Blockchain technology is one of the most groundbreaking digital technology developments in recent years.
Considering, it has the ability to radically change how hotel transactions conduct, as well as how information is process and access.
Trust is at the centre of all economic transactions, and blockchain technology solves this need.
To conduct business optimally, produce income, and build value for their customers.
All companies and their stakeholders must have a certain degree of confidence in one another.
Participants build and strengthen this intrinsic confidence using different types of third-party verifications.
For instance, certifications, inspections, quality assurance (QA), audits, and so on in all situations.
How does Blockchain technology work?
Many people are also unaware of how blockchain technology works.
This amazing technology is based on a basic design.
Blockchain technology is a public ledger or a list of digital documents where transactions are documented and stored.
Keeping all of the data anonymously and protect with cryptographic cyphers.
Any transaction or record is save in its own block.
In other words, each new transaction adds a new block to the network, which is connected to previous blocks in the form of a chain-hence the term, blockchain.
Any new transaction in the network must approve or check by the network’s users.
All business sectors will benefit from blockchain technology. It’s no different in the hospitality industry.
This system is base on a decentralised network. This makes managing financial transfers as well as actual payments very effective.
The network’s high degree of openness boosts the business’s confidence factor significantly.
This technology is also useful for protecting users’ personal information.
Another benefit of the blockchain network is that it will help the hospitality industry expand.
Additional user review information may also add to the network for potential research.
Role of blockchain in the transformation of the Hotel Industry
Tracking of Visitors
Hotels will be able to monitor their guests’ locations in real time thanks to the guest tracking functionality.
When the guest leaves his house for the airport, when the guest has checked-in for the flight, and finally when the guest arrives at the hotel, the hotel will receive alerts.
By the time it takes for visitors to check-in at hotels, this monitoring feature will enhance the customer experience.
While it can seem intrusive, guest monitoring is only introduced after customer approval.
Tracking of food
Food suppliers, transportation networks, and restaurant owners may all be part of a blockchain network.
This network will effectively monitor agricultural produce movement.
Through accessing the private blockchain network, all information about the amount, quantities, and grades of food can be easily found.
Transactions can be updated and saved in real-time, and all those interested in supply chain management can see them.
Furthermore, this technology can assist in the processing of transaction payments.
Airline and hotel points
Hotels can create loyalty programs on a blockchain platform and reward their guests with loyalty tokens.
Loyalty tokens are similar to loyalty points, but blockchain technology allows customers to freely buy, sell, or exchange their loyalty tokens with others.
Allowing customers to exchange loyalty points in an open exchange can boost loyalty program competitiveness and overall service quality.
For example, the market value of company B’s tokens may be greater than that of company A’s tokens.
Due to the higher quality of products and/or services that those tokens can purchase.
As a result, a company with a higher market value is more likely to prefer in the market, incentivizing other firms.
Thus the system as a whole to improve the quality of their offerings in order to attract more customers.
Furthermore, loyalty tokens can use across industries.
For example, consumers could use their hotel loyalty tokens in restaurants, airlines, coffee shops, and other businesses via the blockchain platform.
Identity theft is a major threat in the digital world.
Blockchain technology has the potential to address this serious issue.
Customers are frequently required to show proof of identification in order to board flights and enter hotel rooms.
The consumer is generally vulnerable to identity theft at this point.
Not only by the person checking the identification but also by bystanders. Blockchain technology has the potential to alter this scenario.
A blockchain network can store any type of information or document, including addresses, birth certificates, social security numbers, driver’s licenses, and passports.
This data is stored using a cryptographic cypher, which ensures higher levels of security.
To verify the identification, use a technology similar to QR codes. Identity theft will be rendered impossible, both physically and digitally.
Smart Contracts Functionality
The smart contracts functionality is one of the most intriguing aspects of blockchain technology.
Smart contracts are self-executing codes that are based on the agreement of the parties.
The terms agreed upon by service providers and consumers can use to code these contracts.
In other words, the terms of a contract between a hotel and a travel agency and a customer can be fed into the blockchain network.
This transaction will automatically record by the smart contracts, and payments will process immediately.
This has the potential to significantly reduce transaction time and improve operational efficiency.
Coordination between hotels and travel agencies will also improve. Travel agents can estimate the room availability in real-time.
This, in turn, will increase sales. Guests can include in the smart contract functionality.
This will allow you to handle the check-in process digitally.
The user ID is save in the network and can be use for authorization.
The same technology can use to manage franchisor and franchisee relationships, car rentals and bookings, apartment leasing, and other similar tasks.
Furthermore, this functionality can aid in the management of cancellations and refunds.
From above we can conclude the blockchain technology is transforming hotel technology in different ways.
It tracks food, visitors, helps in digital identification, creates loyalty points and rewards guests with loyalty tokens and more.
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