Blockchain, AI Projected To Revolutionize Travel and Tourism Industries
With a combination of AI, the sector might witness a revolution.
How the Tourism Industry Can Transform Under Blockchain
Blockchain technology has continued revolutionizing different sectors since the emergence of cryptocurrencies. Initially, the technology was meant to be used in the financial sector but now, it is moving to diverse areas.
Denise Quirk a health advisor,says the decentralized nature of blockchain is the major factor behind its application in different sectors. The decentralized nature offers security and transparency, while eliminating third parties. What we have in the end is an efficient transaction.
In an article published by DailyHodl, Quirk said that the travel and tourism sector might benefit greatly from the blockchain sector. A look at figures, tourism contributes about 10% to the global GDP. The numbers are set to grow in the coming years.
She argues that blockchain can play a vital role in cutting costs and enhancing customer experience. When it comes to the airline, they are known to run on increased costs, something that affects general profits. The sector is characterized by bad experiences when it comes to booking as well as flight experiences. To end all these challenges, blockchain technology is the solution.
In tourism and travel, blockchain will focus on tracking luggage, payments, identification and customer rewards. Most complaints usually emanate from these four areas.
Under baggage tracking, cases of delayed or missing luggage are quite common during travel. Change of hands and stopovers are known to contribute to delays and loss of baggage on a global scale. Deploying blockchain can play the role of recording any person or entity that handles the baggage. With such records, tracking becomes much easier.
Blockchain technology has proven itself to be effective on matters payment. According to Quirk, travel firms can integrate blockchain to have secure and smooth payments. Additionally, cryptos are not tied to any country, the need for dabbling in different currencies is eliminated.
Customer identification is a key element in travel. Many people complain about spending a lot of time going through airport security and waiting at check-in counters. With open ledger system data, travelers can easily be tracked and shared between different entities. Screening at airports tends to delay many people, and the use of blockchain can save time. Customers can be identified through biometrics rather than physical travel papers.
The industry usually lacks efficiency when it comes to rewards programs. The travel and tourism industry depends on rewards to get more clients constantly. With blockchain, this process can become smoother. Customers can view their reward points in a more transparent manner.
Already, a number of projects are already applying blockchain technology in travel. Projects like Beenest uses blockchain in the Airbnb project. The project has been hailed for cutting costs since middlemen are eliminated.
Blockchain will become a force to be reckoned with when combined with Artificial Intelligence alongside machine learning. A firm like Fetch is working on a project to link AI and blockchain. However, the project was not meant for the travel industry but it shows the benefits of the combination.
At the moment, major companies are still uncertain in regards to to deploying blockchain technology. However, this attitude appears to be changing. In the travel industry, by using blockchain the still needs to be an element of trust. Customers need to be assured that it cannot be tampered with.
In the future, if these two technologies combine, they might become a perfect case study for the world. It will fully change global tourism.