A step up from Web2, Web3 is the idea of the next generation of web technology.
Recent technological advancements have been swift, and the switch to Web3 may drastically alter how we use the internet.
However, what effects will Web3 have on the travel sector and how can your tour operator get ready for them?
Find out by reading on.
Web3: What is it?
Web3 is the third generation of web technology, to put it simply.
According to the business, “Web3 uses blockchains, cryptocurrencies, and NFTs to give power back to the users in the form of ownership.” The phrase “Web3” was first used in 2014 by Ethereum co-founder Gavin Wood.
Prior to the advent of our current Web 2.0 technology, known as Web 1.0, which was primarily read-only in nature, in the 1990s and early 2000s, social media first started to take off.
Instead of being read-only, Web 2.0 has grown to allow for engagement and user-generated content.
The majority of online activity is controlled and monetized by a small number of leading tech companies, according to critics of our existing web technology, despite the ability for internet users to create, post, and share their own content.
For instance, Google presently holds close to 84% of the market for searches worldwide.
Users of the web are also concerned about the volume of data that is growing quickly. Web 3.0 aims to empower users by ensuring data security, abolishing centralized ownership, and granting individuals authority over their own data.
Web 3.0 is not just another technological improvement; it is expected to completely change how we interact with and use the internet.
Travel-related Web3 functionalities
Web3 Development Company Dubai operate on blockchains, decentralized networks, or a combination of the two, rather than on a single server.
Additionally, Web3 is created, run, owned, and governed by internet users themselves, as opposed to being under the hands of big businesses.
Web 3.0’s fundamental principles include:
Ownership is split equally between website developers and users.
There is no governing body for Web3; anyone can participate.
Web data is encrypted to prevent personal and sensitive information from being collected and used for commercial purposes without the user’s consent.
Money can be sent and spent online using cryptocurrencies.
uses economic mechanisms and incentives rather than relying on the assistance of reliable middlemen.
Secure third-party authentication allows for the verification of all transactions and identities without disclosing or revealing any sensitive information.
Example Web3 urls
Web3 technology includes the following instances:
- Blockchain innovation
- Coin Offerings, or ICOs
- NFTs, or non-fungible tokens
- Decentralized apps
- Sensible contracts
- Computerized sharing
- Independent, decentralized organizations
- AI and machine learning
- A Metaverse Development Dubai
Travel and Web3
Travel is one of the businesses that Web 3.0’s advent is expected to affect.
Trips Community claims that “Web3 will eat travel.”
Over the past 10 to 20 years, there has been a significant change in how consumers plan, book, and enjoy their travel, and the advent of Web 3.0 will bring about even more upheaval.
Additionally, major players in the tourism industry, including Airbnb, have already made investments in Web3. The business is currently investigating how to make cryptocurrency payments possible, a feature that is much desired by its users.
According to Chain4Travel, Web 3.0 will present a number of opportunities for the travel industry, including enhanced reconciliation procedures, more tailored rewards and loyalty programs for customers, more security, more effective procedures, and better payment and settlement options.
The flow of information and financial transactions between businesses and customers is crucial to the tourist sector.
By enhancing the security and traceability of these transactions through the use of blockchain technology, business models could become more streamlined, cost-effective, and competitively advantageous. This would also benefit travelers by enabling more seamless and autonomous travel experiences.
Travel that is dispersed
Phocuswright predicts that decentralized computing will increase the amount of openness for businesses and middlemen in the travel sector:
- Airlines: as obstacles erected by intermediaries are removed, greater consumer intimacy is available.
- Hotels: Decentralization may result in quicker commission tracking and payout for lodging providers.
- Greater transparency, precise rate usage, and easier, quicker settlement for business travel.
- Fleets might communicate directly with clients in ground transportation.
- Activities and tours: Decentralization can help smaller providers.
Although the role of intermediaries is reduced by decentralized computing, Web3 does not want to do away with these businesses. Instead, it would make sure that intermediaries in the travel industry do not operate as information gatekeepers or impose extra expenses that do not benefit the consumer.
NFTs in the tourism sector
Non-fungible tokens, or NFTs, are digital assets that may be purchased, sold, and traded online, typically using cryptocurrencies. Blockchain technology is used to hold NFTs. They might appear as works of art, music, video content, in-game goods, and more.
NFTs have been around since 2014, but their popularity has grown significantly in recent years. In 2021, the NFT market was worth $41 billion.
According to Hotelmize, NFTs can be utilized to enhance the travel experience, increase engagement rates, be more engaging, and forge closer bonds with customers.
The following are a few instances of NFTs in the travel sector:
- Airline tickets NFT
- Programs for customer rewards and loyalty
- Fostering social progress
- Hotel loyalty programs
- Exclusive encounters
NFTs are already being used by travel companies like Marriott and AirBaltic, and it’s probable that additional companies in the industry will do the same.
What Web3-related steps may your tour operator take?
Recent research from TravelTech Show indicates that 74% of industry business experts want to use Web 3.0 as a marketing strategy.
Although Web3 technology is still in its infancy, travel agencies should be ready.
According to Forbes, some of the ways businesses should get ready for web3 and decentralization include:
- Make sure users have secure access.
- Accept automation
- Use a multi-cloud approach.
- Spend money on edge computing.
- Get ready for trust with cryptography.
- Make sure your crew is familiar with decentralization
- Use the technology.
- Pay attention to any potential drawbacks