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Error Prevention with Blockchain Technology

Large amounts of sensitive information – booking, passport, credit card data – is transferred between hotels and business travelers. Now, in collaboration with Siemens, hotel solutions provider HRS has developed a way to protect this information from misuse. Blockchain technology underpins it all … and this is just the start of the journey. TEXT BY: Jürgen Baltes

The Background

Some time ago, executives at Siemens and HRS noticed that the individually negotiated corporate rates enjoyed by Siemens’ staff at certain Chinese hotels were being offered to the public on shopping websites. Evidently, strangers were claiming to be Siemens employees in order to be able to stay at these hotels at cheaper rates.

“It was a thorn in the side of all partners to see that the negotiated rates were obviously being used by unauthorized parties,” said Martin Biermann, Vice President for Product Development and Innovation at HRS.

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“A hotel typically conducts sales through numerous channels, via which a considerable amount of personal data and payment information is exchanged.”

You Are Who You Say You Are with Corporate Hospitality Blockchain

Working alongside their client, HRS took immediate action and developed a system that unequivocally identifies guests as Siemens employees while protecting their personal data. They call it the Corporate Hospitality Blockchain.

Because the data is verified and always correct, registration forms can be filled out in advance and recurring invoice errors—like incorrect addresses or titles—are avoided.

Far-Reaching Implications

The implications of this technology are significant. Payment systems could become more secure and cheaper; sales departments could be automated.
Beyond money transfers, patents, land registers, and copyright could all be administered efficiently using blockchain.
The dissemination of news, photos, and videos could be traced back to their source, helping to combat fake news.

Martin Biermann sees further application in the secure administration of personal data, particularly under EU GDPR. Monitoring which data is stored, where it is kept, and who can access it has been virtually impossible up to now.

That is why HRS is committed to incorporating this data into a blockchain – guaranteeing corporate customers that correct data will be used and later deleted as required.

Smart Contracts

The prospect of concluding automated contracts via blockchain also looks appealing. These smart contracts fulfill themselves according to predefined parameters.

In negotiations between hotels and companies, the trend is increasingly moving towards continuous sourcing — reviewing each quarter whether negotiated rates are actually available and if promised volume targets have been met.

“If we had personal data, rates, and bookings in the blockchain, we could automate this partially time-consuming process too,” says Biermann.
“The possibility of concluding automated contracts via blockchain is also appealing.”

Areas of Application for Blockchain

Transparency and manipulation security have triggered enthusiasm for blockchain across industries. Examples include:

• Bitcoin cryptocurrency transactions verified through blockchain transparency.
• Flight reservation system Amadeus testing real-time luggage tracing.
• Walmart using blockchain to identify recalled foods in seconds.
• Hobo Hotel Stockholm integrating all services into a blockchain for automatic partner access.
• Estonia basing its entire public administration on blockchain.
• TUI Group planning to manage bed quotas via blockchain.
• BMW recording vehicle mileage through blockchain to prevent fraud.
• City of Vienna digitizing employee meal vouchers using blockchain.
• De Beers using blockchain tracker Tracr to ensure ethical diamond sourcing.
• Bundesbank and Deutsche Börse testing securities settlements using blockchain.
• German Ministry of Health exploring blockchain for organ donation and consent documentation.
• Dubai Blockchain Platform enabling paperless public administration.

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