Projects such as the Ethereum blockchain could solve travelling industry problems by transforming the current, centralized approach to a decentralized model that can help companies to stop the practice of paying third-party intermediaries or mediators for using their networks. To start Ethereum trading in only three steps, visit https://ethereumcode.app/. You will get the best liquidity, and the platform is immune to volatility risk. In a world where relationships with third parties are getting more complicated, and data is becoming a significant part of transaction costs, its precise blockchain technology will be vital in solving future industry problems. For example, the travel industry is often an excellent example of improving supply chains.
In the case of Airbnb and Uber, two popular service providers in the travel industry that provide both accommodation and transportation services at an affordable cost, the customer must register with both companies before they can even begin using their services. Likewise, both companies need to pay a third-party entity such as PayPal or First Data to access customer data, including name, address, and credit card information.
However, as with many other service providers in the industry, this is a high cost for both Airbnb and Uber and dramatically reduces their profitability. Ethereum blockchain technology can help to solve these problems because it allows customers to communicate directly with companies’ staff via smart contracts. As a result, the customer and the company can communicate securely and reduce transaction costs by eliminating third parties from the relationship.
For example, using Airbnb’s API (Application Programming Interface) function with the Ethereum blockchain would allow customers to register without cost. Similarly, Uber could reduce transaction costs by allowing its users to book services, accounting for payment after confirmation of ride. Let’s discuss how Ethereum can help the travel industry.
Customer Verification:
The current approach in the travel industry is very centralized. For example, to verify a customer’s identity, the customer must upload photo and passport details to the websites of several travel companies such as Airbnb or Uber. This process can be time-consuming and inefficient. By allowing customers to register directly with the companies they will use, Ethereum blockchain technology will enable customers to save time and reduce travel expenses.
Booking a flight:
Ethereum blockchain technology can help to lower transaction costs by cutting intermediaries. For example, Airbnb’s API typically takes 5-10 minutes to verify identity, but it can be reduced to as low as 30 seconds using Ethereum blockchain technology. It is a significant contribution given that around 3 billion people travel globally at least once in a lifetime, which means that there will be considerable transaction fees involved, thus reducing them would increase business profits.
For example, if the hotel pays a 20 per cent commission on every booking every time customers book, it could cost around $40 for just one booking. With Ethereum blockchain technology, the commission will be 0 per cent – meaning it can generate $40 for every booking. The ability of this technology to cut costs for the travel industry is enormous.
The travel industry is one of the industries most affected by blockchain technology applications, and that’s why using Ethereum blockchain technology with travel services is a very safe bet.
Customer booking time is one of the most critical factors for companies in the travel industry as it can decide their success. By reducing customer booking time, blockchain technology will help to increase traveller demand and start a new era in the customer-centric travel industry.
Blockchain for Baggage administration:
Companies can apply it to the travel industry, which is another sign that relevant industry players are getting the right idea about applying blockchain technology for customer service and transaction management. Travel baggage administration will also be a significant growth area shortly after blockchain technology is fully adapted. The main reason is that there are currently no common standards across all types of airlines. For example, regional airlines charge fees according to their size, while national ones don’t charge any fees at all.
Adding this information to the Ethereum blockchain will create significant possibilities, such as decreasing customer delivery time. Furthermore, as an area already heavily established, blockchain technology will provide the tools to improve customer service and transaction management within the travel industry by allowing companies to customize solutions according to their requirements.
Incentives and Rewards through blockchain in the travel industry:
Incentives and rewards are vital components of customer loyalty programs. Loyalty programs are an effective way of returning consumers to a company once they’ve left it. Still, there’s no perfect program that can attract all customers for every product or service.
Companies must incentivize customers at different levels to keep loyal customers. Companies are currently using many different methods, such as emails and marketing campaigns, to keep their customers attracted, such as loyalty points or vouchers. Companies can offer incentives and rewards through blockchain technology in the travel industry because it is a double-edged tool that makes customers loyal without being forced into doing so.
