Blockchain technology leading to an increased disintermediation in the tourism industry

Abstract

Will blockchain improve the user experience and eliminate intermediaries in tourism?

In this paper, the creators examine how a technology that is rapidly being adopted across multiple industry sectors offers numerous benefits to the tourism industry while it simultaneously transforms the role and value proposition of key players. Indeed blockchain technology may revolutionize the entire tourism industry. The convergence of the increased consumer access to data, disruptive technology and a constantly evolving tourism industry will drive significant changes in both the delivery and consumption of tourism. As consumers’ access to information increases, they become increasingly aware of their options and their demand for transparency increases, accordingly. Disclosure and procurement of information are powerful tools, highly influencing where and how consumers choose to spend their money. In particular, the authors analyze how this accumulated intelligence presents compelling solutions that might potentially void the need for one of the sectors’ giants: intermediaries.The travel industry continues to improve as it keeps up with and integrates new intelligence. Due to the development of new accessible and ubiquitous technologies, tourists progressively prescind from certain services. Blockchain unleashes knowledge that was previously tightly controlled exclusively by intermediaries, empowers consumers to take control of myriad factors comprising their decision making process and, by extension, their experience. New plans of action responding to consumer demands must be implemented and refined continuously in order to assimilate the innovative changes. The principal discoveries of this paper contain findings that elucidate why blockchain innovations applied to tourism are still in a relatively embryonic stage, and why it will play a more consequential role in the near future. Moreover new business models in the sector are now able to implement customer‐to‐customer models. The essential goal of this paper is to break down how the application of blockchain will alter the current market dynamics of the tourism sector. It’s been proven that blockchain innovation offers critical advantages to the travel industry since it can be harnessed to dramatically improve consumer loyalty and enhance the general user experience. The authors assess whether the need for intermediation will prevail, as well as recommend topics for potential additional research. The authors present and base their findings on information compiled by previous studies, as well as through primary research ascertained via interviews with relevant industry professionals.