Some people say ‘Blockchain’ is the most overhyped technology today while others call it a revolutionary technology that is bound to shape the future of travel. Regardless, Blockchain is the new buzzword; touted to be the game-changer in the travel industry landscape, it has plenty of disruptive potential.
For those who are unaware, Blockchain is a revolutionary technology that allows digital information to be distributed but not copied or altered. The technology that was created to communicate and secure crypto transactions has now evolved into something greater, finding other potential uses for it. To date, the total value of Bitcoin, an application of Blockchain is close to $9 billion US dollars and the scope of this technology to make other types of digital values is on the rise.
Though the technology is still in its infancy, it could change the travel industry in many radical ways. Here are 4 possible ways how Blockchain will disrupt the travel industry:
1. Identity
One of the most talked about changes that could transform the travel industry is the use of Blockchain Technology for identification and personalization. The technology will provide customers a means of proving their identity without having to fear identity theft and data manipulation. This would enable customers to verify themselves with a digital identity.
With decentralization of processes coming into the picture, customers will no longer have to wait in long queues and go through the hassle of multiple checkpoints in the airports. Blockchain will validate a customer’s travel reputation with its identity-based systems and let them forego security checking.
2. Settlement
Blockchain Technology aims to offer solutions to most travel distribution challenges by building a decentralized travel distribution platform. This will push out the intermediaries and enable customers to pay directly to the suppliers. The possibility of Blockchain Technology replacing a centralized controlling body will result in lower transaction fees, lesser barriers to enter the travel business and direct payment settlement with the suppliers.
Blockchain’s offering of a single and secure ledger will make travel cheaper for consumers and more profitable for travel vendors.
3. Security
Data privacy has been the biggest concern in all sectors, including the travel sector. The foreseen digitized world poses several cyber security threats that Blockchain Technology aims to resolve.
Blockchain has been promising in travel for its ability to store and secure data. The technology is built in such a way that the network, rather than a third party, validates every transaction made. Every payment made cannot be either reversed or manipulated, making it easier to identify fraud cases and store sensitive data securely on the network.
4. Traveller Profile
Though Blockchain is about handling and securing data, it is also very much about adding value to the customers. A single traveler profile can be created using Blockchain Technology instead of creating multiple profiles for transactions, duplications, and supplier engagements.
The technology also has full potential to improve customer experience by assessing visitor behaviour, rewarding loyalty points, and streamlining processes to make flight journey a pleasant experience.
Summing up, Blockchain will bring a paradigm shift in the way travel distribution and traveller security is dealt with in the airline sector. The potential of this nascent technology is large and it is likely to flare up as the cryptocurrency craze grinds on. The technology envisions a more agile, faster, and smarter tomorrow. It is only a matter of time until Blockchain Technology changes the face of the travel industry.
As an organization, it is imperative to adapt to this digital disruption and embrace the potential changes the technology brings with it. What else could bring about a massive change in the travel technology space? Here are the Three Trends that will Shape the Travel Industry.
How do you think Blockchain will revolutionize the travel industry? Comment below!