Chances are, when you hear blockchain, the first thing that comes to mind is bitcoin. But where blockchain applies to the hotel industry, it’s less about cryptocurrency than it is about the technology behind it – the ability to decentralize data storage.
What Is Blockchain Technology?
Blockchain is secure and decentralized data repository that permanently stores encrypted digital records. Because it is decentralized, data is not stored in one spot, but across a network, meaning there is no single point of failure.
Each record is referred to as a block. Multiple blocks become a chain. The information in a block can be accessed from anywhere at any time. Each Individual retains ownership of their personal information, which can be authenticated without sacrificing privacy.
What Are the Blockchain Applications for the Hotel Industry?
- Customer Data. Blockchain can provide a secure method of storing sensitive customer information, which can be accessed from more than one location.
- Accurate Tracking. All data entered into blockchain is timestamped so it’s trackable and transparent. Blockchain technology makes access to data easy and low cost.
- Some hotels are experimenting with blockchain to track open beds in real time.
- Property Management. Hotels can book rooms and accept payment in a secure, accurate environment.
- Competing With OTA. Online travel agency sites such as booking.com and Priceline are a mixed blessing for hotels. They help keep beds full, but can also drive room prices up and profitability down. With direct access through blockchain, hotels can eliminate the middle man.
Blockchain is still in its infancy, relatively speaking, but the hotel industry is opening to the possibilities it has to offer. Because blockchain is decentralized, data can be entered, accessed, and stored securely across a massive network. This can allow the industry to keep costs down, speed transactions, and offer instant access to information.
Partner With a Hotel Recruiter
To learn more about blockchain and other technologies that can make a positive impact on your hospitality or hotel business, contact one of the hotel recruiting professionals at Horizon Hospitality. They can help you hire better and keep up with the latest industry innovations.