What is it?
Think of blockchain as a ‘new internet for the travel industry’. Where we once thought the internet would be a fad, we are all now incredibly reliant on it for every aspect of our lives.
Blockchain might as well be a revolutionary technology that could shape the future of travel — especially payment settlement and fraud prevention. Blockchain technology is, in its simplest form, a way to move information from one point to another in a highly secure manner. Blockchain permanently records transactions in an open, encrypted ledger that provides direct payment to sellers.
The goals of Blockchain technology in the hospitality/hotel industry is eliminating third-party costs and encouraging direct provider to consumer interaction. When used with the cryptocurrency Bitcoin, it essentially cuts out financial middlemen which results in a great investment potential for hotels to reduce the share of OTAs from the market and maximize their profit.
Why it’s Cool?
· Easier and safer transactions
· More enticing loyalty programs can be designed
· More net profit for the hotels and travel companies
Why it has future growth potential?
There are unlimited applications for Blockchain but here I will share two of the innovative ideas I found on the internet!
Trippki has started to make use of Blockchain through the launch of its loyalty reward system. The service benefits from cutting out third-party involvement and provides a direct connection between hotels and customers. Customers are rewarded with native ‘TRIP’ tokens for staying at a hotel, or using hotel amenities. The TRIP tokens are recorded in the ledger, do not expire and can be used to book future visits, or can be exchanged for cash.
BeeToken is a Blockchain home-sharing platform, which connects customers with hosts and allows customers to arrange and pay for stays. Its peer-to-peer transactions mean that no commission is charged, while the decentralized nature of the platform provides added security benefits. The BeeToken platform includes payment, reputation and arbitration protocols, helping to keep both customers and hosts safe.