Tag: digitalnomad

5 Companies Using Blockchain to Change Travel

Blockchain is emerging as a powerful technological force that promises to change the travel industry’s status quo. In fact, it’s already being heralded as a game-changer for many different industries. Remember that blockchain is a type of database that is commonly used in the cryptocurrency market wherein data is stored in blocks and then chained together.

Services that are based on blockchain are already isolating major pain points in a very fragmented industry—travel and tourism. It should come as no surprise that this sector is broken up into different parts. Think flights, hotels, car rentals, among other factors. So how can blockchain help? These services are able to ease hurdles in the industry by resolving common challenges and streamlining processes while building a more equitable ecosystem that shuns gatekeepers. 

The technology’s impact is more than hypothetical, though, with several businesses disrupting several nodes on the industry’s supply chain. The following five companies are improving key aspects of the travel ecosystem and establishing blockchain’s place in the industry.  

KEY TAKEAWAYS

  • Winding Tree aims to connect travelers with service providers while minimizing fees and costs for both.
  • Webjet is an online travel agency that tracks and alerts travelers, hotels, and agents about booking inaccuracies.
  • Sandblock’s blockchain technology helps users maximize points collected through loyalty programs.
  • The Known Traveler Digital Identity System is a joint platform developed by Accenture and the World Economic Forum that collects and hosts information from frequent international travelers.
  • TravelChain allows users to collect and monetize travel data, and receive tokens as compensation for sharing with travel service providers.

1. Winding Tree: Displacing Online Booking Hubs

Major travel service aggregators like Expedia and Priceline dominate airfare bookings. But this comes at a serious cost to both travelers and airlines. Booking through these websites often includes hefty fees and surcharges made possible by their largely unchallenged status as gatekeepers. Blockchain-based startup Winding Tree works to unseat these entrenched giants by challenging their role as industry middlemen.

Winding Tree is a private company based in Switzerland. Founded in 2017, it reaches numerous parts of the travel and tourism industry, including hotels and airfare.1 The company uses “blockchain technology to enable a fair and competitive travel distribution market.”

The company seeks to connect travelers directly with service providers like airlines, hotels, and tour guides with its LÍF token. The aim is to minimize fees for travelers while reducing costs for service providers. LÍF is Winding Tree’s platform cryptocurrency.

The company’s clever use of smart contracts and the ERC827 protocol delivers better savings for every stakeholder in the travel and tourism industry. Winding Tree’s nonprofit status assures there are no middlemen adding unnecessary fees to the booking process.5

2. Webjet: Adding Assurances and Avoiding Inaccuracies

Inaccurate or lost hotel bookings add considerable stress and anxiety to a travel experience. When this happens, customers usually have to take on fees across several layers of the supply chain while providers consistently extract value. 

Thanks to blockchain’s immutable distributed ledger technology, Webjet has built a new model designed to avoid these irritating booking experiences. The company is a prominent online travel agency based in Australia and was founded in 1998.6 Webjet claims that it is Australia and New Zealand’s leading online agency and is a leader in online tools and technology.7

Webjet officially launched its blockchain platform in 2019. The system enhances the customer experience by recording all entries on the blockchain’s immutable ledger, which reduces the likelihood of mistaken or lost bookings and reduces the layers between sellers and consumers. It does this by locating real-time data problems that may occur between customers, agents, and hotels and sending messages to every party.8

The technology’s improved security features provide better protection for the ecosystem. Apart from building greater supply chain efficiencies and reducing costs for hotels, travelers ultimately benefit from lower-cost bookings along with more transparency and greater accountability.

Decentralization is a key component of blockchain technology. It transfers control from a centralized entity to a larger network.

3. Sandblock: Improving Loyalty’s Fungibility

Loyalty rewards have gone through several iterations in the competitive travel and tourism industry. Many frequent travelers belong to airline and hotel loyalty programs. Spending points and miles often means jumping through multiple hoops to redeem rewards.9 Despite high participation rates in loyalty programs, many customers report a willingness to accept better deals from competing carriers and service providers if the price is right.

Sandblock is one of the newest entrants to this part of the industry. Founded in 2017, Sandblock is based in France.1011 It aims to change the loyalty landscape with its blockchain-based platform by allowing travel providers to create their own loyalty tokens, which can be exchanged for brand-specific rewards. Not only that but they can also be used like real coins and exchanged for fiat money.12

Users can also apply their tokens to redeem rewards across a variety of services beyond the company that awarded them and can earn more by being active participants in the community.13 For businesses, the reward is better data and transparency, and an ecosystem that actually returns value thanks to improved targeting and happier consumers.

