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Blockchain technology in tourism industry

The future of travel will be radically changed by blockchain technology. In terms of how we book airline tickets and hotel rooms, the usage of blockchain in the travel industry will offer a completely new experience that will be frictionless for the user.

In 2017, the worldwide travel and tourism industry reached USD 8 trillion. By 2025, it is anticipated to increase at a 4.7% annual rate to reach USD 11.38 trillion. Blockchain and other digital technology will only contribute to the continued growth of the tourism industry. Numerous businesses have used blockchain technology at their workplaces after seeing the potential advantages of the technology.

Given that the technology may offer security and transparency to multiple crucial touchpoints, blockchain technology and tourism have the potential to be a potent combination. When a travel agency books hotels and flights for a client, it must submit the relevant data to the various businesses. Since the accountability is shared across the entire network, blockchain could increase the security and transparency of this process. The level of trust between all parties involved will rise as a result of overseas transactions.

Blockchain technology in tourism industry could be used to verify the identities of travelers, which would make it easier for hotels, airlines, and other tourism providers to verify the identity of their customers and reduce the risk of fraud. It could also be used to track and manage the sale of tickets and reservations for flights, hotels, and other tourism services, making the process more transparent and secure. Many blockchain developers and experts believe that blockchain technology, in the future, will be able to improve the efficiency and security of the tourism industry. Any firm can benefit from any blockchain development company for their blockchain development services to enhance the security and transparency of tourism transactions and customer data.

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The tourism sector is really interested in blockchain right now. Blockchain technology is now used by many large businesses in their services. The tourism industry is using blockchain in the manner listed below:

System of distributed payments

From the planning through the journey stages, blockchain offers greater utilization of transportation assets. Secure, traceable payments are the main use of blockchain in the travel industry. The purchase of airline tickets is the first step in any foreign journey. In the modern era, this procedure is rather simple.

However, using blockchain-based techniques, the procedure can be made even more straightforward. An open-source distribution ecosystem called Winding Tree makes it easier to purchase hotel and travel reservations. As a result, consumers who use the blockchain to order tickets have seen a 20% reduction in transaction costs. Blockchain technology has been adopted by airline firms like Air New Zealand, simplifying the ticket purchase process. Additionally, it may help avoid overbooking planes. Using blockchain technology, payments for the services may be done rapidly and securely. As a result, it facilitates quicker checkout during transactions.

Uber and Lyft are only two examples of private taxi aggregators that will advance technology. The amount of time needed to complete a payment will be reduced thanks to blockchain-based transactions. Payments for users of autonomous taxi services will also be made easier. The sum is automatically taken out of the user's digital currency to complete transactions.

Blockchain technology can be used by governments to give users of public transportation a faster, more secure experience. Blockchain and AI technology make it possible to do away with the need for paper tickets for trains and buses. The mapping of a user's trip across various types of services would be possible with just one database. To use the numerous public transportation systems, only one form of identification and payment will be required. By integrating them into the blockchain system, governments may also control the use of private transportation services. Blockchain also makes it simple to make payments on a daily or monthly basis at the user's convenience.

Eliminating the need for physical contracts is another area in which blockchain is helpful. Blockchain replaces paper-based records with digital ones, doing away with physical ones. Digital contracts are signed, saving time and being useful should a disagreement arise. The consumer may consult a digital copy of the contract to better understand the conditions set forth by the service provider.

entification of the client

Identification of customers is essential for the travel and tourism sector. Every foreign visitor's identification must be confirmed by immigration officers in order to maintain security. Blockchain has the power to change how traveler verification is currently done. In the current situation, a passenger is required to present identification at many points, including airport check-in and immigration. This causes enormous time loss, which builds up at every level.

Blockchain will speed up the process by cutting down on wait times for hotel check-ins, lengthy lines at embassies, and customer verification at immigration. If international countries use blockchain technology for their tourism industry, the requirement for a passport might likewise be done away with. This seems a little improbable, though, given how challenging it will be for major nations to implement blockchain technology.

ShoCard is a blockchain-based digital identification platform that enables user authentication without usernames or passwords. Blockchain does away with the necessity for the username and password system used for online transactions. The lack of a central database, which hackers might access, makes the system more secure.

Baggage control

One of the crucial elements of the airline industry is baggage handling. Misappropriation of luggage is a serious problem in today's world. Loss and improper handling of luggage are major issues for airlines today. During transportation, international luggage must pass through several hands. Due to human error, the suitcase was misplaced during transportation. Blockchain and other technology can drastically reduce baggage loss or improper handling.

Data from blockchains can be used to track and identify luggage. In the event that it is lost, it can be used with AI and sensor technologies to locate the luggage. Even if the handlers misplace the bag, sensors can be added to it to track its precise location. By utilizing blockchain technology for luggage management, the travel and tourism sector is able to do away with its current baggage loss problems.

System of customer awards

Loyalty programs are offered by travel service providers to attract repeat business. These programs can benefit from blockchain, making it simple for users to get their loyalty benefits. Customers that utilize blockchain services may receive cryptocurrency as an incentive, which they can use to pay for future travel.

They also do away with the demand for a platform acting as an impartial mediator. Customers of services like Trippki benefit from a loyalty reward system. Hotel stays earn customers cryptocurrency tokens. These tokens can be utilized in subsequent transactions as they are permanently stored in the blockchain. Blockchain technology is used by the travel industry to keep clients and boost profits. Because blockchain data cannot be altered, it also aids in the fight against fraud in this industry.

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Transparent ratings for businesses

More people are using the internet to research destinations by reading user reviews and participating in forums. Their accuracy can't always be guaranteed, though. Many companies post fictitious reviews about themselves and their rivals. The increased competitiveness has led to an increase in the prevalence of these fraudulent practices.

As a result, firms now use unlawful methods to advertise their brands. Users' experiences can be quite different from what they had anticipated based on online reviews. It makes a user less inclined to believe other internet reviews that he could come upon. Because blockchain data is so safe, it promotes increased customer trust and openness.


The tasks that need to be completed
Blockchain technology is still in its early stages of development. Although its potential is widely acknowledged, it is never certain where it will end up and how it will affect sectors like tourism.
There are, in my opinion, two main difficulties in this area. Personal identification comes first. The reason for this is because technology by its very nature could prove to be a substantial barrier, especially when sensitive data is involved. Because of this, there are more laws governing how personal information is used online, like the CCPA and the EU's GDPR, as well as an increase in the usage of permission marketing. More user safety is where blockchain's marketing potential lies.
Standardization may also prove to be a major obstacle. Although blockchain is the foundational technology, each business, group, or collective can design its own network and incorporate its own algorithms (just like with cryptocurrencies), which makes it challenging to communicate between various systems.
We know that this technology will be a more frequent concept in our lives in the future as it adapts to changing user needs and challenges as a result of the quick implementation of this technology in a variety of industries and changing consumer behavior that is increasing their familiarity with these concepts. That is the path to enjoying a safer, more reliable mode of transportation.

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