FEATURE ARTICLE
network . Once that approval happens , the transaction is then fixed and immutably recorded . It can ’ t be changed , and acts as a permanent record .
If that still sounds confusing then check out this video as it helped me a lot to “ get it ”: www . youtube . com / watch ? v = z _ o _ MYF5tVc & t = 1s
With that in mind , how can this be of use to the travel sector ?
Applications in travel
In theory , all businesses can benefit from some of blockchain ’ s applications . But there are various travel groups , hotels and airlines exploring some fascinating possibilities . Don ’ t forget , it ’ s a beginning and with the technology evolving we see more and more capabilities ( remember C64 Computer with 256 MB hard drive ?):
Guest loyalty programs and distribution
According to the 2015 Colloquy Loyalty Census , the average U . S . household participates in 29 different loyalty programs . But , many consumers just aren ’ t engaged with these programs .
It ’ s not surprising . Trying to track and manage multiple loyalty schemes from different companies ( all with unique incentives and conditions ) is arduous .
The trouble is that engaging with all these loyalty programs requires independently visiting each company ’ s own platform , which can be a major hassle .
But blockchain could change all that . Makes sense , no ? Like an aggregator for loyalty
Experts from Deloitte have looked at how blockchain might be able to simplify loyalty programs by storing them all in a single digital wallet . This would allow a customer to access and redeem all their airline , hotel and travel company loyalty points in one place .
In a blockchain-based world of loyalty , a customer flying from San Francisco to New York might redeem their airline loyalty points for an Uber from the airport . The same digital wallet could then be accessed to redeem their hotel loyalty points when they arrived at their accommodation .
As growing numbers of travelers seek instant rewards and simplicity , clunky loyalty schemes represent hassle and confusion . The likes of Travelkoin , Loyyal and Trippki offer a way to cater to this new traveler mindset . Fast and frictionless , their blockchain-based programs represent a new way to engage and retain customers through customized , easy-to-access rewards schemes .
Reducing the need for OTA-dependency
At present , countless hotels rely on OTAs such as Expedia and Booking . com for distribution . It ’ s a relationship of necessity — major OTAs provide mass exposure for hotels to reach larger audiences and capture more bookings .
The cost of this relationship , however , can be substantial . OTA commission fees average between 15 % -25 %, heavily eroding hotel profit margins . Blockchain offers a solution to this issue too , allowing transactions to take place without intermediaries .
Startups such as Winding Tree and Trippki are developing blockchain-based distribution platforms specifically for the travel industry . For hotels , this provides a new place to list their inventory and reduce paying costly intermediary fees .
Following on from Lufthansa Group and Air New Zealand , Nordic Hotels Group is the first hospitality group to test out Winding Tree ’ s merits . While the group ’ s director of future business , Christian Lundén , sees business-to-business as the most promising area right now , there ’ s a wider positive to consider .
Without third-party involvement , a hotel would enjoy higher profit margins , giving them greater
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