The travel industry is arguably one of the industries that benefit from blockchain technology. Every industry benefits a great deal from blockchain technology, what with its transparency and security. For example, it can offer the travel industry security and stability; these two ranks high above other benefits.
Blockchain’s decentralization means the information will always be online, and the issue of accidental deletion or malicious cyber-attack is absent because every transaction is traceable. In recent times, travelers have been more concerned with handling their information, especially those who make bookings online. This is because there have been instances where third parties access travelers’ information and use it to scam or harm them.
The travel industry’s adoption of blockchain technology will only improve because there’s much to gain. So, remember to buy Litecoin or any other digital coin when you’re going on your next trip; it won’t go to waste.
Blockchain Technology Use Cases in the Travel Industry
Some of the most common and exciting uses or potential uses for blockchain technology within the travel industry include:
- Luggage tracking
Blockchain technology can be instrumental in tracking luggage movements, especially with international travel. Most of the time, a customer’s baggage changes hands multiple times before getting to their destination. By the time it gets to the owner’s hand, the luggage has gone through several exchanges if they don’t have to look for it first.
Blockchain technology’s decentralized database can make sharing the tracking information between travel companies easy. With this introduction, users can be sure they won’t have to deal with lost luggage issues. However, if anything of such happens, the chances are that they can trace such luggage.
- Loyalty schemes for customers
A lot of travel companies run customer loyalty schemes to encourage return customs. This process can be rigorous and time-consuming but can be made easier with blockchain. The technology can help simplify the process, providing customers with easy access to their loyalty points. Furthermore, blockchain technology can help combat fraud associated with customer loyalty schemes.
One of the most important things to the travel industry is storing identification data, and blockchain can also help with that. The technology can drastically reduce check-in times and reduce long queues in airports. With only a simple fingerprint or retina scan, the identification process is done instead of presenting documents.
- Payment security
The security and traceability of payments in the industry are perhaps where it can benefit from blockchain the most. Blockchain used this way can make bank payments simpler and more secure by letting travel companies accept cryptocurrency payments. It also ensures a more transparent system within the travel startup sector as payments can be traced, and where there needs to be a refund, such refund can be made promptly.
The Advantage Blockchain Incorporation in the Travel Industry
Below are some of the advantages of applying blockchain technology in the travel industry:
- Since blockchain works as an open-source ledger, each transaction is published in a public domain. By implication, there is a significant reduction in the chances of fraud occurring on those transactions. Blockchain offers robust supervision of and protection for transaction systems using it.
- Through the technology’s distributed ledger, data will be stored in a widely-distributed network and on thousands of different devices. That means the system will become resistant to technical failures, and data will be protected from malicious attacks.
- Thanks to blockchain technology, every data registered in the system cannot be reversed, altered, or removed. That means no one can hack the system, making blockchain an efficient technology for storing financial records done with Bitcoin or Litecoin.
The Disadvantages of Blockchain Application in the Travel Industry
As great as blockchain technology is, and as many as its benefits are, there are still some downsides and challenges.
- There is a 51% chance of attack if one system manages control over more than 50% of the network’s hashing power. In this case, an attacker can get in and disrupt the entire network. But, no one has been able to gain a 51% control yet, so the issue has not arisen.
- Every data added to the system is irreversible; too much of this is not good, especially when there is a need to modify data. For your job career, you should collect all the data of your photos for CV in case you miss something.
- Blockchain addresses typically have a corresponding private key to access them. Losing that key means losing one’s access – permanently and without remedy.
In conclusion, blockchain’s built-in efficiency and security can bring about huge changes in the industry and pave the way for new business models. Many travel companies are likely to adopt blockchain to increase the security, transparency, and efficiency of their services. We envisage a world where every country allows travelers to pay for flight tickets in digital currencies.