Transforming the travel value chain with Blockchain

by | Nov 14, 2022 | Blockchain

As the world evolves, so does the idea of ​​travel. Customer expectations for seamless travel experiences have never been higher – and consistently delivering them has never been more important. This is where blockchain technology is causing major market disruption.

As the burden on travel companies’ IT departments increases with the increasing digitization of services, blockchain has proven to be a knight in shining armor in the travel industry, helping market leaders maintain their competitive edge and level the playing field for everyone else.

In this article, we’ll dive deeper into how blockchain technology is revolutionizing the travel industry and opening up new avenues for business growth and customer experience.

As you travel, your data should too

Before moving on to the applications of blockchain technology in the travel industry, let’s start with a basic understanding of the modern travel aspect that encompasses the needs and use cases of Blockchain: information.

Data sharing is the backbone of the travel industry. Whether it’s reservations, check-ins, passenger preferences, baggage handling, updates and accommodations, each airline’s digital network is always pulsing with information exchanged throughout the framework. And there is no room for error.

With this type of system comes security vulnerabilities and operational challenges, especially with scalability. And as the value and complexity of customer data increases, so does the sophistication of cyber threats and the emergence of malicious factors.

Is there a way to complement the travel agency’s existing IT infrastructure with a solution that can remove these bottlenecks?

The answer is yes, and it uses blockchain in the travel industry.

So how can the travel industry benefit from blockchain? To answer this question, one must first understand the nuances of this innovation.

How Blockchain Technology Works

Simply put, a blockchain can best be described as a distributed ledger technology (DLT), comprising a list of records (aka blocks) that grow rapidly and are securely linked together.

This “decentralized” ledger spans a peer-to-peer network that allows participants to transact without a central clearinghouse. In addition to the speed offered by this system, the blockchain uses a range of mechanisms such as advanced cryptography, cybersecurity frameworks, mathematical models of behavior and more to implement an unprecedented level of security on the network.

This complex system of recording data and executing transactions makes it almost impossible to hack or cheat the system – and this makes blockchain technology ideal for supercharging the digital services that travel agencies have to offer. Here’s how blockchain technology in the travel industry can become a weapon in the arsenal of forward-thinking leaders.

So the blockchain and travel industries meet and this is the time for us to see how innovative businesses make the most of it. Let’s start with the ins and outs of blockchain in travel.

How blockchain is changing the status quo of travel services

  1. Decentralized reservations.
  2. Simplified payments.
  3. Simplified identification.
  4. Tracking redesigned.
  5. Induced loyalty.

Reservations, decentralized

Today’s travel industry is dominated by a small group of online travel agencies (OTAs) and there is a demand for more channels and partnerships that can create greater operational and financial benefits for the company and the customer.

Enter decentralized booking markets. This use of blockchain technology in the travel industry is revolutionary for businesses around the world. These markets empower both hotels and customers and streamline communications by eliminating middlemen, making the process more convenient for everyone.

Blockchain technology, for example, in hotel and travel bookings to adapt to this application: companies like Webjet have become increasingly dependent on blockchain technology to detect and eliminate data problems in real time, offer lower rates and improve communication between the supplier and customer. streamline the user. Several hotels around the world are also diving into the concept.

X-Strategy Services has also developed Empire App, a blockchain-based mobile application that helps our customers solve the challenges of double bookings, bad data, data security, cost issues and more. For an overview of booking app development and maximizing profits while delivering a superior customer experience, check out this blog, “A Travel Agency’s Guide to Travel Booking Development Costs.”

Simplified payments

One major application of Blockchain technology, like in the Webjet example above, lies in its ability to make services as convenient as possible for all parties involved.

Blockchain helps streamline and accelerate transactions between hotels, travel agencies, third-party vendors, and various aggregators. The centralized ledger speeds up transactions and keeps them more secure than ever, helping businesses fight against fraud and data theft. This is a great use case for blockchain in the travel industry.

