Blockchain in the travel industry
2017 was a remarkable year for blockchain projects; unfortunately, the pace couldn’t be managed in 2018. Blockchain project couldn’t deliver the promised products, like 70% of the products went undelivered and some of it even erased themselves from the market.
Blockchain is still in its infancy and most of the products are projected to be rolled out in the year 2019. The travel industry will be a great place to watch out for some innovative products!
The future of the travel business is unpredictable, technologies from various industries have started contributing. Cryptocurrency plays a significant role in it!
Companies like Expedia Inc. stepped in to the crypto world and backed off recently due to reasons like higher volatility. Companies like Locktrip, CheapAir, Destinia are continuing to accept cryptocurrency and are in the forefront of rewriting the history of online payment in the travel industry.
It is expected that crypto currency will be able to address many of the existing complications. The current system is quiet costly and controlled by the pioneers of the industry. There is little space for emerging businesses to co-exist.
The commercial travel industry is highly complex, though the end customer lands with a single product, a large number of entities are involved in the delivery of a travel product. A standard travel transaction involves many intermediaries, from the point a traveler initiates a search request on a travel website to arriving at the destination, there are as 26 businesses involved in the aviation chain. Blockchain could certainly reform the ecosystem of travel; it has the capability of being transparent, real-time and low cost!
IATA & Blockchain
IATA is making noiseless changes. In 2012, NDC was introduced with the hope of tactfully handling the limitations of the aviation industry and eventually it is catching up with all the IT providers, airlines and GDS partners.
IATA introduced its cryptocurrency known as IATA Coin within a closed ecosystem with a fixed exchange rate to flat currency. Ethereum acts as the backbone of IATA coin.
In 2017, IATA processed around $57 Billion in inter-airline transactions.
Entities like TravelBlock cannot be left out when we speak of the future of blockchain in travel industry. TravelBlock suggests removing the conventional GDS (Global Distribution System) from the value chain by implementing Blockchain technology.
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