Blockchain in travel – How technology is transforming the traditional travel business
As the world evolves, so does the idea of travel. Customers’ expectations for flawless travel experiences have never been higher – and delivering on them consistently has never been more critical. This is where blockchain technology is causing a major disruption in the market.
As the strain on IT departments of travel companies increases in the increasing digitization of services, blockchain in the travel industry has emerged as a knight in shining armor, helping market leaders retain their competitive edge and level the playing field for everyone else.
In this article, we will dive deep into how Blockchain technology is revolutionizing the travel industry, unlocking new avenues for business growth and customer experience.
When you travel, so does your data
Before moving forward with the use of blockchain technology in the travel industry, let us begin with a basic understanding of the aspect of modern travel that encapsulates Blockchain’s needs and use cases – information.
Data sharing is the backbone of the travel industry. Be it booking, check-ins, passenger preferences, baggage handling, updates and accommodation – any airline’s digital network is always pulsating with information being exchanged throughout the framework. And there is no room for error.
With this type of system comes security vulnerabilities and operational challenges, especially when you scale. And as the value and complexity of customer data increases, so does the sophistication of cyber threats and the approaches of malicious actors.
Is there a way to add to the existing IT infrastructure of the travel business a solution that can close these bottlenecks?
The answer is yes, and it uses blockchain in the travel industry.
So, how can blockchain benefit the travel industry? To answer this question, we must first understand the nuances of this innovation.
How blockchain technology works
In simple terms, a blockchain can best be described as a distributed ledger technology (DLT) consisting of a list of records (aka blocks) that continues to expand rapidly – and that are linked together in a secure manner.
This “decentralized” ledger spans a peer-to-peer network, allowing participants to transact without a central clearinghouse in place. In addition to the speed that this system delivers, blockchain uses a variety of mechanisms such as advanced cryptography, cybersecurity frameworks, mathematical behavioral models, and more, to implement an unprecedented level of security throughout the network.
This complex system of recording data and carrying out transactions makes it almost impossible for anyone to hack or cheat the system – and this is what makes Blockchain technology ideal for turbocharging the digital services travel companies have to offer. This is how blockchain technology in the travel industry can become a weapon in the arsenal of forward-looking managers.
[Want to have more detailed insights into blockchain technology? Head on to this entrepreneur’s guide on blockchain and its uses.]
So the blockchain and the travel industry meet – and this is a time for us to see how innovative companies make the most of it. Let’s get started with the ins and outs of blockchain in travel.
How blockchain is changing the status quo of travel services
Orders, decentralized
Today’s travel industry is dominated by a small group of online travel agencies (OTAs), and there is a demand for more channels and partnerships that can create improved operational and financial benefits for the company and the customer.
Enter decentralized booking marketplaces. This use of blockchain technology in the tourism industry breaks new ground for companies globally. These marketplaces give a lot of power to hotels as well as customers and streamline communication by cutting out the middlemen – making the process more cost-effective for everyone.
Blockchain technology in hotel and travel booking example that fits this application: Companies like Webjet has increased its reliance on blockchain technology to locate and eliminate real-time data problems, provide lower prices and streamline communication between the provider and the user. Several hotels around the world are also diving into the concept.
Appinventiv has also developed the Empire App, a blockchain-powered mobile application that helps our customers solve the challenges of double ordering, incorrect data, data security, cost issues and more. For an overview of app development for ordering and maximizing profits while delivering a superior customer experience, check out this blog, ‘A travel agency guide on travel booking app development costs‘.
Payments, streamlined
A major application of Blockchain technology, just like in the Webjet example above, lies in its ability to make services most cost-effective for all parties concerned.
Blockchain helps streamline and speed up settlements between hotels, travel agencies, third-party suppliers and various aggregators. The centralized ledger makes transactions faster while keeping them more secure than ever before, helping companies fight fraud and data theft. This is a great use case of blockchain in the travel industry.
An example of travel blockchain usage: Travel port uses Artificial Intelligence (AI) and Blockchain to create a system that helps companies manage corporate travel spend by accurately tracking, analyzing and predicting spend. This combination also enables the company to deliver smoother payment experiences to customers and speed up operational processes.
