Blockchain keeps changing the existing many spheres of everyday life. After Bitcoin’s appearance ten years ago, open ledger technology (DLT) has become a tremendous breakthrough and is now turning into something more or less regular, even though a lot of people still fail to understand how it works. It was first used in the finance industry but now it has leaked into real estate, gambling, education, medicine and other fields, too.
Blockchain and tourism
Blockchain allows data to be strongly protected and ensure its transparency without any intermediaries. Besides, it makes not only data but also various transactions on the DLT more efficient and cheap.
Among the areas that are being impacted by blockchain is the travel industry and tourism. These areas produce almost 10 percent of the global GDP, having millions of tourists travelling around the globe every year. Moreover, the scale of these areas is growing, currently being at a historical high.
Currently, the industry can be improved by bringing down costs and making the general customer experience better and more enjoyable. In addition, blockchain can be the answer to travellers’ prayers when it comes to numerous awful experiences regarding booking plane tickets and actual flying.
Experts believe that in the future blockchain can be applied to four main areas of the industry. Those are customer reward programs, luggage tracking, I.D. systems and the secure transaction of payments.
Luggage tracking is especially important, since even now, in the 21 century, baggage is often lost or arrives late. Luggage goes from one point to another when its owner is travelling with just a light bag. It goes from the airport to the plane, transport services, then to the hotel where you are going to stay. It goes through plenty of stopovers and transferring points.
Blockchain can be used to ensure that every unit of luggage that passes all the stages from the start to the finish point. Should any baggage be lost or delayed, DLT will be able to trace it, even if it requires getting multiple companies involved.
Payment operations are the most frequent and practical way to use blockchain, though many disagree on that point. DLT-based systems can definitely make life easier for travel companies when it comes to payment transactions. Crypto coins that are used with them can be sent to any country, independently of local and international banks, and there is no hassle with exchanging numerous currencies and using foreign exchange platforms when you go abroad.
Blockchain, when implemented into ID systems at an airport/train station, makes things much easier for travellers. It allows avoiding queueing at an airport security and waiting in long lines at check-in and immigration desks, even though these are obligatory procedures. Open ledger technology can solve this problem, too. Travellers’ data on it can be easily traced and shared if necessary. This would speed up the screening procedures at airports, since DLT allows one to confirm anyone’s identity by simply leaving a fingerprint or performing a retina scan. Checking the personal documents of a traveller will no longer be necessary.
System of rewards
Another thing blockchain can be helpful in is making reward programs in the travel industry work more effectively. This field, just like others, such as hotels and airlines, prefers to attract customers with rewards for using its services. DLT can get this process to work better and more efficiently, and let clients receive their personal points in a way that is transparent and traceable.
For this purpose, crypto tokens can be used, which would also facilitate buying tickets and similar things, like paying for a hotel room afterwards.
To sum up
Travelling still remains a problem. However, blockchain and artificial intelligence combined together promise a solution. When this system is decentralized, various entities and companies that are part of the travel industry will be able to exchange and share data easily on the blockchain. This would make things easier, more efficient and secure.
Smart, AI-based technologies would improve the overall user experience and cut down expenses. If these two technologies put together can change the travel industry for the better, they will probably revolutionize other areas as well.