30 May Travel Industry and Blockchain Technology
It wouldn’t be wrong to say that blockchain technology is one of the most disruptive technologies we have witnessed in the recent past. With the launch of bitcoins, cryptocurrencies shook the entire financial world. Recently, a lot is being discussed about blockchain technology in travel and tourism sector.
But, how practical is it? In this blog, we will cover a few points that we came across regarding blockchain and travel industry.
Blockchain Technology: In a nutshell
In simple words, blockchain refers to an expanding list of public records. This mainly contains an updated series of transactions that takes place between two parties. Whatever is there on a single record, or block, is absolutely encrypted. Each of the blocks within a ledger are arranged in a continuous fashion that is tightly packed using blockchain keys. Such keys go by the name ‘hashes’. Every new block has a hash from the preceding block.
Blockchain is all about decentralized data storage. What it means is that the transaction ledger is accessible to all the members of a particular network. Each of the blocks in a ledger are timestamped and contain specific transaction information. So, blockchain basically produces stable, unalterable and decentralized data.
Potential uses of blockchain technology in travel
One of the first things that we look for in travel industry is security in transactions. The travel sector sees innumerable overseas transactions that take place between multiple parties each day. So, in such a complex set up, secure and trustworthy transactions are a priority. This is where blockchain adoption could help. Blockchain powered payments could be incredibly faster and more trustworthy, thanks to the absence of any intermediaries.
Let us go in brief about what all uses look promising for the travel industry with respect to blockchain.
Tracking of luggage
Blockchain can prove to be very beneficial to track luggage reliably and more securely. The luggage of travellers’ changes hands very often during any journey. With a decentralized and transparent database, you can easily track data storage. It would also reduce the risks of any failures that may happen at any point of the luggage storage.
Blockchain became very famous owing to its security and trustworthy features. It is a great way to make sure that all the parties within a particular transaction get the best of safety with regards to their data. One of the quickest applications could be using bitcoins or ethereums for regular transactions.
Supply Chain Management
With blockchain technology in place, hotel chains could improve their work with suppliers. This can be made possible with a better visibility across the entire supply chain. Also using a private blockchain network, you can connect packers, importers and exporters etc. into a single chain. It would bring traceability and transparency for all on a single plate.
Customer Identity Validation
With blockchain, we can eliminate the need to repeatedly share personal information to validate one’s identity. Once the information is stored in a secure and encrypted block, you can easily reproduce it upon request quickly. This can greatly help to bring down the check in or check out times.
Better digital inventory management
Blockchain can greatly help to bring about better, more transparent and efficient inventory management. Nowadays, there are a lot of cancellations, refunds and overbookings that are unpleasant for one and all. With blockchain technology, this could all be more streamlined. Every new booking becomes a transaction block in the general ledger. One can share it with the customer, supplier and travel agency etc. This means that everyone will be on the same page with regards to the current inventory status. With this, you can manage the fill rate more accurately.
Better management of loyalty programs
To encourage returning customers, many travel companies are using loyalty point programs. With blockchain technology, you can enhance this program by making it easier for customers to access their loyalty account status. Next, you can also better distribute the tokens in a more controlled manner, to avoid any fraudulent practices.
A few real-life project examples of blockchain
There are a few companies that have launched their blockchain products to the real world. Some of them are LockTrip, Winding Tree, Beenest and TUI’s Bed Swap.
While blockchain technology could seem overwhelming or too challenging, it has huge potential and capacity to completely revolutionize the travel industry. The transformation has already begun and they exhibit great growth.
If you are looking for the right partner to take your travel business to the next level, you are at the right place! Because, EOV has some of the brightest minds in the industry working to transform and enhance customer experience with the best solutions.
Contact us now!