I am among those enthusiasts who believe that blockchain technology can be a valuable corporate finance tool outside of the banking sector. Airline industry CFOs and finance executives throughout the travel sector belong on the growing list of beneficiaries as well.
As the backbone of digital currency, blockchain is already revealing its value in areas such as transparency, data security, logistics and process simplification, and even regulatory compliance. Recently, Walmart and IBM announced a pilot project to apply blockchain technology to Walmart’s global supply chain management system.
Of course, not every company is a candidate for blockchain applications: A recent Wharton analysis concluded that a company must determine whether blockchain is suitable based on multiple factors. The rationale for embracing blockchain technology will make the most sense — and take on a degree of urgency — if the business structure involves any number of parties that need trust and inter-party data access and management.
As a provider of mobile commerce and payment solutions for travel companies, this makes the travel sector an ideal candidate in my book.
More Business Equals More Revenue
The travel business is complex and fragmented – ask any travel sector CFO or technology vendor. In addition to operational and financial challenges connected with protecting and growing their business, travel executives face distinctive challenges in their efforts to protect their customer base. Among the most pressing is identity management as security concerns persist and passenger numbers grow exponentially.
As the Walmart pilot suggests, there is growing evidence of blockchain’s value on an operational level. But its potential benefits, including security features, extend to “soft” yet vital airline success factors, such as customer satisfaction and retention.
For example, with blockchain processes serving as the underlying authentication layer for biometric-equipped mobile and wearable devices, a passenger’s experience becomes easier, faster and more satisfying. They can verify their identities, purchase travel products and ancillary services before, during and after their trips. They can communicate with airlines in a variety of new and engaging mobile formats without pulling out IDs and exposing personal financial information every single time.
How Blockchain Technology Will Dominate The Travel Sector – Forbes