“Blockchain Tourism Use Cases” – Content:
Blockchain will change the tourism industry and can lower agency costs. Agency costs are the sum of monitoring expenses by the principal, bonding efforts by the agent. They are caused by the principal’s desire to control and monitor the agent. So that the agent performs the tasks in the best interest of the customer. But there is a conflict of interest and strategies for solving incentive problems. Therefore, tourism research tries to explain the owner/manager relationship in the tourism industry. They also try to understand the relationships between hotel operating companies and hotel owning companies.
With Blockchain, the different actors can share a database without having to trust each other. This way, both parties can use one database that provides transparency. This eliminates the trust problem, as each party sees what the other is doing. Nobody can change the data in the blockchain. We can also create trust through more transparency. This enables faster communication between business partners. But we also no longer need middlemen. This can have a significant impact on existing business relationships. As a result, we can reduce communication and monitoring costs.
As platforms like Airbnb continue to evolve, the sharing economy is growing. It shows that it is possible to create trust between different people. However, at the moment we still need a third-party provider. Therefore, high transaction costs arise from search and information costs as well as costs for compliance with agreements. Therefore, users of Airbnb have to pay for costs that would not be necessary.
Blockchain has the potential to change existing markets and structures. A new decentralized peer-to-peer marketplace can be developed. This will allow us to eliminate third party providers like Airbnb and start trading directly. So, we do not have to trust the other, but only the blockchain. This allows us to trade not only faster but also more transparently with each other.
We have all compared recession on travel portals once a time. It often happens that the hotel and the recession do not match. Companies falsify recessions with fake ratings and thus improve their position. As a result, we don’t trust these online reviews. This is a big problem for which there is no solution yet.
Blockchain can eliminate fake online identities. We can create a valid global online identification available that everybody can look up. As a result, we can finally trust online reviews, because we can check if the review is valid.
“Blockchain Tourism Use Cases”- Conclusion:
Blockchain has the power to increase the transparency of transactions, It has the potential to make huge changes in existing business relations. Thus, the level of trust needed to form business relationships may decrease and no need for a middleman occur as a result. Thus, the changes in transaction costs caused by Blockchain which will have a substantial impact on organizational structures. So at the same time Blockchain will reduce the costs in some areas and increases in others. They will lead to the adaption of new business models and new market structures.