Airline Group Turns to Blockchain to Bypass Entrenched Distribution Systems


Skift Take

There have been several new technologies, from the New Distribution Capability to direct-connect, and blockchain, that have at times shown promise in easing the grip of the global distribution systems. For the last 20 years, the incumbent distributors have always managed to exert or shore up their roles.

These are very early days, but the airline-owned Airlines Reporting Corp.'s new experimental blockchain, and others like it, could lead to efficiencies for corporate travelers, but also — importantly — distribution alternatives to bypassing the global distribution systems. Let's be very clear: A potential bypass of the distribution incumbents is not going to happen anytime soon. The death of global distribution systems such as Sabre, Amadeus, and Travelport have been prematurely forecast for the last 20 years. They are an integral part of travel commerce on a global basis, online and offline, and they aren't going anywhere anytime soon despite intermittent disruptions.  The U.S.-based Airlines Reporting Corp., or ARC as it's most commonly known, announced this week that it fielded a private blockchain proof of concept with United Airlines and blockchain solutions provider Blockskye. Through the blockchain, using ethereum technology, ARC and United reported and settled United Airlines ticket transactions. ARC provides ticket transaction settlement services between airlines and travel agencies and travel management companies. Traditionally, according to Dickie Oliver, ARC vice president and chief information officer, the org