microsoft Azure chief technology officer, Mark Russinovich, speaking about Microsoft’s relationship with Webjet said, “Microsoft is uniquely positioned in this era of massive business and societal transformation. We’re the company that cares most deeply about computing technologies for both people and the organisations they build. By working with Webjet to use our digital platform, together we have created an innovative blockchain solution in Australia that has the potential to not only transform the travel industry but many other industries as well.”