Can Blockchain Technology Standardized the Travel Sector?August 22, 2018
The possible benefits of blockchain have produced huge interest from worldwide financial service firms and supply chain agencies. Nonetheless, the travel sector has also been searching for what advantages it can provide them.
Blockchain for Vacation Rentals
The worldwide vacation rental or short term let market is calculated at $500 billion and growing 10 percent yearly. Airbnb has transformed this market and acquired a market share of at least 7%. However, Airbnb is considered a middleman, which takes up to 20% commission. It could itself be changed by a new blockchain startup.
In Europe, there’s another startup known as CryptoCribs. The goal of the platform was to establish an open source, peer-to-peer sharing community. It’s geared at the crypto tribe and initial Airbnb adopters today. But as tokens and crypto become more accepted, it can scale up faster.
Blockchain for Payment Settlement
The offering of a single, transparent, secure global ledger of blockchain could massively lessen costs for travel agencies, hotels and airlines. It can be achieved through streamlining bank settlements and payments. This is perhaps the killer process, which the travel industry will utilize blockchain for.
Blockchain for Improving Identity
One of the most talked about the possible usability of the blockchain is to offer a digital identity for people. It could confirm a person as being who he says he is. For example, in a single transaction, a person can book his ticket, clear customs and have his loyalty points included to one central bank. That bank could pay for his taxi on arrival at the destination. No more delayed or lost baggage would be another benefit for airlines and travelers.
The local government of Aruba is now working along with Winding Tree, a startup, to connect travelers with travel suppliers via an Ethereum based platform. Eliminating the ‘middlemen’ would denote destinations could keep more revenues locally. That is considered a substantial benefit to smaller economies.
For instance, XinFin as well is fundamental Hybrid Technology is the game-changer in the technologies. The platform focuses on revolutionizing and reshaping the global world economy. XinFin (XDCE) knocked off its unique hybrid blockchain. The hybrid technology is greatly adapted for enterprise use cases, perpetuating as a private and public state. Further, the newly established XDC blockchain of XinFin is a hybrid blockchain. It doesn’t enable public hosting of its nodes.
The biggest tourism company of the world TIU previously publicized its plans to transfer all its data to the blockchain. The platform would utilize blockchain to monitor internal contracts and released an application called BedSwap. The app will keep real-time records of hotel inventories. It could also move its inventory to various points of hotel depending on the demand. Plus, it can also adjust the selling margins consequently.
To sum up, the travel sector is remarkably fragmented, along with credit card corporations, travel agencies, and governments running different legacy systems. All of these would’ve to be migrated to the blockchain. Blockchain represents privacy and security implications which would require to be addressed.