Blockchain technology has come a long way since the inception of Bitcoin back in 2008. The technology has been proven to have the potential to disrupt several industries by enabling decentralization to create more robust ecosystems subsequently. Industries pertaining to Fintech, Consumer facing applications, Supply chain management, etc., all stand to be radically improved, and the travel industry is no exception. With simpler payment mechanisms and accessible listings, the travel industry has already been significantly transformed after the advent of the Internet. However, there is still quite a bit of room for efficiency and security that blockchain technology can help solve.
Swissbloc Capital (SBC) is a blockchain-based company that is currently building the technology necessary to employ blockchain technology to target this niche industry. With its own native cryptocurrency GTX, the ecosystem builds a mechanism where users can leverage blockchain technology to improve their payments and travel experience in general. In this post, we highlight the various shortcomings of the travel industry today and how they can be solved to vastly improve the user experience.
Payment settlement solution
One of the shortcomings of the legacy payment system is the inefficient settlement layer and its potential for error. Between the commissions for various middlemen and variable merchant fees, the cost of payments increases by a significant margin. Payment processors such as Visa and Mastercard charge up to 3% in transaction fees while also increasing the friction in the whole process. According to projections found by Allied Market Research, by 2022 these fees would cost merchants about $32 billion. Having a blockchain ecosystem such as Swissbloc Capital, users can make instant and fast transactions using GTX token for near zero additional fees. By reducing transaction fees for merchants, the cost burden on the users will be eliminated. Seamless transactions such as these would also drive up the payment volume significantly which streamlines the whole process. This is crucial because this essentially eliminates the need for several third parties which clog a sizable part of the process.
Safeguarding private information
Making travel plans involves trusting centralized parties with your personal data. Not only are a customer’s personal whereabouts vulnerable, but critical information pertaining to crucial documents are also at risk. As evident from the incidents at giants like Facebook and Equifax, data protection and identity theft are the biggest problems of this century. This problem can be tackled by taking advantage of blockchain technology. Having a distributed ledger eliminates the need for trust and more importantly assures the security of your personal data. Every individual can decide with whom they share their information with while being able to track it.
Fraud protection and Improved transparency
In 2015, Fraudulent transactions regarding card payments amounted to about $16.31 billion. The problem with them is that not only do they cost all parties involved, they also increase the hassle surrounding travel. Between unauthorized charges and chargebacks, customers have had to be very wary of their payment information. Another thing to note is that merchants end up imposing additional fees anticipating any fraud charges they might have to bear. This results in extra costs for consumers in the first place.
Given the lack of a central party in blockchain technology, transactions can only be authorized when users decide to cryptographically sign transactions. This helps prevent a significant amount of fraud and creates an ecosystem where there is little to no incentive for malicious attackers. Transparency is another key advantage where users can be fully aware of how their transactions and personal data is being handled. By fixing a lot of scope for vulnerabilities and having a traceable system in place, we can significantly curb any potential losses. Overall, this new system would be an improved way for merchants to interact with their customers.
Loyalty and Reward Programs
While there have been certain successful attempts of loyalty program among airlines, the same is not true for the travel industry as a whole. It also isn’t uncommon for airline loyalty point being locked up or simply get too complicated making them inaccessible for customers. Having a single token-based loyalty program across all aspects of travel such as airlines, hotels, etc., will allow for a better and efficient experience for customers. This will also help merchants successfully retain their customer base and keep them satisfied.
In the Swissbloc Capital loyalty program, users can earn GTX reward tokens whenever they make purchases from participating merchants using GTX tokens. Furthermore, GTX reward tokens can be converted to GTX tokens allowing the loyalty program to be a global scheme comprising of different organizations across the hospitality industry. This will also help solve the inconvenience caused by the need for various foreign currencies while traveling by making the GTX token a de-facto flagship mode of payment.
Travel and hospitality are multi-billion dollar industries that are ever growing with no sign of stopping. The travel industry as a whole is due an upgrade to improve the existing system across the board. By the integration of blockchain technology, and in extension the constant breakthroughs of the field, Swissbloc Capital ecosystem stands a chance to radically change and improve the experiences for both customers and merchants at every step of the way.