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Blockchain technology in the industry of tourism
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Blockchain technology in the industry of tourism

There are hardly many people who hate traveling. Definitely not the majority. The tourism industry is constantly growing. And there is no doubt that travelers are looking for comfort and facilities combined with easiness of booking, convenient transport and other services. Moreover, the amount of self-travelers is also increasing annually (especially after the years of COVID limitations). Tour operators form service markets, influence the pricing policy and take up every responsibility for all travelers’ needs, usually hiring side companies providing certain services.

In traditional tourism infrastructure, the amount of intermediaries and service producers is large and bulky and the management scheme is complicated. The information passes quite slowly, through numerous stages and may be corrupted or even lost on the way. As a result, errors occur constantly and the prices are rising high even for self-travelers, who prefer booking everything directly on their own.

All of this calls for evolution in the tourism industry. It is a question of trust and reputation, which is the key point of the industry. If clients lose trust and interest, they leave and the company ‘fades away’ rather quickly.

Blockchain benefits

How can blockchain technology and smart contracts help companies to develop and expand on the market, attracting more clients? Let’s have a closer look at their benefits.

  • Trust and transparency. The first and foremost benefit is reliability and trust created by the decentralized nature and security of blockchain technology. All sensitive and other clients’ data can not be lost or easily corrupted or stolen. Accessing data through blockchain becomes easier and more secure due to the blockchain’s distributed nature.
  • Convenient interaction. Trust is one of the factors of convenient interaction between the service provider (tourist agency, aggregator, facility owner, etc.) and the end customer. But there is another important factor. Traditionally the holiday business is based on global distribution networks built by companies and aggregators. Blockchain can substitute for aggregators by bringing together service providers and clients. Hotels, transport companies and facility owners may register at a platform, buy its tokens and communicate directly with end-users, avoiding the long and complex tree of intermediaries.
  • Cost reduction. The more intermediaries are involved in business, the higher the end price flies. Moreover, top tourist businesses influence price policies in general. Blockchain technology helps to get rid of the bunch of hungry intermediaries with the help of tokenization and decentralization of the industry. Service producers and facility owners will sell their services on the platform directly. As a result, end customers will have to pay less.
  • Easier payments. Payments with credit cards or online payments, especially cross-border ones, can become an unpleasant issue due to double conversion and other charges. On blockchain platforms, clients will be able to pay in cryptocurrency, make transparent and secure payments and monitor their transactions from beginning to end.
  • Luggage and other services. Problems with luggage (loss, damage, incorrect shipping, arguing with air companies, etc.) are the curse and fear of all travelers. Blockchain technology will allow users and companies to track the luggage movements. Decentralized nature will simplify data exchange and monitoring and make luggage transfer more secure. Problems with air service are another big deal. Flights are often delayed if not canceled, the check-in process is nervous and usually complex, airports are overcrowded and there is little efficient communication between companies using different services for data processing. Blockchain can solve this problem, too, offering a common decentralized distributed database with access for all participants. It will help to provide convenient and correct data exchange and improve airport functioning and building flight schedules.
  • Loyalty programs. Loyalty programs are one of the key motivational offers of almost all travel companies. Blockchain will help to keep records of clients, they will get an easier access to information about discounts and loyalty points. A travel company can issue special tokens for loyal clients, with the distributed systems providing fraud protection.
  • Identity issues. Check-in and customs procedures take time and can be rather tedious. Software may glitch, data may be lost or altered. Such services can be upgraded with the help of blockchain technology. Common databases and different types of identification (or multi-factor authentication) will make the process simpler, quicker and more secure. This will also simplify and safeguard payments for services (such as booking).


There are companies which successfully use blockchain technology in the industry of tourism, utilizing its benefits. Here are some examples of such happy stories:

  • LockChain/LockTrip. A special blockchain-based network for hotels and restaurants. Users of the platform can let real estate and manage various processes (such as management, booking, payments, etc.). The platform offers direct connection to partners and clients without intermediaries and extra commissions.  
  • BeeToken/Beenest. A specific platform for private lodging exchange. It helps to connect flat and house owners with possible clients, organize the lodging and pay for it. Security and reliability are enhanced by purpose-designed protocols and the platform requires no extra commissions.
  • Winding tree. A very useful service for luggage tracking based on Ethereum blockchain. It also helps to facilitate the ticket booking process. Owing to blockchain, all processes are transparent, reliable and secure, eliminating the possibility of technical error, human factor influence or fraud.
  • Trippki. A reward service for loyalty member programs. It also helps to connect travel companies and agencies with potential clients directly. Loyal clients receive TRIP tokens which can be spent on hotel stays. The tokens have no expiry date, being stored on blockchain, and can be used any time.
  • Ariva Co. The project represents a global B2C network providing a good choice of tourism services. It even offers the option to pay for services in cryptocurrency.
  • Travala.com. A blockchain-based platform, helping to book rooms and flats. It issues its own AVA token.
  • Aeron. A new blockchain-based project, which helps to improve air travel security.

Closing thoughts

While market giants of the travel industry are not really willing to adopt blockchain, service providers and clients are going to benefit from this adoption, which will make their life and business more secure, transparent and reliable.

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