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Safe and reliable transactions are crucial in the travel industry. This is particularly relevant given the many international transactions that take place daily between different organizations in the sector.
The adoption of blockchain technology can increase the reliability and security of the transaction. In addition, the absence of middlemen in the process could result in much faster payments using blockchain technology.
Furthermore, the decentralized nature of blockchain can be beneficial for international travel. Without unified data storage, it is still possible to build an infrastructure.
Such a system is unlikely to fail due to hardware problems or malicious attacks. Due to the decentralized nature of blockchain, it is easier and more reliable to obtain and store important data.
Due to the assurance of secure transactions and interoperability, several companies are now building custom travel applications and integrating them with blockchain technology. In fact, global spending on blockchain solutions is expected to reach $19 billion by 2024.
By hiring the best custom blockchain development company, they now create a custom software solution or upgrade their existing solution with blockchain technology.
This blog discusses the promising opportunities that blockchain technology offers in the travel and tourism industry.
How blockchain technology is revolutionizing the travel industry
Here are six ways blockchain technology is transforming the travel and tourism industry.
Helps with identification
The travel industry relies heavily on identification services, and blockchain may eventually replace other methods of preserving this data as an industry standard.
When used in this way, technology has the potential to significantly reduce check-in lines or waiting times at the airport, as presenting identification papers can be replaced by a quick fingerprint or retinal scan.
Locate luggage
Blockchain technology has a lot of potential as a tool to track the whereabouts of luggage – especially when it comes to international travel.
During a trip, a customer’s luggage often changes hands several times. Sharing monitoring data between companies is much easier when done using a decentralized database.
Streamlined payments
The settlements between hotels, travel agencies, third party vendors and various aggregators are streamlined and accelerated using blockchain.
The centralized ledger makes interactions faster and more secure than ever before and helps businesses fight fraud and data theft. This is an excellent application of blockchain in the tourism industry.
Blockchain as a system helps companies control their business travel costs by accurately recording, analyzing and predicting expenses. In addition, this combination enables the company to streamline operational procedures and provide customers with a more seamless payment experience.
Vendor and supply chain administration
Through improved visibility of the entire supply chain, blockchain could potentially help hotels and hotel chains improve their interactions with suppliers.
Exporters, importers, packers and all other parties involved can be connected through a private blockchain network into a common chain that is fully traceable and accessible to everyone.
Improved tracking and traceability
A decentralized database makes it easier, faster and more personal to share tracking data between companies, alliances and locations.
At various stages of the tracking process, this helps raise awareness, ensure on-time deliveries and even prevent negative incidents. This use of blockchain technology in the travel industry has created new opportunities for many companies.
Decentralized Bookings
There is a demand for more channels and partnerships that can improve operational and financial benefits for the company and consumers. A small number of OTAs (online travel agencies) currently dominate the travel industry.
Introducing decentralized platforms for bookings. For companies around the world, this application of blockchain technology in the travel industry is groundbreaking.
By eliminating middlemen, these platforms streamline communication and provide significant power to both customers and hotels, making the process more affordable for all parties.
Other applications of blockchain in the travel and tourism industry
Some of the other technologies that have used blockchain as a foundation could be beneficial to the travel and tourism industry.
Here are a few examples.
Smart contracts
By eliminating intermediaries (such as notaries, banks or other entities), smart contracts, which use blockchain technology to manage contracts, enable lower costs and faster processing times.
Digital identity card
There is a lot of discussion about digital identification based initiatives such as the Alastria project, which is led by the top companies listed on the Spanish IBEX 35 exchange.
With the help of this system, tourism companies can streamline their work processes and have access to all relevant data about a person in one location.
Cryptocurrency
Virtual coins that can be exchanged like any other type of money are cryptocurrencies. The difference is that neither governments nor financial institutions have any influence over it. When a transaction takes place, it is completely transparently recorded in the blockchain network.
It’s time to put blockchain technology to work for your travel and tourism businesses
Embracing blockchain technology is easier than it might seem at first glance. But for those unfamiliar with digital technology, encryption, cryptocurrencies, or peer-to-peer networks, learning about it can still seem intimidating or overwhelming.
However, given the huge potential and opportunity to completely change the travel industry, understanding and implementing it in business is critical.
Sudeep Srivastava is the CEO of Appinventiv, a blockchain software development company, and is someone who has established himself as the perfect blend of optimism and calculated risk. Having built a brand known to tap into the untapped ideas in the mobile industry, he spends his time exploring ways to take Appinventiv to the point where technology and life merge.
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