How Blockchain Technology is Changing the Travel Industry and Understanding the UX Design Challenges

Blockchain is one of the newest and most revolutionary technologies to emerge in the last decade. It is continuing to evolve and developers are taking a more disciplined approach to promote its widespread adoption in a more mature marketplace within different fields and industries. In this blog post, we will take a look at the wide range of transformative benefits of blockchain for travel enterprises and startups as well as the various UX design challenges associated with the process.

What is Blockchain Technology?

Blockchain is a type of shared digital ledger that allows transactions between parties to be recorded, stored, and tracked across a network of computers. The copy of the programmable digital ledger is distributed among all participants where the list of records (each record is known as a ‘block’) is encrypted, time-stamped, immutable, and linked together securely. Even the identity of the participants is anonymous or pseudonymous and all participants agree to the validity of all records. And the data is decentralized.

Ultimately, this technology has the potential to dramatically transform the way data or information is stored and used. The data is more secure, transparent, traceable, and resistant to unwanted tampering and modification. It also improves and secures transactions without the need for a third party.

How Blockchain is being used within the Travel Industry

Now, let’s find out how blockchain technology is helping the travel and tourism industry to explore new avenues of growth and deliver fantastic customer experiences.

There is a lot of data involved as we travel places, starting from booking flights, check-ins, luggage handling, passenger preferences, updates, hotel and lodging bookings, etc. So, anybody can understand the enormous size of information that is constantly being exchanged between different travel and tourism companies throughout the framework of the digital network of the industry. And one of the biggest operational challenges in such use cases is the various approaches of cyber threats and malicious factors. As the value of customer data increases, so do the security vulnerabilities.

Blockchain technology helps close these bottlenecks. It uses various mechanisms such as advanced cryptography, mathematical behaviour models, cybersecurity frameworks, and more to build a complex system of recording data and carrying out transactions without a central clearing authority in place, thereby making it nearly hack-proof. Such an unprecedented level of security throughout the network makes this technology ideal for the digital services offered by forward-thinking travel companies.

A number of travel purposes are already using Blockchain that include but are not limited to flight and hotel bookings, service payments, digital ID, luggage tracking, and customer loyalty programs. Moreover, the shared IT infrastructure, a high level of data security, and secure data coordination increase the trust factor among all parties.

How Blockchain is Transforming the Current State of Affairs of Travel Services

The decentralized nature of the technology ensures that information can never be lost or go offline or get tampered with, and transactions are always traceable. Below are some of the most exciting ways blockchain is changing the status quo of the travel industry.

1. Decentralizing Bookings

Currently, the travel industry is dominated by OTAs. However, the use of blockchain technology is making the booking process more cost-effective for customers and travel companies by cutting out the middlemen, thus improving operational and monetary benefits. By locating and eliminating real-time data problems, and streamlining communication, blockchain is helping the industry maximize profits while delivering a great customer experience.

2. Streamlining Payments

The technology is helping travel companies combat data theft and fraud by speeding up transactions and improving security. It is also helping fast-track and streamline settlements between all the concerned parties. Explore how Travelport has implemented AI and Blockchain to create a system that allows the enterprise to speed up operational processes and deliver smoother payment experiences to customers. Travelport helps enterprises track, analyse, predict spending accurately and manage their corporate travel expenses.

Simplifying Identification Services

There is no room for error when it comes to identification services in the tourism industry. Blockchain technology helps securely store passenger data and quickly process it to carry out extremely fast check-ins. This not only helps in reducing queues at counters but also improves both customer and employee experiences.

A good example of the use case is created by Marriott’s Known Traveler Digital Identification program. The company has deployed the technology to eliminate security vulnerabilities and provide more data control to all parties.

Reimagining Tracking

With a decentralized database, the technology makes sharing tracking data faster, easier, and more secure across enterprises and alliances. It helps ensure timely deliveries, increase awareness, and dramatically reduce the risks of setbacks in the tracking process. This functionality of blockchain has opened new opportunities in the travel industry for many businesses like AXA, which has launched a 100% automated and secure platform, Fizzy. The platform takes tracking to a new level and provides insurance against flight delays and similar incidents.

Rewarding Customer Loyalty

Several travel companies offer reward programs or schemes to boost brand loyalty. Blockchain technology is simplifying the processes of these programs where customers can access information about their reward points more easily. The technology also introduces a system where rewards can be tokenized into digital assets. These assets can also be exchanged across different platforms, so customers can compare the various offerings of different companies and enjoy the flexibility.

A relevant example is Singapore Airlines which has implemented a blockchain-powered loyalty program. Here a passenger’s travel miles can be converted into payment units which can be used to redeem goods and services with the airline’s partner merchants.

The travel industry is evolving and blockchain technology is empowering its IT infrastructure. You may find good examples at Winding Tree, LockChain, and Beenest. The market leaders have already embraced it and it’s just a matter of time before the rest of the industry catches up with this distributed ledger technology.

