With the travel industry increasingly moving into the brave new digital world, in part two of our look at the Metaverse, NFT and Web3, we look at document verification and customer loyalty and reward schemes.

Our first article looked at immersive VR experiences and postage stamp NFTs.

Document verification

An exciting use of blockchain in this space is its application in the storage and transfer of sensitive documents or information.

As a reminder, Blockchain is a shared ledger made up of “blocks” securely linked together using cryptography. These are usually managed by peer-to-peer networks on computers (nodes), where most of the nodes verify that the blocks are true. This applies to both existing and new blocks.

Confidential information that could be handled includes:

• ID/Passport details
• Vaccination or health status
• Visa and other electronic documents

Some innovative companies are finding ways to ensure that customer data is kept incredibly secure, while also providing convenience when they travel.

In addition to some of the legal considerations we mentioned in our first article, the most immediate concerns for companies operating in this space are regarding data privacy and data breaches; and verify that the data sent is legitimate.

Whether you are a travel company looking to use these types of innovations or the technology provider, you should consider the following:

• When handling or processing personal data, companies must ensure that appropriate technical and operational measures are put in place. These measures must be transparent and readily available to anyone whose data is being handled. Data security is high on everyone’s agenda right now.
• Having adequate and appropriate privacy and cookie policies available for review is critical for customers. This will allow customers to understand exactly how their data is being used and for what purpose. By avoiding these responsibilities, travel companies may find themselves on the end of large fines as regulators around the world begin to crack down on flagrant violators.

Reward Scheme NFT

Some players in the travel industry are exploring how to link their rewards programs to Web3.

The basis of the rewards, which varies from company to company, generally depends on how often you travel. Companies still fundamentally offer a rewards scheme: you buy from us and we’ll offer you something in return, but they’re doing it in a different way. The ingenuity comes from using the blockchain to provide customers with some or all of the following benefits:

• Airdropped NFTs: By airdropping NFTs, customers receive the NFTs directly into their (digital) wallets as a result of a giveaway/raffle/giveaway organized by the NFT provider, without the customer having to purchase them directly
• NFT collectibles – Companies could encourage people to travel to specific destinations by including a free mint (the process of turning digital files into a blockchain digital asset) of a location-specific NFT after the trip is complete. This NFT could be sold on a secondary market and fetch a different price based on its rarity.
• Blockchain-verifiable lounge access passes – NFT holders can easily prove their eligibility to access lounges in various participating destinations
• Unique PFPs (profile images) that people can control as their 3D avatar in the Metaverse, or their profile image on social networks and enjoy for personal use. This often allows people to form exclusive cliques or clubs which, in turn, provide benefits beyond those intended by the creators.
• Unique Airdropped Vacation Packages – either through competition or random drops of exclusive vacation experiences for eligible NFT holders
• loyalty bonuses – NFT holders can receive tokens deposited directly into their wallet after completing various transactions or trips.

Travala (a travel company that launched a collection of NFTs on its AVA blockchain) is one of them.
example of an NFT-based customer rewards program and often offers NFT holders the chance to win
exclusive vacation.

Previous prizes have included a trip to Argentina, a Singapore Grand Prix vacation package and a trip
to the Maldives valued at $75,000. The winning NFT holder can sell both the NFT and the
vacations (associated with the NFT) to another person through an NFT marketplace.

In addition to this competition, the NFT allows owners to earn up to 10% loyalty rewards for booking on Travala, access to the Metaverse, and Concierge access.

Another example is airBaltic’s rewards program (Planies), which will include giving cardholders access
to frequent flyer points and vouchers. The public minting date was October 4, 2022.

So what should airlines and travel companies consider when creating these programs?

• Rewards program terms and conditions and what happens when they are violated
• The IP and commercial rights granted with the actual NFT we mentioned in Part 1
• The jurisdictions your rewards plan will be governed by

Comment

The potential for travel technology to grow alongside Web3 is remarkable, but creators, companies, and agencies need to consider the following key issues when entering the market:

• Commercial agreements for service providers
• Terms of use for customers
• data privacy laws; Y
• Protection of IP rights