With the evolving world, the concept of travel is also changing, and customers now expect flawless travel experiences more than ever before. Meeting these expectations consistently is essential. That’s where blockchain technology comes in and disrupts the travel industry.
As services become more digitized, the IT departments of travel companies are facing increasing pressure. Blockchain technology in the travel industry has emerged as a savior, helping market leaders maintain their competitive advantage and creating a level playing field for others.
In this article, we will delve deeper into how blockchain technology is transforming the travel industry by opening up new opportunities for business growth and enhancing the customer experience.
Using blockchain to transform the travel value chain
Let’s start with a basic understanding of why blockchain technology is necessary in the travel industry before exploring its applications. Information is at the heart of modern travel, and data sharing is crucial for all aspects of the industry, from booking and check-ins to passenger preferences, luggage handling, updates, and lodging. Any airline’s digital network is continuously buzzing with information exchanges, and any errors could have significant consequences.
However, with such a system comes security vulnerabilities and operational challenges, particularly when scaling up. As the value and complexity of customer data increase, cyber threats become more sophisticated, and malicious actors adopt new approaches.
Is there a way to integrate a solution into the existing IT infrastructure of travel enterprises that can address these bottlenecks? The answer is yes, through the use of blockchain technology in the travel industry.
But how can blockchain benefit the travel industry? To answer this question, we need to understand the intricacies of this innovation.
Technology behind blockchains
To put it simply, blockchain technology is a distributed ledger system that consists of a list of records or blocks that are securely linked together. This decentralized ledger operates across a peer-to-peer network, enabling transactions to occur without the need for a central authority. Blockchain technology leverages advanced cryptography, cybersecurity frameworks, mathematical models, and other mechanisms to ensure an unparalleled level of security and speed.
This sophisticated system of recording data and executing transactions makes it almost impossible for anyone to breach or manipulate the network, making it an ideal technology to enhance the digital services offered by travel companies. As a result, blockchain technology is becoming a valuable asset in the arsenal of forward-thinking leaders.
If you’re interested in learning more about blockchain technology and its uses, check out this entrepreneur’s guide on blockchain. As blockchain technology and the travel industry converge, innovative companies are taking advantage of this opportunity. Let’s delve into the details of blockchain in the travel industry.
Travel services are being transformed by blockchain
A centralized booking system that is decentralized
Online travel agencies (OTAs) dominate the travel industry today, and more partnerships and channels are needed to improve company and customer operations.
With blockchain technology being used in the travel industry, decentralized booking marketplaces are breaking new ground for businesses worldwide. As a result, hotels and customers get more power through these marketplaces and communication is streamlined, making the process more cost-effective.
An example of blockchain technology used in a hotel and travel booking is appropriate for this application: In order to resolve real-time data problems, offer lower fares, and streamline communication between vendors and customers, companies like Webjet are increasingly relying on blockchain technology. Many hotels around the world are also embracing the concept.
Our company has also developed Empire App, a blockchain-powered mobile application that assists our customers with problems such as double bookings, inaccurate data, data security concerns, and cost-related issues. You can check out this blog, ‘A Travel Agent Guide to Travel Booking App Development Cost’ to get a better understanding of app development for bookings and maximizing your profits while providing superior customer service.
Streamlining the payment process
Blockchain technology is especially useful in making services cost-effective for all parties involved, just like in the Webjet example above.
Using blockchain, hotels, travel agents, vendors, and aggregators are able to streamline and speed up settlements. In the travel industry, blockchain is being used to combat fraud and data theft. This is a great example of how centralized ledgers speed up transactions while keeping them more secure than ever before.
In a use case of travel blockchain, Travelport is combining artificial intelligence (AI) and blockchain to develop a system that enables enterprises to track, analyze, and predict travel expenses. Additionally, the combination can speed up operational processes and give customers a smoother payment experience.
The simplest way to identify
Any travel company needs identification services—and, as you may expect, there is no room for error here. Blockchain and the travel industry meet, and they do so well together. In addition to reducing queues at counters, blockchain can enable lightning-fast check-ins that improve employee and consumer experiences at scale.
As an example of blockchain in tourism, Marriott created Known Traveler Digital Identification by combining blockchain, cryptography, and data privacy. By putting all the information on one data lake, Marriott eliminates security vulnerabilities and gives all parties greater control over the data.
An entirely new way to track
By using a decentralized database, it becomes easier, faster, and more secure to share tracking data across organizations, alliances, and locations. By using blockchain technology in the travel industry, AXA has opened up new opportunities, boosted awareness, ensured timely deliveries, and even avoided bad incidents at various levels in the tracking process.
In the tourism industry, blockchain technology plays a significant role: AXA (the leading insurer) recently launched Fizzy, a highly automated and extremely secure platform based on the Ethereum network that offers flight delay insurance and takes tracking to a whole new level.
An incentive-driven loyalty program
Increasing consumers’ options in a chaotic marketplace is making tokenized reward programs a vital tool for unlocking brand loyalty. As a result of such a system, rewards can be tokenized into digital assets—and even exchanged across multiple platforms, giving customers more flexibility than ever before. As a result, customers can compare the true value of different companies’ offerings.
For example, Singapore Airlines has implemented a loyalty program that converts travel miles into payment units using Blockchain technology. For more information about how blockchain can save airlines millions, check out this article, How airlines can save millions with blockchain. Units can be used with airline partner merchants to redeem goods and services.
Through incorporating blockchain technology into the travel industry and empowering their IT infrastructure, avant-garde companies are already unlocking new revenue streams and customer success. This is the time for the rest of the industry to catch up and surf this new wave to brand excellence.
A blockchain-based solution for the travel industry from Revinfotech
Blockchain technology offers numerous advantages, such as decentralization, immutability, and enhanced security that can usher in a new era for travel companies.
At Revinfotech, we provide Blockchain app development services that enable you to gain a competitive edge with decentralized solutions. Our team of experts can help you develop smart contracts, handle cryptocurrencies, create new services, and power your IT ecosystem with Ethereum. We serve some of the leading names in the market, which has helped us establish ourselves as the best blockchain app development company in the eyes of our trusted clients, partners, and associates.
We offer a range of services that leverage blockchain technology in the travel industry, including blockchain app consultation, MVP development, smart contract development, end-to-end DApp solutions, IEO & ICO services, crypto exchange development, custom blockchain solutions, crypto wallet development, Hyperledger-based solutions, permissioned (private) blockchain, crypto-token development, and NFT marketplace development.
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