The tourism industry is slowly recovering worldwide from the consequences of the corona pandemic. In order to stay on the cutting edge of technology, the tourism industry has been catching up, especially in the areas of blockchain and crypto. Many new actions that benefit companies and travelers have only become possible thanks to blockchain applications.
A Quick Overview: Are Crypto and Blockchain the Same?
Cryptocurrencies have been a phenomenon since XNUMX: In XNUMX, the mother of cryptocoins, the first Bitcoin, was mined. To date, Bitcoin has been joined by another hundred cryptocurrencies, all of which are traded worldwide. Smart algorithms have that trading automated. The result: the digital currencies are attracting interest in more and more economic sectors.
Much more fascinating, however, is the technology on which Bitcoin is based. The blockchain is a decentralized database consisting of different blocks of data that build on each other. The system is not stored on a single server, but is distributed across many different servers worldwide. That – and the system of contiguous blocks – ensure extremely high data security and transparency.
This storage system is not only suitable for financial transactions. It also finds application in smart contracts and other challenges across different industries.
Benefits of Blockchain for Travelers and Tourism Businesses
The new, with the blockchain associated opportunities can be used by many tourism associations and organizations. Some advantages are particularly interesting.
Increased networking thanks to blockchain
Different players in the industry can be connected much better using suitable applications. An example of this would be the networking of an entire region dependent on tourism. Let's take an Alpine valley in Bavaria, where hotels, accommodation, travel agencies, local activity providers and city governments could all be networked with the aim of offering visitors a complete travel experience. Free rooms can be viewed in real time, as can the load on the chairlifts, swimming pools or other facilities.
High transparency and security
Blockchain is extremely secure and very transparent. Every action is immediately saved on various servers. The campaigns can be viewed independently by all participants and can hardly be changed afterwards. In practice, this means that each participant in the application is able, for example, to see the available rooms in a certain region. Bookings are updated in real time; Double bookings and the like are prevented.
The financial aspect cannot be ignored either. Cryptocurrencies are already established in the tourism industry. While this is not yet the case everywhere, there are many so-called crypto hotels that accept digital currencies. The situation is similar for airlines and travel agencies. The advantage of using digital currencies: There is no conversion, since Bitcoin, Litecoin and Co. are traded and used all over the world at the daily rate.
Three examples of using blockchain technology
We present three applications whose business idea is based on blockchain technology:
Bookings with Winding Tree
Winding Tree is a start-up dedicated to improving the connectivity of all participants in tourism. The application brings together different actors such as hoteliers, tour operators, restaurants and travelers without depending on intermediaries such as Expedia, Booking or Airbnb. The benefit to users and businesses is obvious. The costs and fees are reduced. In this case, Winding Tree uses the Smart Contracts and the ERC protocol.
Big dreams in Dubai
Dubai is a pioneer of modernity and technology. The country is also using the blockchain in tourism. The “Dubai 10X” project includes a B2B marketplace where hotels in the desert state can present their offers. It becomes easier for travelers to generate tailor-made offers and filter the best prices. In Dubai, bookings are confirmed in real-time and travelers can see hotel occupancy rates right in the application.
Booking optimization at TUI
The world's largest tour operator TUI is also experimenting with modern technologies to improve the user experience. TUI wants to get a special problem under control with its application: the occupancy of the different holiday areas. While some regions are congested, empty beds abound elsewhere.
The idea: to improve utilization efficiency with new booking systems. Time-limited campaigns could be started in order to draw the attention of holidaymakers to less frequented regions. There are opportunities to achieve group-wide advantages with blockchain technology.
Tourism industry on the rise thanks to blockchain
While there are still concerns about the use of more and more digital technology, it's hard to ignore the importance of blockchain and co. To name just a few examples: The advantages are evident for the multi-million dollar tourism industry, in more efficient and individually configurable offers for travelers or in better occupancy of hotels and flights. If the current data protection regulations are followed, the tourism industry and all its stakeholders will derive enormous collective benefits from blockchain technology.