Blockchain technology increases trust, security, transparency and delivers cost savings with new efficiencies to the industry.
Blockchain Technology within the Tourism & Hospitality Industry: What is blockchain Technology?
Blockchain is a technology that has been developed for recording and storing digital data via encryption and cryptography so that it is immutable and cannot be hacked. Distributed Ledger Technology (DLT in blockchain language), acts as a digital transaction ledger that records all transactions and can’t be duplicated or distributed throughout a network of computer systems on the blockchain. Blockchain incorporates three key components - decentralization (not centralized on one party), transparency (all transactions are detected by all computer networks) and being immutable (data that has been recorded cannot be changed).
Can blockchain technology be applied to the industrial sector?
Blockchain is a perfect solution that prioritizes trust, security and increasing productivity through digital innovation. The following are examples of implementing blockchain applications within different industries:
Blockchain technology can be applied to all large ecosystems that have problems with real-time data access, partner privacy, tracking processes and audit capabilities. Blockchain deployments can lead to increased cost savings, increased traceability and greater transparency. This provides substantial benefits to giants like Walmart, Carrefour, Nestle, and Dole, which are part of the IBM Food Trust origin project.
Walmart is a great example of a business that has applied blockchain technology by building a decentralized food supply ecosystem and digitizing the food supply chain process. Walmart can instantly check the quality of every product it sells in just a few seconds with suppliers only need to upload data to a blockchain application.
Following supply chain news, Walmart has sent letters to its suppliers of farmed goods urging them to track their produce using blockchain technology. In the future a customer could potentially scan a bag of salad and know with certainty where the salad originated from... It's interesting, isn't it?
The education sector also benefits from Blockchain technology. In 2019, the University of Maryville became one of the first institutions to implement blockchain transcripts and diplomas, empowering students and alumni to own their academic credentials. Students can now manage their digital credentials via the Blockcerts Wallet smartphone app. Using blockchain technology, the app provides verifiable and non-tamperable diplomas that can be easily shared with potential employers and other schools.
Blockchain can eliminate a lot of unnecessary processes and streamline verification procedures, saving educators and administrators time when it comes to things like transfers between schools or states. Using blockchain, an institution that accepts transfer students can verify their records and the courses they take instantly.
So, how can Blockchain technology be applied to the Tourism Industry?
Blockchain technology provides new innovations in the Hospitality & Tourism industry, which has increased since the internet made it easier for tourists to search and make their trips on just one platform. Blockchain technology promises transparency and security enabling innovation to solve problems through new business models.
Most travel businesses (half of all travelers) use an Online Travel Agent (OTA) to plan their upcoming trips. Traveloka and Tiket.com are the most popular travel agencies visited by travelers, especially in Indonesia and in Europe, Booking.com is still the most popular. Here are some great examples of how Blockchain can benefit the Industry:
Attracting consumers by understanding their needs and wants at every step of the journey is one of the best ways for hospitality businesses to retain and build their client base. The first advantage involves hotel bookings: The OTA usually charges a hotel commission of 15-20 percent when a customer uses its website for a reservation. This situation triggers price increases by hotels to offset commission fees. Blockchain technology can help to connect consumers to COMMISSION-FREE hotel booking platforms. If consumers utilize cryptocurrency payments, they will be saving 45% of payment transaction fees compared to the traditional booking system.
Blockchain builds a decentralized payment system, which facilitates fast, secure and inexpensive international payment processing payments (and other transactions). Use of an encrypted distributed ledger that provides trusted real-time transaction verification will negate the need for intermediaries such as banks.
The main blockchain application enables secure and traceable payments. Another example is the process of booking airline tickets. Winding Tree is a platform that facilitates the booking of tickets and flights and can reduce transaction fees by up to 20% for consumers. Air New Zealand has applied blockchain to their ticketing and sales process which generates secure and efficient payment options. Blockchain-based payments greatly help customers minimize their time to complete transactions and payments which in turn creates a stress free experience.
The Tourism & Hospitality Industry is fast becoming a big beneficiary of blockchain technology because it is easier to use and provides security for payments, at the same time building consumer trust. Aside from that, Cryptocurrency also can be used to settle any or all payment obligations including deposits, advance payments, commissions, or any other fees. Blockchain also helps in cross-border payments, where consumers can make payments in one "click" for their choice of coin types without having to convert currencies.
Consumers can view instant updated room and facility availability. They can check orders, cancellations, refunds, and claims and can also have these verified, processed, or transferred via smart records in the blockchain.
