Blockchain Technology and the Quest to Transform the Travel Industry

The year 2018 hasn’t particularly been the best year for cryptocurrencies, as the bear market had eroded value in almost every digital asset out there.

However, while cryptocurrencies aren’t having the best of times, blockchain technology has managed to stay relevant, with organizations and governments coming out with ways through which they can use blockchain as a tool for growth and advancement. One particular sector that has witnessed a tremendous use of the nascent technology has been the travel industry, where even airports have adopted the use of cryptocurrencies as a means of payment.

Cutting out the Middlemen

As it is with any industry, the presence of middlemen has always been one of the major issues with the transport industry. Since these their parties provide the customers with relations and communications with hotels, airlines, and other travel service providers, they also lead to an increase in transaction costs.

Third parties like TripAdvisor end up charging for the services that they provide, and this can add up to your already huge fees.

With the use of blockchain technology, a consumer could perform their travel and hotel bookings through the execution of a smart contract, thereby eliminating the need for middlemen like Expedia and Hotels.com. In like manner, the hotel or airline will be able to trust that the payment from their customers will get to them seamlessly, within a short period. Travel intermediaries are notorious for payment initialization issues, which often lead to a disruption of the customer’s itinerary.