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The Role of Blockchain Technology in the Tourism Industry

Nov 15, 2017 Posted /  13297 Views

The Role of Blockchain Technology in the Tourism Industry

Introduction: The Federal Agency of Russia for Tourism head, Oleg Safonov, stated that Blockchain technology has the capacity to modify the country’s tourism industry. He also stated that they are entirely convinced in their federal agency that Blockchain will definitely alter the tourism commerce. He believes that this can make the business better in quality, cheaper and also can increase the provider's authentication and responsibility.

If you are wondering how a Blockchain can be of use in the Tourism Industry, this article is for you! A few of the most noteworthy issues in Tourism Industry and how blockchain can help are given below:

1. Overbooking

Blockchain's capacity to avert double spending could entirely remove the trouble of double bookings in the Tourism Industry, which in turn would exterminate such instances from occurring, profiting both the passengers and the airlines. Overbooking is an old-school strategy to elevate profits and optimize resources. Therefore unless it is made illegal, universal adoption of blockchain in the travel industry could be difficult to achieve.

2. Fraudulence

Travel agencies typically see a high-risk cause of the number of refunds and chargeback cases that takes place in the industry. But with blockchain, once remittance is done, it cannot be reversed. This procedure will make fraudulence easier to be perceived and less likely to prevail. Blockchain could also relieve the PCI DSS compliance (a credit card security standard), at the least for travel management Agencies and other functionaries in the space.

3. Identity and Reputation

A big portion of the world's population is eliminated and disconnected from today’s global economy. Decentralization with crypto-economies will help millions of people worldwide to access the basic financial facilities, linking them with the rest of the world. Consumers require a means to prove their identity which should be difficult to forge or alter so that everyone in the world get a chance to travel. This could be facilitated by access to reputation-based identity systems. Though there are identity systems in practice for verification today, like federated identity and social login, one cannot effortlessly build on them to infer data from a number of sources or use the hallmarks when you need them – unless you integrate with each and every party. Decentralized identity systems are here to mend that.

A person no longer needs to wait in tiring long queues, TSA or obtrusive checking of personal details if he/she upholds a reputation guaranteed by the blockchain in the Tourism Industry.

4. Traveller Profiles

Blockchains are not just restricted to moving value but also about handling and protecting data securely in superior ways. In the tourism industry, user profile security and privacy have always been the talk of the town. When an agency authenticates an agreement with a travel management company (TMC), airline or some other supplier, the agency needs to give that supplier the authority to access the employee data so that they are able to give the expected service. If employees had their particulars on the blockchain, this could reduce trouble on both sides, the agency as well as the supplier. The agency wouldn't have to construct a new API connection between the supplier's profile database and the buyer's HR system for every new execution. The necessity for employees to establish user accounts with multiple suppliers that needs duplication of details which can suffer the risk of being breached, is not essential anymore. Adoption of every new supplier’s interface is also eradicated. Instead, one unified profile exists to those who are authorized explicitly to access the details.

5. Fidelity

For example when you travel, you may not be a very staunch person. You would still like to enjoy the best offers you can at any time and hence this setup is perfect for you and several other travellers who are not devoted to any particular airline. But will this turn out to be a hardship for integral program owners? Might be. Still, we should also see prototypes emerge wherein businesses that participate combine forces to meet these traveller intentions. Thus, Blockchain technology plays a vital role in offering ultimate fidelity to the Tourism Industry.

6. Establishment

Amidst the more apparent advancements we will observe from the blockchain is the power to make faster money transfers.

7. Approach and Adherence

With the aid of blockchain technology, you can book from wherever you desire as much as it is within the standard policy. Still, your travel information gets stored, combined and made instantly available to you.

8. Responsibility of Concern

With blockchain technology, it is much easy to envisage how risk management systems can be given access to the traveller’s locations at any point of time. The system does not utilise the details of reservation for tracking travellers, but rather obtains real-time information updates through an IoT-empowered device. Health records saved over the blockchain networks could also certainly help a traveller in case of any medical assistance.

9. Wise Contracts

There are certainly loads of benefits to using blockchain technology that include cost savings with the elimination of mediators such as solicitors, endorsers and other intermediaries such as savings in time by way of minimising business operations and the faith gained from stocking document forms encoded in a joint ledger.

10. Eliminating Silos

The prime nature of the blockchain technology is that the more accessible and universal you maintain it, the more faster nodes can link to it, and more larger, firmer and secure your network turns out to be.

We hope and believe that, even though you may not be still fully satisfied and convinced, blockchain technology will certainly revolutionize the tourism industry in the near future.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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