The Global travel and tourism industry contributes to a value of around 5.81 tr USD in the global economy.

This very figure underscores the length and breadth of the industry within the global economic space.

A huge sum of money rolls out in this industry. The payment as well as other reasons.

Companies are now looking to incorporate Blockchain when it comes to payment systems.

Do you run a hotel or own a number of cabs? You, too, could accept Cryptocurrency.

You can use a crypto boom site that facilitates your payment.

In this article, we will discuss how the travel industry can leverage Blockchain to reach new avenues of financial success. So let’s start the discussion here.

Some Facts And Data On The Travel Industry

To understand the application of the travel industry, let’s have a look at some of the core statistics in the industry.

According to facts and data, the global travel and tourism industry is projected to reach pre-pandemic levels in 2022, which is $2 Trillion.
The spending of International travelers in the USA could reach $155 billion, compared to the 2020 figures of $113 billion. So the lock gates are opening.
Expenses are going to rise to a massive 34% due to higher fuel prices and lower passengers utilizing the services.
American travelers are spending 29% more compared to the 2019 values.

It is easily found from the study that cost turns out to be a real issue for the travel industry.

So there is ample opportunity for companies to use Blockchain Technology to reduce costs.

Application Of Blockchain In The Travel And Tourism Industry

The stakeholders involved in the Travel and Tourism industry are looking to leverage Blockchain for more than one reason.

So let’s see the areas where the Travel and tourism industry can use Blockchain.

1. Decentralized Payment System

The primary application of Blockchain tourism is to ensure safe, secure, and hassle-free payment.

A decentralized payment system denotes that your transaction activities can not be hawk-eyed and monitored by any other party, like the government.

Why would the government see how much you buy or sell and how much you pay?

It is inferred from a study that around 20% of the customers are availing of Blockchain technology for ticket booking.

Airline companies like Air New Zealand inserted Blockchain into their transaction ecosystem. This also minimizes lots of time compared to 3rd party payment processing entities.

2. Trucking Luggage

Trucking and tracking luggage has indeed turned out to be like chewing iron nuts.

A traveler’s luggage goes through several kinds of checkups and screenings before reaching the final destination.

The itinerary of the luggage is stored in some non-standardized form by the parties involved.

These parties include airline personnel, transportation companies, and airports.

An online record-keeping system using a peer-to-peer network can bring in a revolution when it comes to tracking the movement of luggage.

Blockchain streamlines the entire system professionally.

3. Traveller Identification

Blockchain technology can store the information of a passenger. Within Blockchain runs an expanded network of computers. Had there been a central database, this would have become easy for hackers to hack the network and reach the data.

The World Economic Forum, in partnership with the governments of Canada and the Netherlands, launched a pilot program to make the entire journey minus paper.

They used Blockchain technology to allow travelers to have entire control over owed data, shielding it completely from any hacker.

4. Customer Reward System

This is one way of securing the loyalty of the customers. Airline companies run loyalty schemes to enhance a better relationship with their customers.

No travel company will be ready to leave its customers. Airline services using Blockchain can reward customers with Cryptocurrencies.

With the involvement of Blockchain, airline companies can eliminate any kind of involvement of any third party.

In the hotel industry, the hotels allocate Crypto tokens to the customers for staying in the hotels. The companies using these tokens (recorded permanently in the Blockchain) identify old customers and provide them with facilities. This supports customer retention and increases profits.