What is Blockchain?
Blockchain for hotels is a way of decentralizing your customer database and moving information in a secure way. Instead of being stored in a single place, data is secured using cryptography so that it cannot be easily manipulated or subject to data breaches. It is a digital register of transactions that is duplicated and distributed across the computer system network set up at your hotel.
The benefits of blockchain for the hospitality industry
So, what are the benefits of blockchain technology for the hospitality industry?
Security
With so much data readily available, the hospitality industry is becoming more vulnerable to security threats. Blockchain technology makes all data traceable and decentralized. Even in the case of a cyber-attack, data can’t be removed or taken offline. Being able to protect customer data is crucial to your hotel’s reputation.
Easier payment of services
Blockchain technology ensures that neither you as a hotel nor guests need to worry about their chosen payment method going through. That is because all payments are managed worldwide, making the entire process more transparent and secure. Find out why hotels should offer flexible payment options.
Reduced reliance on third parties
The technology allows reservations to be recorded and managed in one place. Guests can book reservations directly, cutting the need for intermediaries. This reduces commissions and payment processing transaction fees. Other benefits include payment and reservation processing, more agile booking systems and better management of hotel inventory.
Remember how blockchain technology makes accessing information easier? As a result, you can offer a more streamlined booking process. Usually, much of the data that hotels process must be transferred between companies, but blockchain makes this transfer possible without a third party.
What are the uses of Blockchain in the hospitality industry?
Now that we’ve looked at the benefits, let’s explore some of the most common use cases of blockchain technology in the hospitality industry.
Verifying identity
With so many possibilities for identity fraud, properly verifying guests’ identities is an important part of keeping your guests and hotel safe. Blockchain allows companies to verify identity by using a distributed network of computers. This makes check-in quicker, as guests can securely send check-in documents ahead of their arrival.
Access to data
Hoteliers usually rely on third parties to collect customer data, but blockchain technology is set to change that. With it, hotels can compile all data in one place for easier access and to drive engagement through personalization. Understanding booking patterns and preferences helps to create more personalized hotel experiences.
Personalization
Blockchain allows guest data to be easily shared between departments, as well as multiple properties and platforms. This empowers hotel staff to predict guest needs and deliver more personalized experiences. Guest information can also be used for targeted services and upselling – staff can recommend activities and services based on past behavior.
Learn more about upselling.
Loyalty
One of the keys to building a successful loyalty program is simplicity. Customers want to easily access their points and redeem them. By using blockchain technology, hotels can create digital loyalty tokens, usable across properties. Added benefit: concerns about security are gone since data is securely stored and accessed.
Payments
Imagine payment processing without the need for intermediaries such as banks or payment gateways. It works for digital payments like cryptocurrency, ensures secure payments and reduces costs for third party payment processing. Using blockchain can fully streamline the payment process.
Supply chain management
The hospitality industry relies on supply chains for food, beverages, bed linens and other products and services. With this technology, hotels can create secure and transparent supply chain management systems and track their inventory until its arrival. The result is improved accountability and transparency of the procurement process.
Conclusion
Blockchain for hotels has a lot of benefits and use cases. The hospitality industry is dynamic; blockchain technology helps hotels to move away from third parties and intermediaries. In a digital era where data is the new currency, ensuring greater levels of security to hotel guests is fundamental. It can propel your hotel’s performance and give it a competitive advantage.
On the other hand, hotels that don't prioritize their customer’s data or leverage it to offer customized experiences will be left behind. That’s why blockchain technology will only grow more important, as will hospitality software that can protect customers and make hotels self-sufficient. For the best-in-class holistic solution, reach out to Mews.
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