Blockchain technology is one of the emerging technology 21st century has come up. Its revolutionary features of being decentralized, the immutability of data, transparency, and security of data with the anonymity of participants, proposed data storage facility which was unable by other technologies. Along the way, other programs came namely, cryptocurrencies, digital wallet, Initial Coin Offering, and smart contracts. Out of which cryptocurrency development such as BitCoin and Ether popularized the blockchain technology the most. The hype of owning a cryptocurrency and earning unexpected profit led people to create different cryptocurrencies known as “alt-coins.” But this hype also encouraged scammers to lure investors and their money. This situation diminished the advantages offered by decentralized currency development.
Moreover, many countries banned cryptocurrency trading and other significant countries enforced laws on it, making cryptocurrencies a centralized program. But non-existence of one feature does not diminish other features of cryptocurrency development. Many industries such as supply chain management, financial technology, and the tourism industry know this fact, and many pilot projects and application can be seen in the market.
The tourism industry can take advantage of cryptocurrency development the most. Tourism industry includes player of the Hotel industry, airlines industry, restaurant chain businesses and many more. The hotel industry of tourism in any country is suffering the most due to low-profit-margin, high level of competition, need to rely on third-parties like OTAs and travel agents and others. Here, blockchain development and cryptocurrency development provides the perfect solution to eliminate these pain points and offer the following advantages:
Advantages To Hotel Chain Business
- No Middle Man For Client Interactions
The Online Travel Agents (OTAs) increases a hotel’s business cost regarding commissions and promoting hotel chain more than competitors on the online marketplace for a fee. This practice ultimately costs end-users, i.e., clients while purchasing services from the hotel chain. But when a hotelier offers cryptocurrencies developed through its enterprise blockchain to its clients, this cost can reduce.
Alternatively, a hotel can offer clients to pay with a hotel’s cryptocurrencies through OTAs as well.
The client with cryptocurrencies will directly purchase services from the hotel ‘s booking portal or the hotel’s reservation table. Alternatively, a hotel can offer clients to pay with hotel’s cryptocurrencies through OTAs as well; this move will direct the payment to the hotel itself first in contrast to OTAs paying to the hotel after client pays and secondly, it helps in having a competitive edge in the market.
- Surety Of Service Sale
When a client has a hotel’s cryptocurrencies, it provides a surety that the client will purchase any of the hotel chain’s services because cryptocurrency holds similar or more value than fiat currency based on the market position of that crypto coin. Moreover, the hotel can provide an option to frequent travelers of buying the hotel’s cryptocurrencies in exchange for fiat currency.
- Hyper-Personalized Services
The service purchase of clients by cryptocurrency payments are stored in the enterprise blockchain of the hotel business. This transactions when analyzed a buying pattern and services preferences of clients can be found. This analyzed data can help in formulating a strategically planned and customized service experience to offer the existing clients. This hyper-personalized service experience increases the trust of clients on the hotel chain’s services.
Wherever the hotel serves, the traveler can purchase those services easily with his digital wallet.
Advantages To Frequent Travelers
- International Currency
Typically, a frequent traveler needs to keep various countries’ currencies to travel. But if the traveler buys cryptocurrencies of his/her trusted hotel does not need to carry a large amount of money. A hotel’s cryptocurrency works as a global currency to a traveler, and wherever the hotel serves, the traveler can purchase those services easily with his digital wallet.
- Reduction In Traveling Cost
Professions such as bloggers, photographers require many travels to different countries, and they need to buy different currencies for their fiat currencies at the global rate. This rate fluctuates on a daily basis and can affect the traveling cost of any individual. When travelers buy cryptocurrencies of a hotel chain instead of purchasing different countries, fiat currencies can reduce the price too many extents and makes payments for various product and services of hotel hassle-free.
- Safety Of Currencies
Another advantage of carrying hotel cryptocurrencies is security while traveling. Cryptocurrencies are accessed through a private key of a digital wallet only. Of course, holding a few fiat currencies is safety as well but having less can save from threats like money being stolen or all money spent.