How Blockchain Is Useful In Hospitality Industry

Blockchain is one of the latest digital technologies which is blooming in all the business sectors. This technology gradually developed and it made remarkable progress along with the usage of internet technologies and data networking in all the business sectors.

In any business, data is to be handled in a very secure manner which is the major part of the blockchain technology and this is considered to be one of the outstanding features of blockchain. When we say something about data, for example, it can be personal information or transaction data. 

All the stakeholders are focusing on this part to successfully run their business. Blockchain is having that strong security features to store and record the data in a decentralized network. 

Now the decentralized network with cryptographic algorithms records the data and it is restricted to unwanted hackings or from the intruders. 

The data is stored in blocks and the blocks are connected to each other using cryptographic techniques which is really hard for any hacker to alter or modify the data and this is mainly incorporated in any business field. 

Hope you all know hospitality is one of the globalized sectors which mainly deals with customer engagement and safe financial transactions. Customers are satisfied only if they trust your service and the transparency in the business network or if delighted with the marketing trends of the hospitality industry. Learn about Digital Marketing Trends in the Hospitality Industry.

Blockchain with its strong chain of data is a very reliable source for the business industry like hospitality. This hospitality technology is used to grab more customers for their business and to safely send or receive financial transactions. 

In this article, we will see how this blockchain technology transforms the hospitality industry and how it gets benefited from this technology. 

The potential uses of the blockchain are unlimited in the hospitality sector and we will look into the significant uses of blockchain in the hospitality sector.

1. Payment security

2. Tracking the guests

3. Audit management

4. Digital Identification and security

5. Loyalty programs and management

6. Smart contracting

7. Baggage/ Food tracking

8. Proper revenue management

 

 

1. Payment Security

 

  • The ultimate theme for any business is money. The business is successful only if the payments are secured and safe.  
  • As the hospitality industry faces a huge number of transactions on a daily basis, blockchain technology is indispensable in the business transactions of the hospitality industry.
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  • Acquiring safe transactions with the blocks of data makes the complete business process streamlined and the running cost to maintain the business will get drastically reduced. 

 

2. Tracking the guests

 

  • In the hospitality industry, guest tracking is an important feature that should be implemented all over this industry to ensure that the estimated guest arrival time is notified to the hoteliers and they can efficiently make use of the time for the guests. 
  • A few years before customers used to book the hotel online and after arriving at the hotel they may need to wait to get their room ready for accommodation.  
  • With this guest tracking feature, you can track the guest but only after the approval from the guest and by not interfering into the privacy of the guest. 
  • This is made possible by storing the guest information in blockchain without affecting the privacy of the customers. 

 

3. Audit management

 

  • In case of guest tracking or during online booking of hotel rooms, airline tickets, the customer information needs to be stored in a very secure place so that is accessed only by the authorized person. 
  • This is highly valued by making use of blockchain technology in this factor and the service operations of the hospitality industry are audited in a genuine manner.

 

4. Digital Identification and security

 

  • The present world is focussing on this identity theft by leveraging modern technologies in order to avoid any type of digital hacking. 
  • From the initial stage of booking to the final check out procedure in any hotel involves customer information. 
  • The identity card should be carried away with the travellers and in case if it is lost, it is easy for the intruders to alter the ID card and make use of it for any type of hacking.
  • Digital identity and security is a major concern in the hospitality industry and the personal identity can be scanned during the online booking and stored in the blockchain in order to verify the digital identity. 
  • All the important information can be stored in blockchain which can be used for verification purpose when the customers arrive at the location and thus helps to reduce the waiting time at the reception.

 

5. Loyalty programs and management

 

  • In any business retaining your current customers is very important than acquiring the new customers.
  • Especially in the hospitality sector, the customers are retained by conducting the loyalty programs and assigning loyalty points to customers based on how loyal they are to the service provided. 
  • This program is to encourage the customers and help them redeem those points for their tour package. 
  • This reward points can be stored in the blockchain as digital tokens in order to avoid any type of fraudulent activities and you can carry out the loyalty programs and reward management in a more effective way to grab your existing customers. 

 

6. Smart contracting

 

  • Usually, there will be a contract between the travel agency and the hotel management. When the customers book online through any travel agency the commission for a travel agency is received based on the contract between them.
  • These payments can be handled through smart contracting in the blockchain. The contract between the two different parties can be stored in the blockchain and the payments are automated based on this contract. 
  • Here the contract is not altered by any other third party since the modification of any data in blockchain requires multiple stages of data verification. 
  • This feature automatically reduces the service operational time and the transactions are instantaneous to carry away the service successfully. 

 

7. Baggage/ Food tracking

 

  • It has become easy to track the baggage of travellers by using the latest blockchain technology. 
  • As we all know that baggage undergoes many check-in procedures in airports, it is necessary to track the baggage for good customer experience. 
  • The baggage information details can be stored in the blockchain in order to track the baggage easily.
  • Most of the times the travellers will be in search of good food near their destinations during their journey so food is also included under tour package by this hospitality sectors. 
  • They try to get connected to the restaurant owners and transportation service to track the food to be provided to their customers. 
  • This network of supply chain management can be stored in the blockchain to process the payment transactions easily.

 

8. Proper revenue management

 

  • The revenue management process involves many tedious calculations of the transactions and the payments. 
  • Many organizations started adopting blockchain for their revenue management by making automated calculations of the huge number of transactions and payments. 
  • The hospitality industry is a very vast industry and to manage the hotel inventories or assets becomes easier by storing the information and transaction data in the blockchain. 
  • The overall revenue management with this blockchain technology helps to grow the hospitality industry.   

 

 

Infographic Credit – Infinite MLM Software

 

Conclusion. 

Yes, Blockchain has its own space in the hospitality industry.  In this article, you can view some real-time applications of blockchain in the hospitality industry. 

As the potential use of Blockchain is still need to be explored for many real-time applications, it can be used immensely for many innovative ideas of the hospitality sector to speed up the economic growth of the business. 

This technology interfaced with hospitality technology improves the day to day service operations to satisfy the customers by improving the transparency of the business and by strongly connecting with data security for fundamental operations of the hospitality sector.  



 

Author Bio:

 

Isha Parmar is a Senior Content Writer at Infinite Open Source Solutions, one of the leading direct selling software companies in India. She is a voracious reader and enjoys a broad spectrum of subjects ranging from romance and fiction to the latest technology. Her major areas of writing are covered in Infinitemlmsoftware Blog.