Applications of blockchain in the tourism industry

blockchain and tourism industry
Governments can utilize blockchain technology to provide a quicker, secure experience for people using public modes of transport


Applications of blockchain in the tourism industry




Applications of blockchain in the tourism industry

he importance of tourism arises from the numerous benefits and advantages it brings to any host country. Tourism contributes towards the complete growth and development of a country and every country as a platform which supports economic growth and complete development.

The tourism industry, as part of the service sector, has become an important source of income for many regions and even for entire countries.

The Manila Declaration on World Tourism of 1980 recognized its importance as “an activity essential to the life of nations because of its direct effects on the social, cultural, educational, and economic sectors of national societies, and on their international relations.”

Tourism brings large amounts of income into a local economy in the form of payment for goods and services needed by tourists, accounting as of 2011 for 30% of the world’s trade in services, and, as an invisible export, for 6% of overall exports of goods and services.

It also generates opportunities for employment in the service sector of the economy associated with tourism.

Especially in the field, economy, development, environment, society.

It is an industry and an important growth driver for a country, its economy and also for its social progress and monitoring. Tourism no doubt brings with it tremendous economic value for a country.

In other words, this industry will grow and develop by engaging other industries to meet the needs of tourists Because tourism activity lays the foundation

The hospitality industries which benefit from tourism include transportation services (such as airlines, cruise ships, trains and taxicabs); lodging (including hotels, hostels, homestays, resorts and renting out rooms); and entertainment venues (such as amusement parks, restaurants, casinos, shopping malls, music venues, and theatres). This is in addition to goods bought by tourists, including souvenirs.

Tourism is a product of modern social arrangements, beginning in western Europe in the 17th century, although it has antecedents in Classical antiquity.

Tourism overlaps with other activities, interests, and processes, including, for example, pilgrimage.

This gives rise to shared categories, such as “business tourism,” “sports tourism,” and “medical tourism” (international travel undertaken for the purpose of receiving medical care).

In the Western tradition, organized travel with supporting infrastructure, sightseeing, and an emphasis on essential destinations and experiences can be found in ancient Greece and Rome, which can lay claim to the origins of both “heritage tourism” (aimed at the celebration and appreciation of historic sites of recognized cultural importance) and beach resorts.

The Seven Wonders of the World became tourist sites for Greeks and Romans.

Tourism is very important in societies.

Significance of tourism, Jobs for local people, Income for the local economy, Helps preserve rural services like buses, village shops and post offices, Increased demand for local food and crafts, Tourists mainly come to see the scenery and wildlife, so there is pressure to conserve habitats and wildlife

Also, tourism can degrade people and sour relationships between host and guest.

The best way to describe, structure and define the tourism industry is to look it through the definition and explanation of tourism.

For this, we need to understand tourism definition & meaning, and its structure.

Applications of blockchain in the tourism industry


Concept of Tourism 

Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours.

The World Tourism Organization defines tourism more generally, in terms which go “beyond the common perception of tourism as being limited to holiday activity only”, as people “travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure and not less than 24 hours, business and other purposes”.

Tourism is the activities of people travelling to and staying in places outside their usual environment for leisure, business or other purposes for not more than one consecutive year.

Tourism is a dynamic and competitive industry that requires the ability to adapt constantly to customers’ changing needs and desires, as the customer’s satisfaction, safety and enjoyment are particularly the focus of tourism businesses.

So, A tourist is a person who stays in a place outside his or her place of residence and occupation for less than a year for tourism purposes.



 Types of tourists

Tourism can be domestic (within the traveller’s own country) or international, and international tourism has both incoming and outgoing implications on a country’s balance of payments.


Types of tourism encompass

Outbound Tourism

Outbound tourism is what you may be most familiar with. It involves the people going from British Columbia to other provinces, territories or countries. For example, going to Hawaii for a holiday is considered outbound tourism.

Inbound Tourism

The tourists coming to BC from other places are called inbound tourists. BC competes in a global market to attract tourists from the United States, Japan, Germany and many other countries.

The industry also implements marketing campaigns aimed at attracting travellers from other parts of Canada, as well as from within British Columbia.

 The purpose of the following is to get to know the importance of tourism

Religion and tourism

Its religious goals coexist with defined routes, commercial hospitality, and an admixture of curiosity, adventure, and enjoyment among the motives of the participants.

Pilgrimage to the earliest Buddhist sites began more than 2,000 years ago

Pilgrimage to Mecca is of similar antiquity.

The tourist status of the hajj is problematic given the number of casualties that—even in the 21st century—continued to be suffered on the journey through the desert.

The thermal spa as a tourist destination—regardless of the pilgrimage associations with the site as a holy well or sacred spring—is not necessarily a European invention, despite deriving its English-language label from Spa, an early resort in what is now Belgium.

