Blockchain technology is holding a promise to improve transparency, cut out the middlemen and reduce costs in various sectors: from finance to medical care.
But is this emerging tech about to benefit the hospitality sector?
Let`s find out:
What is Blockchain?
Simply put, blockchain refers to a chain of so-called “blocks” that`re forming a “chain” by the use of cryptography. Each new block contains data that has an encrypted reference to the preceding block in the chain.
The potential benefits of blockchain technology include greater user privacy and security, as well as lower processing fees and fewer errors.
Problems in hospitality
Hoteliers and airlines face many unnecessary problems – from high commissions and transaction fees to inefficiencies in the finance and banking industry.
On the other hand, travelers need to deal with many different players like car rentals, hotels, and other touristic companies. And this may involve many added costs.
How can blockchain help?
Blockchain technology could remove the need for intermediaries and offer a decentralized and secure system for interaction between different parties. Plus, there`s a promise for improved transparency and reduced costs.
Any other characteristics that make blockchain a viable solution for the hospitality business?
The stored data is immutable.
There`s a maintained history of the data.
There`s no need for a central authority.
The data is protected by the use of cryptographic tools.
Real-life use cases
For example, the German travel company TUI (https://www.tuigroup.com/en-en) (with more than 20 million customers worldwide) has explored the possible blockchain applications for a few years now.
TUI employs a private blockchain ledger to store all of its contracts. Plus, the company`s BedSwap project keeps real-time records of its beds’ inventories on a blockchain-powered system.
But the blockchain-related possibilities don`t end here.
Founded in 2018, the home sharing company PopulStay uses blockchain technology to connect guests with their hosts. In other words, blockchain`s capabilities help the company live up to its value proposition and take a more open approach to data.
Other possible applications of blockchain technology?
Supply Chain Management (SCM).
Guest insights and digital IDs
Loyalty Management Programs
Blockchain`s future in hospitality
It remains to be seen whether blockchain will live up to its promise. Travelers` habits are changing. They are becoming more and more accustomed to using various technological solutions.
Early adopters of emerging technologies like blockchain will be a step ahead in the highly competitive race for the consumers` attention.