How Can Blockchain Transform the Travel Industry?
Benefits, stability, and security are on a higher rank in the travel industry. The decentralized idea of the blockchain implies that data can never be lost because of accidental deletion or malicious cyber attack, guaranteeing transactions are always traceable.
The travel business depends upon various companies passing data between each other. For example, trip agents need to give client details to flight companies and hotels, while the belongings of travelers are regularly passed among companies and tracked as well. Blockchain can make accessing and storing data simpler and more efficient.
Of course, monetary transactions are an essential part of the travel industry, and blockchain technology has the ability to simplify as well as secure transactions. This is particularly true when managing abroad payments. As an outcome of this, blockchain can possibly improve the level of trust among all parties.
Potential Uses of Blockchain In the Travel Industry
The following are the benefits of blockchain technology in the travel industry.
1. Decentralized Marketplaces for Bookings
We all know that the travel market is dominated by a bunch of travel agencies (OTAs). Despite the fact that these middlemen help customers to find the services they need, end providers, for example, hotels, serviced apartments, guest houses, etc. But, hate the fact that they are paying at least 15% in commission through these channels. In a decentralized marketplace, there is no need for intermediaries, as services providers can directly communicate with clients. Moreover, the transparency of costs and potential charges inside a decentralized marketplace can give a superior experience to clients.
Smart contracts could bring many benefits acting as an automated intermediary for people who require them. It can be like a computerized trip agent, these smart contracts would use data to provide a number of services. In addition, they could hold funds in escrow and only release them if services are given properly.
2. Tracing Luggage
Blockchain technology can play a vital role in tracking the movements of baggage, particularly when managing international travel. Most of the time, a client's luggage changes hands many times through the span of their journey. Utilizing a decentralized database makes sharing tracking information between organizations a lot simpler.
3. Recognizable Identity Services
Identification services are tremendously valuable for the travel business, and blockchain might turn into the business standard for storing this data. Utilized in this way, the technology has the ability to reduce check-in times, or lines in airports, as a simple retina scan or fingerprint can change the identity verification process.
4. Secure, Traceable Payments
Maybe the most significant utilization of blockchain technology in the travel industry is with payments. Its application has a wide scope right from being a global ledger, making transactions more secure and simpler to allowing travel organizations to utilize Bitcoin or other cryptocurrencies for their operations.
5. Client Loyalty Schemes
Finally, many travel organizations run client loyalty plans, so as to encourage return custom. Blockchain can likewise help with these plans, improving the procedure, allowing clients to access data about their loyalty points more effectively, and allowing tokens to be shared.
6. Travel Insurance
Blockchain technology lends itself to insurance because of the need for high-quality information and the ability of smart contracts to automate the decision-making process depends on this data. There are many scenarios where a claim against a travel insurance policy is necessary, for example, a lost bag or delayed flight, a smart contract utilizing this data stored on the decentralized network could spot the exact point of claim's threshold and payout automatically.
The travel business appears to be so ready for blockchain disruption as many intermediaries are involved between service providers and clients in a traveler's journey. It will be fascinating to watch if the travel business comes to adopt blockchain on a mass scale however, this article has given you some idea of the most exciting areas to investigate.