The revenue generated by the current travel and tourist industry is surprisingly impressive. It produces more than $500+ billion a year. But, the travel & tourism industry is a heavily centralized ecosystem, and thus between 10% and 25% of all profits generated go into the hands of middlemen.
This is happening even when platforms are online and things look fair. This will be resolved when the IT backing the current ecosystem to power the travel & tourism industry is decentralized. The technology of blockchain can make this happen and bring the value back to the end-customers and of course, increase the profit-margins of travel & tour operators.
When block chain helps travel & tourism companies, they will no more need of middlemen. This will significantly reduce prices of hotels and rented accommodations. Customers will no more need to pay commission to third party operators.
How does the blockchain for travel and tourism industry work?
As we know, a big part of the whole travel & tourism revenue is going into the hands of agents. They, without any doubt, are dominating the current ecosystem of the travel & tourism industry. But, the technology of blockchain can be prepared to provide accommodation, deals and various travel-related listing at a way far less expense than charged by travel agents.
Blockchains’ smart contracts can make booking simple and secure. They can guarantee a direct communication between service provider and service consumer. So, blockchain can enable a direct communication, without any middlemen whatsoever.
The most interesting thing about the Blockchain technology is that with its rising adoption, Blockchain is rapidly being advanced by developers around the world. In the mean time, it is turning quite affordable, too. It can be integrated with the immediately accessible marketplace so that can compete with existing leaders in the domain.
There are many companies, which are already using the blockchain technology in their travel and tourism offerings. Travelchain, for example, is looking to turn over the paradigm with an open-source blockchain to remove middles men in the transactions taking place between service providers and services consumers.
Winding Tree is another company using the blockchain technology to connect travelers directly with service providers like airlines, hotels and tour guides. This will help operators minimize associated fees for travelers all while reducing costs for service providers.
Travelers always look for the highlights and potential attractions of a region. Cool Cousin is the company, which has used the technology of blockchain to incentivize local guides for using their local knowledge in offering more accountable and authentic tour opportunities to guests.