The oldest Japanese Onsen (hot springs) were catering to bathers from at least the 6th century. Tourism has been a global phenomenon from its origins.Applications of blockchain in the tourism industry.

Technology And International Tourism

Transport innovation was an essential enabler of tourism’s spread and democratization and its ultimate globalization.

Technological advances have changed the way we travel, and these new developments promise an even more interactive and exciting experience.

Eurecat Tourism Innovation Department Director Salvador Anton Clavé commented during the Forum TurisTIC the Barcelona event that “the change goes beyond improving processes or the tourist experience; it entails transforming the tourism system itself.”

We’re participating in making improvements to processes, customer service, relationships with customers, and the creation of new business models.Applications of blockchain in the tourism industry

All this naturally leads to benefits for the traveller, letting them simplify, and often enrich, the travel planning process. Senior Vice President and Chief Marketing Officer Arjan Dijk recently echoed similar sentiments and stated that “in this new decade, we’ll see how the travel industry tries to respond to the needs of a type of a traveller more concerned with sustainability, and with the more tech knowledge or curiosity, through developing products, functions, and services make discovering the world easier for all.”

  1. Mobile Technology

The cell phone has become our tour guide, travel agency, best restaurant locator, map, and more.

This is why there’s a need to adapt corporate services and communications to these devices. KLM, for example, has already created an information service for passengers using Facebook Messenger.

This system, once someone has made a reservation, sends the user information regarding their ticket through Facebook Messenger as well as their boarding pass or updates about the status of their flight.

This way, the user has all the pertinent information about their trip in the palm of their hand using an app that they already use, eliminating the need to download anything else.Applications of blockchain in the tourism industry


  1. Virtual reality

Augmented reality (AR) or virtual reality (VR) has also entered the travel world.

VR is able to activate the emotions by stimulating the users’ senses. Because with virtual reality users are able to interact within the experience. This creates a great opportunity for the entire travel industry, especially for tourist destinations.

  1. (IoT)

The Internet of Things. They include integrating sensors connected to the Internet inside items like cars, suitcases, buildings, and more.

In fact, Spain’s Hotel Technology Institute (Instituto Tecnológico Hotelero, or ITH) affirmed that the Internet of Things “is going to be the major transformative factor in the personalization of the customer experience over the next few years.”

Some Virgin Hotel properties offer an app to their clients that lets them interact with the room’s thermostat or control the television in the room.

There are also suitcases that have devices that allow users to use their cell phones to follow where their suitcase is at any time to avoid lost baggage at the airport or other public places.


  1. Voice assistants

How can voice assistants change the tourism industry?

Voice assistants make information available directly, adapt it to customer needs and increase the user comfort. But what are concrete use cases for the tourism industry?

For example:

  • Support travel planning
  • Reservation of rental cars
  • Reservation of rooms, tour, hotel
  • Provide information (Hotels can set up voice assistants in their room to allow guests to request information about check-out times, pool opening hours, or other hotel services at any time)


  1. Big Data

The Meliá hotel chain uses information about their guests to figure out what is the best target for marketing campaigns. Primarily, they examine their database to look at the amount spent, the reason for the trip, the country of origin and cross-checks this information with public data from government sources to develop the most appropriate customer profile and achieve a higher success rate.

This way, they make a better segmentation for their campaigns to increase their efficacy and optimize the investment required for these campaigns.Applications of blockchain in the tourism industry


  1. CRM tourism

Customer Relationship Management in Tourism

CRM enables tourism company in providing services and satisfaction to the customers in achieving their goals. Through CRM the companies can serve the customers on one to one basis by reducing the intermediaries, continuously monitoring customer needs and providing services according to the requirement of the customers.

Examples of CRM are sorted by types, such as general use, inbound lead management, sales tracking, social tracking, and a fully integrated system.

Most software solutions fall into one or two or multiple CRM types. For instance, HubSpot CRM is an inbound marketing, CRM, but it has general, all-purpose tools as well.

  1. 5G

5G is the fifth generation of wireless communications technologies supporting cellular data networks.

5G communication requires the use of communications devices (mostly mobile phones) designed to support technology.

The industry project 3GPP defines any system using “5G NR” (5G New Radio) software as, “5G”, a definition that came into general use by late 2018.

Previously, some reserved the term 5G for systems that deliver download speeds of 20 Gbit/s shared call for by ITU IMT-2020. 3GPP will submit their 5G NR to the ITU.

In addition to traditional mobile operator services, 5G NR also addresses specific requirements for private mobile networks ranging from industrial IoT to critical communications.

Tourists will experience through 5G networks a new travel experience, enhancing knowledge in each destination and immersion in it, both cultural, gastronomic, historical or artistic. It will also provide a new way of interacting with other tourists and local people.