Travel Blockchain Use Case: Travelport leverages artificial intelligence (AI) and blockchain to create a system that helps companies manage their business travel spend by tracking, analyzing and forecasting spend precisely. This combination also enables the company to offer its customers a smoother payment experience and speed up operational processes.

Simplified identification

Identification services are essential for any travel agency – and of course no mistakes can be made in this regard. This is where the blockchain and travel industries meet, and they meet well. Blockchain can securely store and quickly process passenger data to enable lightning-fast check-ins that can reduce counter queues and improve employee and customer experiences at scale.

Blockchain travel and tourism use case: Marriott leveraged blockchain, cryptography and privacy to create the Known Traveler Digital ID Program, which eliminates security vulnerabilities derived from any information held in a data lake and better control over what gives data to all parties.

Tracked, redesigned

The exchange of tracking data between companies, alliances and sites becomes easier, faster and more secure with a decentralized database. This helps to raise awareness, ensure on-time deliveries and even avoid serious incidents at different levels of the follow-up process. This application of blockchain technology in the travel industry has opened up new avenues for many companies like AXA.

A relevant example of blockchain technology in the tourism sector: AXA (insurance leader) has launched Fizzy, a 100% automated and highly secure platform that works on the Ethereum network to take monitoring to a new level and provide insurance against accidents such as flight delays.

Loyalty, Encouraged

Tokenized reward programs are the answer to unlocking brand loyalty in today’s chaotic marketplace, where options for consumers are expanding every day. In such a system, rewards can be converted into digital assets and even exchanged between different platforms, giving customers more flexibility than ever. This also gives customers the opportunity to compare the true value of offerings from different companies.

Blockchain use case for travel: Singapore Airlines has implemented a loyalty program that uses Blockchain technology to convert travel miles into payment units. These units can be used with the airline’s partner merchants to trade a variety of goods and services. To learn more about blockchain use cases in the airline industry, check out this article, How Airlines Can Save Millions With Blockchain.

Avant-grades are already unlocking new revenue streams and customer success by incorporating blockchain technology into the travel industry and strengthening their IT infrastructure. Now is the time for the rest of the industry to catch up with this new wave and sail to brand excellence.

How X-Strategy Services uses blockchain in the travel industry

Blockchain offers many advantages such as decentralization, immutability and increased security which can really mean the start of a new era for travel agencies.

We at X-Strategy Services provide Blockchain app development services designed to help you create a new business edge with the world of decentralized solutions. Whether you want to develop smart contracts or manage cryptocurrencies, build new services or strengthen your IT ecosystem with Ethereum, our team of experts has you covered, as well as some of the leading names in the market. This makes us the best blockchain app development company in the eyes of our trusted customers, partners and employees.

Some of our services using blockchain in the travel industry are:

  • Blockchain app consultancy
  • MVP development
  • Development of smart contracts
  • End-to-end DApp solutions
  • IEO and ICO services
  • Development of the cryptocurrency exchange
  • Custom Blockchain Solutions
  • Cryptocurrency development
  • Solutions based on Hyperledger
  • Blockchain allowed (private).
  • Development of cryptographic tokens
  • Development of the NFT market

Frequent questions

Q. What are the main benefits of blockchain for travel companies?

A. Blockchain offers a wide range of transformative benefits for startups and travel businesses. Some of these include reliable data coordination, a high level of data security, the ability to have a shared IT infrastructure, incentives, tokenization, and more.

Q. How can I identify areas where I can use blockchain to have a greater impact on my business?

A. The answer to this question depends on the nature of your business and the infrastructure in place. We encourage you to connect with our experts for a free consultation session to better understand areas of your business that can benefit from blockchain technology.

Q. What is distributed ledger and how can it help my business?

A. A distributed ledger replaces the traditional method of data accounting using a single or “centralized” system with a network of participants responsible for the preservation of digital records. Blockchain technology uses cryptography-based algorithms to augment a distributed ledger, improve security, accelerate collaboration, and help companies reach new levels of data and processes of excellence.

Are you ready to take your business to the next level and reach new heights with the power of blockchain technology? Contact our experts to book a consultation and let us help you future-proof your business using blockchain in the travel industry!