Accredited as the largest tourism firm in the world, TUI Group is a big blockchain technology supporter and they have made a step further by incorpora
Accredited as the largest tourism firm in the world, TUI Group is a big blockchain technology supporter and they have made a step further by incorporating it in some of its characteristic hotel technology to create an in-house blockchain.
TUI Group, whose base is in Germany, is a global tourism and travel giant, and the largest in its niche. This firm boasts a workforce of 67,000 employees and owns among others more than 30 hotels, travel agencies in excess of 1600 not to mention multiple airlines that comprise about 150 planes. What’s more, the firm as of 2016 was reported to boast revenue of close to $20 billion.
The firm’s interest in block chain technology is set to emanate from Friz Joussen, the Group’s chief executive who happens to be an enthusiastic and keen advocate for block chain technology.
He shared information on BedSwap-a private in-house blockchain-powered plan that allows TUI to incorporate its hotel inventory distinctly on a typical block chain in order to evaluate shift inventories and demand between diverse sale points in real-time.
According to reports by Tnooz –a tech publication, BedSwap’s next phase could well see the group’s entire property management structure, right to its core, completely incorporated into the blockchain.
In a one on one with Skift, the chief executive revealed that the firm had injected just over a million ($1.29 million) on the development of blockchain. In reality, it is quite a meager spend considering that TUI anticipates an overall annual cost saving of about 100 million ($129 million).
In one of the most recent interviews with the publication, Joussen highlighted that the firm’s blockchain endeavor is characteristically a smart contract form of block chain where each of their contracts is embedded on this block chain which is utilized in hotel swapping. It has been coupled and embedded with their systems so that the characteristic yield system subsequently determines exactly where the firm wants to sell its beds.
In addition, Joussen further reiterated that with blockchain technology, the business-to-business (B2B) space is set to be restructured over time. Besides significant saves on costs, Joussen anticipates that blockchain technology will cut short the consequent monopolistic hold as exhibited by travel intermediaries such as Booking.com and Expedia among others in the tourism and travel industry.
As decentralized databases that are continually and instantaneously updated, blockchain-bases distribution technology may essentially some establishments such as travel accommodation agencies and companies practically redundant.
In addition, Joussen was also quick to point out a possibility of expanding their currently-private blockchain exclusively into a typical public chain which would be explicitly accessible from anywhere and by anyone across the globe.
In his statement, he mentioned the example of maybe starting this out in locations where such as China where they are yet to establish their distribution centers where he said that it could for instance begin with publishing material and subsequently availing it where their sales do not suffer.