Travel technology provider Travelport has invested significantly in a digital transformation journey over the last several years. They recognize that Blockchain can improve efficiencies in the travel distribution marketplace, making distribution more affordable to long-tail content providers like B&Bs, small local boutique hotels, Airbnb hosts, excursion providers, etc. By utilizing IBM Blockchain, Travelport’s new solution will significantly reduce costs for managing travel content so that long-tail content providers can reach their travelers more efficiently and on a larger scale. Learn how the platform will unlock the marketplace for long-tail travel content and help small businesses compete in the fast-growing global travel industry.
Turn blockchain strategy into business outcomes: https://ibm.co/2DrICPl
1. Mike Croucher
Head of Technical Strategy and
Chief Architect at Travelport
2558A
Travelport and IBM Blockchain
Mike Croucher
Travelport
"Think 2019"
3. Based on the use of
electronics and IT to further
automate production
Based on mass production
enabled by the division of
labor and the use of electrical
energy
1784 TODAY
INDUSTRY 1.0 INDUSTRY 2.0 INDUSTRY 3.0
1870 1969
Based on mechanical
production equipment driven
by water and steam power
INDUSTRY 4.0
Based on the use of cyber-
physical systems
Fourthindustrial
revolution
“Today’s fourth industrial [digital] revolution is
affecting the very essence of our human
experience and transforming the business models
of each and every industry”
World Economic Forum, 2016
4. Artificial Intelligence
Efficiencies in search | Agency automation |
Next best action | Predictive analytics | Robotics
Mobile
Social media | Applications | Always on |
Natural language / Chatbot |
Next best action | Personalization
Big dataInternet of Things
Cloud
Unstructured data | Best time to buy |
Insights | New revenue streams |
Personalization
Personalization | Wayfinding |
Context sensitive search |
Upselling and ancillary selling
Private and public cloud | Extension of Atlanta data center | Distributed data and processing
Peak volumes | Speed of distribution | Caching
Digital
Source: World Economic Forum 2016
Digital spine
“Today’s fourth
industrial [digital]
revolution is affecting
the very essence of our
human
experience and
transforming the
business models of
each and
every industry”
5. Artificial Intelligence
Mobile
Cloud
Internet
Big data - analytics
Internet of Things
Hybrid Cloud
5G
Autonomous Vehicles
Five Generations of Workers
Generation Z
Smart Cities
Technological Unemployment
Blockchain
Artificial intelligence
Transport 2.0
Decentralization of everything
6.
7. 1970s 2011
Phone Travel agent Web Metasearch
ATO/CTO GDS OTAs
The evolution of travel
2019+
Social media
Instant messaging
and chatbots
Existing
technology
players
New technology
players
“Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates
no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation
provider, owns no real estate. Something interesting is happening”
Third age of travel l evasive and consumer choice driven
through web and online
Second age of travel l travel for the masses driven by
commoditisation and packaging of travel
Fourth age of travel l digitally immersive; embedded, personal and social experiences
8. Millennials and
generation Z
in travel
Unique
Immersive
Localized
Personal
Social media
Instagram ‘friendly’
Always on
Trip Advisor
Influencers
Bloggers
Trust models
Recommendations
Validation
Experience
The customer of
tomorrow
9. ‘78% of millennials stated
they’d rather have a
desirable experience
over a desirable item’
Olapic, 2018 ‘62% of travel
spend happens
in-destination’
Worldcom, 2018
Simplenight, 2016
“34% of millennials say they would rather get
their teeth cleaned than call in to a
customer-service support line”
Salesforce, 2015
‘26% jump in activity levels
in-destination in 2017’ WYSE Travel, 2017
‘Only 25% of Generation Z’s
budget is allocated to flights’
Expedia, 2018
Experience
‘38% of bookings are made on the same
day or two-days before a trip, 53%
are made within a week of a trip, and
just 19%are made in advance’
Phocuswright, 2017
10. “70% of the content on
Instagram is travel related” ‘84% of millennials are
likely to plan a trip based on
someone else’s vacation
photos or social media updates’
‘40.1%of millennials
choose a travel
spot based on if it is
Instagram-friendly’
The Independent, 2017
Validation
TravelProfessionalNews, 2017
‘65% say that without
Facebook they wouldn't know
where their families have been
on vacation’
CNBC, 2018
11. First airline in the world that lets you
search for a flight using just a photo!
