As the world evolves, so does the idea of travel. Customer expectations for flawless travel experiences have never been higher—and catering to them consistently has never been more crucial. This is where blockchain technology is causing a major disruption in the marketplace.
As the strain on the IT departments of travel companies increases amid the increasing digitization of services, blockchain in the travel industry has appeared as a knight in shining armor, helping market leaders retain their competitive edge and level the playing field for everyone else.
In this article, we will deep dive into how Blockchain technology is revolutionizing the travel industry, unlocking new avenues for enterprise growth and customer experience.
As you travel, so must your data
Before we go ahead with the applications of blockchain technology in the travel industry, let’s begin with a basic understanding of the aspect of modern travel that encapsulates Blockchain’s need and use cases—information.
Data sharing is the backbone of the travel industry. Be it booking, check-ins, passenger preferences, luggage handling, updates, and lodging—any airline’s digital network is ever pulsating with information being exchanged throughout the framework. And there is no room for error.
With this kind of system comes security vulnerabilities and operational challenges, especially as you scale. And as the value and complexity of customer data increases, so does the sophistication of cyber threats and the approaches of malicious factors.
Is there a way to infuse the existing IT infrastructure of the travel enterprise with a solution that can close these bottlenecks?
The answer is yes, and it is using blockchain in the travel industry.
So, how can blockchain benefit the travel industry? To answer this question, we must understand the nuances of this innovation first.
How blockchain technology works
In simple terms, a blockchain can best be described as a distributed ledger technology (DLT) comprising a list of records (aka blocks) that keep expanding rapidly—and are linked together securely.
This ‘decentralized’ ledger stretches across a peer-to-peer network, which allows participants to carry out transactions without a central clearing authority in place. In addition to the speed that this system delivers, blockchain uses a number of mechanisms like advanced cryptography, cybersecurity frameworks, mathematical behavior models, and more, to implement an unprecedented level of security throughout the network.
This complex system of recording data and carrying out transactions makes it near-impossible for anyone to hack or cheat the system—and this is what makes the Blockchain technology ideal for turbocharging the digital services travel companies have to offer. This is how blockchain technology in the travel industry can become a weapon in the arsenal of forward-thinking leaders.
[Want to have more detailed insights into blockchain technology? Head on to this entrepreneur’s guide on blockchain and its uses.]
So, the blockchain and travel industry are meeting—and this is a time for us to witness how innovative enterprises are making the most of it. Let’s get started on the ins and outs of blockchain in travel.
How blockchain is changing the status quo of travel services
The current travel industry is dominated by a small group of online travel agencies (OTAs), and there is a demand for more channels and partnerships that can create improved operational and monetary benefits for the company and the customer.
Enter, decentralized booking marketplaces. This use of blockchain technology in travel industry is breaking new ground for enterprises globally. These marketplaces give a lot of power to the hotels as well as customers and streamline communication by cutting out the middlemen—something that makes the process more cost-effective for everyone.
Blockchain technology in hotel and travel booking example that suits this application: Companies like Webjet have been increasing their reliance on blockchain technology in order to locate and eliminate real-time data problems, provide lower fares, and streamline communication between the vendor and the user. Several hotels around the world are also diving into the concept.
Appinventiv has also developed Empire App, a blockchain-powered mobile application that helps our customers solve the challenges of double booking, incorrect data, data security, cost issues, and more. For an overview of app development for booking and maximizing your profits while delivering a superior customer experience, you can check out this blog, ‘A Travel Agent Guide on Travel Booking App Development Cost’.
A big application of Blockchain technology, just like in the Webjet example above, lies in its ability to make services most cost-effective for all the concerned parties.
Blockchain helps streamline and fast-track the settlements between hotels, travel agents, third-party vendors, and different aggregators. The centralized ledger speeds up transactions while keeping them more secure than ever before, helping companies combat fraud and data theft. This is a great use case of blockchain in the travel industry.
Travel blockchain use case in point: Travelport is using artificial intelligence (AI) and Blockchain to create a system that helps enterprises manage their corporate travel expenses by tracking, analyzing, and predicting spend accurately. This combination also allows the enterprise to deliver smoother payment experiences to customers and speed up operational processes.
