Travelport has agreements with “major” hotel and travel management company partners to pilot a hotel commission tracking and collection system using blockchain technology from IBM. Travelport chief architect Mike Croucher said during a Monday interview that he would be disappointed if the initiative did not produce a working solution this year. Other industry efforts to…
People disagree on how much and when, but blockchain seems destined to improve how hotels track and pay commissions to travel management companies. This always has been a gnarly process, so many will welcome the change. Clearing up mismatched data, resorting to dunning, failing to trust … it’s so bad, the industry accepts “commission recovery”…
Collecting hotel commissions always has been arduous. Helping agencies and corporations with it is the reason companies like Onyx CenterSource and CTS Systems exist. For their clients, hotel compensation strategies that reallocate monies from the traditional commission bucket to so-called marketing fees exacerbate the challenge. The apparent step-up in such activity has led to more bemoaning…
[UPDATE, May 9, 2017: OnyxCenterSource acquired fellow hotel commission recovery specialist eCommission Solutions. Onyx CEO Mark Dubrow said the deal expands his company’s client base and provides pre-existing ECS clients “an expanded hotel network and additional support services around the world.” Dubrow added that Onyx is determining how the ECS “big data platform” may help…
Hotels pay tremendous amounts of money to travel agencies and some corporate travel departments on commissionable room rates. The standard is 10 percent. Depending on contractual arrangements, travel management companies may pass all or part of those commissions to corporate clients. Or, they may keep them and charge customers lower transaction fees. Some even waive fees if their hotel revenues are robust…
[UPDATE, May 31, 2016: Plaintiff eCommission Solutions and defendant Dell Marketing agreed to dismiss claims and counterclaims. The presiding judge in Dallas County Court on May 27 signed the order for dismissal with prejudice prohibiting ECS from bringing the same claims in the future. The case is now closed. The related ECS suit against CTS continues…
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