Benefits and use cases of blockchain in the hospitality industry

In this article we will explain how blockchain can apply to the hospitality industry and the benefits this technology offers.  IT technology has already changed the industry to make it more convenient for travelers. People book hotels and tickets online, but the process is far from perfect.  Blockchain is the next step in improving the quality of tourism services and increasing profits for suppliers. It can streamline and automate many processes in the hospitality industry, connecting travelers and services’ providers directly. Blockchain has several advantages allowing all participants to win. How could one use it in practice?  Digital identity  Using a token on a blockchain that represents a digital proof of one’s passport, travelers need only a smartphone to quickly pass through checkpoints during the journey. A false passport or boarding card will not be verified by the blockchain. Prevention of duplicate bookings Centralized payment servers cause multiple bookings by the same user, especially in high season. Blockchain is decentralized, and it prevents multiple bookings of the same entity. Secure and transparent transactions Blockchain reduces risk of transacting fake currency due to every transaction being traceable, and payments in cryptocurrency are protected from fraud.  Authentic and verified user ratings The impact of customers’ reviews is significant, but there is still the problem of fake ratings. Blockchain can prevent fake reviews, through a decentralized verification system ensuring that reviews only come from the real guests. Check out our list of the top 5 blockchain travel booking companies Improving of guests experience  Tourists can be rewarded in the form of cryptocurrency, buy NFTs to collect impressions or exchange them for discounts. It brings gamification and engagement for sophisticated travelers.  Advanced loyalty programs Loyalty points can be stored on the blockchain and are immediately visible and exchangeable for the user. Organizations can save advertising costs by making personalized offers based on the generated data and customer profiles and can prevent programme fraud. Simplifying payments Financial transactions in the hospitality area involve several intermediaries, all of whom claim a share of the fee by charging transaction fees. Blockchain can reduce their role. Thus making the process much cheaper and handling the financial transaction quickly and simpler. It also provides more possibilities for people who can pay safely in cryptocurrency.  Tracking baggage  Providing baggage with a unique code, constantly scanning it and logging on to the Blockchain, it becomes clear in real time where the item is located. This is crucial if baggage is lost.   Companies have already utilized blockchain advantages to solve problems and get the benefits. Do you want to know more about their solutions? Get the presentation on Blockchain use cases in the hospitality industry We have implemented blockchain solutions for a number of different business areas.  Check our portfolio