Feb 8, 2019 02:20 UTC
Feb 8, 2019 at 02:20 UTC
How Can Blockchain Technology Impact the Travel Industry?
Needless to say, the technology behind cryptocurrencies and smart contracts, can drastically impact industries across the board.
Any organization with a structure and multiple parties who need access to trustworthy data are great candidates to leverage the potential of blockchain.
Blockchain in Travel and Tourism Industry
Yes, the travel and tourism industry is a great example, since airlines as well as hotel chains are databases in themselves.
They hold secure consumer data like credit card and passport information, and other pieces of photo identification.
The most obvious approach that blockchain will disrupt the travel industry is by accepting cryptocurrencies as a form of payment for travel and accommodation.
However, there is much more that can be done on an operational level that could save millions of dollars at last.
The implementation of blockchain technology in the travel industry would be a win-win for both travellers as well as corporations.
With blockchain, a consumer can book directly with a hotel or airline through the execution of a smart contract, that would wipe out the need for an intermediary like Expedia or Hotels.com.
Similarly, hotel or airline can trust that the payment will transfer to them from their customers seamlessly.
Even better, future travellers could use IVEP to directly book a hotel room from a virtual video tour of the space.
This would save travellers from paying booking fees to the 3rd parties, and would allow companies in the industry for avoiding paying hefty commissions to those parties.
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Technology’s Current Availability
Currently, the technology is available that could enable your phone to leverage blockchain within the next 5 years, further simplifying the experience of thousands of millions of travelers.
Smart contracts can be coded for creating processes like that the traveler’s data can be seen or scanned when they enter an airport.
Real time checks would be part of the algorithm while completing the smart contract to make sure that the traveler’s documentation, security as well as tickets are valid.
In this case, the traveler would never require to line up or show any documentation.
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The Real Disruption
In organizational operations, airlines, and hotels, the pricing and revenue structures could be impacted by blockchain technology. Each company sets prices on availability, the fewer spots available the more expensive they get.
Since blockchain has the ability to create seamless inventory tracking as well as supply chain systems, this technology can be used to make sure about the maximum capacity without overbooking.
This is a seamless method to increase the revenue for both types of organization. In addition, it will also save airlines from horrible publicity for removing passengers from a plane owing to overbooking, an unseen benefit.
Blockchain technology and the capabilities that it comes along are endless and the travel industry is just at the beginning of realizing new ways to leverage its capabilities.
Changes will take time, but the first movers to implement the new tools as well as processes will be ahead of the pack and reap the benefits of leading the industry.
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