Blockchain supports unified ledger technologies and smart contracts by ensuring transparency and the flexibility to redeem loyalty points with any partner that is participating in the platform. Loyalty points can also be gifted to their friends and family members.
Singapore Airlines, as the winner of the world's best airline award has a Loyalty Program KrisFlyer. With a minimum journey of 1 mile or the equivalent of 1.6 kilometers, consumers can redeem KrisFlyer miles by flying with Singapore Airlines and/or partner airlines and can be exchanged for purchasing goods from KrisFlyer merchants. In addition, Singapore Airlines also has a digital wallet to support the KrisFlyer loyalty program and blockchain technology. The points earned are valid for 6 months and consumers must immediately exchange them at KrisPay merchants. Blockchain technologies in the Tourism & Hospitality Industry provide new flexible and enjoyable experiences .
Blockchain Revolutionizes the Tourism Sector: Introducing StarWORKS Global!
StarWORKS Global Pte Ltd is a Singapore corporation that operates in the hospitality sector, predominantly in Bali, Indonesia. We have developed the StarONE Initiative, a program that combines elements of the StarWORKS Ecosystem into products and services to assist the Tourism & Hospitality industry recover from the post-COVID-19 Pandemic. Underpinning the StarONE Initiative is a combination of Blockchain, Big Data, and AI (Artificial Intelligence) technologies, integrated into business operations and packaged in a way to stimulate international tourism and the rebuilding of the economics of the industry.
Blockchain, as a peer-to-peer transactional version of a payment system, will be commercialized to connect guests directly with the venue; the Resort, Hotel, Restaurant, Airline, and/or Service Provider without the requirement to channel funds, channel time & energy through a Bank, Travel Agent or any other third party. Digital signatures and Smart Contracts will provide part of the solution, however, we propose a solution that links marketing, financial, operational, and promotional functions to allow uninterrupted and immutable transactions within the industry.
We have identified several major problems within the Tourism & Hospitality industry that our integrated blockchain solution addresses:
Secure and traceable payments: Payments with STARX Tokens are much more secure and traceable than traditional payment transactions. All transactions made on the blockchain remain registered in the chain and cannot be changed. Decentralized systems can eliminate intermediaries who can intervene or delay payments.
Cross-border currency and transfer limit: There is no need to exchange currency when traveling overseas and having to pay foreign transaction fees. There are also often time delays and limitations within the traditional banking process, however StarWALLET provides real convenience in its capacity to store crypto assets and the use of simple ‘one click’ functionality.
Transparency system: With a decentralized database, all transactions can be tracked such as booking hotel rooms, cancellations, refunds, and claims that can be made through smart contracts using our StarCHAIN. Taking advantage of blockchain technology streamlines all processes for example in checking in, booking confirmations and so much more.
Loyalty reward schemes: If the purpose of reward points are to retain loyalty from customers then why do most programmes have points that expire? StarWORKS offers non-expiring reward points. Within our blockchain technology and our loyalty & rewards program, StarPOINTS offers a lifetime points system which can be redeemed for any products and services under the StarWORKS Group and within participating businesses and merchant partners worldwide. Not only to exchange goods and services - customers can also trade and exchange points for paper money.
StarWORKS will provide funding to businesses within the Tourism & Hospitality industry in the post Covid-19 recovery. This will help businesses re-establish themselves and support the many workers that the Industry employs.
|Booking system via OTA (involving third parties)||Booking system directly to the hotel through blockchain (eliminates the third party)|
|Hotel fee is calculated from the hotel room rate, banking fee, booking site and management software||Hotel fee is the cost of the hotel room only - there are no other additional costs. More cost effective for the customer|
|Banking services are commonly used in the payment process whereby the transaction is recorded in the banking ledger.||Blockchain can be used for secure payment directly between two parties via cryptocurrency|
|Personal data verification, refund and cancellation processes can be a tedious drawn out process||Personal data verification, refund and cancellation processes are efficient and easy with blockchain.|
|The banking system involves high transaction fees, limited transfer amounts and lengthy delays (days) in processing.||Minimize the cross-border transfer fee and offer unlimited money transfers. Moreover, releasing our own token will help us control the cost and create the opportunity to grow the business and expand our service offering.|
|Loyalty point systems on a time limit||Expiry free loyalty point systems|
Find out more about how StarWORKS plans to revolutionise the Tourism & Hospitality Industry with our innovative blockchain technology. Download our Whitepaper and join our mailing list. Be a part of our StarWORKS community!
Read more: Manage your STARX Token with StarWALLET.
Read more: Blockchain: A Revolutionary Technology For The Future of Travel Industry