Blockchain technology is an advanced database mechanism that allows transparent information sharing within a business network. A blockchain database stores data in blocks that are linked together in a chain. Or better put Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.
According to the United Nations World Tourism Organisation (UNWTO), tourism entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.
Blockchain, with a strong focus on decentralization and security, is like a digital ledger that’s shared and verified by many people. This makes it extremely tough for anyone to tamper with or hack, ensuring trust and reliability in a world full of digital transactions and information.
In recent times the tourism industry has been challenged through the inadequacy of a centralised financial system which can breach the security of information. Centralized financial systems, like traditional banks, are vulnerable to data breaches and fraud. Tourists are facing risks related to their payment information when booking flights, accommodations, or making purchases.
Centralized systems usually require trust in a single entity, which can be compromised if that entity fails or is involved in unethical practices. This lack of transparency and control can deter tourists from using financial services in the industry.
To overcome these challenges, the use of blockchain technology can play a transformational role in the tourism industry by exploring decentralized financial solutions and other features of blockchain technology.
The potential application of blockchain in tourism and how it addresses the challenges of the tourism industry:
1. Enhanced Safety: One of the features of blockchain is that it offers robust security through its decentralized and immutable ledger. This can help in securing sensitive traveler data, such as passport information and payment details, reducing the risk of data breaches and fraud.
2. Shrewd Contract: Leveraging the shrewd contracts of blockchain can automate various aspects of the tourism industry, such as booking accommodations, flights, or rental cars. This reduces the need for intermediaries and ensures transparent and efficient transactions.
3. Reduction of Frauds: Tourism often suffers from ticket fraud, fake accommodations, and counterfeit tour packages. Leveraging blockchain’s transparency can help in verifying the authenticity of bookings and tickets, reducing fraud.
4. Alliance Program: The tourism industry through blockchain can facilitate loyalty programs for travelers by securely managing reward points and making it easier for customers to redeem them.
5. International Payment: Through cryptocurrencies and blockchain technology tourists can simplify cross-border payments, reducing transaction costs and settlement for global travelers.
Having highlighted some of the ways the tourism industry can leverage blockchain technology, there is also a need for the adoption of blockchain through proper awareness to overcome the resistance to blockchain technology and that requires a combination of education, collaboration, and practical demonstrations of its benefits. It’s crucial to create a supportive environment where stakeholders see the value of blockchain in enhancing the industry’s efficiency and security.
Are you a tourism organization and you are looking into leveraging the blockchain?
The time is now! The time for blockchain in the tourism industry is now.
Adopt this technology as a powerful tool for transformation, secure, efficient, and traveler-centric industry.
Let’s embark on this journey towards a brighter, blockchain-enabled future for tourism.
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