ATPCO, SITA and Blockskye to explore blockchain for airline offer management

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.”

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."