Recently, blockchain technology has produced significant interest in several fields and business sectors. This is likely because to a great extent it can change how data or information is stored and used for enhancing security and transparency and also by improving transactions. This technology guarantees to improve the security and transparency in transactions by driving the travel industry to go for it.
Blockchain and Tourism industry
Blockchain and the travel industry can transform into an extremely beneficial combination as this technology can offer greater security and privacy to major critical points. If a travel agency needs to book flights and hotels for its client, it needs to send information to various firms. Blockchain could make this activity increasingly secure and progressively transparent because the responsibility gets spread throughout the entire system by increasing the degree of trust between the involved parties.
Benefits of Blockchain in the Travel Industry
- The travel industry relies on different organizations sharing information. For instance, travel agents need to give client details to flight organizations and hotels, while the belongings of the travelers are frequently passed among organizations and tracked as well. Blockchain can make sure that storing and accessing the information is easier and reliable since the responsibility of storing is shared over the entire system.
- Besides, financial transactions are also an essential part of the travel industry as well and by using blockchain technology, it can also simplify and secure payments. This is particularly seen when managing overseas payments. As an outcome, blockchain can improve the degree of trust among all groups.
Uses of Blockchain in the Travel Industry
Using blockchain in the travel industry has many uses. Below are the most important uses of blockchain technology concerning the travel industry.
- Tracking baggage
Blockchain technology can be highly valuable for tracing and tracking the movement of baggage, particularly when managing international travel. Several times the client’s baggage changes hands on numerous occasions through the course of their travel. By using a decentralized database makes sharing and tracking information between organizations a lot simpler.
- Identification Services
One of the most important services in the travel industry is Identification service and blockchain can become the business standard for identifying and storing the information. The Blockchain technology can lessen check-in times, or queues in air terminals, as a simple retina scan or basic fingerprint scan can take over showing documents at any point of time.
- Secure Payments
One of the main advantages with regards to payment is that payments with digital currency will be substantially more traceable and secure. Further, all transactions made on the blockchain stay registered on the chain and cannot be altered. Blockchain applications can serve as a global ledger, making bank payments more secure and simple, by allowing travel companies to acknowledge payments utilizing Bitcoin and other digital currencies.
By adopting decentralized management frameworks would result in significant savings for large organizations as this would let them get rid of intermediaries. Moreover, information flows safely while being available consistently, reducing management time and offering universal access to data.
- Customer Trust
The customer looks at forums and reads reviews when they are planning to travel; nonetheless, we cannot check who wrote the reviews and to what extent it is accurate. With blockchain, all the data that appears in the network is dependable, public, and secure, accomplishing better transparency and expanding customer trust.
- Loyalty programs
Several travel firms make loyalty programs for their clients with the point of making them into repeat customers. Moreover, Blockchain would encourage these procedures and enable clients to check their requirements and helps them to find solutions.
- Travel Insurance
Blockchain technology is very useful in insurance, considering the requirement for high-quality data for smart contracts to automate decisions dependent on this information. Any number of situations where there can be a claim against a travel insurance policy that might become necessary, like a delayed flight or lost baggage. A smart contract utilizing data oracles in a decentralized network could point to whether the parameters of the claim had been met and automatically payout.
Some prominent travel companies using blockchain include Marriott, TUI, Webjet, AXA, Travelport and Singapore Airlines.
There are also a few startups in travel industry like Beenest, Trippki, Atlas, Loyyal, and Winding Tree that use blockchain technology.
To conclude, Blockchain technology is still in the early phase of its life. While there is still a debate about its potential, it is difficult to tell where it can get to and how it will affect businesses like the travel industry. Moreover, the travel industry appears to be so ready for blockchain disruption on account of the service providers and intermediaries who are making the traveler’s journey more difficult.