Blockchain and its uses in the Hospitality Industry

Blockchain is usually used in business scenarios where multiple parties are involved in forming a network to participate in a transaction. Transparency, security and immutability are three features that makes blockchain future-proof.

But, what exactly is blockchain?

According to Wikipedia, Blockchain, is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a cryptographic hash of the previous block, a timestamp and transaction data.

Blockchain, by design, is resistant to data modification. Transactions that happen through blockchain between two parties are recorded efficiently in a verifiable and permanent way.

Another important feature of blockchain is that the data is decentralized, meaning, information is not stored in a single place. Hence, the data transparency is more and data manipulation is eliminated completely.

What are the advantages of Blockchain in the hospitality industry?

Loyalty Programs

Loyalty programs in hotels is one of the important areas in which blockchain can be used efficiently. It makes the loyal guests of the hotel utilize the points and redeem it. The hotels, instead of offering loyalty points, can make use of a universal cryptocurrency for loyalty programs so that the guests can use their digital tokens anywhere they want to, be in the hotel, flight tickets, shopping and more.

One such is example is Elements, which is a blockchain based universal cryptocurrency specially created for loyalty programs which can be given and accepted by multiple merchants. Trippki is another loyalty reward system based on blockchain and has it own cryptocoin called TRIP.

More Direct Bookings

Can blockchain be the end of OTAs? This might just happen in the near future, as a blockchain transaction eliminates the need of middlemen(read OTA’s) , involves only the merchant (hotel) and the customer (guest).

Lockchain is a blockchain based cryptocurreny that offers 0% commission market place where hotels can list their property and the guests can book rooms, all without needing to pay any commission. This applies to both the hotel as well as the guest. It also makes the transaction transparent and it cannot be changed once it happens.

Smart Contracts

A Smart contract is a program that relies on blockchain technology which directly controls and executes transactions on a network that are trackable and irreversible.

In terms of the hotel industry, rules for a smart contract can be defined initially and both hotel as well as distributor do not have to worry about the commission rates as they are set to dynamically change over the course of the year depending on the season just as a hotelier would change his room rates, except that that is completely automated, transparent and secure.

Identification of Guests

Guest identification is one of the initial steps when a guest visits a hotel and sometimes this might take a while depending on how many guests are at the front desk at a particular point of time. Blockchain makes this process more simpler as the guests can provide their data in a shared but secure encrypted blockchain with the guests, only have to provide fingerprints to verify who they are, reducing wait times.

Luggage Tracking

A guest’s luggage can change hands many times over the course of his/her journey and this can result in logistical issues. A centralized blockchain based data eliminates this issue and allows different companies to share and access data.

The uses of blockchain in the hospitality industry will only grow further and it has the possibility to be involved in all the departments and processes in a hotel.

Let us know what you think of blockchain and it’s uses in the hospitality industry in the comments.