By by Arun Bagaria Even though OTAs might appear to have simplified booking travel, at the backend, the travel industry continues to be a complex network including several players – travel agents, aggregators, airlines, hotels, tour operators, cab operators and activiity providers.In the last three decades, intermediary platforms have built large businesses by aggregating these different players.While most of these platforms have tried to solve for multiple categories they remain stronger in one category over others.Lack of standard information sharing and booking protocols and lack of easy global payment settlement mechanism has led to poor adoption of technology by SMEs in travel.Blockchain holds immense potential to revolutionize the way we book and plan flight and hotel bookings, and provide delightful experiences with enhanced security.
In the years to come, blockchain is expected to make significant inroads into the travel industry, bringing about numerous benefits and reshaping traditional practices.
Blockchain is a public list of records of all transactions between parties.
Each transaction data is stored across multiple points in the peer to peer network.As the data is stored in a decentralized way and cannot be altered by a single person, it is a more secure, transparent and trustworthy solution.This decentralized and trustworthy nature of blockchain gives it a global appeal in a complex world of millions of customers and businesses in travel.Fast & Innovative Booking Processes Blockchain holds potential to streamline and make bookings processes efficient for all stakeholders in the travel industry., If the majority of the travel players adopt a single platform to settle bookings & payments, it will lead to faster bookings, lower fees, and enhanced trust among all stakeholders involved.There are several opportunities to add more value to adopters of blockchain in the form of lower costs to make cross border payments by settling payments for bookings using crypto currency.Another area that can potentially unlock innovative products is tokenized flights and hotels that can potentially create a secondary marketplace for purchased flights and hotels which would go to save billions of dollars for customers which is spent on canceled reservations while ensuring minimal revenue loss for the service providers.
Data Security and Privacy The travel industry handles vast amounts of sensitive data, including personal information, payment details, and travel itineraries.Blockchain’s decentralized architecture means that travelers can have more control over their personal information and its strong cryptographic protocols mean that Blockchain can replace physical documents and store travelers’ identities securely and make it accessible to authorized parties such as airlines, immigration authorities, and hotels.
While blockchain technology holds immense promise for the travel sector, its widespread adoption and implementation will require collaboration and cooperation among industry stakeholders.By introducing transparency, efficiency, security, and trust into various aspects of travel, blockchain can reshape traditional practices and create new opportunities for both service providers and travelers.
Embracing blockchain technology will pave the way for a future where the travel industry operates seamlessly, empowering travelers and enhancing their overall experience.The author is co- founder, CEO, TravClan Follow us on Twitter, Facebook, LinkedIn.