4. Accenture: Striving Towards Shorter Lines

Spending hours waiting in lines at airports is one of the major annoyances of traveling the globe not just for travelers but also for airlines and airport staff. Congestion can add to the time spent in lines for security, customs, and passport control. Security needs are also trumpeted as the reason for tighter controls and oversight, all of which contribute to frequent travelers’ headaches.

To overcome these challenges and expedite the security process, Accenture (ACN) developed the Known Traveler Digital Identity System. The consulting firm partnered with the World Economic Forum (WEF) to help disrupt the global travel industry.14

This blockchain is designed to collect and host identifying information from frequent international travelers, enabling a freer flow of data between travelers and customs agents to ease the clearance process.15

This allows travelers to gain control over their digital identities with better security thanks to distributed ledger technology. Airports and airlines benefit from accelerated processing and better security, helping shorten lines all while alleviating one of the biggest traveler pain points.15

5. TravelChain: Making the Most of Data

Data is a prized commodity in today’s economy. It offers businesses insights and advantages when used appropriately. Data generated by travelers, which is highly valuable to service providers, is generally restricted to gatekeepers such as Expedia and Orbitz. These companies offer a faster booking process at a price. This raises costs and adds to the informational asymmetry for service providers. 

TravelChain is a new entrant that wants to upend the paradigm with an open-source blockchain. The Russian company seeks to remove intermediaries on the supply chain. Users are empowered to collect and monetize their travel data, keeping it safe from prying eyes and receiving tokens as compensation for sharing with travel service providers.16 These tokens can then be redeemed for services or money.17

Participating companies can access more granular information about travelers, channeling these insights for more pinpointed promotion targeting. Apart from personalizing marketing, these companies can offer customized tours and promotions based on a traveler’s preferences, closing the entire ecosystem loop and delivering value to all stakeholders.17

The Bottom Line

Traveling should be comfortable, cost-effective, and most importantly, enjoyable. While fees, booking irregularities, bad reviews, and long lines may be symptomatic of the current travel environment, blockchain is challenging this status quo with a host of new services designed to modernize and streamline the travel experience. 

Investing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns cryptocurrencies.SPONSOREDEnter Trading Easily with FBSStart simple yet powerful trading with FBS. This is a worldwide and reliable broker with over 17 million clients and more than 150 countries of presence. Get up to a $140 Level Up Bonus to enter the market, gain and boost your skills. Access to any asset you want: Forex, stocks, crypto, metals, and more. Also, make your trading x2 more efficient with a 100% Deposit bonus. Take a step to financial freedom with FBS now. Explore it now.

Thanks to the formation of more equitable ecosystems constructed to reduce the presence of intermediaries, travelers and service providers can build more mutually fulfilling relationships that contribute to better overall value.

Author  JOE LIEBKIND Fact checked by SUZANNE KVILHAUG Reviewed by ERIKA RASURE on September 22, 2021

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This article is cited from https://www.investopedia.com/news/6-companies-using-blockchain-change-travel-0/

How blockchain can transform tourism

Blockchain technology is poised to revolutionize the way we travel. The use of blockchain in tourism is going to provide a new experience altogether in the way we book travel tickets and hotel rooms, providing a seamless user experience

The global tourism market crossed USD 8 trillion in 2017. It is forecasted to have year on year growth rate of 4.7% to reach USD 11.38 trillion by 2025. The use of digital technologies like blockchain in tourism will only help in expanding the sector further. Many companies have realized the potential benefits of blockchain and have applied the technology at their workplace.

Applications of blockchain in tourism industry

Blockchain has raised a plethora of interest in the tourism industry. Many major companies have incorporated blockchain technology in their services. The following are the ways blockchain is being utilized in the tourism sector

Decentralized payment system

Blockchain enables transportation assets to be better utilized right from the planning to the travel stage. The primary application of blockchain in tourism is to enable secure, traceable payments. The first step in international travel is booking of flight tickets. This process is relatively easy in today’s age. However, the process can be simplified even further using blockchain-based methods. Winding Tree is an open-source distribution ecosystem which facilitates the process of booking flight and hotel tickets. It has resulted in reduced transaction costs up to 20% for consumers availing blockchain facility for ticket bookings. Airline companies like Air New Zealand have incorporated blockchain technology, making the ticket sales process less complicated. It can also help prevent over boarding of flights. Payments for the services can be made quickly and securely using blockchain methods. Thus, it enables faster checkout during transactions.

