Blockchain in Hospitality/Hotel Industry
Blockchain technology has increased in popularity over the past few years since inception especially in the past two years where we have seen high rates of adoption. Blockchain is a distributed ledger technology that dispenses trust in all our transactions. It makes it possible for companies to ensure that there is immutability in transactions, in systems and in data can be achieved. There are a lot about Blockchain that you should and can learn if you read the rest of my blogs. Today, I want to introduce you to Blockchain in the Hospitality Industry.
Hospitality industry is a multi-billion dollar industry in almost all countries of the world. Everyone gets the services of an hospitality company at some point in their lives whether in tourism, in hotel room services, hotel food and the rest. The hospitality companies interact with thousands of people every year. Trust is therefore a key element of the daily operations of a hospitality company. When a guest checks into an hotel, it is because they trust the hotel management to protect him/her and their luggages. When trust is compromised, the reputation of an hotel is damaged. Blockchain has been referred to as a Trust machine because of its ability to guarantee immutability in transactions. There are a number of Blockchain uses in the hospitality industry but I will only discuss two key ones in this blog.
The first use is in Supply Chain management. Hospitality industry actively engage in various supply chain networks of the products that their customers consume. The conventional supply chain management techniques do not guarantee trust in procurement processes. The use of a Blockchain-based procurement system will ensure that there is trust between suppliers and buyers. Because of the immutability of the Blockchain, the new procurement system can be used to wade out unfaithful dealings among the procurement staffs and in the supply chain network. Blockchain-based Smart Contracts can make it possible to procure goods and services from an approved list of suppliers and ensure that payments are made without needing the services of a lawyer or a procurement officer. As far as the Smart Contract is well designed, hotels can ensure a trusted procurement processes.
The second use of Blockchain in hospitality industry is in establishing a secure guest ID system. Identity theft is one of the serious issues ruining trust in hotels. A guest can steal the identity of another guest and use it to commit crime thus causing accessibility problems to the victim guest. With a unified Blockchain-based ID system, guest can be guaranteed that no one can steal their identity no matter what. This is because the Blockchain is immutable, that is, no one can delete, add or alter data already entered into the system. The single point of failure that makes it possible for identity thieves to thrives is replaced by a distributed system where there is no more vulnerable central databases. Blockchain is therefore very relevant in the hospitality industry.
You can read more about Blockchain use cases in the hospitality industry from Understanding the Blockchain by Benjamin Arunda. This book can accessed on Amazon.
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