Blockchains in tourism

Prof. Dr. Horst Treiblmaier: This question is not so easy to answer, as there are many different types of blockchains. Basically, it is a way of storing data in which new data is always appended to the existing chain of transactions. In addition, the data is distributed and therefore stored redundantly on different computers. This achieves numerous desirable properties. For example, the data is unchangeable, as a single computer cannot make any subsequent changes. Other advantageous features include shared access to the shared data set and increased data security. However, I would particularly like to point out that there is no such thing as a blockchain, just different implementations with different strengths and weaknesses. You can think of it like cars. There are different types with different sizes, engine strengths, fuel consumption and so on. There is no such thing as the perfect car, but you will probably find a vehicle that is well suited to your specific application.

Prof. Dr. Horst Treiblmaier: The description of a blockchain I gave at the beginning probably seems a little abstract and unspectacular. This makes it all the more astonishing what new use cases can be built on it. I must first mention that numerous blockchains also enable the use of so-called smart contracts. These are relatively short programs that reliably deliver the same results when certain conditions are met. It's similar to a vending machine: you insert a coin and receive the desired product without the need for complicated negotiations with a third party. There are of course numerous possible applications in tourism when it comes to payments, as the first online application of blockchain technology was the cryptocurrency Bitcoin. It is now just as easy to digitize all kinds of values, online and offline, and store them in a non-fungible token (NFT). This token can then be easily traded without intermediaries. Just imagine "tokenizing" a hotel room and transferring the rights of use directly to a guest for a certain period of time. Or they sell certain services as tokens. For all those who want to try out NFTs for themselves, I have created a use case for the St. Anna Children's Hospital in Vienna, where all the proceeds of the project go directly to the hospital. You can find my instructional video on YouTube.

When it comes to disintermediation, there are already some concrete use cases. For example, the booking platform Webjet Limited recently acquired a 25% stake in the start-up LockTrip, which aims to significantly reduce transaction costs by using blockchain. Probably the most radical approach in this respect can be found at Winding Tree, a platform that aims to connect providers of tourism services directly with the community. But there are also numerous exciting applications in the backend. Heidiland, a Swiss destination management organization (DMO), for example, uses a blockchain application to automate the payment of visitor taxes, which significantly reduces administrative costs. Other possibilities include better tracking of luggage or even tourists while preserving their privacy. Or in the creation of comprehensive loyalty programs and credible reviews. I have summarized some of these possible applications in a report for the Blockchain Research Institute, which will be freely available online from November 2022. Interested readers can also contact me directly.

Prof. Dr. Horst Treiblmaier: There are no limits to the imagination when it comes to future applications. It remains to be seen what makes economic sense and is feasible from a regulatory perspective. In the future, I'm banking very heavily on the NFTs I mentioned above, which enable simple trading, especially of services without intermediaries. The role of the metaverse is also likely to be exciting. Of course, virtual trips do not offer the same experience as a trip in the physical world, but tourism companies can be present in the virtual space to present their offers. I can also go on a short shopping trip to a place of my choice after work, for example, and have my tour guide do the shopping for me in various stores. I see a lot of core expertise in tourism companies that they should not simply hand over to technology giants. The role of blockchain in the metaverse can be diverse, from simple payments with cryptocurrencies to virtual worlds that are managed by communities and not centrally by a single company. But first and foremost, it is about realizing the concrete benefits of blockchain in relatively obvious use cases, such as bookings. The first steps in the right direction have been taken, but there is still a lot of work to be done, as this will not only change internal company processes, but also entire market structures.