Do you know the role of blockchain technology in the travel industry? If not, you are in the right place as we will provide you with all the necessary information you need to know.
Blockchain technology is transforming plenty of industries, and one of them is the travel and tourism industry. Now, the primary question is, how?
There are many things that you need to consider before understanding the role of blockchain in this industry. Otherwise, you won’t get the concept precisely. You can also visit btsr.io to know about it in detail. It is one of the most reliable websites to consume information regarding the same.
If you are bound to travel, you might already know the problems and issues one faces. These include losing your luggage or bags while traveling, delays due to identification, long security lines, and more. All these inconveniences must have a perfect solution.
Blockchain is a great technology that can make travel agencies avoid these problems. It means that it is not only advantageous to businesses but also travelers. In other words, we can say that this system is rationalizing the tourism industry in various ways.
Let’s now discuss all the uses of blockchain in this industry without wasting any more time.
How is blockchain technology revolutionizing the travel industry?
Many people are unaware of the fact that this type of technology is also helpful for other sectors. They think that only digital currencies are related to it. The reality is entirely different. If you want to get a better understanding of the same, you can look at the following points carefully-
1. Identity management:
Do you know how many people lose their identity cards while traveling? Well, the number is pretty significant. You might already know that losing an identity card while traveling creates a lot of problems. It makes travelers vulnerable because they can’t proceed with their traveling. This problem has only one solution, and that is using blockchain technology.
The best thing about this system is that all the confidential information of travelers will be safe and secured. Many experts also claim that this system is more reliable than any other one.
One doesn’t need to worry about losing their identity card while traveling because everything will be there in the blockchain system. Within a few clicks, one can access customers’ information. Travelers don’t even need to carry their identification documents when their information is already there in the system. How amazing is that? Isn’t it?
2. Prevent fraudulent activities:
Everyone knows that with the advancements in technology, the risk of cyber attackers has increased. Now, people do everything online. From booking tickets to accessing hotels, all these things have become more convenient.
You will be astonished to know that the travel industry involves a lot of fraudulent activities. Many fraudsters have profited from people through online hotel bookings. The overall amount they gained from fraudulent activities is in billions.
But thanks to blockchain technology, all these activities have been reduced. We can expect more improvement in the future. You can track all the transactions you have made to some online websites. So, everything gets stored in the system. As a result, the fraudsters become vulnerable. They cannot proceed with these activities when there is proper verification of every transaction.
3. Avoid overbooking problem:
Some people who travel from one place to another from time to time have to face overbooking problems sometimes. Errors in the system of an Airlines company often lead to the selling of more tickets.
Due to this, when the airplane becomes full, some travelers have to give up their seats. It is one of the most common issues that people face. However, airline companies can resolve this and improve people’s experience by using blockchain technology.
Blockchain technology is excellent at enhancing travelers’ experience. If the companies use it, there will be no errors in the system. The cases of overbooking will also become less after a while. It is because the system will store all the reservations. Well, some companies are already using this system. Still, people need to know more about blockchain technology to adopt it in their day-to-day lives.
4. Tracking luggage is possible:
Every traveler has many bags while traveling to a new place or country. If it is an international tour, people carry at least four to five loads. But there is always a risk of losing them because of luggage movements.
That is why some Airlines have decided to charge a fee to provide extra protection for bags. So, if you are a traveler, you have to spend additional money on giving them this fee.
Sometimes, people think it is unfair to charge a fee because they have already paid for the tickets. As nobody wants to lose their luggage, they pay the amount for safety.
But travelers don’t need to worry much about it now as blockchain technology is there. It is beneficial for companies as they can track luggage movements without struggling a lot.
Also, customers remain happy and satisfied after their experience. There are no other problems companies or customers have faced while using blockchain.
5. Smart contracts:
Blockchain is responsible for improving the agreements between various companies in the travel industry. As we mentioned earlier, this system stores the data safely. Every previous transaction will be there.
So, one can quickly access the information within a few clicks. Ultimately, it makes blockchain technology helpful for every travel business.
6. Fast and secure transactions:
Various businesses involve many payments and transactions every day. In the travel industry, the amount of transactions is no less. Both customers and companies want a fast subsystem to send and receive money.
With the arrival of blockchain, the whole process has become quicker and safer for both parties. It is a plus point for other travel agencies to consider this type of technology for their business.
The Bottom Line
Blockchain technology might be new to some people. However, how it is revolutionizing the travel industry is pretty impressive. We hope you found this article helpful.