Blockchain: Providing service to the Hospitality Industry
Hospitality, in simple terms, is providing services by a host to a guest. Hospitality generates from a Latin word ‘hospes’ stating a relationship between a host and a guest. Similarly, the hospitality industry includes service industries like lodgings, hotels, food, events, and the like.
Hospitality Industry around the world is worth more than 10 trillion dollars. In which, global hotel market amounts up to an 850-million-dollar revenue-generating Industry. This industry is expected to grow up to a trillion dollars in 2020.
According to the World Tourism Organization (WTO), international tourists’ arrival is expected to grow up to 1,340 million dollars by the end of 2019.
The industry is rapidly burgeoning. With this expansion, come challenges and impediments. But, kudos to the new advancements of the technological world that we have Blockchain!
Blockchain is a remedy for all. Blockchain has been proved efficient in sectors like finance, manufacturing, logistics, healthcare, education, and many more. Similarly, Blockchain is an asset to the hospitality industry.
Let’s see how Blockchain can be serviceable to the Hospitality Industry.
Blockchain’s useful response towards Hospitality
Hassle-free Information
One of the most important elements of the Hospitality Industry is the description and presentation of its information. Hospitality Industry has a huge database. For example, a hotel would have a list of its room’s listings, and their services, types, and availability. HTNG’s research on Blockchain’s use in Hospitality Industry says, “The end result is the original owner of the inventory potentially paying commissions or fees to multiple third parties for a single reservation. If availability and rate information was available in a public data source such as a blockchain, suppliers would be able to quickly and easily update information.”
Easy payments
Payments to the hospitality industry are generally made either through cash, or credit card/debit card. If Blockchain’s property of distributed ledger-keeping be applied in the industry than payments and transactions can be done through various digital assets. This will not only enhance transparency but also make transactions regulated and flexible. HTNG says, “Smart Contracts are a way to include terms of a contract with payment. This has several potential applications across the travel industry, for example, the smart contract might be set up to release funds to a hotel according to a deposit schedule and/or a cancellation policy, or it may send them only upon check-in or completion of a stay.
Identity check
The hospitality sector can have the “digital identification” of the guests with the help of Blockchain. All the guests’ information like passport details, driving license details, address, contact number, address proof, and the like can be stored securely in a blockchain network, thus only authorized personnel will be able to access the hotel facilities. As the details will be secured in blockchain, information sharing will become easy and efficient.
Blockchain enhances security; organizations can efficiently manage data from loyalty programs. This can help in creating a personal identity map and also help in better marketing and services.
Dispute-free coordination with smart contracts
One of the exciting applications of blockchain is ‘smart contract.’ Smart contracts are also self- executing contracts in which when the terms and conditions of the two parties are met, the transaction is executed. This application self-generates a contract between two parties with matching requirements. This establishes perfect coordination between the travel agency and the hotel authority. All the transactions made between these two parties are thereby stored in the Blockchain, making transactions dispute-free.
Further on, Blockchain can potentially introduce Hotel Digital Key technology. With this innovation, the check-in process can be relaxing. The introduction of kiosk with the infusion of Blockchain can generate a hassle-free smart key application. This can un/lock room doors with the help of smartphones.
Loyalty points
Loyalty management of customers is a vital element for the Hospitality sector. With the help of Blockchain, loyalty points can become Digital Assets that can be accrued by the customer on consuming services from the provider. This value then can be redeemed with the entities associated with that Blockchain. This gives the flexibility to the customer to utilize their loyalty points at maximum value.
Hospitality startups bringing blockchain in a picture
Winding tree
“Winding Tree is an open source and non-profit project. We follow the idea that only open collaborations not for money but for innovations can make real fundamental changes in the world. We welcome open-source developers to our community on github where our source code is open for contribution and forking.”
Winding Tree makes use of ERC827 protocol and smart contracts to bring better deals for travelers, by providing them with a single platform for air ticket booking, hotel booking, and travel guides. It is an open-source blockchain-based platform that is bringing innovation to the travel industry. The platform allows users and hotel or travel providers to connect directly and manage inventory, reservation requests, and receive payments without the need for an intermediary.
Cool cousin
“With the Cool Cousin app, you’re just two taps away from getting personalized recommendations from a local you can trust. Cool Cousin is the best possible way to rep your town. As a Cousin, you get to shout out to beloved local businesses that will be thankful for the traffic, connect with international city explorers like yourself and take part in our thriving global community.”
Cool Cousin, a decentralized travel agency, connects travelers and locals for tour guidance. The blockchain-based ecosystem incentivizes local guides to monetize their local knowledge to offer a more accountable and authentic tour opportunity for the application’s users. With their native token “CUZ”, the community of travelers and locals to participate in a completely decentralized and secure manner without the involvement of an intermediary.
EXPERT’S WORDS
Any blockchain player has to tackle the complexity of hospitality, consisting of many moving parts, including old legacy systems that are barely functioning, coexisting with ultramodern, next-gen apps and promising AI and blockchain implementations.
- Max Starkov, President and CEO of HEBS Digital
Conclusion
Blockchain has immense possibilities in many sectors including the hospitality industry. This technology is constantly evolving. In concern with the growing Hospitality Industry, deploying. Blockchain technology in the Industry will efficiently mark the expansion of the industry. As more enterprises embrace technology, it is expected that the world will witness the emergence of larger Blockchain networks benefitting various industries.
Compelling. Isn’t it?
Written By: Ayushi Jain (ayushi@wharfstreetstrategies.com)
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