The Future of Blockchain in Travel Distribution 2018

Skift Take

If you're reading this, then you already know that blockchain is the disruptive technology behind bitcoin, with applications reaching beyond banking and finance. You also know that Blockchain has various potential applications in travel. Online distribution is a unique case and a potential fit, due to the decentralized nature of blockchain platforms. But its success will ultimately depend on proactive adoption and willingness to break away from traditional digital frameworks and configurations. Our channel checks suggest that their is in fact a case for the technology. However, proponents will need to move fast to create compelling use cases that can deliver attractive cost savings, and/or better customer experience than what's currently out there.

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Report Overview

The core question we address in this report is whether blockchain technology could disrupt or complement the current online hotel distribution space. Numerous reports and articles have now summarized the disruptive potential of blockchain in travel. However, most lightly touch on the various areas where blockchain could permeate into the online travel ecosystem. We believe that the discussion now deserves more focus. In this report, we dive deeper into the hotel distribution value chain, particularly for hotels, to get a better read on the implications of this technology that promises so much. We offer detailed data on hotel distribution mix by channel, current and forward-looking adoption rates of blockchain adoption by the travel industry, advertising spend by channel, how this will likely change over time, and more. We highlight current blockchain initiatives and offer our expert opinion on how travel distribution could get impacted over time.

Featured Quote

"We want to give the distribution power back to the individual hotels and give them the power of deciding over commission rates and how to market and sell their supply." - Maksim Izmaylov, CEO Winding Tree

What You'll Learn From This Report

The basics of blockchain and how this nascent technology applies to the current travel distribution landscape

Learn about the more promising pilot programs and applications of blockchain in travel distribution

Gain a detailed understanding of the current hotel distribution landscape including the friction points that blockchain could resolve

Learn how the industry is thinking about blockchain in terms of timeline for adoption

Learn which hotel distribution channel cost breakout and why hotels choose one or the other

List of Figures

Blockchain Timeline for Adoption Real And Perceived Hotel Distribution Share Breakout Across Channels Direct vs. Indirect Customer Acquisition Breakout Among Branded and Independent Hotel Properties Effective Commission Take by Distribution Channel Hotelier Perceptions on What Would be Considered Fair Third-Party Commission Rates Hotelier Satisfaction Rates on Third-Party Data Sharing

The Future of Blockchain in Travel Distribution 2018