Identification, simplified
Identification services are essential for any travel company – and needless to say, there is no room for error in the matter. This is where blockchain and tourism meet, and they meet well. Blockchain can securely store and rapidly process passenger data to deliver lightning-fast check-ins that can reduce queues at counters and improve employee and consumer experiences at scale.
An example of blockchain in travel and tourism use: Marriott has deployed blockchain, cryptography and data protection to create the Known Traveler Digital Identification program, which eliminates security vulnerabilities stemming from all the information contained in one data lake and gives more control over the data to all parties.
Tracking, reimagined
Sharing tracking data across companies, alliances and locations becomes easier, faster and more secure with a decentralized database in place. This helps to increase awareness, ensure timely deliveries and even avoid bad incidents at various levels in the tracking process. This application of blockchain technology in the tourism industry has opened new paths for many businesses such as AXA.
A relevant example of blockchain technology in the tourism industry: AXA (the insurance leader) has launched Fizzy, a 100% automated and highly secure platform that operates on the Ethereum network to take tracking to a new level and provide insurance against events such as flight delays.
Loyalty, encouraged
Tokenized rewards programs are the answer to unlocking brand loyalty in today’s chaotic marketplace where choices are increasing every day for consumers. In such a system, the rewards can be tokenized into digital assets – and can even be exchanged across different platforms, giving customers more flexibility than ever before. This also gives customers the opportunity to compare the true value of the offers of different companies.
An example of travel blockchain usage: Singapore Airlines has deployed a loyalty program that uses Blockchain technology to convert one’s travel miles into payment units. These devices can be used with the airline’s partner retailers to redeem a range of goods and services. To know more about the blockchain use cases in the aviation industry, check out this article, How airlines can save millions with blockchain.
Avant-graders are already unlocking new faucets of revenue and customer success by incorporating blockchain technology in the tourism industry and strengthen their IT infrastructure. Now it’s time for the rest of the industry to catch up with this new wave and surf all the way to brand excellence.
How Appinventiv puts blockchain to work in the travel industry
Blockchain offers a ton of benefits such as decentralization, immutability and increased security that could truly herald the dawn of a new era for travel companies.
We at Appinventiv offer Blockchain app development services which is designed to help you create a new business advantage with a world of decentralized solutions. Whether you are looking for develop smart contracts or trading cryptocurrencies or building new services or powering your IT ecosystem with Ethereum – our team of experts has got you covered, just like they do some of the leading names in the market. This is what makes us the best blockchain app development company out there in the eyes of our trusted customers, partners and collaborators.
Some of our services that utilize blockchain in the travel industry include:
- Consulting blockchain apps
- MVP development
- Smart contract development
- End to end DApp solutions
- IEO and ICO services
- Development of crypto exchange
- Customized blockchain solutions
- Crypto wallet development
- Hyperledger-based solutions
- Permissioned (private) blockchain
- Crypto token development
- NFT marketplace development
Common questions
Q. What are the biggest benefits of blockchain for travel companies?
A. Blockchain has a wide range of transformative benefits for travel startups and businesses. Some of them include reliable data coordination, a high level of data security, the ability to have a shared IT infrastructure, incentivization, tokenization and more.
Q. How do I identify areas where I can use Blockchain to create a greater impact on my business?
Answers. The answer to this question depends on the type of business you are in and the type of infrastructure you have in place. We suggest you contact our experts for a free consultation to better understand the areas of your business that can benefit from Blockchain technology.
Q. What is a distributed ledger and how can it help my business?
A. A distributed ledger replaces the traditional method of computer accounting by using a single or ‘centralized’ system with a network of participants responsible for maintaining digital records. Blockchain technology uses cryptography-based algorithms to turbocharge a distributed ledger, increase security, fast-track collaboration, and help businesses reach new levels of data and process excellence.
Are you ready to take your business to the next level and reach new heights with the power of blockchain technology? Contact our experts to order a consultation and let us help you future-proof your business with the use of blockchain in the travel industry!
THE AUTHOR
chirag
Blockchain Evangelist