Evaluating the Biggest UX Design Challenges of Applying the Blockchain Technology in the Travel Industry

Travel companies and startups are fast adopting blockchain to meet growing customer expectations and unlock new opportunities. However, the software is complicated and lacks a consumer-friendly design, which is one of the biggest obstacles hindering growth for many businesses.

It is expected that in the following 5 years, nearly 260 million people worldwide will be using blockchain technology. This means building blockchain products, be it for the travel industry or others, will not be restricted to only advanced users and a dedicated focus on user research and UX/UI design cannot be skipped anymore. Further, financial experts predict that bitcoin will overtake flat currencies by 2050, which again means that businesses, including travel and tourism, cannot afford to overlook UX issues as they can potentially undermine the value of many blockchain projects.

The complicated blockchain software which is still immature has several UX design issues, including communication, unclear fees information and statements, language, lack of explanations, difficult processes, vague warnings, and more. So, blockchain-powered travel projects should now focus on the following vital UX design actions:

1. Educate Average Users

A lot of general users have started to explore blockchain applications but they are unaware of the different processes involved.  Here’s how some of the significant blockchain UX issues can be addressed.

• Provide Explanations: Blockchain wallet issues, account-related problems, transactions staying pending and operational glitches are typical for this evolving technology in its current state, which can be frustrating for new users. UX microcopy can be used in the form of prompts, warnings, cues, and nudges to explain and communicate to users when they encounter issues so they know what is happening and how to deal with them.

For example, if a user takes an action but something fails, provide an error message with more information; or mark it on the interface immediately if something has a high chance of being resolved on the chain.

• Use Everyday Language: The blockchain software uses arcane language and since the majority of average users are unaware of it, new technical terminologies should be used in sparse. Consensus algorithm, tx hashes, Geth, Weth, seed phrase, hard fork, proof-of-stake, confirmations – these terms are hard for a novice to understand.

For example, tx hashes are just addresses, so changing long tx hashes with everyday language like emails, phone numbers, and other addresses that users already know and can understand easily will help to emulate processes. Even if you present new terms and jargons, make sure to explain them to the users in detail with tool tips and similar options.

• Make Onboarding Easy: The various regulatory and identity verification challenges often lead users to drop out during onboarding. In addition, the registration process does not explain the steps which leave the users confused and sometimes requires using another application for the same. And since travel apps deal with transactions (including money, purchase of insurance, loans, and assets), certain regulations and arcane laws tend to hamper a lot of functionality. Professional UX designers who are experienced in working closely with the legal implications should be able to navigate the complexities in a user-centric manner and deliver a hassle-free onboarding experience.
• Inform about Potential Risks: Fundamental safety rules and security alerts should use clear, self-explanatory, and unambiguous language that inexperienced users understand to make the communication effective. For example, many average users don’t know that cryptocurrencies are more secure in offline wallets and some blockchain platforms allow custodial storage only and don’t provide the functionality of transferring crypto to offline wallets. Now if these platforms don’t inform the users about this, then it is a critical UX issue. So, platforms should create a clear microcopy for all the actions where users may put their funds at risk across all the points so users remain informed about every potential risk.

Besides, include descriptions of important cryptocurrency distinctions as well as a basic tutorial and specifications for using a wallet so that uninformed users can clearly understand how fees operate in the system, the exchange rate, transaction fees, and also refer to the contexts when they see a fee.

2. Create Delightful Design and Functionality

There are various approaches to creating a perfect user experience in a blockchain-powered travel product depending on its goals and target group. Every product has its specific challenges and user needs, and the UX/UI design should be addressed accordingly.

First off, the design team should conduct in-depth research on the user base, needs and pain points, product goals, business models, business and competitive analysis, product roadmap, user flows, functional and non-functional requirements, customer journeys, product architecture, etc.

Next, they should detect all the UX issues and find solutions. The design team should find ways to address even those UX problems that can’t be fixed immediately (due to lack of resources, for instance) so that the product experience is not affected.

Some UX/UI patterns that may be considered are:

• A fascinating UX design with the right amount of details that help users understand the intended meaning easily within the attention lifespan of 8 seconds
• The workflow elements should be organized along with stylish and innovative UI to boost user retention
• A consistent user experience with good responsiveness across different devices
• Include user-friendly password management workflow, trust and security emanating UI elements
• Use animations and illustrations wherever possible to help users understand terms and actions so they make in-time decisions
• Make every error message a learning opportunity for the users by guiding them about the error, why it happened and how it can be fixed
• Come up with a prototype and test the design with the users

The Challenges Ahead

Blockchain may initially seem to be complicated and confusing and even overwhelming to people who are not tech-savvy or who have limited knowledge of peer-to-peer networking, advanced encryption, and cryptocurrencies. Unfortunately, the primary focus to date has been on its technical aspect, and the design aspect had taken a backseat.

The power of blockchain technology cannot be denied but innovators need to understand that UX design has a critical role in improving blockchain usability and providing delightful user experiences. It’s high time that blockchain startups and enterprises within the travel industry incorporate design principles that are user-centric to gain overall acceptance and trust.