Everything we knew about the travel industry could be about to change. It’s no secret that the pandemic affected the travel industry more than anyone could have predicted - and it’s still feeling the effects to this day. However, one saving grace to come from that was the need to find new ways to open up the industry to customers. Cryptocurrency and decentralized blockchains became the answer.
Below, we’ll look at what decentralized blockchains are and how they have - along with cryptocurrency - begun to infiltrate the travel industry.
To understand how decentralized blockchains are changing the travel industry, you first need to know what one is. A decentralized blockchain differs from a standard one because you don’t need to know or trust anyone else in the blockchain. Every member of the network will have the same copy of data as the next.
Differences in the copy of data are rejected by the rest of the network, making it actually one of the safest networks to be a part of. Because it’s so hard to alter the data, decentralized blockchains become the perfect solution for industries like healthcare, cybersecurity, and travel.
Any industry that carries mass amounts of data could benefit from utilizing decentralized blockchain technology. Considering decentralized blockchain technology is already hailed as a game-changer for many industries, how is it influencing the travel industry? As it stands, there are a few decentralized blockchain applications already making their mark on the travel industry.
Cryptocurrency payments are the most exciting development for the travel industry. Travel isn’t the only industry to try this. Tesla famously announced they’d accept DOGE as a payment, and brands like Microsoft, PayPal, Whole Foods, and Etsy support cryptocurrency as a payment method, and so they should. Cryptocurrencies open the doors to a whole new world of customers who have their money tied up in digital currencies -that’s about 16% of Americans.
It’s no wonder then that cryptocurrency payments for the travel industry have kicked off. It’s easier than ever to access the top crypto exchange like Bybit, which lays everything out on the table. But, it’s also essential to remember that cryptocurrency works best as a long-term investment. If you invest in a coin or token now, you might find that by the end of the year, you’ll have a pot of money to use to pay for a vacation. Think of it as your personal savings fund.
Plus, there’s never been a better time to invest. More travel companies are opening their doors to the world of cryptocurrency payments and decentralized blockchains. Those companies include:
● Cheap Air
● Bitcoin Travel
● Webjet Exclusives
That list only keeps growing. Explore for yourself and see if any of your favorite travel companies accept crypto as payment.
Loyalty tokens are a relatively new concept for the travel industry, but they’re already proving to be a rising star. Loyalty tokens originated from the same idea as loyalty programs - an already wildly popular and successful incentive program that benefits shoppers as they spend.
Loyalty tokens, however, differ slightly from loyalty programs, but the concept is the same. The only problem with standard loyalty programs is people often comment how they have wandering eyes for companies offering a better deal. Innovators like Sandblock aim to mitigate that risk by putting owners of loyalty tokens in charge of their own destiny. By destiny, we mean they get to create their own loyalty tokens that they can use for brand-specific rewards. With Sandblock, owners can also sell and trade the tokens in exchange for fiat currency.
How do travel companies benefit? There are better data sets and transparency with loyalty tokens making it far more appealing than the standard loyalty program.
How annoying is it that wherever you go, nobody knows who you are until you show them your passport at customs? No matter where you travel to, one of the overwhelming thoughts about the destination is the custom lines - the lines can sometimes be so long travelers spend hours and even miss flights.
In comes Accenture to change the game. Accenture has developed digital identity software aiming to eradicate the need to stand in long customs queues. They partnered with the World Economic Forum to create the Known Traveler Digital Identity System. Blockchain technology will collect and host the information needed to identify a traveler. The result of the technology - once widely accepted - should be smoother flowing data between travelers and customs agents.
Bear in mind - this technology is still in its infancy. You will still get stopped if you try to barge past customs officials because you believe they should have all the identification they need from the blockchain. Still, it’s an exciting bit of technology that should transform the industry in the future.
The travel industry does and will continue to benefit from decentralized blockchain technology. It’s still very much in its infancy, but the applications already utilized by the markets are making a huge impact. It’ll be exciting to see how technology transforms the travel industry in the future.