Blockchain is one of the buzzwords of the moment. The general public's main impression of this technology, which has a bright future ahead of it, is that it is the basis for bitcoin, the famous crypto-currency. A decentralised IT system, blockchain enables transactions to be validated in near-real time, securely and without a trusted third party.
This unforgeable register is used to certify any type of transaction requiring absolute confidence in the information provided. Although the bancassurance sector was the first to adopt the concept, blockchain can also be used to make valuable services professionals in logistics, food traceability and intellectual property protection. Of course, the travel industry is not immune to this phenomenon. In fact, the use cases seem endless. In a study published last October, Amadeus, one of the world's leading suppliers of technological solutions to the sector, listed the main ones.
Saving time with blockchain
It all starts with smoother management of travellers' identities, whereas at present, from check-in at the airport to check-out at the hotel, travellers are checked at every stage of their journey. According to Alexandre Jorre, Marketing and Communications Director at Amadeus, "blockchain would eliminate a lot of friction". According to him, by reducing queues at the airport, a passenger could save at least ten minutes. This time freed up could then be devoted to resting, working, shopping or drinking in one or other of the bars and restaurants offered by the hub. "This smoother passenger experience would be a competitive advantage for an airport hub."he continues.
Another obvious example is baggage tracking. From check-in to their arrival on conveyor belts, blockchain would make it possible to coordinate the various players - airport operators, airlines, handlers, etc. - and would ensure detailed traceability of handling carried out. This will go some way to solving the problem of lost baggage, a source of stress for passengers and a financial loss for the airline industry. "New services could be created, such as remote check-in at the hotel."adds Alexandre Jorre from Amadeus. Several start-ups in France, such as Eelway and NannyBag, already offer this service, but without using blockchain. The Civic start-up offers to reconcile traveller authentication and baggage tracking by affixing a QR code to the suitcase containing key data on the owner.
More secure payments
Blockchain would also make cross-border and multi-currency payments faster, easier, safer and less costly between the various parties in the value chain: travel agencies, aggregators, carriers, hotels, etc. Objective: remove the fees charged by bodies such as the BSP (Billing and Settlement Plan) or the ARC (Airlines Reporting Corporation), while reducing payment times. As a result, an airline would no longer have to wait one or more weeks before being credited with a flight. With the wind in their sails, payment players such as American Express, Visa and AirPlus are stepping up their partnerships with start-ups specialising in this field, such as Ripple and Chain.
In the same spirit, blockchain should transform the approach to loyalty programmes by making it very easy to convert miles into transactions. More than just free tickets, Travellers would then have the choice of using their loyalty points to pay for a transfer to their hotel, for example. Loyyal is a start-up in this niche.
However, the traveller is not necessarily always the winner when it comes to this development. With the hoarding of loyalty programmes, their employer might decide to let them keep the bonus, considering it to be a benefit in kind, or they might decide to take it back. make it their own. "This could also have a significant impact on an airline's profits if all its customers were to monetise their miles."As Thierry Gaillard, a tourism professional and manager of the digital guide La France à ma mesure, points out.
Disintermediation machine
Clearly, blockchain is not just a fad. While we are still onlythe beginnings of a groundswellThe travel industry is experimenting and forging closer links with specialist start-ups. For Thierry Gaillard, time is running out: "Potentially, blockchain puts all intermediaries at risk. Companies will be able to tailor their offerings by forging direct partnerships with service providers without going through TMCs. (Editor's note: travel management companies, or business travel agencies) such as Carlson Wagonlit".
For their part, service providers will also gain in independence by initiating a direct relationship with end customers. Hoteliers could do without online travel agencies such as Booking or Expedia. Similarly, airlines could bypass GDSs (Global Distribution Systems), the booking platforms used by travel agencies such as Amadeus or Sabre.
Air France's decision this year to switch to the NDC (New Distribution Capability) standard may be seen as a first step in the disintermediation of a player like Amadeus. Using XML feeds, Air France will send its fares and enriched content directly to its distributors.
Lufthansa is going one step further by teaming up with Winding Tree. Together with the Swiss start-up, the German airline intends to build a platform where partners can submit their offers using the APIs (programming interfaces) made available to them. The ultimate aim is to enable its customers to creating tailor-made holidays without going through the usual intermediaries.
On the supply side, the response was swift. Tour operator TUI Group is also in talks with Winding Tree to build a decentralised distribution platform for its travel products. Innfinity Software Systems intends to overhaul its Innfinite booking engine for flights, hotels and hire cars. Blockchain should enable it to offer "richer content and more flexible contractual options"to its business customers. That's all they ask.
