How Is Blockchain Revolutionizing The Travel Industry. Image credit: AdobeStock
Tourism is Global. It does not recognize any geographical boundaries and forgets the immigration laws, visas and others. If you are interested in traveling, nothing can stop you except one thing…
Currency exchanges and payment complexities.
When you are in some other country, you need to really be mindful of the use of money.
However, there are agencies like Banks that help you with all this that doesn’t work all the time.
Do you think that all your dreams of Egypt and Venice get blocked? It’s not so far you have Blockchain!
The use of Blockchain has stormed into the travel economy with its benefits. To start trading in Cryptocurrency using the Bitcoin Era.
The global tourism market has crossed 8 Trillion USD (2017 Figures). It is also expected to surpass the $8.9 trillion mark by 2026.
The CAGR percentage during the forecasting period is 3.1%, which is healthy, keeping in mind the wounds caused by the COVID 19 Pandemic.
The Contribution of tourism to the global economy is around 10.3%. And this indicates the importance of this sector.
So it could be a happy hunting ground for Blockchain in travel and tourism.
There are some ways through which Blockchain can be exploited to benefit the travel and tourism Industry.
There are some benefits that the industry can reap by using Blockchain technology.
1. Payments
Payment processing takes a few days and invites problems when the server is down. Under this circumstance, the possible remedy is the use of Blockchain. Blockchain Technology can be used to make payments in the travel and tourism industry.
You are aware that the processing fees in the travel and tourism industry are extremely high.
With the use of Blockchain, Technology payments can be made easily by eliminating intermediaries. In addition, the elimination of intermediaries reduces the cost of transaction processing.
2. Customer Data
Data is extremely important; call it any sector. Unfortunately, there is always an opportunity for your data to get hacked and misused.
Data security, therefore, has turned out to be an extremely problematic area, especially for the tourism industry. However, if Blockchain (collects, stores, and verifies data) is used, it has the capacity to provide safety and security to data.
3. Loyalty Programs
When it comes to the travel and tourism industry Loyal Program is extremely important. In recent times it has been facing some challenges.
Blockchains can be used to develop decentralized loyalty programs. This helps the users to earn and redeem points.
4. Smart Contracts
Smart Contract is the computer protocols that help enforce negotiation and performance.
These smart contracts are designed in such a way that they will be automatically executed.
Smart contracts can be used to:
1. Verify the age to prevent minors from booking flights.
2. Notifying the customers of flight delays and cancellations.
3. Providing the customers with travel insurance.
4. Providing accurate customer details.
These processes are highly middlemen oriented. So unnecessary, the expenditure keeps on increasing.
So it is quite a good way of eliminating middlemen from the circle and maintaining a high pace in the Industry.
The tourism industry is extremely important and relies quite a lot on customer satisfaction.
Through extensive use of social media platforms, customers are able to provide reviews and make a comparative discussion.
The tourism companies can therefore use the industry to leverage the growth and development of the entire Industry.
This is exactly reflected in the PricewaterhouseCoopers (PWC) study. It is revealed that the tourism industry, especially leisure and hospitality, has the highest share of Blockchain Investments.
Notable examples can be given of certain companies that use Blockchain effectively. These companies include Winding Tree, Webjet, Sandblock, The Known Traveller, and Travel Chain.
Therefore, one can conclude that Blockchain and its use in the tourism industry are still in their salad days.
However, the expectations are extremely high because there are a lot of promises if you consider both the Blockchain and tourism industry.
So if you are aiming to do well in this highly competitive field, make sure that you are able to make the maximum utilization of Blockchain effectively.