Driving efficiency in tourism through blockchain

29. Apr.

The next generation of travel experience is closer than you might think. While we are not talking about some sci-fi scene, the emerging tech, namely Blockchain is already finding its use case in the Real World Application.

Harnessing blockchain innovation in ways that solve persisting challenges in the travel industry from lack of transparency, fake reviews and bad actors all affect the end consumer’s trust and security.

Now here is a fair question: Can blockchain technology be used to prevent fake hotel reviews on Booking.com and ensure that only authentic and verified reviews with a verification checkmark are shown to users?

Theoretically, many developers in the scene would say that it is feasible and implementable. Now, skeptically, preventing fake reviews by time stamping everything on the chain and providing user incentives doesn't necessarily gain user confidence because the end user doesn't care about blockchain tech, nor does the end user care about innovative ways of providing a checkmark to a blockchain-verified review.

Bots are still a problem

There is still the issue of fake reviews manipulated by bots or dishonest users, which blockchain technology may not completely solve. While timestamping reviews on the blockchain can help to track their authenticity, it does not guarantee that the content of the review is accurate or unbiased.

Blockchain sets the standards high for the travel sector

What blockchain does do well to prevent fraud in the sector is it sets the bar and standard so high that manipulative and fake reviews get harder and harder to fake. This is valid because blockchain verification processes can provide higher trust and authenticity, as each review can be linked to a specific user or transaction. This can discourage fraudulent activities as users are more likely to trust reviews that are verified on the blockchain.

The post pandemic era and the need for digital transformation push

In order for many small and mid-scale travel businesses to survive and sustain revenue generation call for the need to develop smooth customer journeys. Enabling such journeys with tech will be a crucial differentiator. This includes identifying the behavioral data of customers and analyzing preferences based on demographics and geographical data. Blockchain as well as other technologies such as AI, automation, and analytics are increasingly being adopted to reduce costs and improve operational efficiency.

This is important because shortly into the post pandemic recovery the industry experienced a massive shortage of staff in much of Europe and operational disruptions were an everyday hassle. Adoption of innovative zero knowledge proofs such as blockchain powered digital identities can be a future reality that can improve speedy immigration check, bag dropoff, and efficient boarding experiences at airports demanding little to no human supervision. Moreover, the benefits of supply chain management can be immense. For multi stakeholders, Blockchain can offer a single source of truth to companies looking to verify data-driven and unbiased information.

Deloitte and other organizations are addressing challenges like interoperability, scalability, security, and stakeholder buy-in to deliver effective blockchain solutions for supply chain management.

Image courtesy: Chain4Travel AG

Empowering Travellers with Self-Sovereign Identity (SSI)

Self-Sovereign Identity (SSI) gives individuals control over their personal data and how it is shared. With SSI travellers can manage their data independently and choose which information they share with hotels or airlines. This enhances user privacy and security as individuals no longer have to rely on intermediaries like booking platforms to decide which data is shared and stored. SSI data on database free platforms given a green light by the authorities can make it much easier for companies and individuals to comply with GDPR and related privacy regulations much more easily.

Also SSI enables a seamless and efficient travel experience, as individuals can use a digital ID-wallet based on blockchain technology to check into hotels or board planes with just their smartphones. Ultimately, SSI empowers users by letting them control their identity and data, leading to a more personalized and convenient travel experience. Identity is seen as a key compoenet before services can be tailored to fit individual customers in a personalized way.

A company called Chain4Travel held a travel tech event called Decode Travel Hackathon from April 23 to April 26, 2024 in Berlin, Germany where the participating teams where presented with challenges to solve critically and innovatively with on-site mentoring support.

At the hackathon Polygon ID offered a platform to develop and showcase cases based on Self-Sovereign Identity (SSI) in a well defined challenge. The participants were invited to use Polygon ID toolset to represent identity-based information as verifiable credentials, enabling travelers to prove attributes without compromising their privacy. The challenge at the Decode event focussed on privacy and personalization in creating the travel experiences of the future, addressing issues where service suppliers can not personalize services without travelers sharing personal information with distributors.

The rise of conscious travel

More and more travelers with the financial capability are becoming aware of the importance of sustainability in their travel decisions. Search engines such as Google Flights now consider carbon emissions, helping travelers make more informed choices. This shift is influencing how people prioritize their spending and selection making. Here Blockchain’s role in travel tech revolutionizes the industry by providing transparency and accountability regarding airline operators’ sustainability practices.

Blockchain adoption can improve user experience and service offering

Even though it might not make intuitive sense right away, blockchain can give some companies a major push in their branding. Companies that deploy blockchain can differentiate their offerings from the competition in a saturated market. For instance companies can stand out from Google-Bookingcom-Expedia oligopoly and pitch their services with a unique angle. Cutting down manual efforts and creating loyalty programs such as one executed by airbaltic with their NFTs can make a brand retain and generate repeat customers over time. The ease and the upcoming regularity framework around blockchains with tokenization talks and MiCA regulation can pave a path to mass adoption.

All in all…

The potential return on investment in implementing blockchain solutions within the travel sector remains uncertain. However, the market may see increased adoption during bullish market conditions and in stable macroeconomic environments post-inflation. Ultimately, users are primarily concerned with the benefits, experiences, and problem-solving capabilities of new technologies, rather than the technology itself. A sophisticated technological infrastructure alone is unlikely to drive adoption, as much of blockchain technology may operate in the background. Nevertheless, there is a growing market for blockchain solutions within the travel industry, particularly as more large companies embrace a more experimental mindset. Hosting hackathons and events that bring together experts from both the travel and blockchain industries will be crucial in uncovering innovative solutions that have yet to be explored.