< PrevNext > Smart Contracts Will Crush the Hotel RFP By Mezi VP of strategic partnerships Johnny Thorsen / January 29, 2018 Share As corporate travel rolls into 2018 with all engines powering full speed ahead, it’s worthwhile to take a step back and consider which travel procurement category the coming technology might impact the most. My guess is that the hotel RFP process finally is about to get a serious shake-up and might even be removed completely from the playing field for the brave buyers who dare to think different.Considering the inefficiencies associated with the current hotel RFP, it’s surprising that procurement experts continue to execute the same game plan every year. Many programs have even acknowledged the failure by creating a rate-audit process that effectively is designed to highlight how often the RFP process fails to deliver the expected result.Imagine a new world in which a smart contract calculates and assigns the correct hotel rate regardless of how the booking was made and through which channel it was made. Furthermore, the smart contract will use dynamic and flexible parameters to calculate the price and provide both the hotel and buyer real-time access to a single data set showing number of room nights purchased and price paid at any given time, without waiting for other service providers to prepare the data for analysis.This fantasy soon will be a reality, as blockchain-based smart contract services on demand make their way into the corporate travel industry. The biggest benefit created by a smart contract is that the price is guaranteed; nothing can prevent the correct price from being applied once the booking has been made. However, there are other significant advantages, including the ability to get extra discounts based on daily, weekly or monthly room-night consumption; method of payment; or number of travelers staying in a property on a given night. Today’s distribution models can make use of none of these discounts without significant manual work and thus errors that then create the need for additional controls. In a blockchain-based world, however, these not only are possible but also quickly will become the norm for advanced buyers. The implications are dramatic. Imagine a hotel account manager confronted with an important customer saying he or she will require support for smart contracts in order for the hotel to remain in the program.Even better, this can be achieved without involving the global distribution system and travel management company. These traditional pillars are reduced to potential booking channels while the price and payment are managed by the smart contract with an automated audit trail. What do you think? Will you keep the hotel RFP alive for nostalgic reasons, or move into the future?