The travel sector is undeniably one of the most dynamic markets in the world. However, due to this space being plagued by archaic booking and privacy processes, it is in need of a major makeover. In this regard, many experts believe that blockchain technology has the power to usher in this change since it is capable of introducing a level of transactional security, operational smoothness, and data relay, not thought to be possible previously.
Also, despite the recent Covid-19 induced economic downturn, the travel industry is primed to keep growing in the near to mid term. A 2023 study released by global management consulting firm McKinsey and Company states that international tourism across 185 major countries will either recover or reach within 95 percent of full recovery by the end of the year.
Lastly, by 2032, the gross domestic product (GDP) of the travel and tourism sector will grow by a sizable 5.8 percent annually, a number that severely outpaces the projected 2.7% year-on-year (yoy) growth of the global economy during the same time frame.
Simplifying Travel Transactions
At present, the travel industry is extremely fragmented, with monetary transactions, in particular, being extremely convoluted due to the involvement of several entities — with each partner looking to get a share of the pie.
However, blockchain systems present a unified model for securing transfers via the use of smart contracts. To elaborate, they allow multiple entities associated with a single transaction to interact with one another (transparently and securely) while eliminating the need for separate APIs and disjointed payment systems.
Moreover, the decentralized nature of the blockchain ensures that payments are executed only after the desired service has been finalized, and all of the involved stakeholders are satisfied. Such a setup helps foster a sense of trust among each participant as well as eliminates the scope of any fraud. Beyond this, the blockchain also provides travel industry operators to communicate with one another.
In fact, projects like Camino Network have already been successful in creating a robust network enabling encrypted and standardized communication between suppliers and requesters. Thanks to its semi-permissionless consortium network, the project has accrued the backing of several prominent market entities, including Lufthansa, Asian Trails, Aerticket, Eurowings, Firatel, among others. As a result, it presents a tangible alternative to the oligopolistic, hierarchical structures pervading the travel sector today.
Moreover, Camino Network’s structural framework ensures that governance always lies with its consortium members, all of whom are prominent members of the travel industry. As a result, transaction fees always remain reasonable. Not only that, it also helps in the creation of new travel products that are in the best interest of the market at large.
Last but not least, Camino’s deployment of a blockchain-based communication network bypasses the need for countless API connections and VPN tunnels that have long been associated with several security concerns while allowing for more secure industry collaboration. On the subject, Camino Network implemented stringent KYB (Know Your Business) protocols for companies building atop its network, thus bolstering its commitment to security even further.
It's the right move to foster a secure and trustful ecosystem.
💡 Read more about KYB on Camino Network in our blog post.https://t.co/WtEsydcYLw
— Camino Network (@camino_network) August 10, 2023
Blockchain’s potential is waiting to be unleashed
It is no secret that the travel industry is currently in possession of troves of sensitive customer data — such as government id numbers, credit card details, travel itineraries, etc. — which is stored in centralized servers. This makes it prone to third-party breaches and data leaks, as has been seen innumerable times in the past. By embracing blockchain technology, this issue can be resolved in a tangible, seamless manner. Moreover, the decentralized/cryptographic nature of the blockchain ensures that these issues never come to the forefront.
Additionally, the continued integration of blockchain tech into the travel realm can help in the development of decentralized platforms servicing sought-after domains such as bookings, payments, and even itinerary management — all at extremely subsidized costs. Lastly, the un-alterable nature of the blockchain ensures that the entire travel history of a person is stored securely while providing them personalized recommendations and a highly customed user experience.
The future of travel is decentralized
As the use of decentralized technologies continues to grow, it stands to reason that we will continue to witness the emergence of novel solutions that are not only more efficient but also cost-effective and capable of mitigating security risks associated with the travel industry. Therefore, looking ahead, the future of this space seems primed for disruption, with platforms like Camino leading the charge.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.