How Blockchain Can Revolutionalize Travel Industry

Blockchain- secured by design and managed by a peer-to-peer network- has revolutionalized the finance sector. Thirty of the world’s largest banks are collectively toiling to build blockchain solutions and the technology has powered millions of users. Blockchain could also have ramification for the travel industry, too. In addition to providing a simplified, secure platform for airlines, accommodation and rental portals, the technology could transform the future of digital identity management. Before going into details, it’s good to know the basics of this simple, yet widely-applicable tool. So, scroll down to read more!

Understanding Blockchain
The Blockchain is an ingeniously simple technology that powers bitcoin. This technological tool seeks to reduce the cost and enhance efficiency by superseding the flow of paperwork for different works with the digital data flow. But, in reality, it is more than that. It is a public ledger that can be accessed by everyone on the network. The Blockchain is a data structure of transactions- not just monetary transactions, but any transaction of value in a system - in a digital form. It is cryptographically secured and fundamentally open that allows participants to amend the information without any permission of the central authority. This way, it omits third party involvement. By providing a common platform (for information access) to all the parties involved, Blockchain provides a degree of trust and transparency. It permanently records the transaction details after the settlement and adds more to it making a Blockchain. Blockchain, if implemented in a particular area of trade, will significantly reduce the need of multiple copies of the same data thus, decreasing the overall settlement time.

Will Blockchain Dominate Travel?
The Blockchain is providing ease in terms of data security, logistics, transparency and simplified process. Fragmented and complex structure of blockchain makes it viable for the travel industry. Securing the enormous amount of sensitive data & online payments and identifying the source in case of a fraud are the major concerns for travel providers. Besides, blockchain is a major part of identity management. Below are just a few of the most game-changing roles for blockchain technology that may become reality in the coming years:

• Security & Identification

Ensuring security of the passengers is a matter of concern for airlines. Owing to its distributed nature, blockchain technology could make screening process much faster and more reliable. It can combine a database of travelers with biometric technology to create a multifactor security process.

• Loyalty Programs

Loyalty programs and rewards are imperative to keep customers coming back to a carrier year after year. Airline rewards can be stored in a Blockchain where customers could have instant access to their balance and can use points like cash.

• Tracking Luggage & Cargo

To avoid the misplacement of luggage, it is good to use a blockchain to log the movement of each item for a better workflow. It will help in determining, who is responsible for each item at any point in the process.

• Managing Chargebacks

Blockchain payments are not eligible for chargebacks without the blockchain’s consensus. But, it could be much easier if all information of ACH payment chargebacks is organized in the blockchain. Blockchain has applications at every level of the travel industry, from domestic security and more efficient global trade to simply improving a business’s bottom line.

With digital payments becoming the norms in various sectors across the globe, the one new age digital currency technology that we reckon will dominate the industry in the times to come.