“Life is all about creating memories…The best ones are created when you travel…”
Almost everyone travels these days. Travelling isn’t limited to vacations anymore. People travel for work purposes throughout the year. Tourism industry generates the highest global revenue and is the largest service industry spread worldwide. It involves many other industries intersecting for providing requisite services. Larger the services, lengthier are the process, and at times complex too. There is a lot of information transfer throughout the transaction. There isn’t any assurance on security of the information , major of which is the travellers’ personal information.
Blockchain technology can definitely bring about significant changes in the way the travel and tourism industry operates. Ensuring more secure, transparent and faster transactions than ever.
Some of the major Issues in Travel and Tourism sector in the conventional system
A high percentage of the bookings happen over the internet through various third party applications. The customers’ personal information is shared with multiple parties and is always at risk. There isn’t any assurance to the non-sharing of customer’s confidential personal data.
Complex Baggage management
Baggage management is an important operation for airlines. The baggage travels through the destinations, and the management sometimes is carried out by various organisations, for international flights. There are chances of issues like displacement of luggage due to improper management of the baggage system.
Low Payment Security
A large amount of money transactions take place day in and out, in the travel sector.Accommodation and travel bookings which are done through payment gateways tied up with third party travel agencies are not completely safe. Payment transactions involve highly confidential details and low security is a giant risk.
As the airlines are registered on multiple sites through the internet, there are
chances that more number of tickets get booked than those available.This causes overbooking and ultimately a lot of inconvenience.
Right from the source check in to the destination checkout, the passenger has to go through various processes. As the system is centrally controlled, this consumes a lot of time and ultimately affects the cost of operations.
There are various middlemen and third party agencies involved throughout the travel processes.This , for sure involves their commissions and the end cost to the customer increases. Hence the conventional centralized system is inconvenient in terms of cost and time.
Partners involved in Smart Contract for Travel and Tourism
The partners involved in the travel and tourism industry smart contracts are
Transportation industries, Hotels and Accomodation organisations, Food companies, Entertainment and advertisement sector and Other Connected Industries. All the transactions happen securely within the system through the required consensus. The data can be shared across and is available only to authorized partners, making the processes more reliable.
How Blockchain can help overcome the issues and improvise the system
Blockchain shall enable direct bookings between the consumer and the service providers. No middlemen would be involved, leading to a blockchain based decentralized management system.
Simplified Baggage Tracking
The passengers can be sure about the status of their baggage as the transparent system shall allow sharing of all the related information from time to time. This would definitely simplify baggage tracking and management.
Secure smoother Payments
Decentralized ledger that the blockchain is , it would make the payments highly secure and transparent. The micropayments and cryptocurrencies can also be implemented in the transactions leading to better customer engagement.
Decreased of Flight Delays
In the conventional system, long queues for the authentication process during check in, leads to a huge time loss and flight delays.However, the airlines can access the passenger data available on the public blockchain, in the blockchain based system. This can save large chunks of time and result in decreased flight delays.
Improved Traveller ID verification
An improved traveller ID verification system is possible with the help of blockchain. This ID is made available to the authorized partners in the smart contract. This would also improve the speed of processing and eliminate the chances of counterfeit.
Increased Overall Transparency
The elimination of third party agencies and decentralized systems, will bring in more transparency in the transactions. All the processes from checkin to checkout shall be highly transparent in nature and comparatively quicker than before.