Exploring the CyberMiles ecosystem: Travel on the blockchain
Blockchain technology takes flight within the travel industry, a #CMusecase
We’ve covered a lot of ground, unpacking how blockchain has generated huge interest among everyone from real estate groups to supply chain companies. The travel industry, however, also has been exploring the vast benefits of blockchain.
Dollars and Sense
Traditionally, the centralized nature of the travel industry has meant that costs incurred (agency fees, surcharges, etc.) get passed on to customers. But the Internet largely changed that. Today, conventional travel agents have gone the way of the dodo bird, leaving an industry disrupted beyond recognition and allowing those of us average consumers to book flights or hotels online, within minutes, at our very fingertips.
However, what seemed like deliverance at first has become more restrictive over time. That’s right, online travel sites have built monopolies in which small hotels and airline companies lose out, causing the end user to pay extra. Centralization in the online travel industry has led to less competitive prices. For online travel to function well competitively, there needs to be a partner who won’t disrupt business operations arbitrarily, but actually foster positive competition among industry players. This is where blockchain technology comes in.
Since blockchain can verify customer identity and authenticate a transaction, we don’t have to worry about scenarios like renting the house of a criminal or not getting paid for a reservation. Smart contracts can ensure that agreements are binding and upheld by both parties, that transactions can be made smoothly and reliably. In this scenario, forget about a chain of intermediaries — just relax and rest assured with just a simple, secure transfer of funds between buyer and seller. And that also means no added costs on top.
Data for Sale
Another problem historically has been data. Even if you save money by eliminating unnecessary — or even unwanted — “middlemen,” you still are allowing companies to become involved in the process via reservation info, travel/accommodation records, etc. stored in their own systems. Consider all that airlines track about their customers:
- Departure and arrival dates and times
- Departure and destination cities
- Search and purchase history
- Credit card points earned
- Miles or loyalty points used
- Cancellations
- Luggage checked
- In-flight purchases, meal choices and duty-free spending
- Rental car and hotel arrangements
And that’s just off the top of my head. There’s much more.
Efficient Identity Verification
The modern-day travel industry is reliant on the use of identification services. Blockchain excels in this regard, having all the makings of a very effective way of providing travelers with digital identities. If used correctly, it could improve airport efficiency and, in turn, make the customer experience more palatable — a win-win.
Blockchain technology could be easily used to reduce both check-in times and the length of queues in airports. Similarly, documentation such as a passport or a driver’s license could be conceivably replaced by facial or retinal scans. This would reduce crimes like identity theft and, in the process, could perhaps improve the reputation of the travel industry.
More Efficient Air Travel
Blockchain also has the potential to positively impact air travel. How so? First, it could be used reduce the occurrence of inconveniences such as flight delays as well as inaccurate arrival and departure times.
Similarly, it could prove beneficial for tracking the movements of luggage, especially on international flights. Lost luggage costs the travel industry (and customers) billions of dollars each year. A decentralized database that blockchain offers would make it easier for tracking data to be shared between the various airports involved.
Already there are a few progressive companies spearheading these efforts. Winding Tree, a nonprofit that is using blockchain technology to enable a fair and competitive travel distribution market, is one. Because only a handful of giants dominate airfare and accommodation bookings, sites like expedia.com and hotels.com can impose arbitrarily high fees and surcharges that affect both travelers and businesses. By removing intermediaries, Winding Tree is seeking to connect airlines, hotels, and even tour guides more directly with travelers around the globe.
But how? Built on the Ethereum platform, Winding Tree’s network connects buyers and sellers via a set of smart contracts and open-source tools, minus those pesky transaction fees. The result: a peer-to-peer economy that frees up creativity and innovation within the travel industry.
If building on the blockchain is considered low-hanging fruit, let’s also highlight Travala, which is poised to be a global online travel booking marketplace built upon the NEO decentralized engine. Travala is releasing its next update to the booking platform, which will include 400,000 more properties. With this addition, the number of accommodation (hotels, villas, resorts, hostels, apartments, etc.) listed on its marketplace will increase to 550,000+ in 210 countries across six continents.
Lastly, and pointing out the obvious, Airbnb is a middleman that takes up to 20 percent commission —a 10-year-old startup already ripe for disruption by a blockchain-based alternative. In Europe, CryptoCribs is a travel startup that has been getting its share of attention. Its aim, according to CryptoCribs’ co-founder, Erasmus Elsner, is to develop an open-source, peer-to-peer sharing community. Right now aimed at early Airbnb adopters, it could scale rapidly as cryptocurrencies and tokens become more accepted. Companies that continue to ignore what could be a revolutionary technology like blockchain may end up in the same graveyard as those that did not adapt quickly enough to previous digital disruptions.
In conclusion, cutting out middlemen in the travel industry may mean that destinations could keep more of the local revenue. This would be a significant benefit to regional economies in particular. Dubai, for instance, has launched a government-backed strategy, called Smart Dubai, to make the emirate the blockchain capital of the world. It is working with Loyyal on how to incentivize visitors’ behavior by ‘gamifying’ their visit, helping them discover new places while rewarding them with loyalty points. Managing the “customer experience” is becoming a major focus for destinations, and this includes tracking of the visitor experience at all touch points and, where necessary, streamlining processes to improve the customer journey.
The CyberMiles Solution
A decentralized app on the CyberMiles blockchain is Taiwan-based LiMaGo. LiMaGo not only recommends and show you directions, but also can provide all kinds of online services: airport transfer, currency exchange, plane ticket bookings, etc. Customers can set up their own policy, and smart contracts will execute directly with the claims process needed. What this means is that each ‘LiMaFlight Token’ provides insurance coverage to the travelers, and records your asset value. LiMaGo does this by allowing each contract to mint a unique token for over a decade. These tokens are on top of CyberMiles’ blockchain.
With all of the legwork already executed, and all of the planning completed for you, LiMaGo allows you to simply enjoy your trip! The concept is similar to existing concierge services online, but the range of services that LiMaGo provides is impressive and the LiMaFlight Token is much better!
If you have use cases (e.g. DApps and side chain ideas) for the CyberMiles blockchain, please email business@cybermiles.io for collaboration/ investment opportunities.
