During the BTN Innovate conference this week, Blockskye co-CEO and co-founder Brook Armstrong shared insights into the Kayak for Business Enterprise tool, which is currently taking a selective approach to onboarding new clients. This strategy follows the tool’s initial collaborations with publicly announced customers.
The Enterprise solution results from a partnership involving blockchain technology provider Blockskye, Kayak for Business, and their initial client PwC U.S. Armstrong described the current phase as an “innovative period” where the focus is not on rapidly expanding the client list. He noted two of the clients discussed by Kayak CEO Steve Hafner at last year’s Phocuswright Conference: the multinational beverage company Diageo and TripAdvisor. Additionally, they are in the process of contracting “three large global clients across various industries” and some medium-sized clients, he confirmed.
According to Armstrong, it’s not yet time for the solution to experience “hockey-stick” growth.
“We’ve been carefully searching for the right partners,” said Armstrong. “What we are doing is highly innovative, and during this crucial period, it’s essential to choose partners who are genuinely committed to addressing these challenges. As a result, we have declined collaboration with a few potential clients. In the coming year, our focus will be on selecting the right customers and partners to effectively establish the platform globally.”
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This patient strategy comes as Blockskye, recognized as a PhocusWire Hot 25 Travel Startup for 2024, stands out as one of the few notable initiatives to integrate blockchain technology into corporate travel—a sector that faced challenges shortly after blockchain became a buzzword. While Blockskye continues its efforts, other players like Winding Tree have ceased operations as their CEO Maksim Izmaylov cited the travel industry’s insufficient readiness to adopt such technologies.
Other blockchain initiatives have also been quietly halted or delayed. HRS had experimented with blockchain technology for traveler profiles and identification authorization but pivoted in 2021-2022 to focus on AI features, according to an HRS spokesperson. Furthermore, a collaboration between Travelport and IBM for using blockchain in hotel commission reconciliation was “paused” with the onset of the COVID-19 pandemic as priorities shifted. “We’re still exploring AI and blockchain applications in travel with IBM, but we cannot share specific details at this moment,” said the spokesperson.
When asked if setbacks like Winding Tree’s closure gave him pause, Armstrong acknowledged the complexities of the travel industry and his understanding that change requires time.
“If an entrepreneur blames their failure on the industry’s lack of readiness, they shouldn’t be taking investment funds,” Armstrong remarked. “The standards are higher than that.”
Ultimately, Armstrong believes that advancements will occur “gradually, then suddenly.” As New Distribution Capability (NDC) adoption increases, he anticipates that travelers will increasingly prefer direct bookings, creating a continued need for efficient servicing of those bookings.
“We firmly believe that companies like United, Bonvoy, and Southwest will offer features on their apps that won’t be available through NDC,” Armstrong stated. “Travelers using these platforms will find functionalities that simply won’t be integrated into NDC. Our mission is to ensure we bring those capabilities back to third-party travel management companies.”
Armstrong emphasized that he dislikes referring to bookings outside corporate channels as “leakage.”
“Travelers make their own choices; it’s a reflection of market demand,” he explained. “Individuals should have the freedom to book with United or Bonvoy, ensuring adherence to policy and duty of care, while third-party agencies can still effectively manage those bookings.”
As PwC U.S. leads the way, they have already started seeing tangible results. In a recent BTN webinar, PwC senior manager of procurement and travel operations for the U.S. and Mexico, Danielle Cavnor, reported that the project has yielded a 10 percent decrease in intermediary fees for typical airline ticket purchases and a remarkable 92 percent reduction in agent interactions for bookings that do not go through global distribution systems.
When asked about potential collaborations with other agency partners beyond Kayak, Armstrong stated that Blockskye is “eager to work with any travel management company.” However, he noted that many TMCs seem hesitant, as they are navigating challenges following the heavy impact of the Covid-19 pandemic while facing the necessity of adjusting their business models.
“Regardless of the difficulties, travelers, buyers, and suppliers all have specific desires,” Armstrong remarked. “We’re likely to see TMCs with solid financial backing and established relationships adapt to a new commercial model that prioritizes transparency, openness, and fare neutrality.”
In the meantime, Armstrong affirmed that Kayak serves as a “fantastic partner” for Blockskye, with the company expressing a strong commitment to collaboration.
“They share our vision for a disruptive business model,” Armstrong stated. “Leveraging their extensive experience in the leisure sector has been a tremendous asset for us. We’ve formed a close partnership with them, and they have proven to be exceptional collaborators.”
* This story was originally published in Business Travel News.
