Blockchain technology, which was supposed to secure bitcoin transactions, is disrupting almost every industry we know.
Blockchain technology is at its horizon. Every second person is talking about blockchain or planning to invest in blockchain development. All industries are looking forward to exploring the potential of the technology and revamp their business world. And one such industry which has though not shown any advancements, but is predicted to be revolutionized by the application of blockchain technology in next 3-4 years is Travel Industry.
Before we discuss different ways Blockchain technology can revamp the travel sector, let’s have a look at what blockchain is?
In a layman’s language, Blockchain is a type of database that is immutable, secure, decentralized and distributed. That means, you can add records to the database easily, but cannot remove or alter. To remove or update any record, you are required to get permission from nearly 51% of the connected records. Anyone can deploy a particular section of computer code onto a blockchain, but since the database is immutable, the code written will be stored and performed there forever. Besides, the database is not centralized; full or partial copies of the database will be distributed to a wider range of computers.
Blockchain and Travel Industry: What’s the Connection?
Travel sector is far more complex and disintegrated than it appears. It encompasses various challenges and issues, especially when it comes to identity management and providing comfort & security to the customer base. However, the interesting part is that blockchain technology can be the right solution to most of their pain points. Wondering how?
Here are 8 ways by which Blockchain technology can uplift the travel industry:
1- Escape from Overbooking
We all are aware of the issue of overbooking. Due to a network issue or some other factors, we often make double bookings and struggle later on. As per what I have observed, both the travel service providers and travellers bear consequences of this situation. However, this can be put to an end with the integration of Blockchain technology.
Blockchain, one of the hottest technology trend for 2018, has the ability to prevent the situation of data redundancy. Perhaps, the issue can be completely resolved only when marketers stop adopting this practice for increasing profit and optimizing resources.
2- Identity Validation
There’s no exaggeration to the fact that a major part of the world’s population is still disconnected from the global economy. It’s tough to recognize and validate their identity. Although there are numerous ways to check and authenticate a person’s identity, like social logins and federated identity system, you cannot completely rely on them for pulling data from different sources or using a specific factor to see the details you want, until and unless you integrate with third-parties.
Decentralization via Blockchain can fix this issue. The technology can help such people to get acquaintance and access to all the basic financial services, which will eventually connect them to the rest of the world. Besides, it can enhance the reputation-based identity system and prove their identity; giving an escape from long waiting lines and complicated TSA (Transportation Security Administration) mechanisms.
3- Fraud Detection
With valid identification and non-refundable transactions, the blockchain technology can cut down the risk of fraudulent. Apart from this, the technology can also make it easier to implement PCI DSS compliance.
In a blockchain-based system, the cardholder data will be stored on a distributed network instead of the corporate database, which means travel companies need not worry about data breaches.
4- Single Traveler Profile
With Blockchain technology, it is possible for the employees to create a single user profile and share with all the suppliers. They need not build different profiles of an individual for workflow or compromise with the new supplier’s user interface.
5- Boost Loyalty
By offering a hassle-free experience and almost no risk of sensitive data breach, the technology of trust boosts trust and loyalty between the customers and travel agencies.
6- No Middlemen
Blockchain technology has accelerated the money transfer process by removing the middlemen and their fees. By blockchain-enabled crypto wallets, one can perform money transfers anytime and can enjoy a streamlined experience.
7- Better Care and Assistance
Blockchain technology will empower the travel managers to ensure that the traveller enjoys a convenient and safe journey. The travel manager can get real-time updates about the traveller making/updating a reservation, boarding the plane, checking in at the booked hotel, renting a car, etc. via Blockchain in IoT enabled devices. Besides, the manager can get access to Health record of the traveller which he/she can use in case of medical help.
8- Policy and Compliance
Blockchain technology can give the travel companies an escape from keeping a gatekeeper/ security guard. They can get direct real-time updates whenever someone tries to enter the office area illegally or try to breach the policies. The technology can let them have a two-way communication with all the traitorous employees.
Besides, the technology of trust can act as the right tool to enhance the travel and booking style. Blockchain with unparalleled transparency and security features can be the enabler of open booking concept – where you can make bookings from anywhere unless you follow the policies – all your data will be collected, managed and made available to you in no time.
From the above-mentioned points, it can be depicted that Blockchain technology will lift the travel industry. However, the implementation of the technology won’t be all of a sudden; it is likely that blockchain will take another 3-4 years to experience wider adoption, reaching to every corner of the travel industry.