How blockchain technology is revolutionizing the blockchain industry

Tourism is a very profitable industry. According to 2020 data, its share of world GDP was about 5.5%, that is, every 20 cents per dollar is spent in the tourism sector. And it is no surprise that this industry is of great interest to blockchain which is revolutionizing all traditional sectors.

The distribution of services designed to provide vacationers with everything they need is based on the involvement of intermediaries, whose role is played by travel agencies or aggregator companies. Their fields of activity are transport, tourist accommodation, meals, sightseeing services, search and provision of up-to-date information.

Intermediaries do not work for free, and their services increase the cost of rest. Traditional ways of reducing tourists’ expenses, such as reducing the share of intermediaries in the final cost of a tourist service or a tourist product, or increasing trust between counterparties – do not work so well today, having exhausted their capabilities.

But in recent years there has been progress linked to the spread of decentralized network technology. Blockchain is already working in many sectors of the economy, and the prospects for the use of cryptocurrencies in the tourism sector are clearly underestimated. But the situation has already started to change. Startups emerged that proved to be quite useful and interesting, and their number is steadily growing.

Most people who have heard of this term know next to nothing about what it is. From a technical point of view, blockchain technology is a complex structure, but in general it can be represented as a specialized relational database. Individual records are here called transactions, they are combined into blocks, and blocks form a chain where each new block refers to the previous one. Blockchain features:

• all records are securely encrypted using advanced cryptographic algorithms (especially if we talk about forward-looking blockchains like DecimalChain. Decimal has a number of blockchain developments including the token Decimal that can be used in different spheres);
• the blockchain itself is stored simultaneously on many computers (they are called nodes), so the deletion of data on one or more nodes is not a critical event;
• data is entered into the blockchain after the correctness of the transaction has been verified by miners who have been delegated this right. Anyone can become a miner if they have the right equipment. The verification procedure itself consists in performing complex and energy-intensive mathematical calculations, for which miners receive a reward in the form of a commission in cryptocurrency for a confirmed transaction;
• data entered into the blockchain can no longer be changed.

These key features of the blockchain make the application secure and transparent, requiring no intermediaries.

Three benefits of blockchain technology

The above features of distributed ledgers determine the benefits of their use:

• data security. Reliable encryption, which makes it almost impossible to hack with brute force, combined with distributed storage of the blockchain on many nodes at the same time, provides a high level of record security;
• immutability. If someone wants to change a previously created record for selfish purposes, this number will not work for him, since such a transaction will not be confirmed by miners. And technically, old records that have already been verified and entered into the registry cannot be changed.;
• decentralization. This is democracy in action. Even the owner/developer of the blockchain does not have full control over the network after deployment. Especially other subjects. Blockchain guarantees complete anonymity for counterparties, since their identifier is the number of the crypto wallet, and nothing more.

The basic characteristics of the blockchain promise many advantages of its use, but they are limited to simple transactions operating with cryptocurrency. The emergence of programmable smart contracts, which are recorded in the blockchain in the form of a dormant transaction activated by users, has led to a significant expansion of the scope of decentralized networks. Developed blockchain ecosystems often provide their users with several related services, such as DecimalChain with its cryptodecimal places and cryptodecimal calculator.

Blockchain in the tourism industry

Security and transparency are the trump cards that can make tourism and blockchain technology inseparable. The simplest example is booking hotels and plane tickets with a travel agency. The procedure is quite troublesome, since it is necessary to contact many companies, and the human factor here often leads to conflicts.

The use of blockchain technology is able to perform such operations more transparently and safely, partially automating the process where responsibility will be distributed across the network. In the end, all will benefit the client, travel agent, final recipients, airlines and hotel/hotel owners.

Promising directions for the use of blockchain in tourism

We have given the simplest and most obvious example. In fact, the possibilities for decentralized networks with their smart contracts are much wider.

Secure payments

Cryptocurrency as a means of payment is used in many areas, and provides full security for transactions and the ability to track them. In addition, as a result of the exclusion of intermediaries, they cost the parties less and exclude the possibility of outside interference to delay the payment of tourist services.

Another positive point is that it is not necessary to buy the currency of the country where you are going on holiday. Often it is such currency transactions that are the most risky and take quite a long time, especially if it is not the most common currency.

Management of transport or hotel logistics

Automation of tourism logistics is a rather promising direction that promises a noticeable cost reduction for large travel companies. Especially by refusing services to middlemen. It is also important that management using blockchain reduces the number of errors and reduces the time spent on management.

Business assessments

Has anyone ever read resort reviews before going there? It can be difficult for an ordinary user to understand how objective the information he uses on thematic forums is. The use of blockchain for these purposes guarantees greater transparency, reliability and security for such assessments.

Baggage handling

A traveler usually has no control over the location of his luggage after he leaves the check-in desk. He repeatedly commits various disturbances that are almost impossible to trace. The introduction of blockchain and cryptocurrency can simplify the interaction between carriers, which will allow you to know exactly where your luggage is at the moment.

Reward systems

Many travel agencies practice using customer loyalty programs, giving them different preferences for repeat requests. But such information is usually opaque and subject to manipulation. Blockchain is able to solve the problem by giving customers the ability to independently check their points balance and spend it at their discretion.

Current examples of the use of blockchain in the tourism industry

Now decentralized networks are actively used in recreation. Here are some real examples:

• Swinging tree. The company has developed a smart contract for booking tourist trips, which allowed customers to reduce costs by an average of 20%, by pre-evaluating them using a cryptocurrency calculator;
• ShoCard and SITA. The joint project aims to facilitate the handling of tourist identification at airports, hotels and checkpoints. At this stage, the platform is in beta testing;
• DecimalChain Uses smart contracts to distribute the club loyalty token, and cooperates with a pool of validators from Asia, offering cheaper vacations mainly in the Asian region (Thailand, Vietnam). It is based on the token Decimal. Exchanges where decimal is traded: BitTeam, KickEX, Coinsbit, XT.com;
• Trippki. Another example of a project in loyalty program support. Enables direct interaction between customers and companies in the tourism industry.

Summary

Since there is a lot of money circulating in the tourism industry, and for some countries this is the basis of the economy, increasing the attractiveness of travel agencies requires the use of innovative approaches, one of which is the active integration of blockchain technology. into the industry. According to experts, in 5-7 years, the use of decentralized networks in the tourism sector.