Barstow Community College Blockchain Technology in the Travel Industry Discussion

Description

For three topics: royalty, secondary market, and payment, you need to write them separately. For each of them, you have to write introduction, importance, challenges, visualization, impact of Google, conclusion.1
Blockchain technology in Travel Industry
Student’s Name
Course Name and Number
Institution Affiliation
Instructor’s Name
Due Date
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Introduction
Blockchain technology has a significant application in various industries in our sector,
such as banking, healthcare, and education. It’s thus believed that technology can greatly impact
the travel and tourism industry. In recent years, technology has received an enormous amount of
interest. Blockchain is considered an effective and appropriate solution to confidential data
security issues. Blockchain technology has ten capabilities to transform the modern travel
industry. The technology can help enhance the safety of transactions and securely stores Personal
Information belonging to clients, such as credit card numbers and Social Security Numbers
(SSNs). It can help enhance transparency by making it easy for the industry to track down
settlements between third parties, aggregators, travel agents, and the hotel. Blockchain provides
the industry with a centralized ledger to help speed up and streamline transactions. It will help
the industry combat data theft and financial fraud. The paper’s main purpose is to focus on the
contribution of Blockchain in enhancing the security of financial transactions between travel
agents, vendors, hotels, and customers.
Importance of Blockchain in the travel industry
Blockchain technology has numerous applications in the travel industry. The
sophisticated technology has a huge application in streamlining payment systems and services of
the industry (Swati & Prasad, 2020), for instance, creating a conducive and safe environment for
customers to book and make payments without worrying about suffering a data breach. With the
technology’s decentralized nature, the industry benefits from a streamlined and secure payment
system that facilitates easy transactions. Errors and financial fraud are drastically reduced. It is
also easier for customers to book and make payments online (Swati & Prasad, 2020).
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Blockchain technology provides its beneficiaries with a Blockchain-based payment
system, makings it easier to process numerous transactions (Swati & Prasad, 2020). Thus
reducing the need for mediators such as travel agents. It helps the industry save on costs since it
simplifies the payment and booking procedure for customers. Blockchain technology promotes
transparency, especially in financial transactions (Swati & Prasad, 2020). Customers’ experience
and trust are also enhanced. By applying the technology, it’s less stressful for customers to book
and make payments. Customers can build trust and confidence with the decentralized payment
system provided by the technology (Swati & Prasad, 2020).
Challenges, Risks, and Market Research
Blockchain technology is associated with numerous benefits to the travel industry, such
as enhanced customer experience, data transparency and visibility, and streamlined transaction
system (Rashideh, 2020). However, the technology is associated with some demerits, which
makes it risky for the travel industry. Research shows that most of the risk is incurred by
inexperienced and new travel companies (Rashideh, 2020). The following are challenges facing
the technology.
Standardization issue. One of the major challenges facing blockchain technology is the
issue of standardization (Rashideh, 2020). According to research, the technology has recorded a
low adoption rate, especially in the travel industry. Since its launch 14 years ago, poor adoption
has been the major challenge. People across the globe seem to have not recognized its relevance
in the industry (Rashideh, 2020). Different travel and tourism have implemented different
payments, a major challenge when integrating into the Blockchain. Introducing a new payment
technique that can work effectively for all is also a challenge. Not everyone is aware of the
technology. 45% of customers prefer traditional payment methods more than Blockchain
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streamlined payment systems. Generally, the credibility and compatibility of Blockchain are
questionable (Rashideh, 2020).
Regulatory issues are another challenge facing the adoption of Blockchain in the travel
industry. The travel and tourism industries are highly regulated and controlled. Transparency in
their various operations is essential (Rashideh, 2020). In addition, they must adhere to the ethical
standards enacted. For instance, the issue of safety and confidentially since the industry deals
with enormous amounts of confidential data. It’s also important to note that not all governments
have authorized the application of Blockchain. It’s a challenge to customers and travel
organizations, especially in regions where the technology has not yet been regulated (Rashideh,
2020).
Data security issues and financial fraud are other challenges facing the technology.
Recently, cyber-attack cases have increased by a high margin of about 69% (Dogru et al., 2021).
Malicious individuals are constantly attacking industries that have noted implemented robust
security measures. A report shows that in 2020 and 2021, more than 546 million confidential
records were stolen from databases. The data breach was estimated to have cost various
industries more than $1.6 billion in recovery and settlement programs with local authorities such
as the Federal (Dogru et al., 2021). In 2019, the technology was reported to be a host for
financial fraud and illegal fraud, which is evident from recently reported fraud cases. According
to research, more than $32 billion has been laundered with the Blockchain as a channel. In 2022,
FXT scammed millions of people across the globe more than $23 billion was lost. Blockchain’s
negative perception as a major den for fraudsters has led to a low adoption rate in recent years
(Dogru et al., 2021).
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High transaction fees is another challenge is another major challenge facing the
