Assessing the Role and Use of Blockchain Technology in the Hospitality and Leisure Industry

Abstract

Blockchain is an innovative technology, where in the hospitality and leisure industry, travelers can obtain their tourism products and services through an intermediation between travelers and service providers that causes many different problems (e.g. inefficient payment system, extra cost, etc.). The operative effect of blockchain on the hospitality and leisure industry is based on removing the intermediary from the supply chain. Blockchain capabilities are determined according to a number of massive industries, including financial sectors. Such organisations generate various methods in order to simplify trading for smaller and medium sizes of industries. The networks of the tourism value are based on power dependencies’ relationships in such a way many expert staff members have acquired additional values that are taken from their partnerships. The structure of a market can be improved based on the value, which relates to different online travel agencies via converting power from suppliers to consumers. The assessment demonstrates that the blockchain technology represents an effective technology that removes mediators, which are originally sourced from the supply chain. This technology does not allow any mediators to gain entry along towards the tourism industry, and by eliminating the market’s power.