Blockchain over the past few years has dramatically transformed the way in which data or information is stored or used. The benefits of blockchain solutions have gained interest in a myriad of industries including financial services companies, healthcare, retail, and supply chain. Apart from these industries, the travel industry is also looking for ways to benefit from blockchain.
What is Blockchain?
The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions, but everything that holds value”.
It stores information across a number of computers on a peer-to-peer network. The data can be accessed in real time that can be viewed across networks and make it possible to see the history of products and its components.
Blockchain comes with many unique traits and characteristics that can benefit companies in a number of ways. Some of the unique features are:
- Transparency and Immutability
- Decentralized Business Model
- Data Integrity
- Elimination of Third Party or Middleman
- Enhanced Security
Blockchain in Travel Industry
As discussed earlier, blockchain is being widely adopted by a myriad of industries and businesses. In April, we wrote on 5 Use Cases of Blockchain Technology in Retail. Today we are going to analyze deeply on how travel industry can benefit from blockchain technology.
Blockchain to Prevent Overbooking
Without any doubt, the travel industry is busy all around the year. Tourists are always searching for deals and promotions all around the year. However, during the vacation season, there are chances of hotels and flights being overbooked.
Blockchain comes to rescue in such situations when people go crazy during vacation season. It helps in preventing double spending or double booking, preventing any instances to happen such as off-loading the passengers or letting them wait until the room is vacated.
Blockchain leaders and influencers know the potential of technology beyond Fintech. The incorporation of this technology in the travel industry will surely deal with many pain points including overbooking of rooms and flights.
Securing Travelers Profile and Data
We all know how blockchain helps in securing the data, making it safer and inaccessible to an unauthorized person. For many years, user privacy and security has been an issue. When a company signs an agreement with a Travel Management Company, suppliers or airlines, the company requires giving the supplier access to data in order to offer the services.
No matter, whether the process is handless automatically or manually, profiling process takes a lot of time and effort. However, if the information of employees is stored on the blockchain, it could help deal problems on both sides. For instance, companies won’t have to develop a separate API connection between buyer HR system and supplier’s profile database. The manual profiling will become the thing of the past.
It does not require employees to create user accounts with many suppliers, replicating their information along with other users on the system, potentially with the risk of being breached. Moreover, it does not require the adoption of new supplier’s user interface.
Customer Loyalty Programs
Hotels, credit card companies, airlines, and retailers use many promotional techniques and marketing tactics to encourage customers to return. Normally, customers are offered with reward points that can be availed to get discounts and other deals that help in saving some money.
However, the biggest obstacle for the traveler is to avail and redeem loyalty points. For instance, the airline loyalty points cannot be availed beyond booking flights. In short, the unspent loyalty points must be redeemed to fullest in order to benefit customers.
The problem is being addressed through this technology by one of the California based startup, Loyyal. The company’s reward platform was built with smart contract and blockchain technology to reduce disintegration in the loyalty business. It benefits the customers by giving them more value through loyalty schemes all in real time.
Hassle Free Baggage Tracking through Blockchain
Mishandling baggage costs aviation many billions every year and is quite frustrating for travelers. The problem is not simple, as it seems to be, as the baggage has to go through several phases.
Presently, systems have enhanced the process by reconciling baggage-handling data straight from departure control applications. It can come to rescue in order to address this problem.
The key personnel present can incorporate a shared distributed ledger within the airport and between different airports. It would help in extracting the ownership details, deliver data records shared with different personnel and track bags throughout the journey.
Conclusion
The future of blockchain in the travel industry will remove many discrepancies that result in millions of dollars lost to companies including airlines and hotels. This technology can offer frictionless experience to the travelers in the coming years and avoid losses that companies have to bear every now and then.
Lisa Jacob, thanks for sharing your great posts every week!