How Blockchain Technology Revolutionizes Travel Industry

We have widely seen that blockchain is now almost in every industry. Let’s see how blockchain helps in the travel industry.

Understanding Blockchain

We already know what is blockchain and how it works, but for the ones who didn’t understand what is blockchain here it is, blockchain is a decentralized ledger that relies on a network of nodes (computers) to validate and record transactions. In simple terms think of a block that contains a cryptographic algorithm ( A cryptographic algorithm is a mathematical equation used to scramble the plain text and make it unreadable.) Hash values and transaction history. When many blocks combine they form a chain of blocks which we call blockchain.

Now that we understand blockchain let’s see how blockchain helps in the travel industry.

Tamper-Proof

The data in each block is secured through cryptographic hashes. This immutability means that once a transaction is confirmed, it cannot be altered or deleted. In the travel industry, this ensures that records of bookings, payments, and traveler details remain tamper-proof.

Automating airline process

Various processes, such as booking confirmations, ticket issuances, and even complex operations like revenue-sharing agreements between airlines and travel agencies can be automated through smart contracts which are self-executing contracts. We just have to write the contract with pre-defined conditions for the desired process.

Streamlining Immigration Procedure

Blockchain provides a secure platform for storing and verifying traveler identities. Each traveler could have a unique digital identity on the blockchain, validated through a combination of cryptographic keys and biometric data. Processes like check-ins, security checks, and immigration procedures can be streamlined through blockchain.

Reducing Intermediaries

Generally booking systems involve multiple intermediaries, each one of them taking a portion of transaction fees or commissions. With blockchain direct peer-to-peer (Peer to Peer (P2P) payments are a mechanism through which the user can transfer funds from his bank account to another individual's account via a digital medium i.e. Internet or a mobile device.. Transactions can occur. This will eliminate the need for intermediaries like travel agents, and payment processors potentially lowering prices for travelers.

Real-time tracking

We can track the movement of various services and goods with blockchain, from ticket issuance to maintenance records of aircraft/cruise ships, etc. This transparency ensures authenticity and quality assurance for services provided.

Data privacy

Blockchain can be utilized to securely manage and store customer data, ensuring compliance with data privacy regulations such as GDPR (The General Data Protection Regulation is a European Union regulation on information privacy in the European Union and the European Economic Area. The GDPR is an important component of EU privacy law and human rights law, in particular, Article 8 of the Charter of Fundamental Rights of the European Union). Through techniques like encryption and access control, sensitive information can be protected while still allowing authorized parties to access and verify it.

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