Blockchain Technology and Tourism Industry: New Possibilities
How can Blockchain Technology Help Sustainable Tourism?
According to a report from Greenpeace International, air travel is one of the biggest contributors to greenhouse gas emissions on an individual level. With fuel comprising almost 25% of airlines’ expenses, most airlines simply cannot compete in price without charging extra for baggage, choosing less-direct routes, or adding a surcharge for those traveling with more than just a carry-on.
Blockchain technology could help create automated payment systems that charge passengers based on how much carbon they emitted to get them where they want to go. Additionally, blockchain could allow people to trade excess energy generated by their solar panels or wind turbines directly with their neighbors using peer-to-peer (P2P) applications. This would ensure that green energy is used whenever possible and not wasted when it isn’t needed. The use of P2P platforms can also help travelers connect with locals to learn about sustainable tourism opportunities. They can do so while providing income opportunities for local residents.
Travel Portals
The advent of Blockchain technology, diminishes the power of OTAs and gatekeepers, while restoring the power of travelers. Blockchain-based travel platforms remove the power of intermediaries, ensuring higher transparency. They also enable travelers to provide feedback on their travel experience. Some examples of Blockchain-based travel platforms are Locktrip and TravelChain. In addition, TUI has been developing an internal system for managing bed inventory in hotels but has toyed with making it public.
Winding Tree is another company working to build a public decentralized travel ecosystem. Winding Tree has stated that its public version is more secure than its internal. They aim to build a solution that would allow anyone to book hotel rooms and airlines on the blockchain. Then, the hotels and airlines could set commissions on the rooms, thus creating a more competitive marketplace.
Customer Loyalty Programs
Several large tech companies, including IBM, are eyeing the blockchain as a potential solution for travel industry loyalty programs. For example, IBM partnered with startup Loyyal to develop a blockchain-based loyalty platform. The partnership would help travel companies create and maintain more customer loyalty programs while creating frictionless partner networks.
In addition to improving security, loyalty programs can simplify the processes and rewards associated with these programs. For example, one way to use blockchain technology for tourism loyalty programs is to track luggage location, which often changes hands several times throughout the travel process. Because the data is centralized, the blockchain can help track luggage locations across multiple locations. This can also help reduce fraudulent activity associated with loyalty schemes. While the security benefits of blockchain are obvious, some limitations must be addressed. For example, blockchain-based loyalty programs should require that all participants have some control over customer data and make sure the platform remains unbiased.
Accurate Reviews
Blockchain technology can help the tourism industry provide more reliable and accurate information. In the travel and tourism industry, the use of this technology can facilitate customized services for travelers and improve their experience. Other industries can apply this new technology as well, including financial services, healthcare, and education. In addition, it can build trust among consumers and improve the customer experience.
The decentralized nature of Blockchain means that there is no centralized exchange and information. Therefore, tourism networks in Switzerland operate according to bottom-up dynamics. Furthermore, the use of Blockchain allows them to share accurate information and reviews in a secure, transparent manner. This is particularly useful in the tourism industry, where reviews are critical to the reputation of a hotel or restaurant.
Faster Experiences
If you want your guests to enjoy faster and safer experiences, you may be interested in introducing blockchain technology into your tourism business. The technology is based on protocols, which means a higher level of involvement from all stakeholders in the tourism business. The result is a more satisfying experience for travelers.
TradeLens
A.P. Moller-Maersk and IBM collaborate to develop a blockchain platform that will enable sustainable tourism through global trade. TradeLens uses blockchain technology to digitize supply chains, enabling increased collaboration and innovation across the entire supply chain. The platform enables new and more efficient ways to source, transport, and deliver products by establishing a single, shared view of transactions across multiple trading partners.
To develop the TradeLens platform, a customs authority connected to the network can access and analyze data on shipment processes. This data will aid in the targeting and selection process. With the TradeLens platform, governments can ensure that their transactions are legal and comply with regulations. Governments do not have to be blockchain experts to benefit from TradeLens. It is a platform that encourages industry standards and explores blockchain-specific interoperability mechanisms.
The trade-chain-based system replicates digital documents from multiple supply chains, such as phytosanitary certificates and commercial invoices. With the TradeLens platform, participants in the supply chain can see how digital documents can improve processes and reduce costs. TradeLens also uses a blockchain-based service, KodakCoin, to allow photographers to store and license their photos. The platform also allows travel agents to track the location and origin of their packages.
KodakCoin
Kodak is a technology company that focuses on imaging. Last summer, the company began exploring blockchain technology. It realized that it could help photographers solve perennial problems related to copyright. Kodak's new KodakOne platform will let users upload photographs and create blockchain-based licenses for each image. In addition, users can use web-crawling software to spot copyright violations and be paid in KodakCoins.
The company Global Blockchain is the lead investor of the Kodak Coin ICO. Its use in sustainable tourism is based on the potential of blockchain technology to address copyright issues and encourage smart transportation. For example, a blockchain-based system will enable artists to register their works and use them for transactions without fearing copyright infringement.
Challenges of Implementing Blockchain Technology in the Tourism Industry
The tourism industry will reach $14.6 trillion between 2022 and 2032. However, as a result of rapid growth, critical problems are emerging with regard to sustainability, and blockchain technology, in particular, can address these issues. Nonetheless, certain limitations need to be carefully addressed before cryptocurrency and blockchain can be implemented at scale in tourism. Therefore, travelers should always evaluate companies with appropriate certifications when choosing where to stay or vacation.
Companies that have been certified sustainable will use blockchain technology for bookings, transactions, and payment services through apps. This will make it easier for travelers to choose where they want to go next! These apps give users access to valuable information about each hotel, resort, or any other travel destination that allows them to decide if they would like to spend their money there. These platforms allow customers to become more informed about what hotels offer without extensive research and ultimately help them find more value for their money.
In addition, these platforms also help provide solutions regarding how many people travel over long distances to see one specific destination while having little time left over once they arrive at their destination. This problem is resolved by allowing customers to view all available accommodations nearby without driving around aimlessly looking for something decent enough for them.