It may not be so obvious at this point, as it will seem like you’re “just using the internet”, but let us tell you: the internet has come a long way since its inception, and so have its implications in the travel industry.

We want to bring light into darkness: What exactly does the term “Web3” mean? What impact has the development of the Internet had on the travel industry? And finally, how can companies operating in the travel industry benefit from future innovations?

If we remember the turn of the millennium, the travel industry was in a very different place. When it came to booking a vacation, travelers went to their local travel agency for more information and made a reservation, or the bravest bought a guidebook, spent several hours researching, and then planned their own vacation themselves. Fast forward to how consumers book their travel today, as we all know, it couldn’t be more different.

We can see this multitude of differences when we look at the possibilities offered to customers online by industry players such as Booking.com, Airbnb, Skyscanner and many other travel providers. They just seem endless. Furthermore, the developments that we have seen within companies within the travel industry so far are immense.

But how did we get here and what’s next?

Web1: First beginnings of a revolution

At first, the World Wide Web offered unlimited access to information for users. Web1 refers to the absolute beginnings of the Internet: collections of text and data from the 1990s, built in seemingly plain HTML, published on the Internet and made accessible to anyone who might be interested.

Commenting features, online shopping, personalization, and the like were just dreams of the future. This is why Web1 is known as the “read-only” web. Users could read information but nothing else.

For travel, this first version of the Internet offered people quick and easy access to information about their destinations: country characteristics, traditions, accommodation, and flight details; everything could suddenly be found online. However, due to the nature of Web1, users were still unable to interact with the data or make good use of it themselves.

Do you want to travel in time? Take a look at this reconstruction of the early days of the Internet.

Web2: Welcome to today

Whereas in Web1, users could only access information. In the early 2000s, Web2 became more of a “participatory web.”

Social networks such as Facebook, Instagram and Twitter have emerged, and users have become accustomed to personalized content and can actively participate on the Internet to create their own content.

The combination of Web2 and the travel industry is known as Travel 2.0. And it has completely reshaped the industry: online booking, review platforms like Tripadvisor, and many other new business models have emerged.

While Web2 has brought a lot of good, Travel 2.0 has also introduced significant disruption to those travel companies and sub-industries that have failed to integrate these new web-based business models.

The bankruptcy of local travel agencies and the rise of services like Airbnb are just two widely recognized examples. In 2018, 82% of trips were booked online through a mobile app or website, with no human interaction. In 2019, the online travel booking market share accounted for 63% of the $1.2 trillion generated by the travel industry. This is huge, and the impact of Web2 on the travel industry is simply undeniable.

And the companies that thought they didn’t have to embrace these web trends have suffered badly.

The same thing is happening right now.

Web3: Rethinking travel

Web1 was about reading information, Web2 was about co-creation (especially user-generated content), so what will Web3 be about?

To understand Web3, we need to disassociate ourselves from the image that we currently associate with the internet that we know today. The transition to Web3 offers even greater possibilities, even more innovation, and even more changes than the leap from Web1 to Web2.

This is because Web3 is built on the basics of decentralization, openness, and data security, which presents many more benefits for users, all facilitated through blockchain technology. Another feature that Web3 relies on is ownership. Through non-fungible tokens (NFTs) and smart contracts, digital assets are truly and legally vested in Internet users and can be traded through proofs of ownership and transferability. As such, Web3 could potentially be more disruptive and an even bigger paradigm shift than Web2.

To be more specific, using artificial intelligence, machine learning and blockchain technology, Web3 aims to create smart, more connected and open decentralized applications where users can manage their own data.

Web3 will bring a whole new structure and technology to the travel industry and consequently endless opportunities for new products and business offerings.

Why should your company care?

Although the possibilities that Web3 will offer are yet to be explored, companies in the travel industry should be aware that we are in the midst of a huge transformation. To stay relevant in the market, it is essential to actively shape this new way of thinking in the industry. In this, Chain4Travel, with the Camino consortium blockchain, serves as an enabler for travel companies of all sizes and sub-sectors. Apart from the already mentioned point of remaining competitive in the market, there are many other reasons why travel companies should (sooner rather than later) care about Web3.

According to the latest data from TravelTech Show, 74% of business professionals in the travel industry plan to use Web3 as a marketing tool. So, the ball is already rolling. In addition, it offers several new ways to make business models more efficient, more attractive, and to save costs.

Here are some ways that Web3 can impact the travel industry:

• Enhanced reconciliation processes involving blockchain, smart contracts, and decentralized applications (known as dApps). This will help reduce costs and increase competitive advantage.
• Custom Loyalty Programs: Using Non-Fungible Tokens (NFTs) for better traveler rewards and loyalty programs could be among the easiest fruits for travel brands considering Web3 innovations . Consider automatic bonuses for travelers who book sustainable travel and accommodation or small gifts for delayed flights or hardship for reasonable fees. The possibilities for more personalized loyalty programs and closer ties between suppliers and customers are endless.
• Reduced costs with payment and settlement solutions for B2B businesses in the travel sector, as they can be facilitated by blockchain technology.
• The supply and exchange of information can be simplified when the information is available on a blockchain. This is especially relevant for those travel companies that use API integrations with multiple partner companies.
• Enhanced traceability due to its inherent immutability and transparency features offers possibilities far beyond baggage tracking. Blockchain helps with monitoring and reporting of emissions reduction trading. For example, effectively tracking the entire carbon credit journey and its connected offset projects is possible with Web3, providing both businesses and consumers with a detailed audit trail.

This list is not exhaustive and is just the tip of the iceberg, but it illustrates the myriad opportunities that Web3 offers the travel industry, and the opportunities that will be missed by companies that do not want to follow the trend. Think of the travel agencies at the time of the Web2 discontinuation…

It’s vital to understand that it’s not just about rebuilding existing business solutions on new technology. It’s about rethinking business processes and breaking new ground.

Right now, there’s a new generation of travelers asking for, or even expecting, more personalization, sustainability, and decentralization, along with pandemic management and rising interest rates. The travel industry definitely has a lot to think about, and there’s a lot of potential to unleash in the coming years.

Although we have just arrived at the intersection of travel and Web3, all companies need to think about how they can take advantage of these developments for themselves. Now.

Chain4Travel is building the new ecosystem for the travel industry that allows your travel organization to be part of the change and benefit from these new technologies.

These are exciting times for the travel industry. They are not left behind.