How Blockchain Technology Is Potential In Travel Value Chain
The idea of travel changes as the world does. Customers have never had higher expectations for a perfect trip, and it’s never been more important to meet those expectations consistently. Here is where blockchain technology is shaking up the market in a big way.
As the digitization of services puts more pressure on the IT departments of travel companies, blockchain has come in like a knight in shining armor to help market leaders keep their competitive edge and level the playing field for everyone else.
In this article, we’ll go into detail about how blockchain development services are changing the travel industry, opening up new ways for businesses to grow and for customers to have a better experience.
As You Travel, So Must Your Data
Before we talk about how blockchain technology can be used in the travel industry, let’s start with a basic understanding of information, which is the part of modern travel that best shows Blockchain’s need and use cases.
Travel is based on people sharing information. Any airline’s digital network is always sending and receiving information about bookings, check-ins, passenger preferences, luggage handling, updates, and lodging. And there’s no room for making a mistake.
This kind of system has security holes and makes it hard to run, especially as it gets bigger. And as the value and complexity of customer data goes up, so do the sophistication of cyber threats and the ways that bad people try to harm businesses.
Is there a way to add a solution that can fix these bottlenecks to the IT infrastructure that the travel business already has?
Yes, and the travel industry is already using blockchain.
So, how does blockchain help the travel business? To answer this question, we need to first understand how this new idea works.
How Blockchain Technology Works?
In simple terms, a blockchain is a type of distributed ledger technology (DLT). That is made up of a growing list of records (called “blocks”) that are securely linked together.
This “decentralised” ledger is spread out over a peer-to-peer network, which lets people do transactions without a central clearing authority. In addition to being fast, this system uses a number of tools, such as advanced cryptography, cybersecurity frameworks, mathematical behavior models, and more, to create a level of security on the network that has never been seen before.
This complicated way of keeping track of data and making transactions makes it nearly impossible for anyone to hack or cheat the system. This is why Blockchain technology is perfect for boosting the digital services that travel companies offer. This is how forward-thinking leaders in the travel industry can use blockchain technology as a tool.
So, the blockchain and the travel industry are coming together, and this is a chance to see how creative businesses are using it. Let’s start with the basics of how blockchain works in travel.
How Blockchain Is Changing The Status Quo Of The Travel Industry?
Bookings – Decentralised
The travel industry currently dominated by a small number of online travel agencies (OTAs), and there is a need for more channels and partnerships that can help both the company and the customer save time and money.
Decentralized booking marketplaces are here to help. This use of blockchain technology in the travel business is a first for businesses all over the world. These marketplaces give both hotels and customers a lot of power and make it easier for them to talk to each other by cutting out the middlemen. This makes the process cheaper for everyone.
Payments – Streamlined
Like the Webjet example above, one of the most important ways Blockchain technology. That can be used is to make services cheaper for everyone involved.
Blockchain makes it easier and faster for hotels, travel agents, third-party vendors, and different aggregators to settle their bills with each other. The centralised ledger makes transactions faster and safer than ever, which helps companies fight fraud and data theft. This is a great way that blockchain can used in the travel business.
Identification – Simplified
Identification services are important for any travel agency, and it goes without saying that there is no room for error. Here is where the travel industry and blockchain meet, and they work well together. Blockchain can store passenger data in a safe way and process it quickly, allowing for lightning-fast check-ins. That can cut down on wait times at counters and make things better for both employees and customers on a large scale.
Tracking – Reimagined
With a decentralised database, it is easier, faster, and safer to share tracking data across businesses, alliances, and locations. This helps raise awareness, make sure deliveries happen on time, and even stop bad things from happening at different stages of the tracking process. This use of blockchain technology in the travel industry has given many companies, like AXA, new ways to do business.
Loyalty – Rewarded
Tokenized reward programmes are the key to getting people to stay loyal to a brand in a market. Where consumers have more and more choices every day. In this kind of system, the rewards can turned into digital tokens. That can used on different platforms and even traded between them. This gives customers more freedom than ever before. This also lets customers compare the real value of what different companies have to offer.
Experts in the business world have noticed that the Blockchain revelation has spread to all industries and is taking the travel industry to the next level. It helps to improve the efficiency of travel by reducing costs and time in a dynamic way. Blockchain technology has the potential to solve a lot of problems in the field. With Blockchain technology, goods like medicines can kept at the right temperature while they shipped. It helps with the payment process by cutting down on the time. It takes to process and by getting rid of the cost of a third-party agent.