Travel and Hospitality
The role of blockchain in transforming customer engagement in the travel industry
Customer engagement plays a vital role in the travel industry, directly impacting loyalty, revenue, and long-term customer retention. Businesses that focus on improving customer service experiences can achieve revenue growth of 4% to 8% above their market average. As expectations rise, customers demand personalised, seamless, and secure travel experiences.
Traditional engagement methods often face challenges with data security, transparency, and efficiency. For instance, travellers prefer loyalty rewards that are simple to redeem, secure identity verification, and quick transactions, but many systems are still disconnected. Blockchain travel solutions address these challenges by providing decentralisation, automation, and enhanced security, creating zero-trust, transparent interactions that elevate customer engagement.
Infosys BPM helps travel companies leverage blockchain travel solutions to enhance customer engagement, loyalty programmes, and operational efficiency. With AI-driven insights and advanced analytics, Infosys BPM enhances customer segmentation, campaign optimisation, and predictive engagement, ensuring personalised experiences. Businesses gain deeper visibility into customer behaviour, allowing for more targeted and valuable customer loyalty programmes.
Blockchain transforms customer engagement in travel
The tourism industry can use blockchain technology to enhance loyalty programs, prevent fraud, simplify identity checks, and make payment processing easier, improving both customer interactions and operational efficiency.
Loyalty programmes and tokenisation
Blockchain travel solutions replace traditional points with token-based rewards, letting customers easily earn, transfer, and use tokens across airlines, hotels, and car rentals. These flexible customer loyalty programmes reduce fragmentation and create a seamless rewards system. Smart contracts enable automatic redemption and real-time tracking, ensuring loyalty benefits are accurately executed.
Enhanced data security and privacy
Data security is a major concern in the blockchain travel industry, where customer information is frequently shared across multiple entities. Blockchain gives travellers control over their data, allowing them to securely manage, access, and share personal information. Booking details, transactions, and identity credentials stored on a decentralised blockchain ledger prevent tampering and unauthorised access, reducing fraud risks and ensuring compliance with global data protection laws.
Transparent and trustworthy reviews
Online reviews influence travel decisions, but fake reviews undermine their credibility. The use of blockchain in the travel industry enables decentralised review systems, ensuring authentic, tamper-proof customer feedback. Immutable reviews powered by blockchain technology offer trustworthy and transparent feedback for travellers and help businesses uphold high service standards.
.Smart contracts for seamless operations
A key feature of blockchain travel innovations is smart contracts — self-executing agreements that cut down on manual steps and delays. They automate bookings, refunds, and loyalty programmes. Customers get instant confirmations, direct refund processing, and rewards based on set conditions. Travel companies can also use blockchain to offer conditional discounts and exclusive deals, boosting engagement and customer loyalty.
Gamified engagement
Blockchain and travel engagement strategies include interactive challenges and digital badges that reward customers for specific actions. Travellers can earn blockchain tokens by completing activities like visiting new destinations, sharing reviews, or referring friends. These tokens can be exchanged for discounts, upgrades, or special offers, encouraging long-term engagement and personalised interactions.
Decentralised travel communities
Blockchain enables peer-to-peer travel recommendations and content sharing, creating trusted communities. Travellers can share verified insights, local tips, and itineraries, earning rewards for valuable contributions. A reputation-based system ensures recommendations are credible, reducing misinformation and boosting customer confidence in travel decisions.
Crowdfunding and co-creation
Blockchain travel platforms support experience crowdfunding, allowing travellers to invest in unique travel experiences or support local events using blockchain-based tokens. Travel companies can use blockchain-powered voting systems to let customers influence service decisions, destination choices, and package deals, building stronger brand loyalty.
Decentralised identity and reputation management
Blockchain-powered digital identities store travel history, credentials, and loyalty rewards, simplifying verification at airport and hotel check-ins. With secure blockchain travel IDs, travellers avoid repetitive identity verification, ensuring faster and more efficient check-ins.
Blockchain-based reputation systems ensure fair ratings for both travellers and service providers, improving accountability and service quality.
Sustainable and social impact initiatives
Blockchain in the travel industry supports sustainability through carbon credit and sustainability tokens, rewarding eco-friendly choices. Travellers earn tokens for opting for green hotels, using public transport, or offsetting their carbon footprint. These tokens can be redeemed for discounts or donated to charity, promoting responsible tourism.
Enhanced payment and insurance solutions
Blockchain travel payment solutions simplify cross-border transactions, lowering fees and settlement times. Smart contracts enable instant, fraud-resistant payments, removing the need for multiple processors. Also, smart contract-based travel insurance automates claims for delays, lost baggage, and cancellations, ensuring quicker reimbursements and boosting customer trust.
