How This Technology is Transforming Travel Industry
Blockchain technology has sparked tremendous interest in a variety of sectors and fields in recent years. This is due to the fact that it has the ability to drastically alter the way information or data is kept and used, improving transparency and security while also facilitating transactions. Here, we examine the different ways in which Blockchain is being used, or is likely to be utilized, in the travel sector in greater depth.
Let us Understand Blockchain Technology.
Although blockchain technology may appear complex at first, it is actually quite simple to grasp. In the end, it’s a list of public records, sometimes known as a public ledger, that lists or stores transactions between parties. Cryptography is used to secure each record, which is referred to as a ‘block’ in blockchain parlance.
Data is decentralized, with information shared over a peer-to-peer network, which is one of the most important characteristics of blockchain technology. Each block includes transaction data as well as a time-stamp. Blocks are likewise permanent, and they can’t be changed without the network’s permission and without affecting all subsequent blocks.
Data recorded in the Blockchain is more secure, traceable, and transparent since it is decentralized, permanent, time-stamped, and unalterable. After all, there is no single point of failure or weakness, and the data is impervious to alteration and modification.
How can Blockchain Benefit the Travel Industry?
Stability and security are two of the most important benefits that blockchain technology may provide to the travel sector. The Blockchain’s decentralized nature ensures that data never goes “down” or is lost due to accidental deletion or a malicious cyber assault, guaranteeing that transactions are always traceable.
Different companies communicate information amongst one another in the travel industry. Travel agencies, for example, must provide client information to airlines and hotels, and travelers’ personal possessions are frequently transmitted between organizations and tracked. Because the responsibility for preserving essential data is shared across the whole network, Blockchain can make accessing and storing it easier and more dependable.
Financial transactions are, of course, an important component of the travel business, and blockchain technology has the potential to simplify as well as secure payments. This is especially true when it comes to international payments. As a result, Blockchain has the ability to raise the level of trust amongst all parties involved.
Potential Use of Blockchain in the Travel Industry
Here are the four uses of blockchain technology in the travel industry and hospitality –
- Identification Services
The travel sector relies heavily on identification services, and Blockchain has the potential to become the industry standard for storing this data. Because a simple fingerprint or retina scan can replace exhibiting documents, the technology has the potential to substantially shorten check-in times or waits in airports when used in this way.
- Customer Loyalty Schemes
Finally, many travel businesses provide customer loyalty programs to encourage repeat business. These programs can benefit from blockchain technology, which simplifies the process, allows clients to access information about their loyalty points more simply, and allows tokens to be issued. It can also aid in the fight against fraud in this sector.
- Tracking Luggage
When it comes to tracking the movements of bags, blockchain technology can be incredibly useful, especially when dealing with international travel. In many circumstances, a customer’s luggage will change hands several times during their voyage. Sharing tracking data across firms is much easier when using a decentralized database.
- Traceable and Secure Payments
Payments are perhaps the essential application of blockchain technology in the hotel, tourism, and travel industries. Its uses might range from serving as a global ledger to making bank payments more straightforward and safe to allowing travel businesses to accept Bitcoin and other cryptocurrencies as payment methods.
Examples of Blockchain Technology in Action
In addition to these more basic examples of how Blockchain might help alter the travel industry, there are several more specific examples of the technology already in use, such as:
LockChain, to put it simply, is a direct marketplace for hotels and hospitality companies wishing to rent out space. Payment, property management, and other facets of the booking process are all covered by the platform. Best of all, there are no intermediaries and no commission costs because it is a decentralized system.
- ShoCard and SITA
Blockchain was used in identity management as part of a collaborative project between ShoCard and SITA. Although the platform is currently in its early stages, it is hoped that it will eventually pave the way for a decentralized ID database that uses a common format to allow travel businesses to swiftly and easily verify consumer identification.
- TUI Bed – Swap
Finally, TUI has announced the beginning of its own internal blockchain project, dubbed “Bed-Swap.” The corporation can use this technology to shift inventory between multiple points of sale and flex selling margins in real-time, depending on the level of demand at the time.
The BeeToken or Beenest home-sharing network is one of the most inventive current Blockchain applications. Customers are placed in touch with hosts via technology so that they can schedule and pay for stays. There are no fees, and payment, reputation, and arbitration systems are all in place to keep users safe.
- Winding Tree
The Winding Tree network, which also includes a booking component, is likely the most prominent modern example of baggage monitoring via Blockchain. Because there are no third parties involved, booking and tracking are simple, safe, and secure, with all procedures benefiting from increased transparency.
In reality, understanding blockchain technology is not as difficult as it may appear at first. Nonetheless, learning about it might be intimidating or confusing, particularly for those who are unfamiliar with digital technology, encryption, cryptocurrency, or peer-to-peer networking.