Validation
12. Dream
Plan
BookIn-destination
Share
Recommendations
‘4 in 5 TripAdvisor users
will “usually” or “always”
reference reviews
before deciding on an
attraction to visit’
Trip Advisor, 2015
‘70% of travelers look at
up to 20 reviews in the
planning phase’
Trip Advisor, 2015
‘Dependent on
following, travel
bloggers have
reported to earn up to
$7000 per post on
social platforms like
Instagram’
Business Insider, 2017
13. Internet of Things (IoT)
The interconnection via the Internet
of computing devices embedded in
everyday objects
Data and analytics
Predictive insights into the industry,
enabling relevancy and
personalization. Apps such as
Hopper determine the ‘best time to
buy’
API economy
Open systems, open connectivity,
the ability to connect anything to
anything. Accessing data
capabilities and processes.
Hybrid Cloud
Access to mass and distributed
compute, combing the power
of internal data centers with
public cloud
Digital infrastructure
14. CustomerRelationship
Management (CRM)
An approach to manage a
company's interaction with current
and potential customers
Enterprise Resource
Planning(ERP)
The integrated management of core
business processes, often in real-
time and mediated by software and
technology
Airline, hotel andcar
reservationsystems
Passenger service systems and
hotel and car platforms
Global Distribution
System(GDS)
A computerised network system that
enables transactions between travel
industry service providers, such as
airlines, hotels, car rental companies,
and travel agencies
Internet of Things (IoT)
The interconnection via the Internet
of computing devices embedded in
everyday objects
Data and analytics
Predictive insights into the industry,
enabling relevancy and
personalization. Apps such as Hopper
determine the ‘best time to buy’
API economy
Open systems, open connectivity, the
ability to connect anything to anything.
Accessing data capabilities and processes
Hybrid Cloud
Access to mass and distributed
compute, combing the power of
internal data centers with public cloud
Digital infrastructure
Systems of record
15. Systems of intelligence
Complex event messaging
Next best action and
personalization driving in-
destination relevant notifications
Blockchain
Blockchain is a ‘peer-to-peer’
distributed ledger providing the
assurance of transparency of a set
of actions
Artificial Intelligence (AI)
Artificial Intelligence (AI) is the concept of
machines which are capable of thinking like
humans
CustomerRelationship
Management (CRM)
An approach to manage a company's
interaction with current and
potential customers.
Enterprise Resource
Planning(ERP)
The integrated management of core
business processes, often in real-time and
mediated by software and technology.
Internet of Things (IoT)
The interconnection via the Internet
of computing devices embedded in
everyday objects
Data and analytics
Predictive insights into the industry,
enabling relevancy and
personalization. Apps such as Hopper
determine the ‘best time to buy’
API economy
Open systems, open connectivity, the
ability to connect anything to anything.
Accessing data capabilities and processes
Hybrid Cloud
Access to mass and distributed
compute, combing the power of
internal data centers with public cloud
Digital infrastructure
Systems of record
Systems of intelligence are the economic
winners in the new world
Airline, hotel andcar
reservationsystems
Passenger service systems and
hotel and car platforms
Global DistributionSystem(GDS)
A computerised network system that enables
transactions between travel industry service
providers, such as airlines, hotels, car rental
companies, and travel agencies
16. Systems of intelligence
Systems of intelligence are the economic
winners in the new world
Virtual, Augmented and Mixed reality
Used to encourage inspiration in the booking
process
Conversational platforms
Including voice and natural language,
robot agents (Chatbot) and involves
integration into social media
Biometric authentication
Including facial recognition and fingerprint
analysis. Statistical analysis of biological data
driving convenience, customization and trust
Complex event messaging
Next best action and
personalization driving in-
destination relevant notifications
Blockchain
Blockchain is a ‘peer-to-peer’ distributed
ledger providing the assurance of
transparency of a set of actions
Artificial Intelligence (AI)
Artificial Intelligence (AI) is the concept of machines
which are capable of thinking like humans
Internet of Things (IoT)
The interconnection via the Internet
of computing devices embedded in
everyday objects
Data and analytics
Predictive insights into the industry,
enabling relevancy and
personalization. Apps such as Hopper
determine the ‘best time to buy’
API economy
Open systems, open connectivity, the
ability to connect anything to anything.
Accessing data capabilities and processes.
Hybrid Cloud
Access to mass and distributed
compute, combing the power of
internal data centers with public cloud
Systems of engagement
Digital infrastructure
Systems of record
CustomerRelationship
Management (CRM)
An approach to manage a company's
interaction with current and
potential customers.
Enterprise Resource
Planning(ERP)
The integrated management of core
business processes, often in real-time and
mediated by software and technology.