Making tourism sustainable

Oriel y PARC Visitor Centre has grass on its roof and wool to insulate the walls.

National park authorities work with local communities and other organizations to try and make tourism more sustainable. Here are just some of the things we do:

Show visitors how they can be responsible tourists with events, leaflets, information centres, guided walks and events, signs and websites.

Encourage visitors to leave their cars behind and use greener travel, like bikes, buses, boats and trains.

Support outdoor activities that don’t damage the countryside or harm wildlife.

Encourage visitors to buy local products and food.

Run green business schemes to encourage businesses to recycle, reduce energy, conserve water and be sustainable.

Ask local communities for their views and ideas by setting up forums, groups and consultations.

Reduce erosion caused by visitors, by creating and repairing footpaths.

Use planning policies to control the spread of buildings in the built-up area development.

Encourage green, energy-efficient buildings with planning policies and grant funding.

Encourage small-scale renewable energy schemes, like woodchip boilers and solar panels, with planning policies and grant funding.Applications of blockchain in the tourism industry


The problems of travel

  • The hotel of your dreams doesn’t quite match the images online.
  • Business Hurdles.
  • Attacks on women.
  • Security Concerns.
  • Growth of industry.
  • Health.


Blockchain and tourism industry

The decentralized nature of the blockchain means that information can never go ‘offline’ or be lost through accidental deletion or a malicious cyberattack, ensuring transactions are always traceable.

So, blockchain can offer within the travel industry, stability and security rank very highly.

Information is very important in the travel industry.

For example, travel agents need to pass customer details on to flight companies and hotels, while the personal belongings of travelers are often passed between companies and tracked too. Blockchain can make accessing and storing important information easier and more reliable, because responsibility for storing it is shared across the whole network.

In the blockchain, financial transactions are a vital structural.

blockchain technology has the capacity to not only simplify, but also secure payments.

This is especially true when dealing with overseas payments. As a consequence of this, blockchain has the potential to improve the level of trust among all parties.

The first step in international travel is booking of flight tickets.

Blockchain uses cryptocurrencies like Bitcoin, which eliminates the need for using digital payment methods that rely on third-party payment apps.

The use of blockchain in tourism is going to provide a new experience altogether in the way we book travel tickets and hotel rooms, providing seamless user experience. Applications of blockchain in the tourism industry.


  • Buy tickets and book a hotel

It is very difficult to book tickets and hotels.

The pictures do not show the rooms of most hotels and accommodation centres as they really are.

Having real photos of the accommodation and knowing the real ticket price will help us make the right choice of accommodation based on needs and budget.


  • The planning for the travel

The first step in international travel is booking of flight tickets. Planning a trip from ticket time to car and hotel rental and insurance-related activities.


  • Create a history of the passenger

The amount of accommodation in the hotel and the history of the guest in that hotel helps the host to control many possible dangers and complaints.

Guest information, including his or her interest in sports or food tasting, birthdays, weddings, and various events known as the Data Base Front Office, helps us to satisfy the guest.

For example, how much will knowing the date of a guest’s birth and welcoming him or her when he or she arrives with his or her favourite cake affects the mood of the guest?


  • Establish a history of the hotels or travel agencies (all passenger service centres)

Finding the right service centres is very difficult. Service centres think of guests as a source of cross-sectional income.

While I believe we should gain the trust and opinion of the passenger, we should provide her/him with honest services.

Travellers research and make choices So let’s try to be the best at choosing them


The primary application of blockchain in tourism is to enable secure, traceable payments.

This process is relatively easy in today’s age. However, the process can be simplified even further using blockchain-based methods.

It is an open-source distribution ecosystem which facilitates the process of booking flights and hotel tickets.

It has resulted in reduced transaction costs up to 20% for consumers availing blockchain facility for ticket bookings. Airline companies like Air New Zealand have incorporated blockchain technology, making the ticket sales process less complicated.

It can also help prevent over boarding of flights. Payments for the services can be made quickly and securely using blockchain methods. Thus, it enables faster checkout during transactions.


  • Minimize the time taken

Blockchain-based payments will help minimize the time taken for the completion of payments. It will also facilitate payments for customers using autonomous cab services. Transactions are completed by deducting the amount automatically from the user’s digital currency.


Blockchain uses cryptocurrencies like Bitcoin, which eliminates the need for using digital payment methods that rely on third-party payment apps.Bitcoin

The payment can be made between the two parties involved directly. This forgoes the need for a payment merchant altogether. The need for payment gateway companies like Visa and MasterCard may become obsolete because of blockchain technology.

A future where a person walks into an airport and directly boards a flight without having to stand in queues for verification or even letting go of third party apps like Expedia to get the best deal will be possible because of blockchain technology.


Another area in which blockchain is useful is eliminating the need for physical contacts. Blockchain lets go of physical documentation, replacing it with digital ones.

