Although blockchain technology can sound confusing at first, it is actually pretty simple to get to grips with. Ultimately, it is a list of public records, also known as a public ledger, where transactions between parties are listed or stored. Each record, known as a ‘block’ within blockchain terminology, is secured using cryptography.
Secure, Traceable Payments
Perhaps the most important use of blockchain technology within the hotel and travel industry is related to payments. Here, its applications can range from serving as a global ledger, making bank payments more simple and secure, through to allowing travel companies to accept payments using Bitcoin and other cryptocurrencies.
BeeToken / Beenest
One of the most innovative current uses of Blockchain is the BeeToken or Beenest home-sharing platform. Here, the technology is used to put customers in touch with hosts, so that they can arrange and pay for stays. Again, there is no commission, while payment, reputation and arbitration protocols are all in place, keeping users safe.
Trippki is an example of a customer loyalty reward system. Here, customers and hotel chains, or hospitality companies, are put in direct contact. Eligible customers are allocated ‘TRIP’ tokens for staying in a hotel and these tokens are permanently recorded in the blockchain, meaning they do not expire and can be used at any time.
Sandblock: Improving Loyalty’s Fungibility
In the hyper-competitive travel and tourism industry, loyalty rewards have gone through several iterations, but only the most recent offers a real departure thanks to blockchain.
Many frequent travelers belong to airline and hotel loyalty programs. However, spending points and miles often means jumping through multiple hoops to redeem rewards. Furthermore, despite high rates of participation in loyalty programs, many customers report a willingness to accept better deals from competing carriers and service providers if the price is right.
New entrant Sandblock is looking to radically change the loyalty landscape with its blockchain-based platform. The company’s system enables travel providers to create their own loyalty tokens, which can be exchanged not just for brand-specific rewards, but be used like real coins and even exchanged for fiat.
Users can also apply their tokens to redeem rewards across a variety of services beyond the company that awarded them, and can earn more by being an active participant in the community. For businesses, the reward is better data and transparency, and an ecosystem that actually returns value to them thanks to improved targeting and happier consumers.
More examples at Blockchain use case – LeewayHertz Blockchain Developers.