The blockchain technology is now making headway in the travel and hospitality industry in ways that could not be imagined. It has been one of the most exciting technological innovations in recent times and has the potential to revolutionize the ways in which transactions are made and data is stored and accessed. In an age of digital payments, the hotel industry has started accepting new technologies for upgrading their guests’ experience and streamlining basic operations. Whether it is to make a spa reservation, order room service, or access rooms using apps, digital technology is everywhere.
How Is Blockchain Technology Being Used By Hotels?
- Data collection offers valuable insights into what guests want and hotels are now incorporating these to offer them an even more personalized experience. Chatbots and AI allow guests to adjust their room temperatures or ask for maintenance through voice commands.
- The blockchain is a public ledger that stores digital records securely. The records are verified and secure via cryptography and once this data has been added to the blockchain, it cannot be tampered with or deleted. In short, data becomes transparent and cannot be manipulated. Since the records are shared across multiple computers or nodes, there cannot be any one point of failure. So, the biggest benefit that the blockchain offers is that of stability and security. Hotels can have a separate payment system for decentralized currencies like Bitcoin. Bitcoin is the pioneer of cryptocurrency and more volumes of it are traded autonomously. Have a look at this bitcoin lifestyle krypto-roboter 2021 review to learn about autonomous trading.
- Since data is traceable and decentralized, the database cannot go offline; neither can it be eliminated via cyber attacks. This ensures complete security during monetary transactions. Besides, the blockchain simplifies actual payments, particularly overseas payments. Using this new technology, the whole process happens quickly and in a hassle-free manner. There is increased transparency and greater trust.
- Some of the hotels have even started accepting cryptocurrencies to appeal to a niche market. This has definitely not yet become mainstream, but the trend is slowly picking up. Many places are embracing crypto payments and some hotels are looking at this as an opportunity to attract guests that are keen to use their cryptos for payment purposes.
- Hotels can start using the blockchain for managing their loyalty programs rather than shifting to a system wherein guests are given cryptos as rewards. Blockchain ensures that keeping a track of unredeemed rewards, deciding on payments to partner companies and vendors in loyalty programs, and adding new partners to programs, can all be streamlined. The blockchain will pave the way for more promotional offers and targeted marketing for customers/guests. This will be possible as the blockchain will know firsthand when and how the loyalty program members are earning points and the technology can also give hotels inputs about guest habits and choices without having to undergo an intensive IT exercise.
- Today, there are a handful of OTAs or online travel agents that dominate the booking landscape and hotels must pay them commission between 10% and 30% for every booking made. This is a cost that hotels have to bear and this translates into higher costs for hotel guests. Startups like Winding Tree, Travala, etc are now allowing guests to book their accommodation directly. Companies like KeyoCoin wish to give crypto rewards as incentives to guests for booking rooms through mobile apps instead of OTAs.
- Finally, blockchain in the hospitality industry will enhance ID and security. Passengers and guests have to provide their ID at different stages of their stay but if the entire industry conforms to the blockchain, they can access a shared database that will have all passenger or guest-related data. So, verifications will happen much faster, saving time for both guests and hotels.