Digital contracts are signed, which are time-saving and can also be helpful in case of a dispute. A digital copy of the agreement can be used by the consumer to understand the terms and conditions stated by the service provider. Applications of blockchain in the tourism industry


  • Enable secure and traceable payment system

One agreement. Simple integration.

Just one agreement and simple integration give your business access to all markets. It sets you up with integrated multi-currency functionality, providing the platform for your business to expand and thrive.

This makes it possible for your passengers to stay in your ecosystem during or even after paying. They can securely manage their online banking payments across any device, giving them a better experience when using your services.


  • Guest Welfare Services

Tracking guest complaints, welcoming guests, or possibly when a guest leaves or loses a device.

Tracking of these cases is possible through the information available in the blockchain at the lowest possible financial cost and time


  • Customer identification


Customer identification is crucial for the travel and tourism industry. Immigration officials must verify the identity of every foreign tourist for security reasons. Blockchain has the potential to transform the current practices for verification of travelers.

This results in significant wastage of time, which accumulates at every stage. Blockchain will reduce the time spent for customer verification on immigration, check-in times at hotels, long queues at embassies, facilitating a time-efficient experience.

The need for a passport may also be eliminated if international governments adopt blockchain technology for their tourism industry. However, this seems a bit far-fetched as it will be hard for major countries to adopt blockchain technologies.

ShoCard is a digital identity platform built on blockchain to authenticate people without usernames and passwords. Blockchain eliminates the need for the username and password methodology used for digital payments. The system is also more secure as it doesn’t contain a central database, which the hackers can exploit. Applications of blockchain in the tourism industry


  • Baggage management

Baggage handling is one of the critical aspects of the aviation sector.

Baggage mishandling and loss is a common concern today for airline companies.

The luggage is misplaced in transit due to human error. Baggage loss or mishandling can be reduced significantly using blockchain and other technologies.

Blockchain data can be used to identify and monitor luggage.

It can be used with AI and sensor technologies to determine the location of the baggage, in case it gets misplaced. Sensors can be attached to bags to track their exact location even if the handlers misplace it.

The use of blockchain in tourism for baggage management helps eliminate the baggage loss issues faced in the industry today.


  • Customer rewards system

Services using blockchain can reward the customer with cryptocurrencies, which can be used for future travel. They also eliminate the need for a third-party mediator platform.



Many businesses put up fake reviews for themselves as well as their competitors. These fraudulent activities have become more rampant because of increased competition. This has led businesses to adopt illegal activities to promote their businesses.

Data stored on blockchain is highly secure, which enables greater transparency and consumer trust. Applications of blockchain in the tourism industry


What company uses Blockchain?


SALT Lending 

Mythical Games









Applications of blockchain in the tourism industry

The travel industry has been stagnant for many years, that’s why it has accumulated way too many issues related to service monopolization and insufficient transparency.

A couple of big industry players oftentimes control access to the best flights, hotels, and tour offerings, but with blockchain-based innovations coming to the scene in 2018, the situation is bound to change.

A record 22.1 billion of venture capital has been invested in tech startups in the first quarter of 2018, with several budding travel-oriented projects on the list.

This number has grown to 49% if to compare with equal timing last year, according to CB Insights.

As a huge steadily growing market, the capacity of which will reach 12.3 trillion dollars by the end of 2020. Tourism attracts more and more ICO projects, and the most remarkable of them are destined to face wide recognition soon.

Every year brings thousands of highly promising startup projects to the stage, which hail from various industries, including tourism.

Governments can utilize blockchain technology to provide a quicker, secure experience for people using public modes of transport. The need for a physical rail and bus ticket can be eliminated due to blockchain and AI technologies.

A single database would be sufficient to map a user’s travel across all modes of services used by the customer. A single identification and payment method will be sufficient to avail the various public transportation services. Governments can also regulate private transportation services by incorporating them into the blockchain system. The payments can also be made easily using the blockchain on a daily or monthly basis at the user’s convenience.

Tracking blacklisted passengers and criminals in the shortest time and with very low risk through information such as fingerprints (HASH)

Customers are allocated crypto tokens for staying in hotels.

These tokens are permanently recorded in the blockchain which can be used during future transactions.

The use of blockchain in tourism helps companies retain customers and increase their revenues. It also helps combat fraud in this field as the blockchain data cannot be manipulated.

Blockchain technology is transparent and secure by design. This will help to decentralize services, and remove budget-consuming intermediaries, thereby naturally reducing the cost of services, and increasing their quality.

Blockchain technology is being implemented in large companies in various industries.

This technology will soon revolutionize various industries, So let’s keep up with the technology in the tourism industry.

Eliminate intermediaries, reduce fraud, personal experience, and improve the quality of services.Applications of blockchain in the tourism industry


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