How Blockchain Technology is Transforming the Travel Industry
Blockchain has changed the way data is used and stored over the past few years. What started with the rise of Bitcoin has now become a multi-industrial phenomenon. The benefits of blockchain technology have gained interest in a number of industries including financial services companies, healthcare, retail, and supply chain. Travel industry as well is not staying behind and is ready to reap the many benefits of blockchain technology.
But first, let us see briefly what blockchain technology is actually about.
Blockchain technology might sound confusing at first but it is actually pretty simple to understand. The technology is basically a list of public records also known as a public ledger where the transactions between parties are listed, stored and viewed. The data in blockchain technology is decentralized which means there is no central point of vulnerability and the information shared across a peer-to-peer network is secure, traceable and transparent. Each addition of transaction, encrypted and time-stamped, is called a ‘block’ within blockchain terminology.
One of the biggest advantages of blockchain technology is the security of data shared through it. The blocks of information are permanent and cannot be altered without the consensus from the entire network that is all the parties involved in that particular blockchain and without altering the subsequent blocks. What makes the data on a blockchain secure is the
How Can Blockchain Benefit the Travel Industry?
Here’s how blockchain technology can benefit the hospitality and travel industry:
- Prevent Overbooking
The travel industry is busy all year round. Tourists are always searching for the best deals, hotels, and bookings however during the peak season there are chances of hotels and flights being overbooked. This can be dealt with blockchain technology. It helps to prevent double booking of rooms and airplane seats preventing any situation where passengers are off-loaded or awaited for the rooms to vacate.
- Track Luggage
Tracking your luggage can be a huge issue especially during international travel. In many cases, luggage changes hands multiple times during the course of someone’s journey and with the decentralized blockchain technology it can become extremely easy to share and view tracking data between companies.
- Secure Travellers’ Profile and Data
User’s privacy and data security have been an issue for many years now. Whenever a company signs an agreement with a Travel Management Company, suppliers or airlines, the company is required to provide the supplier with access to data in order to offer services. Profiling users take up a lot of time whether the process is automatic or manual. However, blockchain technology can help deal with this problem. For example, companies will not require developing a separate API connection between buyer HR system and supplier’s profile database.
- Identification Services
Blockchain technology has the potential to become the industry standard for storing identities and help with the identification services. Show of identification becomes easy as a simple fingerprint or retina scan can replace showing documents which will eventually reduce check-in times and long queues.
- Secure Payments
The way to ensure secure payments is probably the most important use of blockchain technology within the travel industry. The technology can serve as a global ledger allowing bank payments from travelers made simpler and more secure, as well as allowing travel companies to accept payments using cryptocurrencies.
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