Southeast International Analyzes How Blockchain Could Affect Hotels
Here at Southeast International Hotel Brokers, we make it a point to stay on top of any trends that can affect the hotel industry. The latest technology on our radar? Blockchain. Chances are you may have heard of blockchain technology. Blockchain, especially as of late, has been causing quite a stir in the financial and tech sectors. Though the applications and success of it are still speculative, it has the potential to drastically change the way many industries operate. This includes the travel industry. In what ways can blockchain shake up the travel industry? How will it be applied? What is blockchain technology anyway? Read on to see the Southeast International analysis.
What is the Blockchain?
First, let’s get a surface level understanding of blockchain. Keep in mind, blockchain is an extremely complex technology, and it’s impossible to fully explain the breadth of it here, but we can give you a good starting point. In the most basic sense, the blockchain is an infallible ledger that records transactions. These transactions are recorded on the blockchain, and they include any and all valuable data about the transaction. It’s basically a spreadsheet that is duplicated thousands of times across a network of computers and is continually updated. What are the benefits of this?
Well, for starters, the blockchain is completely decentralized. This means that no single central version of this information is controlled by an entity. This is one of the biggest reasons for the advent of the blockchain: trust. Since no single entity controls the data, the data is completely public and verifiable. It’s nearly impossible for information to be manipulated in a false manner. Once verified information is added to the blockchain, it’s there forever and can’t be changed, only added to. If this sounds familiar, you may have had some exposure to the concept of Bitcoin. The Bitcoin currency was created to take power away from banks and government setting and controlling the value of paper currency. The Bitcoin blockchain was created to allow transactions with this currency. Transactions that are completely verifiable and decentralized. Similar concepts can be applied to other industries, and multiple blockchains are being created with this in mind. So in summary, the blockchain is incorruptible, transparent, decentralized, and secure.
How Will it Be Applied to the Hotel Industry?
Now that we understand the blockchain a little, let’s take a look at how it can be theoretically applied to the hotel industry. The most obvious, and perhaps the most likely, is a complete overhaul of customer loyalty programs. These typically complicated systems will be made simple with the implementation of the blockchain.
When a customer is added to the loyalty program on the blockchain, their information would be securely added to the infallible ledger, thus preventing any issues with identity theft. Anytime they earn, redeem, or exchange a loyalty point, it would be noted and verified on the blockchain. Thus, both hotels and customers know exactly where the loyalty points are going. This is great for the guests because they’ll likely be able to carry all of their loyalty points in a decentralized digital wallet, and neither the guest nor the hotel will have to verify the transaction. This leads to significantly quicker transactions. Hotels would no longer have to deal with complicated systems for keeping track of their loyalty programs; the blockchain can take care of that for them.
In short, loyalty programs will no longer be a headache for hotel owners or the guests that use them. This is just one example of how blockchain technology can be applied to the travel industry. The fact is, the possibilities are vast, and it’s hard to predict exactly what the future holds with such a volatile and new technology. But by paying attention to the trends, you can give yourself a leg up if and when blockchain starts to becomes widely utilized.
Trust Southeast International Hotel Brokers
Southeast International Hotel Brokers is a premier hotel brokerage firm, and we take great care to keep up with the latest trends in the travel industry. This dedication to knowledge and expertise is what makes Southeast International the best choice when looking to sell or buy a motel or hotel. We help you through every step of the process, and our extensive network assures you’re connected to who you need to be connected to. Contact us today for more information, or view the Southeast International website.