technology. Some networks, such as Ethereum and Bitcoin, have high transaction fees
unfavorable to customers (Dogru et al., 2021). As a result, millions of customers will consider
using traditional payment services due to their low costs. Other challenges facing the technology
include high Blockchain transition costs. Many resources are required to integrate with the
Blockchain, which is not favorable to 94% of travel organizations (Dogru et al., 2021).
Technology is associated with numerous complexities and major challenges facing inexperienced
industries. According to research, a scholar argues that for Blockchain to be effective, there is a
need for a high adoption rate. Resistance to change and complexities associated with the
technology make it difficult for the industry to adopt (Dogru et al., 2021).
Despite the challenges associated with the adoption of blockchain technology. It
continues to be valuable. According to research, blockchain technology will continue to grow. In
2023, Blockchain registered a high market cap of about $ 1.4 trillion (Ozdemir et al., 2020). It’s
proven that it will provide effective infrastructure. Blockchain will have a great impact on the
travel industry. Customers are in high demand for streamlined and secured transaction systems
provided by the technology. According to research, customers can benefit from flexible payment
programs.
The travel industry is expected to grow exponentially. As of 2022, the industry was
estimated to have a market value of about $ 678 million (Ozdemir et al., 2020). The high demand
needs the adoption of a secure system. 79% of global travelers demand a system that can
facilitate easy planning, booking, and payment. NFT alone has earned the travel more than $5
billion in return in 2021. Loyalty programs continue to impact blockchain technology’s growth
and adoption rate (Ozdemir et al., 2020). By the end of 2023, the market value is expected to
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increase by $73.6 billion and a CAGR of 9.2%. By the end of 2025, the market value will be
estimated to be more than $ 100 billion (Ozdemir et al., 2020).
Interviews, Customer Demands, and Market Research
Market research shows there is a high demand by customers in the industry. According to
a study, 61% of customers prefer implementing a standardized payment system that is secure and
meets the demand of millions of customers globally. 81% of the study shows that customers are
interested in conducting mobile transactions globally, although cyber security is a major industry
challenge. According to research, the global market value is expected to grow by a CACR of
about 11.2% by 2030 (Ozdemir et al., 2020). The high growth rate result in a reputation growth
rate. For instance, 9% of customers prefer traveling with a specific travel organization. Loyalty is
an important principle, and modern technology is a major driving factor.
According to research, 54% are loyal customers of certain Airline Companies. 56%
benefited from loyalty programs, and 46% received rewards from their royalty. In 2022, the
industry registered a 35% reward redemption compared to the 20% recorded in 2016 (Ozdemir et
al., 2020). 25% of young individuals appreciate the need for Loyalty programs. 43% of older
populations are great supporters of the program. Asian, American, and European travelers
support the loyalty program because they benefit from high rewards (Ozdemir et al., 2020).
Blockchain benefits businesses in numerous ways. Loyalty programs provide
organizations with a low-risk investment that benefits the business due to the adoption of
decentralized ledger solutions. Leveraging adopted infrastructure has a greater influence on the
travel industry. The technology makes it easy to secure confidential data (Ozdemir et al., 2020).
Impact of Google
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Blockchain benefits the travel industry. Some of the key benefits is the high-security
level of payment chain offered by the technology. It’s also a channel for improvised business
performance for an organization (Rahardja et al., 2021). Security of the technology enhances the
security level of private information belonging to millions of individuals. Blockchain has made a
major contribution to Online Travel Agencies (OTS). It supports business and customer
applications. Generally, the technology streamlines the overall transactions. A partnership is
necessary for Google (Rahardja et al., 2021). The organization relies on primary data, which
plays a major role in enhancing services in the travel industry. Customer loyalty is enhanced
through technology and Google services (Rahardja et al., 2021).
Conclusion
Blockchain technology has a major role in enhancing the travel industry. The technology
helps the industry to secure payment techniques and booking. Decentralized ledgers ensure full
control and security of confidential data. Travel payment and loyal programs are easily managed
through blockchain technology. Security of confidential data in the travel industry is critical, thus
the need to adopt blockchain technology. Information sharing with Google can assist in
enhancing services associated with the industry. Customer experience, transparency, and security
of information are enhanced by technology. According to the paper, adopting Blockchain is a
competitive advantage in the travel industry. For a business organization to remain competitive,
there is a need to adopt technology.
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References
Dogru, T., Mody, M., & Leonardi, C. (2021). Blockchain technology & its implications for the
hospitality industry. Boston University, 1-12.
Ozdemir, A. I., Ar, I. M., & Erol, I. (2020). Assessment of blockchain applications in the travel
and tourism industry. Quality & Quantity, 54, 1549-1563.
Rashideh, W. (2020). Blockchain technology framework: Current and future perspectives for the
tourism industry. Tourism Management, 80, 104125.
Rahardja, U., Aini, Q., & Maulana, S. (2021). Blockchain innovation: Current and future
viewpoints for the travel industry. IAIC Transactions on Sustainable Digital Innovation
(ITSDI), 3(1), 8-17.
Swati, V., & Prasad, A. S. (2020, December). Application of blockchain technology in the travel
industry. In 2018 International Conference on Circuits and Systems in Digital Enterprise
Technology (ICCSDET) (pp. 1-5). IEEE

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