How Blockchain Will Disrupt the Travel and Tourism Industry
Imagine going to the airport and simply boarding a plane without having to line up or show your passport, or booking a flight and getting the best price available without using a third party website like Expedia or Booking.com. Based on the way that blockchain technology has been disrupting almost every industry, these dream scenarios may become realities in the not-so-distant future.
Blockchain, the technology behind cryptocurrencies and smart contracts, can drastically impact industries across the board. Any organizations with a structure and multiple parties who require access to trustworthy data are great candidates to leverage the capability of blockchain.
The travel and tourism industry is a great example, as airlines and hotel chains are practically databases in themselves. They hold secure customer data such as passports, credit card information, and other pieces of photo identification.
The most obvious way that blockchain will disrupt the industry is by accepting cryptocurrencies as a form of payment for travel and accommodation. However, there is much more that can be done on an operational level that could save millions of dollars in the long term.
The implementation of blockchain technology in the travel and tourism industry would be a win/win for both industry corporations and travellers. With blockchain, a consumer can book directly with a hotel or airline through the execution of a smart contract, which would eliminate the need for an intermediary such as Hotels.com or Expedia. Likewise, said hotel or airline can trust that the payment will seamlessly transfer to them from their customers. Even better, future travellers could use IVEP to book a hotel room directly from a virtual video tour of the space. This would save travellers from paying booking fees to the third parties, and would allow companies in the industry to avoid paying hefty commissions to those parties.
Technology is currently available that could enable your phone to leverage blockchain within the next 5 years, further simplifying the experience of millions of travellers. Smart contracts can be coded to create processes such that the traveler’s data can “seen” or “scanned” when they enter an airport. Real time checks would be part of the algorithm completing the smart contract to ensure the traveler’s documentation, security and tickets are valid. In this case, the traveler would never need to line up or show any documentation.
In organizational operations, hotels, and airlines, pricing and revenue structures could be impacted by blockchain technology. Each company sets prices on availability; the fewer spots available the more expensive they become. As blockchain has the ability to create seamless inventory tracking and supply chain systems, this technology can be used to ensure maximum capacity without overbooking. This is a seamless method to increase revenue for both types of organizations. Additionally, it will also save airlines from horrible publicity for removing passengers from a plane due to overbooking; an unseen benefit!
Blockchain and the capabilities that it brings are endless and the travel industry is only at the beginning of realizing new ways to leverage its capabilities. Changes will take time, but the first movers to implement the new tools and processes will be ahead of the pack and reap the benefits of leading the industry.
