The way when and why we travel has changed dramatically after the pandemic. The complications of shopping and organizing for a vacation have reduced the joy of a new adventure. COVID-19 has introduced a new level of ambiguity to the travel industry. Now, the tourism industry requires a holistic approach to meet the problems it faces and thrive post-pandemic. Consumers today expect safe, unique, and personalized guest experiences. The travel companies that can deliver them will earn – and keep – travelers’ trust. Digital transformation by blockchain development, big data, AI, and IoT can aid the personalization demands of travelers.
Blockchain’s potential to radically revolutionize the processes of storing and using data and other information sources has sparked excitement across industries. The tourism industry has also started experimenting with this technology. It is because it promises to improve business transparency and security. Some advancements are particularly intriguing. Let’s dive into blockchain’s applicability in travel and tourism and explore them in-depth.
Tourism and blockchain have the potential to be a great combination. The technology can offer security, transparency, and other advantages to the industry to address challenges.
For instance, when a travel agency books flights and accommodations for a customer, it requires sharing the information with various companies. Because blockchain is a distributed ledger spread across an entire network, it makes this activity safe and transparent. The same thing can happen with international transactions, boosting the level of confidence amongst all parties involved.
Blockchain provides various benefits that many industries can use, including tourism and technology, due to its intrinsic structure. Indeed, a study forecasted significant annual growth in its use across several markets.
Blockchain’s decentralization aspect keeps the data about transactions in the network shared across various nodes that make up the blockchain’s foundation. It establishes no single point of failure, unlike centralized systems. It means even if a node stops working, the network will continue to operate.
Further, algorithms used by blockchain prevent block alterations. They ensure that no one can alter the data contained within it. It requires 51% of the network’s control to edit a block of information. Thus, every piece of information on a blockchain network becomes immutable.
The technology or applications run on top of blockchain technology. They can prove valuable in the tourism business. Some instances are as follows:
Cryptocurrency is essentially virtual currencies that users can exchange for any other fiat or cryptocurrency. If a trade takes place, all information will reside on the blockchain network, and anyone in the network can validate them. If a network of tourism companies uses cryptocurrency as payments, it can form a network of secure and transparent transactions. Also, it will not require users to exchange funds as per the currency of a country.
Smart Contracts are contracts that run on blockchain technology. They essentially eliminate the need for middlemen (such as notaries, banks, or other institutions) and reduce costs and processing times. They can automate payments, loyalty management, ticketing, and more in the tourism sector.
There has been a lot of discussion regarding projects based on digital identification. Tourism operations can use a blockchain-based identity system. Then, they can streamline their tasks and have all of the information they need on a person in one unified system.
Given the qualities and capabilities of blockchain technology, several experts believe it can benefit the tourism business. Here are a few of the more intriguing ones:
After we say our goodbyes at the check-in counter, blockchain might be very handy in tracking our baggage’s position. It, like us, changes hands several times during the journey. With blockchain, we can trace across firms and always know where our suitcase is.
When we travel, we increasingly look at forums and read user evaluations. Yet, we can not always trust who authored them or their accuracy. All information that appears in the blockchain network is public, dependable, and safe, resulting in greater transparency and consumer trust.
Is it possible that we’re nearing the end of the loyalty card era? Many travel companies offer client loyalty programs in the hopes of converting them into repeat consumers. Blockchain can facilitate these operations more efficiently. It, for instance, can enable customers to verify their points and exchange them for other cryptocurrencies or even maybe for services.
Also, Read | Blockchain for Creating Advanced Loyalty Programs
In some situations, a transaction process takes more than a week or gets canceled within that time, causing all associated problems. However, using blockchain for payments will mean far more secure, fast, and traceable transactions.
As previously stated, all blockchain transactions remain permanently recorded on the chain, and no one can modify them. Not only that, but because it’s a decentralized system, it also eliminates any middlemen to delay payment as well.
As a result, travelers do not need to exchange currency when traveling to another country. Also, they need not worry about the reliability or volatility of foreign exchange operations. Thus, when it comes to international transactions, using blockchain can revolutionize the entire process.
Large companies can save funds by using decentralized management systems, which eliminates the use of intermediaries. It is because they ensure a frictionless flow of information flows while remaining accessible at all times. It establishes universal access to data and thus, shortens management times, leading to efficient processes.
LockChain is a direct marketplace for hotels and hospitality businesses looking to rent out space. The platform handles payment, property administration, and other aspects of the booking process on blockchain. Because it is a decentralized system, there are no intermediaries and no commission charges.
The most well-known current example of blockchain-based luggage monitoring is the Winding Tree network. It also has a booking component. Because there are no third parties involved, booking and tracking are simple, safe, and secure. Therefore, all procedures benefit from increased transparency.
The project has developed a loyalty program based on blockchain technology.
It facilitates direct contact between customers and tourism-related businesses. It gives customers tokens for staying in a specific hotel. These tokens never expire and are redeemable at any time.
Connect with our blockchain development experts if you have a project in mind and are looking to develop it with emerging technology like blockchain.