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Safe and reliable transactions are crucial in the travel industry. This is particularly important given the numerous international transactions taking place daily between different organizations in the sector.
The adoption of blockchain technology can increase the reliability and security of transactions. In addition, the lack of intermediaries in the process could result in much faster payments using blockchain technology.
Moreover, the decentralized nature of the blockchain may be beneficial for international travel. Without unified data storage, it is still possible to build an infrastructure.
This type of system is unlikely to fail due to hardware issues or malicious attacks. Due to the decentralized nature of the blockchain, the acquisition and storage of important data is simpler and more reliable.
Due to ensuring secure transactions and interoperability, various companies are now developing custom travel apps and integrating them with blockchain technology. In fact, global spending on blockchain solutions is expected to reach $19 billion by 2024.
Hiring the best custom blockchain development company, they now either create customized software or update their existing solution with blockchain technology.
This blog discusses the promising opportunities that blockchain technology offers in the travel industry.
How blockchain technology is revolutionizing the travel industry
Here are six ways blockchain technology is changing the travel and tourism sectors.
It helps in identification
The travel industry relies heavily on identification services, and blockchain may eventually replace other methods of storing this data as the industry standard.
The technology used in this way can significantly reduce airport check-in queues or waiting times, as the presentation of ID documents can be replaced with a quick fingerprint or retina scan.
Luggage locating
Blockchain technology has great potential as a tool to track the whereabouts of baggage especially when it comes to international travel.
During the journey, the customer’s luggage often changes hands several times. Sharing monitoring data between companies is much simpler when done through a decentralized database.
Streamlined payments
Settlements between hotels, travel agencies, third-party sellers and various aggregators are streamlined and accelerated using blockchain.
The centralized ledger makes interactions faster and safer than ever, helping businesses prevent fraud and data theft. This is an excellent application of blockchain in the tourism sector.
Blockchain as a system helps companies control business travel costs by accurately recording, analyzing and forecasting expenses. In addition, this combination enables the company to streamline operational procedures and offer customers more seamless payments.
Supplier and supply chain management
With greater visibility across the entire supply chain, blockchain can help hotels and hotel chains improve their interactions with suppliers.
Exporters, importers, packers and any other parties involved could be connected through a private blockchain network into a common chain that would be completely traceable and open to everyone.
Improved tracking and traceability
The decentralized database makes it easier, faster and more private to share tracking data between companies, alliances and locations.
At various stages of the tracking process, this helps raise awareness, ensure on-time deliveries and even prevent negative incidents. This use of blockchain technology in the tourism sector has created new opportunities for many companies.
Decentralized reservations
There is a need for more channels and opportunities for collaboration that can improve operational and financial benefits for the business and the consumer. Currently, a small number of OTAs (online travel agencies) dominate the travel industry.
Introduction of decentralized booking platforms. For companies around the world, this application of blockchain technology in the tourism sector is groundbreaking.
By eliminating the middlemen, these platforms streamline communication and offer significant opportunities for both customers and hotels, making the process more affordable for all parties.
Other applications of blockchain in the travel and tourism industry
Some other technologies that have used blockchain as a basis could be beneficial for the travel and tourism sector.
Here are some examples.
Smart contracts
By eliminating intermediaries (such as notaries, banks or other entities), smart contracts that use blockchain technology to manage contracts can reduce costs and reduce processing times.
Digital ID
Much of the discussion revolves around initiatives based on digital identification, such as the Alastria project, which is run by leading companies listed on the Spanish IBEX 35.
With the help of this system, travel companies can streamline their work processes and have access to all relevant data about a person in one place.
Cryptocurrencies
Virtual coins, which can be exchanged like any other type of money, make up cryptocurrencies. The difference is that neither governments nor financial institutions have any influence over them. If a transaction takes place, it will be completely transparently recorded on the blockchain network.
It’s time to apply blockchain technology to your travel and tourism businesses
Adopting blockchain technology is simpler than it might seem at first glance. But for those unfamiliar with digital technology, encryption, cryptocurrencies or peer-to-peer networks, learning about it can still seem intimidating or overwhelming.
However, taking into account its huge potential and the possibility of completely changing the tourism business, it is crucial to understand and implement it in business.
Sudeep Srivastava is the CEO of blockchain software development firm Appinventiv and is someone who has established himself as the perfect combination of optimism and calculated risk. Having built a brand that is known for harnessing uncharted ideas in the mobile industry, he spends his time researching ways to bring Appinventiv to the point where technology mixes with life.
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