How Blockchain Is Changing Travel

The travel industry has increasingly explored new service delivery models and transaction management systems using Blockchain technology. Areas such as booking reconciliation, payments, identity verification, loyalty programs, and review systems are integrating Blockchain technology on an experimental basis and in full production.

Payments and Bookings

One of the more notable use cases of Blockchain in the travel sector is Travala, which has become one of the leaders in blockchain travel services. The company was founded in 2017 and provides flight and hotel booking services with cryptocurrency payment options for more than 100 tokens, including Bitcoin, Ethereum, and Tether (USDT). In March 2024, Travala processed over 13,000 hotel bookings and over 6,000 flight transactions.

The Travala platform extends its services beyond cryptocurrency payment support. Users who hold the AVA token can earn rewards through staking, receive discounts, and gain access to different membership tiers.

Platforms such as Travala, which cater to cryptocurrency users through the use of Blockchain technology, make it possible to enjoy the whole travel experience from hotel to flight without ever using a traditional payment method such as cash, debit card, or credit card. Blockchain introduces an alternative. Travel providers who accept cryptocurrencies enable faster settlements, worldwide accessibility, and sometimes reduced transaction expenses.

Payments for flights using cryptocurrency eliminates the requirement for currency conversion and banking delays. It also enables merchants to receive funds quickly and securely by avoiding complicated international banking procedures.

Identity and Verification

Travel involves multiple layers of identity confirmation: booking, check-in, security, immigration, and accommodation. Blockchain offers the potential for travelers to provide a verified digital identity, which minimizes the need for repeated document submissions.

The Known Traveller Digital Identity (KTDI) initiative, supported by the World Economic Forum and several governments, is working on a system where travelers store cryptographically verified identity credentials on a mobile device. Only necessary data is shared, and control remains with the user. Border authorities can instantly verify details without having access to broader personal information.

The International Air Transport Association (IATA) introduced the Travel Pass app during the Covid-19 pandemic. Blockchain technology enabled the safe storage and distribution of health documents, including COVID-19 test results and vaccination records. During its initial testing phase, the Travel Pass app received support from airlines such as Emirates and British Airways. The development of blockchain-supported credential sharing has since continued, even though the immediate need for this requirement around this particular incident has passed.

Loyalty, Reviews, and Booking Automation

Blockchain technology is also being used to reevaluate loyalty programs, with companies such as Singapore Airlines and their KrisPay wallet (now Kris+) enabling passengers to transform their miles into digital tokens.

Blockchain technology also has the potential to create new opportunities for traveler feedback systems. Review platforms using traditional methods struggle to prove the authenticity of genuine content, but with the ability to integrate Blockchain-verified bookings and traveler IDs, platforms can establish genuine user feedback while minimizing bot and fake account interference.

It’s also possible that as the technology matures, the industry could see initiatives such as smartcontracts with functions that enforce variables such as booking terms. This would make it possible for a platform to hold payments until the guest confirms check-in. The system could also provide automatic refunds when cancellation conditions are met. One example of this in the real world is the discontinued “Fizzy” product from AXA which implemented smartcontracts to offer automated flight delay insurance payouts, eliminating the need for manual claims processing.

Moving Toward Broader Use

The future shows a rising interest in Blockchain-based ticket representation through NFTs, which travelers can transfer or resell with certain restrictions. It’s also possible for other initiatives, such as the tokenization of physical travel assets, including hotel shares and timeshares, which could offer new revenue models.

The technology is also being considered for use in tracking baggage, recording aircraft maintenance, and redeeming loyalty points across different platforms.

Conclusion

The travel industry’s adoption of blockchain technology is a step-by-step approach that has seen consistent but strategic implementation across different operational areas. Moving forward, we will likely see redesigned booking platforms, loyalty programs, payment systems, verification processes, record sharing, and automation with Blockchain integration and features across the wider industry.