Blockchain is set to be one of the most exciting and impactful technological innovations of the next decade, and its utility has the potential to revolutionize hospitality as we know it.
Although the emergence of blockchain is closely related to the cryptocurrency landscape, its applications can extend far beyond digital currencies, with the ability to form a platform that brings greater efficiency and security to hospitality companies. .
The global blockchain market is expected to grow from $20.1 billion in 2024 to $248.9 billion by 2029, exhibiting a staggering CAGR of 65.5% over the next five years.
In the travel and hospitality sector, blockchain can be used for a variety of purposes to transform customer loyalty, customer authentication, fraud prevention, payment efficiency, and a wide range of security measures. With this in mind, let’s take a closer look at how technology is transforming an industry ripe for innovation.
Achieving transparency
Hospitality companies can take advantage of the greater transparency and trust that blockchain systems offer because they are immutable distributed ledgers.
This is very important to our customers, as it means their data can be stored securely without the need for intermediaries or the threat of unauthorized third parties accessing their personal information.
Whether it’s hotels, restaurants, gyms, cafes or other hospitality sectors, visitors can rest assured that their information is safe when sharing data with hospitality companies.
Loyalty level up
Churn is a serious challenge for many hospitality companies, and developing truly innovative loyalty schemes is key to retaining customers. Blockchain technology has the potential to improve the quality offered by loyalty schemes through the issuance of digital tokens that can be redeemed for various benefits.
From accessing special offers, unlocking exclusive services, redeeming products, claiming freebies, and sampling new services, blockchain is helping hospitality companies personalize their rewards and be more creative. Loyalty scheme helps limit instances of fraud.
One example of this can be seen in Trippki’s use of blockchain in its loyalty rewards system. The hotel company utilizes a unique digital “TRIP” token recorded on the blockchain that can be redeemed for future visitors or exchanged for cash. Tokens do not expire and can be earned by staying and using amenities.
smooth payment
Blockchain also has the ability to simplify payment processes for hospitality companies. This paves the way for faster and more secure transactions.
Especially in the hotel industry and businesses that frequently receive visitors from abroad, blockchain offers customers greater payment flexibility that can include cryptocurrencies as part of their functionality.
Expanding into the field of cryptocurrency payments with an integrated point of sale (POS) system means customers can pay for services without fiat currency conversion, which comes with inefficiencies such as currency exchange fees. Masu.
Rather, blockchain’s flexibility means that all parties can leverage transactions on their own terms, quickly and at relatively low cost to third parties.
Improved personalization
The technology can also work with artificial intelligence to transform customer data into highly personalized experiences.
Integrating with blockchain, which can securely store customer preferences and purchase history, allows hospitality businesses to offer tailored services across a wide range of touchpoints.
In the hotel industry, this means personalized room settings, tailored dining recommendations, and more focused digital local guides. This unification of AI and blockchain helps provide a level of customization that resonates with customers like never before.
Supply chain efficiency
Another transformative impact of blockchain technology is the visibility it can provide into every step of the hospitality supply chain.
A digital ledger focused on restaurants and hotels provides greater visibility into the food, beverage, bed linen and utility product supply chain, ensuring quality throughout inventory and ensuring business standards are maintained.
If poor quality or defective food or ingredients arrive, blockchain records will clearly show where the batch came from and when it was delivered for easy reference. This helps companies better track their suppliers.
Ultimately, blockchain’s increased visibility into the supply chain enables greater accountability and transparency throughout the procurement process.
Enhanced security
Blockchain can store encrypted identity information in a ledger, providing a higher level of security to hotel guests, for example.
When booking a room, guests can identify themselves to the hotel and provide identifying information to help verify their identity during the check-in process, ensuring that only valid guests can access the site.
Taking hospitality to a new level
Blockchain will have a transformative impact on the hospitality industry, offering new levels of efficiency and security alike.
As technology continues to grow, the ability to personalize customer experiences can help improve a business’ ability to innovate and help companies stand out from their industry rivals.
Forward-thinking hospitality companies can gain momentum over their competitors by considering how to respond to blockchain today for a more sustainable tomorrow.
