HOW BLOCKCHAIN CAN CHANGE THE TRAVEL INDUSTRY IN THE MIDDLE EAST
Over recent years, the awareness and knowledge of the application of blockchain technology have gained momentum in many industries and fields. As a result, several industries have started exploring blockchain-based applications to create a secure and more effective service.
Although the awareness of blockchain technology is low in the Middle East, blockchain has positively impacted many of its sectors and industries. In this article, we will consider how blockchain technology can change the travel industry in the Middle East.
Understanding Blockchain Technology
Blockchain technology may sound complex, especially since only a few people understand how it works. Blockchain technology records transactions and tracks assets within a network of businesses. It is a form of storing data that makes it impossible to hack or forge the information stored.
A notable feature of blockchain technology is its decentralized nature. This attribute simply means that the control and decision-making regarding the network are not in a single individual, company, or computer. Instead, it is distributed evenly over a network, erasing the possibility of error and bias.
Ways You Can Use Blockchain Technology in The Travel Industry
Lost luggage has been a huge issue for airline companies and customers in the Middle East. Travel companies often lose thousands of bags each year, costing them a lot of money, as they are liable for luggage that has been lost, delayed, or damaged. Blockchain technology can overcome this challenge by tracking the movement of luggage from one party to the other. Corporations can do this by creating a decentralized and transparent network that would automate the logging in of a bag and its owner’s details. Using this technology, every party, including the customer, can monitor the luggage’s movement and trace the bag’s location at any time.
Decentralised booking marketplace
The travel sector of the Middle East is loaded with intermediaries that connect customers to services they want, such as hotels or security. Despite the numerous benefits of go-betweens, their presence increases the cost of travel, and there are also chances of one falling into the hands of fraudsters. Blockchain technology provides a decentralized travel marketplace such as Winding Tree, where there is no need for intermediaries. Instead, customers directly book travel through smart contracts that automate the execution of an agreement.
Finally, in terms of identification services, blockchain technology can reduce the time consumed during check-ins, reduce airport queues, and provide seamless tracking of a customer’s identity.
The application of technology related to the blockchain is in its nascent stage in the Middle East region. Governments and private individuals have started maximizing blockchain technology to optimize business processes and financial services. As the travel industry in the Middle East is evolving, it is important to consider the application of blockchain technology. This usage would make payment processes simpler, more effective, and secure.