Identification services are crucial for any travel company—and, needless to say, there is no room for error in the matter. This is where the blockchain and travel industry meet, and they meet well. Blockchain can securely store and quickly process passenger data to deliver lightning-fast check-ins that can reduce queues at counters and improve employee and consumer experiences at scale.
Blockchain in travel and tourism use case in point: Marriott has deployed blockchain, cryptography, and data privacy to create the Known Traveler Digital Identification program that eliminates security vulnerabilities that originate from all the information being present on one data lake and gives more control of the data to all parties.
Sharing tracking data across enterprises, alliances, and locations becomes easier, faster, and more secure with a decentralized database in place. This helps boost awareness, ensure timely deliveries, and even avoid bad incidents at different levels in the tracking process. This application of blockchain technology in travel industry has opened new avenues for many businesses like AXA.
A relevant example of blockchain technology in the tourism industry: AXA (the insurance leader) has launched Fizzy, a 100% automated and highly-secure platform that works on the Ethereum network to take tracking to a new level and provide insurance against incidents like flight delays.
Tokenized reward programs are the answer to unlocking brand loyalty in today’s chaotic marketplace where options are increasing every day for consumers. In such a system, the rewards can be tokenized into digital assets—and can even be exchanged across different platforms, giving customers more flexibility than ever before. This also gives customers the power to compare the true value of the offerings of different companies.
Travel blockchain use case in point: Singapore Airlines has deployed a loyalty program that uses Blockchain technology to convert one’s travel miles into payment units. These units can be used with the airline’s partner merchants to redeem a variety of goods and services. To know more about the blockchain use cases in the aviation industry, check out this article, How airlines can save millions with blockchain.
The avant-graders are already unlocking new faucets of revenue and customer success by incorporating blockchain technology in travel industry and empowering their IT infrastructure. Now is the time the rest of the industry catches up to this new wave and surfs it all the way to brand excellence.
How Appinventiv is putting blockchain in travel industry to work
Blockchain offers a ton of benefits like decentralization, immutability, and elevated security that can truly mean the dawn of a new age for travel companies.
We at Appinventiv, an artificial intelligence app development company, offer Blockchain app development services that are designed to help you create a new business edge with the world of decentralized solutions. Whether you are looking to develop smart contracts or deal with cryptocurrencies or build new services or power your IT ecosystem with Ethereum—our team of experts has got you covered, just like they do some of the leading names in the marketplace. This is what makes us the best blockchain app development company out there in the eyes of our trusted clients, partners, and associates.
Some of our services that leverage blockchain in travel industry include:
- Blockchain app consultation
- MVP development
- Smart contracts development
- End-to-end DApp solutions
- IEO & ICO services
- Crypto exchange development
- Custom blockchain solutions
- Crypto wallet development
- Hyperledger based solutions
- Permissioned (private) blockchain
- NFT marketplace development
Q. What are the top benefits of blockchain for travel companies?
A. Blockchain has a wide array of transformative benefits for travel startups and enterprises. Some of them include trusted data coordination, a high level of data security, the ability to have a shared IT infrastructure, incentivization, tokenization, and more.
Q. How do I identify areas where I can use Blockchain to create a greater impact on my business?
A. The answer to this question depends on the kind of business you are in and the kind of infrastructure you have in place. We suggest getting in touch with our experts for a free consultation session to better understand the areas of your business that can benefit from Blockchain technology.
Q. What is distributed ledger and how can it help my business?
A. A distributed ledger replaces the traditional methodology of data accounting using a single, or ‘centralized’ system with a network of participants that are responsible for maintaining digital records. Blockchain technology uses cryptography-based algorithms to turbocharge a distributed ledger, elevating security, fast-tracking cooperation, and helping businesses reach new levels of data and process excellence.
Are you ready to take your business to the next level and reach new heights with the power of blockchain technology? Reach out to our experts to book a consultation and let us help you future-proof your business with the use of blockchain in the travel industry!