Tourism counts under a humongous sector. It is worth US$ 8.7 trillion and the sales in the travel industry expect to hit US$817 billion in 2018. Tourism and loyalty programs go hand in hand. Moreover, research by the IMI Corporation shows that 68 percent of the customers are bound to be loyal to brands offering rewards.
The blockchain is essentially Distributed Ledger Technology. It allows the data to distribute, however, not a copy or tamper with. The information in Blockchain gets constantly update and stores in multiple locations. Additionally, making the data publicly available, as decentralization system. Blockchain came into existence in 2008 and since is a hot topic with the introduction of Bitcoin.
Blockchain and Tourism
Imagine wanting to travel and not having to go through the process of booking through third-party websites like booking.com. Dreaming of going to an airport and not having to stand in queues for verifications. That’s how tourism will evolve with the successful implementation of Blockchain technology.
The introduction of Blockchain in tourism will help both the travelers and tourism industry. A distributive Blockchain database can build in collaboration with airlines, hotels and other industries relating to tourism. Now the individuals can directly book airline tickets, hotels, and rental via smart contracts. Thus eliminating Trivago, Oyo and other intermediaries.
Hotels, airlines, pricing and revenue and other organizational operations can massively restructure using the application of blockchain technology. However, travel and tourism are mostly seasonal and prices tend to vary. With this technology applied to a supply chain system, can use to create seamless inventory tracking, thus avoiding overbooking and price variations.
To avoid unnecessary delays at various stages of traveling, smart contracts codes help to scan passengers in real-time. Moreover, this ensures security to the passengers and prevents queues in airports.
Aruba is an island, the first country to successfully apply blockchain to tourism industry by partnering with Lufthansa, Air New Zealand and Winding Tree (a travel technology specialist.) This platform will connect numerous small hotels with potential customer base all over the world. The platform is built on the Ethereum Blockchain and is part of its ‘Smart Island Strategy’ which plans on making the country to run on 100 percent renewable energy by 2020.
Russia’s Head of Federal Agency for Tourism, Oleg Safonov, expressed his opinion on blockchain’s potential to improve Russian tourism. Russia is very welcoming with the blockchain technology and has announced the integration of this technology with land registry system.
My Two Cents On The Topic
In conclusion, blockchain has brought immense value and endless opportunity for every industry, including tourism. However, the earliest metaphorical bird will get to reap the most benefits out of this technology.