In recent years, Blockchain technology has sparked great interest across various industries and fields. This is significant because it has the potential to fundamentally alter how information or data is utilized and kept, improving transactions while also increasing security and transparency.
We have curated a list of industries that can benefit from Blockchain technology. You can check all the blogs here:
In this article, let’s delve into how Blockchain technology will impact the travel and tourism industry.
Before we move forward, let’s quickly look at Blockchain technology.
Understanding Blockchain Technology
Blockchain is a technology that enables the open storage of every transaction that a given network generates. The term “Blockchain” refers to a chain of blocks made up of the encrypted copies of each register.
The main feature of Blockchain technology is decentralized data, which means that data is spread across the many nodes or computers that make up the network. Each of the nodes has a copy of the whole range of information gathered. Each member of the Blockchain must agree to the addition of a block or register before it can be included in the copy that each component of the Blockchain keeps. The process ensures that the data on the Blockchain is safe, traceable, immutable, and transparent.
We know Blockchain is having a tremendous impact on every sector and transforming it. So let’s have a look at how the travel and tourism industry can be transformed and what are some benefits it gains from Blockchain technology.
How can Blockchain benefit the travel and tourism industry?
Stability and security are two of the benefits that Blockchain technology potentially provides the tourism sector. Since the Blockchain is decentralized, information can never be accidentally deleted or destroyed as a result of a malicious cyberattack, guaranteeing that transactions are always traceable.
The travel industry depends on several businesses sharing information with one another. For instance, travel agencies have to provide client information to hotels and airlines, and customers’ personal belongings are frequently transmitted between businesses and tracked. Because the responsibility for preserving data is shared throughout the whole network, Blockchain can make accessing and storing essential information simpler and more dependable.
Of course, the travel sector depends heavily on financial transactions, and Blockchain technology has the potential to both streamline and secure payments. This is particularly valid when dealing with payments from abroad. As a result, Blockchain has the ability to raise trust levels amongst all stakeholders.
This section was about the benefits of Blockchain to the travel and tourism industry. In the further section, let’s discuss the impact of Blockchain in detail.
Impact of Blockchain on the travel and tourism industry
- A Secure Mode of Payment with Cryptocurrencies
Blockchain technology can be applied to the travel sector to enable direct, secure payments between two parties without needing an intermediary. This is so that it can perhaps use other cryptocurrencies, like Bitcoin, without the involvement of a third party.
- Helpful in Baggage Management
Losing baggage is one of the worst things that can occur when traveling. However, tracking and recovering missing luggage is a highly useful application of Blockchain technology. Additionally, there is a substantial chance of reducing luggage mistreatment and loss. The government can track and locate misplaced luggage by using Blockchain data.
- Identification of Potential Clients
The need for verification at various stages is eliminated when data is stored on the Blockchain. It would be sufficient to confirm the customer’s identification at the beginning, which may save a significant amount of time for both the security personnel and the clients. Therefore, according to experts, Blockchain technology is essential for smart tourism.
- The Customer Reward Program
Services that adopt and utilize Blockchain technology may potentially use cryptocurrencies to recognize their loyal customers. They can use this for their next vacation and can save funds. This also eliminates the requirement for a third-party mediator.
- Genuine Business Ratings
Customers’ reviews can be acquired via Blockchain, providing users with accurate information. Since all of the data in the network is safe, accessible, and reliable, this will boost transparency and win trust among customers.
Traveling ought to be convenient, affordable, and most of all, pleasurable. While the existing travel landscape may be characterized by fees, booking problems, negative reviews, and long lineups, Blockchain is challenging this status quo with numerous innovative services intended to modernize and simplify the travel experience.
In this article, we have definitely learned about how this technology can transform the travel and tourism industry. Stay tuned to learn more about varied industries that are primarily impacted by Blockchain technology.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.