How Blockchain Technology Influences Hospitality Industry

22 Mar 2018

Blockchain Technology refers to the digital recording of transactions permanently for an extended period. The records are recorded in the form of “blocks,” and they are done in the form of cryptography. Once all the files are saved in the system, it cannot be changed or altered in any way.

The main advantage of Blockchain Technology is that the system of storing information is in a decentralized form which means data are stored in separate places altogether. This helps the data to be maintained transparently, and there cannot be any distortion of data. The records in the network provided are shared between many people because of it the failure rate is reduced rateably.

The data, which is entered in the records, are based on time and gives more transparency to all the files stored in the computer system.

Let’s discuss how blockchain technology will transform the hospitality industry.

Direct Booking will be More Simpler

The concept of decentralization of database in blockchain will ease the hotel and travel booking. People will directly access the availability of rooms or transportation and make the payment directly. Of course, this may eliminate the role of travel agents.

Generates More Revenue

With blockchain technology, the hotels can share their inventory and other properties online sharing with all the people. This will lead to reaching more people easily. Surely, this will offer more exposure to the hotels and result in the revenue generation.

Secure Payments

The best advantage of blockchain technology is acquiring of payments. All the bank accounts or global currency is streamlined and it makes the payment process easy. This is a great help in settling payments of overseas transactions. There can be more trust in the making of payments to offshore banks making it more transparent.

Baggage Tracking in Hospitality Industry

In case of blockchain technology, the baggage of customers is checked a lot many times, which helps in the reduction of issues in the logistical department. This will not save the travelers’ time but the managerial efforts as well.

Real-Time Collaboration Among Companies

All information of the travel sector can be dealt with by blockchain technology. The information is passed on to many companies, and they can collaborate for a greater customer experience.

Transparency in Supply chain

Large hospitality companies pursue the franchise model where the quality of supply is significantly important for the brand’s reputation. The blockchain technology will considerably help to maintain the transparency and make the entire process of the supply chain easy.

Loyalty Programs – Enhancing User Experience

Loyalty programs help in the return process, which allows people to access all their points quickly. The scheme of loyalty programs has decidedly fewer frauds in them, and the tokens can be given to customers in a digitalized manner. The hotels, car rentals, airlines, and guides can create the blockchain network for their members to redeem loyalty points from their partner.

This hospitality industry is one the most sensitive business with the customers. The implementation of blockchain technology will certainly help the industry to improve the customer experience, making backend processes more competent, and creating the brand value.