Blockchain is most commonly thought of in conjunction with Bitcoin, but it has much greater potential than just digital currency.
Many people are excited about its potential and are backing projects that use blockchain technology-and that hasn't been lost on the travel industry. Last year, Winding Tree launched with a mission to create an "Internet for the travel industry." The made a token offering and then entered into a partnership with Lufthansa-a big move for a small startup.
Now, another company is entering the race to disrupt travel distribution-and they are picking up the pace. The Tratok Project wants to eliminate inefficiencies in the marketplace before the fall of 2019.
Why is blockchain such a big deal?
"There is just so much it can do," said Bradley Tusk, a former campaign manager for Michael R. Bloomberg, to The New York Times in an article that delved into the potential of this new type of tech.
Tusk is a fan of blockchain and is backing several projects that use the technology.
"I love the fact that you can transmit data, information and choices in a way that is really hard to hack-really hard to disrupt and that can be really efficient," he said.
The promise of better online security is one of the greatest assets that blockchain has to offer. The way blockchains are assembled means that data cannot be manipulated and are stored in a peer-to-peer network.
Increased security and lower costs for distribution mean a win for consumers. Tratok has started a token offering to raise money and plans to use the funds to develop a purpose-built, multi-platform application that can be used for all travel and hospitality needs.
"Our in-depth feasibility studies and surveys have demonstrated that the use of Tratok can save up to 30 percent for clients while at the same time increasing profitability for service providers," according to project advisor Mohammed Altajir.
The group put together a white paper that details the problems that they see in the industry and how they plan to fix them as well as the innovative first steps the company will take with the unique abilities blockchain technology allows.
One of the main things the app is aiming to tackle is reducing booking costs and transaction fees. Booking hotel room, flights or renting a car will be hassle-free for both clients and service providers.
It also addresses time wasters such as filling out forms and the amount of time it takes clients to make a payment. The application will aim to digitize forms and client information as well as utilize payments from a digital wallet.
The group believes that blockchain offers significant advantages over existing conventional platforms.
While the ideas are certainly innovative and a new "Internet for the travel industry" could certainly disrupt current channels, there is still one thing that will be true: the need for a travel agent.
While Tratok's white paper says it wants to do away with the "inefficient middleman," there is no way that it can provide the sophisticated, customized, knowledge-based advice that a travel adviser can give.
Matthew Upchurch recently summed this up at Virtuoso Symposium in Amsterdam:
"The true definition of luxury is this: I choose to have someone do it for me," said Upchurch. "Without question, people have the ability to research anything they want or need, whether it's travel or any other aspect of their life. The reason they're coming to a Virtuoso advisor is because they want someone to collaborate with.
"They want someone who knows them so well that they can craft deeply personal and meaningful experiences, effectively making the advisor a specialist in them," Upchurch added. "There's a kind of magic that happens through the combination of the agency, advisor and Virtuoso network that fundamentally changes the way our clients travel. It's an elevated experience that cannot be replicated any other way."
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