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How Blockchain Technology is Transforming the Travel Industry?

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Milap Chavda
How Blockchain Technology is Transforming the Travel Industry?


Introduction of Blockchain Technology


Imagine a world where the booking system is centralized with an open window containing your personal information and no cash needed to make purchases. With blockchain, this kind of ideal existence is only years away. A future in which tourists can walk into any hotel or rental property, swipe their digital keycard the way they would the credit card in their wallet and settle in with no reservations required.


The travel industry needs no introduction for most people; it's always evolving at a rapid pace in order to stay competitive against companies like Airbnb and Uber. And, if blockchain spreads as quickly as some experts predict, all aspects of this globalized industry could be dramatically changed within three or four years time.


From buying plane tickets to booking hotel rooms and rental properties, the entire process of traveling could be done without credit card swipes and proprietary software. Cryptocurrency is already making waves in this industry and if the forecast for blockchain technology proves true, it could mean an emerging market that's worth billions and billions of dollars.


The numbers behind blockchain. According to a report by Juniper Research, more than $1 billion has been invested in blockchain app development over the past four years.

What is Blockchain?


Perhaps the most famous use of blockchain in this industry has been that of bitcoin; a digital currency that enables users to buy anything from food to drugs. People who sell bitcoins are also known as "bitcoin miners" and the blockchain is where this currency's transactions take place.


In essence, the blockchain is a digital ledger that uses a series of linked, cryptographically secure computer accounts that record the current ownership of data and the transactions that take place within it.


Each account has a public and a private key and the public key is what a user is granted access to; while the private key is what they use to store the data within the blockchain. This could be anything from a phone number to an email address.


How Does Blockchain Technology Works?


Blockchain is a foundational technology in the decentralized digital currency Bitcoin. Created by an anonymous hacker or group of hackers under the pseudonym Satoshi Nakamoto, it's a unique and revolutionary technology trends that could change the way many businesses are run today. The transactions are extremely anonymous and are completely irreversible.


Each user on the network stores a copy of the blockchain using their private key. Any alteration of this data is made visible and accessible for anyone in the network to see.


In simple terms, a blockchain works as a distributed ledger that stores data in a number of blocks. Each block is then secured and time-stamped to prevent tampering or revision of the data. Data stored on the blockchain is immutable, which means it cannot be changed.


However, it's not just about information being difficult to tamper with – each block contains information about who made changes and when they were made. In this way, it’s possible to trace an alteration all the way back to where it happened – kind of like tracking stolen goods from the cash register back to their point of origin.


Why Blockchain is Important to the Travel Industry?


There's more to blockchain than what meets the eye. In the short term, blockchain can help with the skyrocketing cost of travel. By removing the middleman, it's predicted that blockchain-based travel portal development systems can cut cost by up to 50% – and what's more, the cost will be split between both the travelers and the platforms.


The benefits of blockchain in travel extend beyond this. Expedia founder and chairman, onetime Congressman and Oracle founder Larry Ellison predicts that with blockchain is rise, we'll be able to streamline flights and visas, resulting in shorter lines and hassle-free travel.


Blockchain technology is a perfect fit for the travel industry because it allows for faster and secure transactions. A blockchain can enable hotels to sell rooms without going through a centralized system that takes a percentage of the profits.


Instead, the traveler and hotel owner meet directly in an open marketplace in order to complete their business. This allows for lower prices on both ends of the spectrum while increasing profit margins for both parties. It also makes it easier than ever before to search for hotels, saving time and frustration when traveling abroad.


Blockchain technology is not just beneficial within the travel industry, it has applications in many other sides of life as well. When it comes to retail, blockchain can make transactions more secure and efficient. On the financial front, it can help banks from the heavy weight of processing payments. Lastly, it can make record-keeping more accurate and timely within any industry by enabling decentralized verification of data.


Blockchain’s Future in Travel Industry


The global travel industry is expected to hit $2.6 trillion in 2025 and blockchain technology holds the promise to revolutionize this globalized industry. Blockchain is already disrupting every aspect of the travel industry; one of its most lucrative applications is likely to be in hotel booking and distribution.


In the past, when you wanted to stay in a hotel, you'd have to contact the hotel directly and confirm your reservation. That process involved a direct relationship between the hotel and the customer, and one that led to frauds and scams.


Today, it's much easier to book a hotel room without speaking to a human, but you'll still need a valid credit card in order to process the transaction.


Conclusion


Artificial intelligence (AI) and blockchain will continue to reshape how we do business and how society in general, operates for the better. While blockchain may have a limited application in certain areas of the travel industry, we could see a huge transformation in the travel industry over the next five years. And that transformation is coming with or without blockchain.


A brand like Expedia group is working to integrate blockchain technology with their travel tech. Even traditional travel brands like InterContinental Hotels Group, TUI and Marriott are already using blockchain tech.

In other words, it seems that most legacy travel brands are planning to keep up with the times and incorporate blockchain into their systems sooner rather than later.

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