A total of 1.45 billion tourists travelled worldwide in 2019, which is a growth of 4% over 2018’s 1.3 billion travellers. By 2020, the UN World Tourism Organization expects that number to hit a record-breaking 2 billion. While this indicates a positive direction for the industry, it also creates new issues for the sector. Top blockchain news sources point to the travel industry as the next disruption point for the decentralised technology, opening up a myriad of possibilities for security, efficiency, and more.
4 Key Benefits of the Blockchain for the Travel Industry
The rise of online travel agencies, lower prices for accommodations, and plane tickets on top of relaxed visa regulations worldwide have led to the industry’s explosion in recent years. By 2020, the travel sector is predicted to be worth a massive $818 billion.
Skyrocketing profits and demand have created a need for more sophisticated technology to support the industry. Given the decentralised nature of blockchain technology, it can change the future for travel in significant ways:
- Decentralised Travel Booking
The travel booking market is currently dominated by a handful of agencies that take at least 15% of the profits as intermediaries between hotels and users. Not only does this slow down the process, but it also tends to inflate prices. A decentralised booking marketplace eliminates the need for mediators through smart contracts.
Smart contracts will function as automated travel agents, providing an impartial list of options, prices, and other potential fees for customers. Transactions will be validated with transparency, and the contracts can be designed to only release payment after both parties are satisfied with the services rendered.
- Traveller Identity Verification
Tracking and verifying traveller identities are crucial in the industry, from securing national borders and transportation to confirming booking details. Most people understand the importance of these checks, but they remain one of the most repetitive and time-consuming aspects of travelling.
According to blockchain news, individual travellers can now be tracked seamlessly throughout their journey using the blockchain network. Blockchain-verified individuals can be monitored by various entities using zero-knowledge proofs that confirm relevant information without revealing sensitive data.
- Tracking Baggage
Lost luggage is the bane of airline companies and travellers. The issue lies in the number of parties that handle baggage from point to point, including security, airport, and ground staff.
A fully transparent baggage network can be created using the blockchain. Various parties can track luggage at once, with updates recorded on the system real-time. Smart contracts will also make it easier to process reimbursements and liabilities in case of problems, such as damaged luggage.
- Loyalty Schemes
Blockchain companies can help parties set up better loyalty schemes for customers. With digital tokens, rewards can be exchanged, secured, and checked without the complications and limitations of current reward systems.
Invest in the Blockchain Revolution Today
Blockchain technology is on its way to mainstream status within the travel industry. Some of the sector’s biggest players, such as the Marriott group of hotels, Singapore Airlines, and insurance giant AXA, have begun integrating crypto- and blockchain-based systems into their operations.
With such significant profit potential, investing in the blockchain as early as possible can help individuals build wealth. Get started by contacting a blockchain and digital asset management company today!