A lecturer at the Les Roches Global Hospitality Education was recently quoted saying there are important reasons why hotels should take an interest in blockchain technology. He noted that just like any technology, blockchain technology was in its formative stages. However, he gave the example of the internet, which transformed the hotel industry. In his opinion, there are three reasons why the hotel industry should think about embracing blockchain technology:
The Major Players are getting on Board
Some of the biggest companies in the world such as Oracle, Amazon, Goldman Sachs, Disney, Facebook, Twitter, Alibaba, and many are already looking into the technology. Besides that, brands in the hospitality sector have also begun to embrace this technology. These companies include TUI Group, AirFRance, and Nordic Choice Hotels. Nordic Choice recently released the Winding Tree, which is an open-source platform that uses blockchain technology to facilitate bookings.
In short, it is time to start embracing blockchain technology. This technology will change how businesses operate all over the world. Blockchain technology has created a decentralized model that makes it nearly impossible for hackers to abuse it.
Blockchain Eliminates the Middleman
The hotel industry is deeply reliant on intermediaries. Each day, companies offering middleman service crop up, which takes a bit more from the industry. By embracing the blockchain, it could help to reduce middleman charges.
While OTAs in the industry are convenient for customers, they take a huge cut of the profits from hotels. Sometimes, these costs are passed on to the consumer, which means they are not getting a good deal. This can cause management to feel unmotivated. However, blockchain will eliminate these costs and allow customers to enjoy the best prices possible.
While some hotels worry that without OTAs, their visibility will end, customers will be more than willing to take time to find up to 50% in discounts. With more profits, hotels can invest more in SEO, which will help them grow without OTAs.
The Blockchain Will Help Boost Loyalty
Blockchain technology will help to create an ecosystem where customers and providers of a loyalty program can interact with ease. This will take place on one platform without the need for middlemen. It will make it possible to create a loyalty program with ease of convertibility. In the past, loyalty points had major restrictions on how they could be used. However, blockchain technology makes it possible to tokenize these points. As such, they can be used for various purposes, which will help to boost customer loyalty.
Another benefit of tokenized loyalty points is that they can be traded. These points can be spread across hotel chains, airliners, and other players in the sector. The result is that customers will have more utility for their points.
Forward-thinking hoteliers should definitely look into the blockchain. Just as the internet helped to transform the industry, this new technology could prove to be a game-changer. While it may not happen in a month or a year, the blockchain will eventually affect the industry.