Blockchain in Hospitality

Blockchain in HORECA. Part 1: Tourism and Hotels

Are you a traveler?

Are you a professional in the hospitality sphere?

Are you simply interested in tourism and hospitality?

If you answered YES to one of these questions, then this BLOCKpost is for you.

Let’s start with applications of blockchain in tourism. This combination is pretty advantageous for all involved parties, as it makes all operations more transparent and secure. Some experts give us possible uses of blockchain in the tourism industry. Below you can find the most engaging ones.

  • Safe and easy payments: We all know that  payments with cryptocurrency are much more secure and traceable. All transactions carried out on the blockchain remain registered in the chain and cannot get modified. In addition, there won’t be any intermediaries that can intervene or delay payments. Hence we won’t need to exchange currency when we travel to another country.
  • Ratings: It’s very common to read user reviews when we travel; however, we cannot always guarantee a reliable source or the accuracy. With blockchain, this problem can be solved, as the network is public, dependable and secure-achieving better transparency and increasing consumer trust.  
  • Baggage management: Blockchain could become very useful in tracking the location of our baggage; starting from the check-in counter at the airport. It may have gotten lost or damaged on its way. With the help of  blockchain, it’s possible to know where our suitcases are.
  • Reward systems: Many travel companies create loyalty programs for their customers. Blockchain would facilitate these processes and allow customers to check their points and, for example, exchange them for cryptocurrency.  

Now it’s the time to move to the hospitality industry, where uses of blockchain are much more interesting. How does blockchain change the image of the hospitality sphere?

  • It helps in gathering better revenues. The hotels can share their catalog,inventory, and other properties online with all potential consumers through blockchain technology, which will enable the businesses to be more visible to the people. This will result in them accumulating more revenues.
  • Blockchain simplifies the travel and hotel booking processes. With the help of the technology, people can automatically check the availability of accommodation or transportation and pay for the services directly. This would reduce the dependence on travel agents.
  • Helps in maintaining transparency in the supply chain. Large organizations, within the hospitality industry, generally follow the franchise model where the quality of different supplies is immensely crucial to maintain the reputation of the brand.  Blockchain technology opens up the opportunity to maintain absolute transparency in the supply chain and makes the whole process simple.
  • Assists in enhancing the user experience through loyalty programs. As mentioned above, loyalty programs enable the consumers to access all their points quickly. The tokens are offered to the tourists in a digitalized manner.
  • Creates smart contracts between hotels and travel agencies. They could strengthen their business relationships with smart contracts on blockchain systems. Like the legal contract, a smart contract between hotels and travel agencies would incorporate the contractual provisions that are predetermined by both parties. When the transactions are recorded, the payments can be settled immediately.
  • Establishes digital identification. Blockchain technology can resolve the issue of identity theft. In hotels, restaurants and airports, tourists are generally required to present their ID as proof, in order to get through the security checks while boarding flights, booking hotel rooms, or while consuming alcoholic beverages.  As a credible solution to this issue, specific digital IDs can come with cryptographically-secured codes that provide the validation of one’s identity without actually looking into the personal details of a consumer.
  • Food Tracking: Many restaurants can benefit from the use of blockchain for monitoring and tracking foods. A blockchain network can be created, which includes food producers, transport providers, and restaurant owners. This network will efficiently track the movement of the agricultural produce. All the information about the quantity, types, and grades of food can be found easily by accessing the private blockchain network. Transactions can be updated and stored in real-time and can be viewed by all the parties involved in the supply chain management.

Here are the main and most important uses of blockchain in these industries. Now it is more clear to you how blockchain transforms the tourism and hospitality industries. Moreover, these points could be a good start for something more interesting; something that you could develop in your mind and push forward.

Sources:

https://www.wearemarketing.com/blog/what-we-can-expect-from-blockchain-in-the-tourism-industry.html

https://www.mindtree.com/sites/default/files/2018-01/WEB-17.8-TTH-GLOB-Top-use-cases-for-blockchain%20in%20Hospitality-Thoughtpost_1.pdf

https://www.todayshotelier.com/2018/11/05/how-blockchain-is-transforming-the-hospitality-industry/

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