Traveling has always been an exciting evolution, especially with the advent of the blockchain technology that drives Web 3.0; it has now enhanced the traveling and touring experience. Due to the rise of next-generation payment networks, many Fortune 500 companies in the travel and hotel business are becoming more interested in Web 3.0 and have already commenced investing in it, welcoming the decentralized world.
Although Web3 in travel holds potential for businesses, governments, and travelers, consumers will likely reap tremendous benefits from this technology. This is because Web3 in travel promises to make journeys more streamlined and seamless while granting travelers greater autonomy.
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In 2020, analysts predicted that the online travel industry would be worth US$354.2 billion. The most recent predictions say that the market will grow to USD 1,835.6 billion by 2028, at a CAGR of 14.8%.
So how does the technology of Web 3.0 impact the industry? Let's discuss this in detail.
Web3 for Travel Industry
Web3 in travel provides powerful benefits, including stability and security. The immutability of a blockchain prevents accidental deletion or loss of data, as all transactions can be retraced at any time.
As you know, information sharing between businesses is essential in the tourism sector. The travel agencies share the customers' personal information with the hotels and airlines. So any disruption to the free flow of such information can dramatically diminish the quality of vacations due to incorrect or missing information that could worsen the situation.
So here is the solution: Blockchain technology enables efficient data transfer in the Web 3 realm of travel. Accessing and storing passenger data is made one hundred times easier in a decentralized manner since the whole network of nodes responsible for maintaining a blockchain shares responsibility for data storage.
Additionally, Web 3.0 in travel also includes making financial transactions. This means that blockchain technology can streamline and secure payments making everyone in the travel business, from passengers to airlines to reservationists to hotel guests, to have more faith in blockchain's reliability. Indeed, this is so much more so in international business transactions.
Your answer is here if you've been wondering where you might see the most return from implementing Web 3.0.
A common issue on the Web2 platform is that digital transactions get stalled. It could last a second, or it could last an entire day. Also in Web2 forum, it permits only low transaction limits, and there is no way to send a sizable sum via a digital wallet service. Whereas in Web3, the transaction amount can be as small as 000.1 or as large as a billion. Thus, in addition to facilitating the transaction, the lightning-fast, error-free transaction speeds offered by the application built for the web3 platform increase its appeal to users.
How does payment work in Web3?
Speeding up the payment process is a primary goal of blockchain technology. With Defi payments, there is no need to use a centralized payment platform like PayPal or Apple Pay to send and receive digital currency. As a bonus, blockchain technology could eventually render unnecessary payment gateways like Visa and Mastercard. With this cutting-edge technology, you can bypass the enormous lines at the airport's security checkpoints and walk straight to the gate to board your flight.
Also, governments can use blockchain technology to deliver faster and more stable fares to public transportation users. The need for physical tickets for bus, rail, and other transportation services can be eliminated when blockchain is combined with artificial intelligence and other cutting-edge technologies. A user's experience across all means of transportation can be fine-tuned using a database at their disposal. Customers, too, will have easier access to all the shipping services they need with just one login and payment method.
The Swiss-based enterprise Winding Tree operates privately and has expanded to cover many services within the tourism sector, from lodging to transportation. The company leverages "blockchain technology" to establish a level playing field in the travel market. They utilize the Líf token as their cryptocurrency and aim to reduce service provider costs without negatively impacting the traveler experience. The Líf token facilitates transactions between travelers and service providers like hotels, airlines, and tour operators. By implementing smart contracts and the ERC827 protocol, the company reduces costs for all parties involved in the tourism industry. And since Winding Tree is a non-profit organization, guests need not worry about paying commissions to third parties, which saves a lot of money.
Tourism costs are rising as more people are willing to spend lavishly on their vacations. The main reason for the rising prices is that visitors want to experience everything the tour area offers. As a result, many people spend more money on their vacations than they have to or cannot take one at all due to financial constraints. Fortunately, blockchain generation can be of assistance in this case. Tour reservation systems built on the blockchain are user-friendly, improve transparency and security, and ensure valid bookings.
In 2019, Webjet released its blockchain platform to the general public with Rezchain. The immutability of the blockchain's distributed ledger improves the user experience by eliminating the possibility of double bookings and cutting down on the number of mediators between vendors and buyers. This is achieved by monitoring real-time customer, agent, and hotel data issues and alerting appropriate parties. Rezchain, developed on a local version of Ethereum, helps to improve the hotel booking process by decreasing mistakes, averting issues at the hotel by removing out-of-pocket expenditures connected with booking data anomalies and thus saving time spent reconciling bookings and fostering amicable relationships between purchasing and selling partners.
