The hotel industry has countless offerings and a wide range of supplies, but the main problem of the industry is the enormous number of intermediaries charging commission while making it seem like a fantastic deal. The centralization of intermediaries has caused various price manipulations, and hotel owners have turned to blockchain technology to regulate the problems thus caused. In the second generation of disintermediation of global markets, blockchain technology appears to be the solution to hoteliers’ issues.
How can the blockchain service change the hotel booking industry?
Blockchains are all aces when it comes to cutting out mediators—they are decentralized, autonomous, and open-sourced. Since blockchains provide a high degree of anonymity, they are a reliable payment platform. The interactions amongst a supplier and a consumer can be recorded on the chain; with each recorded transaction being identifiable by a private key. Blockchains provide a higher degree of transparency to the hotel industry; this prevents cheating and booking scams by giving the same access to guests as that of the hotel owner in the accounting.
The implementation of blockchain is inexpensive compared to the maintenance of websites. The automation is a plus point as the smart contracts are generated immediately before or after a transaction is completed. As these contracts favor the hotel, fraud can be reduced by taking the funds into an escrow account and then transferred back to the guests. It also generates tokens to be used for a blockchain-based reward system.
Does the future of hotel booking systems include blockchain?
The hotel booking system is a decentralized and problematic market causing disorder internally, but permanent solutions can be found with the application of blockchain. The implementation of blockchain technology will make a majority of the online booking firms redundant, resulting in cheaper and more transparent bookings.
The application of blockchain through smart contracts will help make the hotel booking process completely automated. The integration of blockchain with traditional systems has been slow, since the speeds associated with the present systems are higher. However, innovation in the field of blockchain applications has created hope of business for the hoteliers and provided an inexpensive and safe booking system for customers.