Have you ever booked some eco-resort or donated money for a conservation project and wondered if the money served its purpose? You are not alone. With transparency and fraud being major challenges for sustainable tourism, the need for a better and new way to tackle the challenge arises. Welcome to blockchain, a technology that can revolutionise how we approach sustainable travel. Let’s dive into how it works, the problems it solves, and how it is shifting to make sustainable travel possible.
Sustainable Travel: Blockchain And Why Does It Matter
Blockchain is a digital register that records transactions safely and transparently. In a simplified form, it’s a transparent safe wherein every transaction is visible to all but can only be opened by the rightful owner. Instead of relying on a central authority, blockchain is based on a decentralised network where nodes share data. That way, no computer or device can modify or alter the information. Unlike the conventional way, where information is saved on a centralised network. However, from the perspective of sustainable travel, the blockchain represents a future where transparency is achieved. A platform that ensures businesses align with environmental and social values.
Challenges In Sustainable Travel Transactions
Lack Of Transparency
Research has revealed that 66% of organisations are guilty of greenwashing. This explains consumers’ sceptical behaviour towards sustainability-related brands. This is why transparency is so required in tourism. Travellers need to verify claims of eco-certification or ethical labour practices.
Intermediaries And High Fees
Most booking platforms and agencies are intermediaries, which has led to high commission fees and reduced revenue for local businesses. This structure is against everything sustainable travel stands for, as it aims to empower host communities.
Complex Supply Chains
Due to the complex and long supply chain, proper communication and accountability are not guaranteed. Parties involved in this long supply chain include stakeholders, travel agents, hoteliers, conservationists, and local artisans.
Fraud And Corruption
The art of selfishness and the drive for personal gain have caused a major setback in sustainable tourism. In some cases, money meant for sustainable projects such as wildlife reformation or community development ends up in the pockets of fraudsters.
Ways Blockchain Supports Sustainable Travel
Blockchain is changing some narratives in tourism by tackling the challenges faced in the implementation of sustainable travel practices. It provides solutions that will guarantee increased transparency, reduction of costs, and accountability. Here is a breakdown of what blockchain can achieve:
Improving Transparency
Blockchain improves transparency by ensuring every sustainability claim is backed with certified data. For example, self-executing contracts with the terms of the agreement written directly into lines of code will help to solve the problem of greenwashing. Responsible travellers can verify if a resort follows eco-friendly practices with their devices. If a traveller donates to a project for marine conservation, blockchain ensures everyone, including the visitor, can trace the fund.
Reduction Of Costs And Elimination of Middlemen
Blockchain successfully eliminates intermediaries and reduces the cost of travelling. For instance, P2P transactions allow travellers to book accommodations directly, eliminating booking platforms with extra charges. Blockchain reduces reliance on third-party platforms and benefits travellers with lower fees while local businesses earn a higher profit.
Improving Accountability
Most sustainable travel products are made of complex chains that blockchain simplifies by tracking step by step. For example, an eco-lodge might use blockchain to trace food locally without damaging the local environment.
Preventing Fraud
Since blockchain is rigid, it cannot be altered once a transaction is recorded. This ensures that conservation or community development funds are not diverted and encourages trust among travellers and stakeholders. With cryptocurrencies such as Bitcoin and Ethereum, blockchain makes it easy for responsible travellers to make international payments. Blockchain payment methods are trackable and cost-effective, eliminating the risk of fraud.
Applications Of Blockchain In Sustainable Travel
Blockchain-Powered Booking Platforms
Winding Tree and LockTrip disrupted travelling high prices by directly connecting people to the service provider’s blockchain. These platforms offer sustainable alternatives with a more equitable income distribution, leading to the successful elimination of intermediaries.
Tokenisation For Rewards
Blockchain enables us to generate tokens that offer rewards for greener travellers who stay longer at their holiday destination. For example, staying in an eco-friendly hotel or using public transportation can reward you with digital tokens, which may offset your future travel expenses or invest in local projects.
Carbon Offset
Some Carbon offset programs have been paused due to poor money management. Blockchain ensures that every contribution is vetted. When you pay to plant trees to offset your carbon footprint, blockchain ensures it is done, monitored, and kept.
Blockchain enables direct transactions into the pockets of local businesses and communities. For example, with decentralised applications, travellers can now pay local artisans or tour guides directly, reducing the worry that comes with the uncertainty of whether their money truly benefits those who add value to their experience.
The Challenges Of Using Blockchain In Sustainable Tourism
Energy Concerns
Energy-intensive blockchains, such as Bitcoin, consume energy, which works against sustainability goals. Yet, new and greener blockchains are now deployed. Proof-of-stake is an example of a mechanism that has an advantage over these energy concerns.
Adoption Barriers
Resistance may be raised amongst small tourism enterprises that regard innovation as too technical to handle. These gaps are closed through training and support from user-friendly facilities.
Legal Issues
Tourism is cross-jurisdictional; hence, the global uptake of blockchain technologies can be problematic. How regulations are navigated will determine mainstream adoption.
Access To Technology
Many remote areas are often the heart of sustainable travel. Some areas haven’t implemented blockchain technology due to infrastructure concerns. This digital need has to be bridged for inclusive growth.
The Future Of Blockchain In Sustainable Tourism
Blockchain integrated with AI, IoT, and big data will unlock far bigger potential for sustainable tourism. IoT devices will be enabled to track energy usage. Blockchain ensures those savings are reinvested into more sustainability efforts. As a result, partnerships across the board between tourism boards, technology developers, and local communities will further drive innovations.
Finally, sustainable travel merged with the power of blockchain makes it possible for travellers to behave sustainably. Just imagine knowing that every booking or payment you make will result in a specific contribution to an impactful community. How relieving can that be? That future is closer than we think.
Conclusion
Blockchain adds value to every dollar spent on sustainable travel through improved transparency, reduced costs, enhanced customer experience, and accountability. It is not just about where you go but the positive mark you leave. However, some challenges still need to be overcome.