Management of identity authentication
Identity authentication and management systems based on the blockchain would be most beneficial at airports. Moving through an airport requires passengers to interact with several different centralized systems. Using blockchain technology to create a mesh of "trust networks," a decentralized identity management solution can facilitate passenger passage through airports by streamlining identity verification. The passenger identity information is shared in these trust networks, with strict security measures to protect the confidentiality of all data.
A Decentralized Identifier (DID) is a unique identifier that allows for trustworthy, distributed online identification. Using them, you can restrict access to sensitive data so that only authorized systems and people can see it. Passengers just have to present a DID to prove their identity and ensure boarding a specific flight out of the airport. Passengers can use this decentralized method to go freely through the airport's various checkpoints without giving any personal information to anyone. The system relies on preexisting trust structures between and within airports to function. During your trip, you can use these temporary DIDs. This technology has the potential to improve airport efficiency and cut down on passenger wait times. Government laws on the secure transmission of passenger information and standards may lead to increased implementation of blockchain technology in airports in the future.
Accenture (ACN) developed the Known Traveler Digital Identity System in partnership with the World Economic Forum (WEF) to help transform the global travel sector and address the need to speed up airport security lines. Those who frequently travel internationally will have their identifying data stored and processed on this blockchain, facilitating a more open exchange of information between travelers and customs officials.
Distributed ledger technology allows vacationers to assume greater control over their online personas without sacrificing safety. Travelers' top frustration at airports and airlines is reduced because of faster processing and tighter security.
Watch the video Known Traveler Digital Identity.
The use of loyalty programs
Businesses and customers can profit from loyalty incentive schemes powered by the blockchain. How? Customers benefit from easier reconciliation and increased earn-and-burn options, while businesses benefit from reduced loyalty program costs and increased consumer loyalty.
Most companies want to make the most of the strategic investment that rewards programs represent. Businesses' success or failure may hinge on client loyalty and engagement initiatives. While they are expanding rapidly and being accepted by many, they have flaws, such as a need for a standardized management structure. Therefore, participants tend to lose interest and stop participating.
With blockchain, businesses can assist customers in making the most of loyalty programs. Any business, from banks to airlines, can benefit from implementing blockchain technology to boost productivity, cut expenses, and build customer loyalty.
Sandblock is shaking up this sector with its blockchain-based platform, which promises to alter the loyalty landscape by empowering travel companies to issue redeemable loyalty tokens for branded incentives. Users can earn extra tokens by participating in the community and using their tickets to redeem incentives across several services beyond the firm that granted them. More than that, they can be traded for regular currency, just like fiat currency. The payoff for businesses is higher-quality data, more openness, and a more profitable environment resulting from more precise marketing and satisfied customers.
Beginning of Metaverse in Travel & Tourism
Now that the younger and more tech-savvy demographic wants access to the Metaverse, which can benefit from AI and machine learning's ability and make them be excited about the hyper-personalized experience in the travel and tourism industry. Many organizations have taken up this crafting, and it is significantly welcomed. Other technologies in Tourism are,
- The Travel Ledger system is an electronic invoicing and payment remittance platform that facilitates safe and simple money transfers between travel agencies and their suppliers. The existing method of billing, reconciling, and settling for non-air travel services is being phased out in favor of a new system that will allow for more efficient and affordable business dealings.
- TripMatrix is an all-inclusive, cloud-based solution that allows travel agencies to market and manage their offerings. TripMatrix is a business management system utilized by the travel industry's aggregators, including travel agencies, tour operators, and DMCs.
- Cluecation is a British firm that makes travel planning more like a game. The firm designs activities that bring visitors closer to the locals and their surroundings as they discover new areas.
So how we vacation depends heavily on the right mix of technology and travel. Trips will be more pleasant and easier on the wallet and the soul. Automated travel planning tools have revolutionized the tourism industry and opened the door to more engaging and personalized vacation experiences. Business conferences and product launches have moved into the Metaverse due to the rise of immersive technology in Web 3.0. Blockchain is a game changer in the travel industry by introducing many new services that aim to modernize and simplify the experience, eliminating problems such as fees, booking oddities, bad reviews, and long queues. Ventures that meet the needs of consumers and companies for Web3 in travel are receiving a large influx of funding. Travelers and service providers can create more valuable interactions with one another because of the development of more egalitarian ecosystems designed to decrease the involvement of intermediaries. By recording every transaction on the blockchain to make information more secure, transparent, and easy to track, blockchain technology could improve the traveler experience.
This adaptation results in greater productivity for companies and more pleasant trips for their customers.
Guess that this blog has ignited your ideas over bringing in some change in your travel business.
Make today the day you contact Performix to get your travel company's Web3 product built. Let our professional programmers bring your idea to life.