Blockchain uses cryptocurrencies like Bitcoin, which eliminates the need for using digital payment methods that rely on third-party payment apps.. The payment can be made between the two parties involved directly. This forgoes the need for a payment merchant altogether. The need for payment gateway companies like Visa and MasterCard may become obsolete because of blockchain technology. A future where a person walks into an airport and directly boards a flight without having to stand in queues for verification or even letting go of third party apps like Expedia to get the best deal will be possible because of blockchain technology.

Private cab aggregators like Uber and Lyft will only help drive the technology forward. Blockchain-based payments will help minimize the time taken for the completion of payments. It will also facilitate payments for customers using autonomous cab services. Transactions are completed by deducting the amount automatically from the user’s digital currency.

Governments can also utilize blockchain technology to provide a quicker, secure experience for people using public modes of transport. The need for a physical rail and bus ticket can be eliminated due to blockchain and AI technologies. A single database would be sufficient to map a user’s travel across all modes of services used by the customer. A single identification and payment method will be sufficient to avail the various public transportation services. Governments can also regulate private transportation services by incorporating them into the blockchain system. The payments can also be made easily using blockchain on a daily or monthly basis at the user’s convenience.

Another area in which blockchain is useful is eliminating the need for physical contracts. Blockchain lets go of physical documentation, replacing it with digital ones. Digital contracts are signed, which are time-saving and can also be helpful in case of a dispute. A digital copy of the agreement can be used by the consumer to understand the terms and conditions stated by the service provider.

Simplified customer identification

Customer identification is crucial for the travel and tourism industry. Immigration officials must verify the identity of every foreign tourist for security reasons. Blockchain has the potential to transform the current practices for verification of travelers. The present scenario requires a traveler to produce identification at multiple stages like airport check-in and immigration.. This results in significant wastage of time, which accumulates at every stage. . Blockchain will reduce the time spent for customer verification at immigration, check-in times at hotels, long queues at embassies, facilitating a time-efficient experience. The need for a passport may also be eliminated if international governments adopt blockchain technology for their tourism industry. However, this seems a bit far-fetched as it will be hard for major countries to adopt blockchain technologies. ShoCard is a digital identity platform built on blockchain to authenticate people without usernames and passwords. Blockchain eliminates the need for the username and password methodology used for digital payments. The system is also more secure as it doesn’t contain a central database, which the hackers can exploit.

Baggage management

Baggage handling is one of the critical aspects of the aviation sector. Instances of misappropriation of baggage is a significant issue faced today. Baggage mishandling and loss is a common concern today for airline companies. International baggage has to change multiple hands during transportation. The luggage is misplaced in transit due to human error. Baggage loss or mishandling can be reduced significantly using blockchain and other technologies. Blockchain data can be used to identify and monitor luggage. It can be used with AI and sensor technologies to determine the location of the baggage, in case it gets misplaced. Sensors can be attached to bags to track their exact location even if the handlers misplace it. The use of blockchain in tourism for baggage management helps eliminate the baggage loss issues faced in the industry today.

Customer rewards system

Travel service providers run loyalty schemes to encourage returning customers. Blockchain can assist with these programs, allowing customers to access their loyalty rewards easily. Services using blockchain can reward the customer with cryptocurrencies, which can be used for future travel. They also eliminate the need for a third-party mediator platform. Services like Trippki uses a loyalty reward system for their customers. Customers are allocated crypto tokens for staying in hotels. These tokens are permanently recorded in the blockchain which can be used during future transactions. The use of blockchain in tourism helps companies retain customers and increase their revenues. It also helps combat fraud in this field as the blockchain data cannot be manipulated.

Transparent business ratings

People are increasingly using the internet to check forums and read user reviews before traveling. However, their accuracy cannot always be guaranteed. Many businesses put up fake reviews for themselves as well as their competitors. These fraudulent activities have become more rampant because of increased competition. This has led businesses to adopt illegal activities to promote their businesses. The users’ experience may be completely different than what they may have imagined from reading reviews online. It reduces the trust a user has with regards to other online reviews that he may encounter. Data stored on blockchain is highly secure, which enables greater transparency and consumer trust.

Author: Naveen Joshi

published on August 21, 2019

https://www.allerin.com/blog/how-blockchain-can-transform-tourism