Blockchain has generated significant enthusiasm within the travel and hospitality industry for its potential to dramatically transform data storage and application, improving transparency, security, and transactions.
FREMONT, CA: Blockchain, over the past few years, has dramatically transformed business data-related practices. The advantages of blockchain solutions have augmented interest in a myriad of enterprises, including the travel business sector, which is looking for ways to profit from the blockchain. It stores data across several computers on a peer-to-peer network. The data can be obtained in real-time that can be viewed across networks and make it feasible to see the history of products and its components. Transparency, immutability, decentralized business models, data integrity, elimination of external party, and enhanced security are some of the unique features of blockchain in the travel industry. There are many ways how the travel industry can benefit from blockchain technology.
• Preventing Overbooking
The travel business is undoubtedly busy throughout the year, as tourists are always exploring for deals and promotions. This is the reason why during vacation season, possibilities of hotels and flights getting overbooked might create a predicament. Blockchain comes to rescue in such circumstances when people go crazy during the holiday season. It helps in limiting double-spending or dual booking, preventing any occurrences from happening, such as off-loading the tourists or letting them wait until the room is vacated. Blockchain influencers and leaders know the potential of technology beyond fintech.
• Securing Travelers' Profile and Data
Blockchain is popularly known for securing data, making it reliable and accessible only to the authorized person. Initially, user privacy and security was always an issue. When a company signs an agreement with a travel management company, the company requires giving the supplier access to data to offer the services. If the data of employees is stored on the blockchain, it can help deal problems on both parties. Organizations won't have to develop a separate API connection among buyer HR policy and supplier's profile database. Manual profiling will become a thing of the past. It does not require operators to create user accounts with various suppliers, replicating their information along with different users on the system, potentially with the chance of being breached.
• Customer Loyalty Programs
Hotels, airlines, credit card companies, and retailers use many promotional methods and marketing tactics to inspire customers to return. Customers are offered with reward points that can be availed to get discounts and new deals that help in saving some money. The biggest hindrance for the traveler is to avail and redeem loyalty points. For instance, airline loyalty points cannot be availed beyond booking flights. The enigma is being addressed through blockchain in some startup organizations. These organizations reward platform was built with smart contract and blockchain to reduce disintegration in the loyalty business. It benefits the customers by providing them more value through loyalty schemes all in real-time.
• Hassle-Free Baggage Tracking
Mishandling baggage costs many aviation billions every year and is quite agitating for travelers. The problem is not uncomplicated, as it seems to be, as the baggage has to go through several phases. Systems have heightened the process by adjusting baggage-handling data straight from departure control applications. It can come to rescue to discuss this problem. The key personnel today can incorporate a shared distributed ledger within the airport and among different airports. It would assist in extracting the ownership details, deliver data records shared with different personnel, and track bags throughout the journey.
With the use of blockchain, a consumer could complete their travel and hotel bookings through the execution of a smart contract, eradicating the need for intermediaries. The future of blockchain in the travel business will remove many miscalculations that result in millions of dollars lost to organizations, including airlines and hotels. This technology can offer a frictionless exposure to the travelers in the following years and evade losses that companies have to bear now and then.