The world is changing very dynamically, and all sectors of the economy, to a greater or lesser extent, respond to this transformation. Tourism is no exception to the rule: the industry is constantly increasing its digital footprint and using new technologies, including blockchain technology.
In this context, blockchain technology is a notable asset whose potential is currently being explored and exploited by tourism professionals around the world. How exactly to use this technology? Is it just a buzzword or does it have a real impact on the sector?
The reality is that blockchain offers a wide range of interesting possibilities in the travel industry. First, it is an obvious use in payments in the form of cryptocurrencies. As a result, transaction costs can be reduced to an absolute minimum.
The technology could also have a positive impact on the somewhat stagnant loyalty market, which seems to still be lost in the old habits of the previous decade in terms of rewarding loyal customers.
The possible introduction of cryptocurrencies into company loyalty programs could give them a new dimension as they are decentralized and fluctuate based on demand. Thus, customers can influence the amount of reward for their loyalty.
Blockchain technology can also be widely used to facilitate the storage and verification of customer data, as well as to support OTAs, which can benefit from a reduction in the number of intermediaries and therefore transaction costs. As a result, companies can reduce costs, increase revenue and increase profitability.
Finally, there is room for non-fungible tokens (NFTs), which have been growing in popularity over the past couple of months. NFTs can represent the tickets or coupons of the future and can be used for everything from boarding a plane to buying travel products.
Airlines tend to be the most innovative in the industry in using blockchain technology. For example, companies like Norwegian Air or AirBaltic have started accepting payments in cryptocurrencies.
Northern Pacific Airways, due to launch this year, wants to reward its customers with tokens that can be redeemed for free flights and other perks.
Better-known brands in the passenger air travel industry are also exploring moves in this direction, such as British Airways, Lufthansa and Air France, with the latter testing a blockchain-based application for submitting Covid-19 tests and vaccination certificates.
Other significant players in the travel industry are also actively using this technology, such as Expedia, which already accepts payments in cryptocurrencies, or, for example, Lynkey, a company operating in the luxury travel industry, has begun to implement NFT in its business model.
It is clear that the introduction of technology is at an early stage, but the potential is huge.