June 08, 2018

Debunking the impact of blockchain on hotel distribution


There should be a high level of skepticism that at this stage blockchain technology can be used successfully for hotel inventory distribution.

Any blockchain player has to tackle the complexity of hospitality technology, consisting of many moving parts, including old legacy systems that are barely functioning, co-existing with ultra-modern, next-gen apps and promising AI and blockchain implementations. Where do you start? Deep integrations/two-way APIs are needed with legacy systems like PMS, CRS, Hotel Switches, GDS, and Channel Managers in order to build real-time hotel inventory availability and pricing connectivity with hotel chains, mid-size and smaller brands, and independents.

To achieve any “commissionless” distribution, the blockchain system needs to replace all of these legacy systems, not just interface with them. Who will pay for this huge investment? Where would a blockchain distribution system recuperate its investments in APIs, ongoing API management, or completely replacing the legacy distribution systems?

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