ROLE OF BITCOIN IN THE TRAVEL INDUSTRY
One of the swiftly developing sectors in the world is the travel industry. As per reports presented by the World Travel and Tourism Council (WTTC), in the past year the tourism rate grew 3.9 percent whereas the global GDP expanded to 3.2 percent. The travel industry is updated with new technologies that can enhance the development procedure. The blockchain technology behind Bitcoin can speed up and make the traveling experience better for travelers.
- PRESENT-DAY SCENARIO
One of the salient features of the travel industry is that it involves huge numbers of third parties that result in heavy payments from the customer’s side.
- The lengthy chain of intermediaries further leads to unwanted delays, overbooking errors, and other severe problems.
- A few years ago, the travel industry incorporated blockchain into its system to eliminate such issues.
- Several important areas are now improving the travel business after they have included blockchain technology into their system.
- BITCOIN AS A PAYMENT METHOD
Although digital currencies are yet to be accepted as a payment mode in several sectors, in today’s world, more companies are readily accepting Bitcoin as a mode of payment. For travelers, payment options as such have become a way to evade expenses of currency conversion, withdrawal fees from ATM’s, forgery and transaction cost. Trading cryptocurrencies as volatile as Bitcoin could be risky for beginners. In such a case, just reading here can be useful for investors.
Some examples of traveling agents accepting digital currency like Bitcoin are listed below.
- com – a California-based company that provides flights on all vital airlines and every important airport across the world. The company was the primary travel agency across the globe to start accepting Bitcoin as a substitute payment mode for flights in 2013.
- com – the travel agency accepts Bitcoin and BCH. The cost of flights and accommodation in digital currency can be checked by swapping local currency with digital currency at their home page itself.
- com – the travel agency famous for connecting flights from Europe across the globe accepts BTC payment only.
- BLOCKCHAIN TECHNOLOGY FOR TRAVELLING ORGANIZATIONS
The intermediaries, a part of the travel industry, are often responsible for lagging information, extension, and monetary losses as a result of all that.
- By ending the gaps between various payment systems, blockchain technology can eradicate this problem.
- This will further remove payment disputes and make the traveling journey much more relaxing and soothing.
- Industry experts have predicted a great perspective of blockchain technology to develop business procedures, reduce transaction fees, monitor the supply chain and build a loyalty program.
- HOW CAN BLOCKCHAIN HELP THE TRAVEL INDUSTRY?
Other experts firmly believe that blockchain technology will revolutionize how the travel industry works.
- Overbooking – blockchain technology can separate double bookings in the travel sector by stopping double expenditure.
- Fraud – refunds, and chargebacks are a common issue of the industry thus, merchants’ work is associated with greater monetary loss. One of the characteristics of digital payments is that once the payment is done it cannot be reversed. This further reduces the number of fraud issues.
- Settlement – blockchain permits faster monetary movement. Additionally, removing the third party and their charges, can lead to faster monetary transfer which can be beneficial for the industry.
- Loyalty – presently, loyalty programs are reasonable within a particular company. Purchasing tickets with points earned for the services used for other companies can be possible by the incorporation of blockchain technology.
- Identity and reputation – decentralization that goes side by side with cryptocurrency, will allow billions of people who are detached from the world economy, to get entrance to the financial services and join them with the world. Therefore, a larger number of people will get a chance to travel as reputation-oriented identity systems will prove their personality.
Implementing blockchain technology into the travel industry can be beneficial for both the agencies and the travelers who love to explore the world.