Could blockchain be used to create a more secure and accurate decentralized airline
distribution system based on IATA’s New Distribution Capability and One Order
initiatives?
That is the question being explored through a proof of
concept effort led by ATPCO, SITA and Blockskye, an Ethereum blockchain for
travel and entertainment.
The proof of concept will use NDC Exchange, built by ATPCO
and SITA, to test the use of blockchain for airline offer and order management.
ATPCO’s head of research and development, Gianni Cataldo, says the proof of concept will be available
later this year, and any airlines or sellers engaged in NDC Exchange will be
able to tap into it.
In a white paper produced by ATPCO and Blockskye, the
companies explain, “As airlines embrace more sophistication in offer generation,
beyond fares to dynamic products, blockchain can become an authority to ensure
the validity of the product offered.”
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Blockchain, the paper explains, provides a verified, single
record of truth, making it “the ideal format for storing transaction data
between multiple parties, such as airlines, agencies, distributors and settlement
and data services.”
The proof of concept calls for a “consensus-based validation
process” with ATPCO acting as the authority “to ensure that all actions
surrounding the offer are managed correctly, accurately and in compliance with
tax, industry governance and any applicable interline agreements.”
“Blockchain is an undeniable transformative force. With the
support of Blockskye, we wanted to ask the question, ‘How could this technology
be implemented to support the future-state airline distribution ecosystem, and
where can ATPCO add industry value?’” Cataldo says.
“The concept of a persistent offer managed by a neutral
authority addresses many of the coming challenges of direct distribution."