DRIVERS OF CHANGE

Adoption of blockchain by key GDS players, IATA, dominant airline or rail players, could drive change. The biggest driver would come if clients of travel management firms directly benefited from its use. One obvious use of blockchain would be to simplify the current complex global payments process.

WEB3

Web3 is the next evolution of the world wide web and is built on blockchain protocols. This supports the development of decentralised applications and enables users to control their own content, identity and data. In turn it will enable new business models for the travel industry, particularly smart contracts (see next section). It will rely less on centralised controlling bodies. Tokens, including non-fungible tokens (NFTs) and digital currencies will be the backbone of Web3. The fact it’s already in development means travel businesses must now consider its potential. Demand for more personalised control and ownership is also ushering in a new era for Web3.

SMART CONTRACTS

Blockchain is the backbone of so-called smart contracts, where buyers and suppliers automate and optimise the performance of negotiated agreements. Smart contracts are digital with access anywhere in the globe and can help facilitate payment, perks, access to events, check-in and many other activities. They can be unique to a particular traveller with digital ID. Details can be specified and encoded by the TMC, the client or the traveller themselves. Smart contracts can prevent fraud and facilitate a thriving secondary market. They can also be delivered as smart digital tickets or NFTs. Since blockchain is the backbone of smart contracts, which in turn are the backbone of Web3, this shows their significance [14].

NON-FUNGIBLE TOKENS

A non-fungible token (NFT) is a record on a blockchain. It’s associated with a particular digital or physical asset. The ownership of an NFT can also be recorded in the ledger. They are already being used for art, digital clothing and other commodities, yet they’re not simply digital assets. They can be programmed to include specific perks or smart contracts. NFTs could be used for corporate events, for example providing access, meals, content or transport. They could be used to create communities around events. An NFT could be used as a token for travel trips accounting for expenses, flights, meals etc. To get a sense of their value, NFTs on the Ethereum blockchain alone are worth US$14 billion, up from US$340 million in 2020. They could reach US$80 billion by 2025 [15].

SELF-SOVEREIGN IDENTIFICATION

The evolution of decentralised identifiers (DID) and self-sovereign identity (SSI) could assist in the travel sector and its management. SSIs are an approach to digital identity that gives individuals control over the information they use to prove who they are. Some say it could transform a fragmented travel experiences market during the next decade [16]. It could allow individuals and groups of businesspeople, for instance, to connect on a peer-to-peer basis to plan, purchase, execute and share content for seamless corporate trips. SSI is possible due to blockchain, which makes it easy to securely, and at-scale identify and label, any subject and object with cryptographically verifiable security credentials [17].