Each day, more and more blockchain technology-based solutions are being developed across various major industries and applications globally. It’s also evident how the blockchain revolution has brought about great success, especially in the financial sphere. In fact, as time goes by, we expect to see more industries adopting this technology.
The nascent rise of blockchain technology offers great potential for human efficiency. This can revolutionize some of the significant aspects of the technology, governance, and business. Also, it is tamper-evident, trust-free, and has cryptographic security features. In fact, corporations, governments, and individual investors have adopted blockchain-based systems to test and integrate the technology to use.
One of the major implications of blockchain technology is in the banking and finance industry. Blockchain-based systems offer more secure, cost-effective, and time-efficient financial transactions. While the technology is still new in the market, other industries also have an opportunity to adopt it for efficient outcomes.
Important Areas of Adoption
In this article, we will discuss how blockchain technology can be used in the travel and tourism sector. For instance, hotels, airlines, travel agencies, restaurants, and departments in the hospitality industry can use the technology to improve services, profitability, and guest satisfaction among other benefits. Let us look closely at these highlights.
ID and Security
One of the major concerns in the tourism sector is the identification and the security services of their customers. With blockchain technology in place, however, passengers would no longer need to show their identity at various stages when traveling. A shared digital database can be created to save and verify passengers’ information. This can reduce the verification waiting time and also save money.
Blockchain-based systems in the tourism sector can also help solve the problem of identity theft. In most cases, passengers are required to present their IDs for security measures in airports, hotel rooms, and other amenities. This makes passengers vulnerable to identity theft, and also other important details may be stolen.
With blockchain, important personal documents such as birth certificate, ID, social security number, driver’s license, and passport no longer need to be presented. Also, blockchain can eliminate the possibility of forgery identification.
Data Security and Method of Payments
Where online payments are involved, companies are required to store the information of their users securely. With blockchain technology, the companies can now create a secure digital record of their clients and restrict their access to specific authorities. Also, airports can hold important data such as customer passports and credit card details. Safety is a critical measure in any industry. The tourism sector can surely benefit from blockchain technology.
Another obvious way that blockchain technology will change the tourism sector is adopting cryptocurrencies as a method of payment. For instance, you can use a Bitcoin debit card to pay for airline tickets, accommodation, or restaurants. Millions can be saved through this kind of payment. Already, cryptocurrency platforms offer the selling and buying of important cryptocurrencies.
With a blockchain-enabled system, customers can now book an airline or hotels directly through the smart contract technology. This would eliminate all the 3rd parties such as Hotels.com, thereby making the process easier and cheaper.
Also, cases of lost or inaccurate hotel bookings can be solved. Considering the stress and anxiety involved in the travel experience, loss of important documents can be expected. With a blockchain system, a new model has been designed to avoid such irritating issues while still providing consistency in the extracted value.
The system will enhance the customer experience in this sector by recording all the entries in the blockchain digital ledger. This helps to reduce the likelihood of lost or mistaken bookings and also reduces the chain between customers and sellers. Crypto assets can also be used to book hotels and other services.
Loyalties are important for customer satisfaction and return. Blockchain technology and tourism merge in the management of loyalty schemes. Loyalty management is enhanced, therefore making it easier for customers to access and redeem their points. Also, blockchain can help distribute digital tokens that can be used for other services anywhere at any time.
Also, for businesses, customer reward is important and should reflect better data and transparency in the industry. Therefore, the targeted customers will be able to benefit from the rewards and could contribute to more profits and loyalty for the company. This is because the customers will get security tokens that show proof of their identity.
When traveling, a passenger’s luggage usually changes hands several times. Therefore, it would be better if it were possible to track one’s luggage. A blockchain system can have a feature that shows luggage tracking. So even in cases where passengers don’t travel with their luggage, they can be able to track and note the progress. Also, the centralized feature of blockchain allows companies to share and access relevant data more efficiently and securely.
Better Revenue Management
Major companies are now using private blockchain systems to handle their internal processes and also to manage the various distribution of the hotel inventory among other assets. The blockchain and tourism sector can also present a new way of collecting information. This way, it will not only be a centralized database, but it will also be about managing a system of the data record.
Those are just some of the major ways on how the blockchain technology is changing the tourism sector. More innovations are expected in the sector to provide the best services. The same way blockchain technology has disrupted some of the biggest industries including the finance sector, we can agree that the implementation of the blockchain revolution will also bring a significant impact on the tourism sector.
It is worth noting that many companies are currently considering the adoption of blockchain technology. This will facilitate better, cheaper, and faster experiences in corporate processes. In the days ahead, we will see how blockchain technology can materialize into a cheaper, transparent, and efficient ecosystem for organizations.
Featured image: DepositPhotos /© AntonMatyukha
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