How Can Blockchain Help Travelers Save Money?

Now that the COVID restrictions are being withdrawn, the travel industry is buzzing again. Travel enthusiasts have missed a lot in the past couple of years; now, it is time to explore. Blockchain technology training is everywhere, and the travel industry is no exception. 

Travelers always love a marketplace that offers them better deals. Who wouldn’t love to save money on flight tickets and hotel reservations? Everyone now books their tickets using website marketplaces because that’s where good deals are!

Blockchain technology training provides a competitive edge, allowing everyone to enjoy cost benefits. Whenever anyone books a flight or hotel, the amount paid differs from what the hotel receives. Several middlemen take their share before transferring funds to the hotel owner. Blockchain technology works to remove these middlemen and connect the customer directly with the hotel owner. 

So, when blockchain technology is used in the booking process, the hotel owner will get paid in full, while customers can realise cost savings as middlemen are eliminated. 

Understanding Blockchain

Blockchain is a digital decentralised ledger that uses peer-to-peer networks on the internet to carry out transactions to increase online transactions’ security, transparency, and credibility. 

Unlike traditional data systems, blockchain uses blocks to store information. There is no single master copy because interconnected information blocks come together as a database. When data in a block is updated, all the other blocks concerning the changed data will also be updated automatically. 

Blockchain transactions thrive thanks to smart contracts. They are computer protocols for verifying and enforcing contract performance. Every transaction is timestamped, which greatly improves transparency. Further, the transactions are immutable, making it impossible for hackers to tamper with data. The distributed platform keeps the participants anonymous, and all participants validate all records. 

Blockchain Advantages For Travel Industry

The global tourism market is expected to reach $11.38 trillion by 2025. Blockchain technology is expected to bring major digital disruption, empowering every company in the travel industry. Blockchain introduces innovation in the following ways:

Decentralised Bookings

Online travel agencies control travel bookings, and the competition is limited. Decentralised marketplaces using blockchain hand over the power to customers and businesses with a streamlined communication channel. Middlemen are completely taken out of the picture, enabling cost-effective transactions. 

Streamlined Payments

Blockchain technology expedites and streamlines payment processing using secure transactions. It greatly helps businesses to prevent data theft and fraud. 

Simplified Identification

One of the biggest benefits of blockchain to the travel industry is the simplified identification process. Blockchains are useful in storing and processing data at lightning speed. It helps passengers to complete check-ins faster in every place. There will be no queue issues at airports, hotels, attractions, and restaurants. It greatly helps in improving customer experience. 

Smoother Tracking

Blockchain improves the performance and efficiency of tracking, providing faster and more secure access to locations. It helps with timely deliveries and also avoids bad incidents at a higher level. Flight delays and insurance fraud can be easily reduced using blockchain. 

Improved Loyalty Programs

Businesses can offer better rewards, incentives, and benefits through loyalty programs using blockchain’s tokenised platform. Instead of offering rewards, businesses can provide digital assets and tokens that can be easily used on multiple platforms, providing customised incentives for loyal brand users. 

The aviation industry heavily implements blockchain technology, and the estimated CAGR is 22.1% by 2025. Air France is experimenting with ICC AOKPass, an app that helps passengers show their COVID-19 results using their mobile phones. British Airways is working with Zemma to advance its facial recognition technology. Delta Airlines is retiring SkyMiles to launch a cryptocurrency. Winding Tree is a blockchain-based platform that uses blockchain to track baggage. Lufthansa plans to bring a major change with its Blockchain for Aviation (BC4A) initiative. 

How I Saved $50 For A Three-Night Stay In Singapore Using Blockchain Technology?

Now that I have established blockchain benefits let me share how a simple change in hotel booking helped me to save $50. I am an avid business traveller. Flight bookings and reservations contribute a lot to business travel expenses. Especially when it comes to business travel, I reserve tickets almost at the last minute, and there won’t be many last-minute deals. 

I had to fly to Singapore for three days just a couple of weeks ago. Instead of using our company’s travel agent, I used Locktrip, a blockchain-based online reservation agent. It is the first company to launch accommodation booking on blockchain in 2017. I was sceptical at first, but when I looked at the reservation prices for Hotel Royal (my first preference for staying in Singapore), I was pleasantly surprised. I paid just $390 inclusive of taxes for a three-night stay. When I use my travel agent, the same would usually cost me around $440 – $450. 

It is certainly true that blockchain-based companies can offer better deals for customers. Impressed by my experience, I plan to use blockchain reservations for flights and accommodation next time! 

With so much development in the blockchain industry, there will be more competitors, resulting in better deals for consumers. The best part is the aviation and hotel industry will have more to gain because more people will be willing to travel if the travel expenses go down.