There are many challenges facing the global tourism industry, some of which require government intervention, such as extreme weather or geopolitical instability, while others can be easily solved by implementing cutting-edge technology.
From double-booking and identity verification issues to exorbitant payment processing costs and inefficient loyalty programs, long-standing issues continue to vex excited travelers. Thankfully, a solution has emerged in the form of blockchain. This may hold the key to changing tourism for the better.
travel, simplify
One of the most notable benefits of incorporating blockchain into the tourism industry is the ability to create transparent and tamper-proof booking records. This is one of the reasons why Bitcoin is so valuable. The public ledger is immutable, it is impossible to “double-spend” Bitcoin, and users can verify the authenticity of the currency in their wallet by checking the block explorer.
Of course, the Bitcoin blockchain records financial data, but the blockchain itself can record all kinds of information. Leveraging this for travel bookings can prevent double bookings and fraudulent bookings, ensure a seamless experience for tourists, and reduce operational overhead for service providers.
Self-sovereign identities, which store public identifiers of identities on-chain, are another gift to the tourism industry. SSI gives individuals control over the information used to prove their identity on various websites, services, and applications, and in the tourism context, streamlines hotel and airport check-in and streamlines the process. Less susceptible to identity fraud.
Additionally, by decentralizing personal data and eliminating the need for centralized databases that are vulnerable to cyber-attacks, travelers enjoy greater peace of mind and enhanced privacy. Earlier this year, an Australian travel agency unintentionally exposed customer data after leaving its database exposed. If SSI is used, this will not happen. Actually, it doesn’t happen.
Another key benefit concerns transactions that occur at every stage of the tourism experience, from booking hotels and flights to paying for attractions and dining out. Blockchain-based smart contracts enable trustless transactions, simplifying the payment process and reducing booking fees compared to using credit cards.
By leveraging blockchain, service providers can reduce costs, while consumers benefit from more accessible and affordable travel. Of course, not all vendors accept cryptocurrencies. Approximately 15,000 businesses around the world currently accept Bitcoin, including 2,300 in the United States. This number is expected to rise following the legitimacy given by the SEC’s Spot Bitcoin ETF approval earlier this year.
reward loyalty
Loyalty programs have become a mainstay of the modern tourism industry as airlines, hotels, and travel companies recognize the value of repeat customers. However, loyalty programs are riddled with inefficiencies, including rigid reward structures and a lack of reward relevance.
Blockchain-based loyalty programs are a different story. By leveraging digital tokens that are securely recorded on-chain, these transparent programs benefit from fewer intermediaries, greater flexibility, and lower transaction costs. Payments are automated and funds are available almost instantly.
Furthermore, the decentralized nature of blockchain eliminates the risk of data manipulation and fosters trust between travelers and vendors.
Travala: A pioneering example of blockchain in tourism
The idea of implementing blockchain in tourism is not abstract. Crypto-native travel booking platform Travala has been in operation since 2017, demonstrating the transformative power of technology.
Travala has a global presence with an expansive network of more than 2.2 million accommodations in 230 countries, over 400,000 activities, and over 600 airlines. It also supports 125 payment options, including traditional methods such as credit cards, over 100 digital assets, and stablecoins.
Apart from supporting cryptocurrencies at the payment stage, how does Travala use blockchain? The core service is a blockchain-based service that uses the native token AVA to bring multiple benefits to users. Reward System (AVA Smart Program).
This token is at the heart of the loyalty program, allowing members to receive up to 10% in AVA (for Smart Tier members) or Bitcoin (for Smart Diamond and Platinum members) on every trip completed. The basic free membership also gives users up to 2% AVA on bookings after the trip is completed, paid directly to your wallet within 24 hours. Users are also entitled to an additional discount of up to 3% off the booking price if they pay the full amount with her AVA.
In addition to discounts, AVA token holders can also receive random travel experience rewards, complete “contributor tasks” to claim travel credits, and access other exclusive benefits . AVA benefits can be applied toward future bookings, exchanged for other digital currencies, or used on platforms where AVA is accepted. The token gives users a say in the future of her Travala.com and gives them the right to vote on key platform proposals.
According to the latest monthly report, more than 20,000 Smart members are currently taking advantage of the benefits provided by Travala through its unique blockchain-based loyalty program, with approximately $100,000 in “giveback” rewards at AVA. It is distributed as. Meanwhile, the number of monthly active users (MAUs) exceeds 250,000, with 78% of all bookings paid using cryptocurrencies.
As projects like Travala continue to pioneer the adoption of blockchain in the tourism sector, it is clear that this innovative technology has the potential to play a pivotal role in shaping the future of the industry. Traditional travel companies should be wary of the prevailing headwinds.
