If you have travelled before, then you are aware of the myriads of companies that would be involved in a single travel setting. This is one of the many reasons you should be excited to the news of blockchain in the travel industry.
The original, true intention of bitcoin was bypassing the financial intermediaries by enacting a peer to peer system of interaction. The same system under which bitcoin works can be applied to the travel industry. Blockchain can help improve the travel experience as a result by helping customers interact with service providers directly, no middlemen.
Now, for multiple multinationals and tech startups across a range of industries, the system is already up and running. The system has been found workable in travel and some of these companies are up to task, developing solutions for the same. Here are some use cases so far.
The market is currently flooded with online travel agencies. Anyone with a bit of travel experience knows this. Now, even though the middlemen help customers find what they want, end providers like hotels have to pay 15% in commission. And they hate this.
The entities are unnecessary in a decentralized booking marketplace. Since the service providers connect directly to customers, the need for intermediaries is redundant. In addition, the nature of the blockchain system is transparent. That includes the prices and potential fees charged, hence a better experience for customers.
The application of smart contracts in the travel industry also brings many efficiencies. Smart contracts can act as automated intelligent intermediary for individuals requiring them. The smart contracts could also utilize data oracles to source a range of services in addition to holding funds in escrow and releasing them when services are properly provided.
Loyalty schemes already have a big role in hotel and travel. For customers however, the schemes are too restrictive and often limited to the small set of rewards. Digital tokens provide a great opportunity for enhancing the transparency, exchangeability and security of the rewards. Customer experience is also improved as a result.
The tokenization of these reward systems could transform the schemes to what customers want them to be. First they could expose a range of products and services from different providers. Rewards can also be exchanged between schemes when they are tokenized into digital assets. This enables the customer compare the relative value or the rewards and schemes being offered.
The tracking of the identity of travelers is essential for all parties involved in security and transportation and also in national borders. The public demand a rationale because most if the time, they are repetitive and time consuming.
The blockchain network steps in and help track individual travelers throughout their journey, confirming that the verified individuals were making the journey in the correct way. In the individual traveler’s perspective, the journey is made a lot easier without the intrusion of their privacy.
A lost baggage is always an issue for both the customer and the airline company. And the source of the problem is the fact that different parties handle bags from one point to the other. This includes airline, airport, security and ground staff.
Blockchain enables the decentralization and transparency of the luggage items. Different parties can track the baggage and any reimbursement and liability for a lost baggage can be easily identified and automated via a smart contract.