Airline, hotel andcar
reservationsystems
Passenger service systems and
hotel and car platforms
Global DistributionSystem(GDS)
A computerised network system that enables
transactions between travel industry service
providers, such as airlines, hotels, car rental
companies, and travel agencies
17. Channels of consumption are shifting to
systems of engagement
Virtual Reality [VR]
Augmented
Reality [AR]
Chatbot
Voice
Email
Skype
Hopper
Social media
Google flights
Airbnb
Sales Force
Mixed Reality Bing
18. Systems of intelligence
Innovation across the travel domain
Systems of engagement Digital infrastructure
Systems of record
Social media
integration
Virtual
Reality
Outlook
integration
Thought-leadership
white papers and
POV
Augmented
Reality
Chatbots
Data and
analytics
Journey
Planning
Artificial Intelligence
for voice and chat
Artificial Intelligence
for search
Smart contracts –
long-tail content using
blockchain
Agency
effectiveness
Mongo DB Blockchain
traveller wallet
New Generation
APIs
API ingestion CDN
Akamai
19. Our innovation journey:
Sept 18 H1 19Q2 17 Nov 17 H2 19
IBM Research - 2015-present, built cognitive business analytics system to deliver AI-based business analytics tool focused on the corporate market and travel manager needs
Partner Evaluation
Evaluated market
conditions, system viability,
positioning and Travelport
opportunity.
Explored opportunities
Discussed business
models, IBM blockchain
concepts and elements.
Oct 18Aug 18
External press
IBM and Travelport’s
partnership in the
press; the long-tail
connectivity POC is
launched at the
annual GBTA and
many articles
produced on the
successful outcome.
Considered Enhancements
• Travelport shopping data (for real-time rate audit)
• Shared services (TMC reseller model)
• Competitive standard reporting features (like custom
xls export, canned summary reports, etc.)
• Deep-learning vocal interface
Bluemix garage
workshop
IBM held a 3-day
London based ‘garage’
workshop. The
workshop was based
on distributing and
selling long-tail, lower
value content based on
the Hyperledger fabric.
Customer-Led
Development
Additional enhancements as
prioritized
Partner
contract
in place launch
at GBTA
Alpha
customer
(Travelport)
General
availability
Limited
commercial
release
Beta
customers
IBM build Travel
Manager,
proposed TVPT
partnership
IBM and
Travelport
explore
opportunities
3-day Bluemix
garage
development
workshop held
IBM and
Travelport
produce
blockchain POC
Long-tail
connectivity
POC developed
Using distributed
ledger technology to
validateand manage
inventory, thePOC
increases thebreathof
content, removing the
usual complex and
manual processes.
Feb 18Q1 17
20. Why blockchain for travel?
Trust
Transactions are
endorsed by relevant
participants and are
permissioned
Joining
distributed data
Connecting the siloed
ledgers of each supplier
Transparency
Ensuring appropriate
visibility, transactions are
secure, authenticated
and verifiable
Reduction of
processing costs
Streamlining business
processes and the exchange
of value along ecosystems
Reduction of
complexity
Exploit new business
models and eliminate
inefficiencies
21. 21
21
Blockchain long-tail
connectivity
The breadth of content is
growing within the travel
industry, from tours to excursions
to activities. Platforms are looking
to use emerging technologies,
such as blockchain, to enable
distribution of this content.
The ‘long-tail content
connectivity’ concept uses
distributed ledger technology to
validate and manage inventory. It
will significantly increase the
breath of content, removing the
usual complex and manual
processes.
22. Traveller Wallet
Travel suppliers globally are
experimenting with blockchain
and distributed ledger solutions
for creating reservations.
A proof of concept for a
traveller wallet has been
created. Using a distributed
ledger running on a number of
travel manager nodes and
public key cryptography,
Travelport is creating
applications for travellers to
manage their travel assets from
their personal devices.
Traveller wallet allows the traveller to securely manage, transfer, redeem and
modify digital travel assets whatever the source.
23. Journey + experience =
trip
Traveller walletTraditional air and
hotel
Open Marketplace
Long tail content Settlement
Blockchain IATA COIN
One-order
Loyalty points
Supplier benefits:
• Reducing costs
• Processes
• Settlement
Customer benefits:
• Trust
• Transparency
• Easy to process
Distributed blockchain
inventory ledgers
24. Journey + experience
= trip
Today: Travel is accessible,
yet siloed
Designed around
the travel
process and not
the customer
Not
integrated
across the
journey
Ultimately giving
the customer a
siloed
experience
25. People
Smart Homes
Autonomous Vehicles
1.5 GB per day
50 GB per day
5 TB per day
Smart City
Smart Devices Stadium
Connected Factory
Smart Office
200 TB per game
250 PB per day
1 PB per day
150 GB per day
20B IoT devices
customer
centric
1-1 personalised
experiences
Removing the
burden of the
industry processes
Tomorrow:
Reversing the
paradigm in
travel
Travel changes your
perspective through a world of
people, cultures, places and
experiences