We live in a world where all businesses are affected by cryptocurrency and affect its growth in turn. Various industries are affected by cryptocurrency, whether it be the banking industry, the real estate industry, the healthcare industry, the legal industry, the cryptocurrency exchange industry, politics, the startup industry, and most importantly, the hotel and hospitality industry.
The cryptocurrency growth gets benefited from the hotels, and in turn, they are also benefited from it. The first and foremost use of cryptocurrency in hotels is that the customers can use it as a payment method. Hotels only need to implement a proper infrastructure for this purpose. Various applications permit taking bitcoin as payment. But, the hotels need to manage the logistics that come with cryptocurrencies.
Crypto Currency Growth with Hotel Industries
Now the crucial question is ‘How does a person make transactions with cryptocurrencies?’ The technology that manages cryptocurrency transactions is called the Blockchain.
It is a shared database that acts as a virtual and permanent ledger open to the general public and records transactions in cryptocurrency, government-regulated, or traditional currencies. Blockchain technology verifies every single transaction independently and is not easy to copy.
This is what makes this system secure. Blockchain and cryptocurrency, in a talking sense, are often used interchangeably.
Use of Blockchain Platform in Hospitality Industry
There are many uses for Blockchain in the hotel and hospitality industry. Creating much more secure IDs, tracking baggage, creating loyalty tokens, issuing smart contracts and shoring up security within a brand’s loyalty program, managing the supply chain are just a few of them.
Blockchain technology updates the hotels whenever guests leave their homes for the airport or arrive at the hotel. This tracking technology is beneficial for the hotels as it reduces the check-in time that further improves customer experience.
A blockchain-based supply chain management system may be extended in hotels and restaurants for tracking food, which improves quality control and ensures food safety. It is also beneficial for the guests as they can scan the origins of the ingredients used in their meals.
The Blockchain platform can be used by hotels to reward their loyal customers through tokens.
These loyalty tokens may be used in various hotels.
Moreover, transactions are facilitated in the hospitality industry through the use of smart contracts. These are legal contracts that include all contractual provisions decided in advance by the transacting parties.
Payments are processed as per contracts when transactions are recorded in the Blockchain. Blockchain technology provides a higher level of security by using various technologies such as digital algorithms, systematic algorithms, and distributed information systems. These high-tech technologies make it quite difficult for someone to modify them.
Although, the reader may find it quite tough to understand such technologies while implementing Blockchain or cryptocurrency. But, if studied with interest and in-depth, it is quite easy to grasp.
Blockchain is an effective tool to be used in the hotel and hospitality industry, as it helps to connect the hotel with its customers, enhances the security of the transactions, and increases customer satisfaction.
However, the use of Blockchain and cryptocurrency in the hotel and hospitality industry is still in its infancy stage. Honestly, we cannot expect the hotels to adapt so quickly to decentralizing technology such as Blockchain.
They cannot be wholly dependent on cryptocurrency in place of traditional currencies approved by the government, especially when cryptocurrency is in its initial stage in many areas. Also, the hotels may fear increased competition as anyone can source rooms from the Blockchain.
Despite its complications, cryptocurrency and blockchain technology has a vast scope in the hotel and hospitality industry. Presently, growth is quite tricky for hotels due to the problem of centralized and inaccessible inventory.
Large companies hold most of the relevant data, which results in creating a barrier for entry of new companies. The hoteliers find it challenging to extract data from the global distribution system (GDS), which can be expensive and inaccessible.
At the same time, blockchain technology has comparably ease of access and is comparably cheaper. Because of this, cost-saving and profit for the hotel as well as the hospitality industry can be pushed forward. The above-stated reasons are enough to state that the hotel would like to switch to blockchain technology. Visit the bitcoin loophole for more information on bitcoin trading.