DeutschThere’s no question that digitalization has greatly changed tourism in the recent past. Many vacationers no longer book their vacations at a travel agency, but on the Internet. On site at the travel destination, people use their cell phones for sightseeing tips or as a translator for communication, or book excursions conveniently via apps like GetYourGuide.
But that’s just the beginning. Because the widespread integration of blockchain solutions like smart contracts could sustainably change the way we book a flight to Mallorca, a vacation home in Liguria, a hotel in Paris, or a private sightseeing tour through London.
In this article, we look at how smart contracts could be used in tourism, examine a specific example, and show other possible areas of application for blockchain technology.
What could Smart Contracts Look like in Tourism?
Whether you book on-site at a travel agency or via the internet: In most cases, the travel industry does not work through direct bookings, but through intermediaries such as traditional travel agencies or platforms like Booking or Airbnb.
These intermediary entities are intended to enable a secure transaction with the provider on the consumer’s side while simultaneously serving as an additional trust factor before a contract is concluded with a largely unknown counterparty.
But regardless of that, the question arises as to why a system that has proven itself for decades should be changed at all or supplemented by a new solution. One possible advantage lies in the costs: Intermediary platforms often receive commissions of 5, 10, or even over 20 percent of the total price, which directly affects the final price.
With the help of smart contracts, such intermediaries could be reduced in certain cases. This could automate processes and reduce costs. The following example shows what this can look like in practice.
Example: Renting a Vacation Home in Liguria
With its location between the Tyrrhenian Sea and the Maritime Alps, Liguria is considered a versatile travel destination in Italy.
Let’s assume we want to rent a vacation home there. Today, bookings are usually made via an online portal that serves as an intermediary between the tenant and the landlord. This creates an additional layer of security, as platforms function as a trusted authority.
Similar processes could also be mapped via smart contracts in the future. Since these are executed automatically and are based on a blockchain, part of the trust function can be handled technically. Contracts could be concluded directly between the tenant and the landlord without necessarily requiring a central platform.
A possible advantage: Both sides save the commission to an intermediary.
Smart contracts could thus make processes in tourism more efficient. At the same time, it can be assumed that existing systems will not be completely replaced, but rather supplemented.
Further Applications of Blockchain in Tourism
The potential applications of blockchain technology in the tourism industry are not limited to booking hotels, vacation homes, or flights. Rather, work is being done in various areas to digitize processes and make them more efficient.
One possible area of application is personalized services. Blockchain-based systems could be used, for example, to provide travelers with individually tailored offers.
New possibilities are also emerging in the area of recommendations. Anyone traveling in an unfamiliar city often looks for authentic tips from locals. Digital platforms could make such connections more transparent and trustworthy in the future.
Furthermore, large companies in the tourism industry are also dealing with blockchain technology. The goal is, among other things, to organize booking systems more efficiently and to better utilize capacities.
Whether booking flights, organizing accommodation, or local services: Blockchain technologies such as smart contracts could supplement and partially automate existing processes.
