The transparent passport: blockchain’s role in travel’s future

Travel and tourism remains one of the world’s most influential industries, contributing around 10% of global GDP ($11.1 trillion in 2024) and supporting 348 million jobs worldwide. Yet behind the glamour of destinations and hospitality lies a web of intermediaries, legacy systems and complex transactions that often result in inefficiencies, fraud and high costs. Blockchain technology is now being explored as a solution to these challenges. By offering transparent, tamper-proof ledgers and programmable smart contracts, blockchain can reshape how travel businesses manage bookings, loyalty schemes, payments and even passenger identities. For an industry under pressure to deliver trust and efficiency in a post-pandemic world, blockchain presents a compelling opportunity. The travel sector faces several persistent issues such as siloed systems that prevent smooth data sharing between airlines, hotels and online travel agencies (OTAs). The prevalence of costly intermediaries charging high commissions. fraudulent practices, from fake reviews to ticket scams and the challenges having to prove your identity with IDF cards. Blockchain-powered platforms address these by acting as a single source of truth (reducing disputes) and, by using smart contracts, one can automate bookings, refunds or insurance claims. Blockchain also supports digital identity systems where travellers control their data whereby improving privacy and security. However, in order to understand blockchain’s potential, it is worth looking at real-world case studies:

Blockchain in travel case studies

The table above gives a snapshot of blockchain in action but, to understand the practical lessons more fully, the following examples demonstrate what these early adopters have achieved in practice. Several pioneers in the travel sector have already begun experimenting with blockchain, showing how the technology can address long-standing inefficiencies:

· PwC’s partnership with KAYAK and Blockskye created a blockchain-based corporate booking tool that cuts out unnecessary intermediaries and provides cost transparency, with more than one million internal bookings processed.

· On the traveller identity front, the World Economic Forum and Accenture’s Known Traveller Digital Identity pilot tested blockchain passports with Canada and the Netherlands, highlighting the benefits of privacy-first, paperless border crossings.

· In distribution, TUI Group’s BedSwap system shows how hotel beds can be dynamically reallocated across markets on a blockchain ledger, improving yield management and reducing reliance on bed banks.

· Meanwhile, Singapore Airlines’ KrisPay, now Kris+, demonstrates how blockchain can revitalise loyalty programmes by tokenising miles and making them instantly spendable across dozens of merchant partners.

Academic research also provides evidence of potential impact. A 2024 peer-reviewed study found that blockchain-based booking systems could reduce discrepancies by 30% and speed up processing by 40%, whilst also strengthening trust through immutable reviews. Together, these initiatives show blockchain is not just theoretical but actively reshaping how travel organisations manage identity, distribution, loyalty and trust. Beyond flagship projects, a range of other innovations is shaping the travel ecosystem, such as Winding Tree and Travala, which highlight both the opportunities and risks of blockchain in bookings. Winding Tree partnered with Lufthansa and Air France-KLM in its early trials (proving the concept of direct supplier-traveller transactions), but ultimately wound down due to adoption hurdles. Travala continues to thrive, with 2.2M+ listings and 100+ crypto payment options, showing that consumer-facing crypto travel agencies can find traction. Tokenised loyalty and reviews are also gaining ground. Startups such as Loyyal have worked with major airlines and hotels to explore interoperable loyalty schemes; these programmes could potentially let travellers merge and trade points across ecosystems whilst blockchain-verified reviews offer an antidote to the problem of fake feedback. By tying reviews to actual transactions, blockchain can increase consumer trust and potentially change how platforms such as TripAdvisor handle credibility. Meanwhile, baggage tracking pilots have shown particularly practical value. At Hong Kong International Airport, a trial with IATA, Heathrow and Cathay Pacific tracked over 50,000 bags on a blockchain ledger. The immutable record provided accountability across multiple airlines and made data visible to both passengers and operators. If scaled, then such systems could significantly reduce the multi-billion-dollar annual cost of mishandled baggage, which industry reports estimate at $5 billion in 2024. Finally, payments and insurance remain promising areas that can be improved using blockchain technology; smart contracts can automate compensation for travel disruptions, whilst crypto or stablecoin payments bypass costly forex conversions.

Meanwhile, the blockchain-enabled insurance market is forecast to grow from $1.94 billion in 2024 to $17.9 billion by 2029. Some companies are also trialling blockchain for verifying carbon offsets and sustainable supply chains, responding to growing traveller demand for responsible tourism. The pandemic certainly heightened demand for verifiable credentials with blockchain-based health passes and digital travel credentials being explored to reduce forgery risks. In addition, the World Economic Forum’s KTDI pilot demonstrated that blockchain can underpin privacy-first digital identities. AI is also fuelling the adoption of blockchain-powered platforms and is already being used for pricing and personalisation. Combined with blockchains, AI can analyse tamper-proof travel histories for recommendations monitor and trigger actions and notifications when disruptions occur. Furthermore, it is possible to create AI-verified identity checks linked to blockchain-stored credentials. At these scales, blockchain’s ability to reduce reconciliation delays, improve trust or cut intermediary fees could translate into multi-billion-dollar efficiency gains for the industry.

Travel industry stats and blockchain potential

However, despite its promise, blockchain adoption in travel faces clear friction points and challenges to its implementation:

· standardisation gaps - global systems such as GDSs, hotel PMS, and airline reservation platforms do not yet operate on common blockchain protocols, making interoperability difficult.

· upfront costs and scalability - many travel companies, with thin margins post-pandemic, struggle to justify the high expense of blockchain system integration. Likewise, doubts linger about whether blockchain platforms can handle global transaction volumes, particularly when many SMEs lack robust digital infrastructure and maturity.

· regulatory uncertainty - GDPR, data localisation rules, and the uncertain legal status of tokens or smart contracts create hesitation among travel firms. An OECD case study highlights how enforcement gaps, overlapping jurisdictions, and unclear frameworks slow adoption.

· cultural resistance - airlines and OTAs are reluctant to share data that underpin their competitive edge. Knowledge gaps and a lack of executive understanding exacerbate this scepticism.

· security and sustainability - poorly written smart contracts can expose vulnerabilities, while public chains that use energy-intensive methods raise environmental concerns. Proof-of-Stake systems offer mitigation, but the perception remains.

These barriers underline why blockchain has yet to move from pilots to widespread deployment across travel; blockchain’s trajectory in travel is likely to be incremental rather than disruptive overnight. In the near term, expect adoption for digital identity programmes that smooth border control and improve passenger experience (e.g. the WEF’s KTDI initiative). Tokenised loyalty schemes offer the opportunity to make loyalty points interoperable and as liquid as cash, driving customer engagement. By the 2030s, blockchain may underpin everyday travel almost invisibly, powering frictionless identity checks, secure payments, transparent baggage tracking and enhanced loyalty schemes. As Fritz Joussen, former CEO of TUI, described it: blockchain could “dominate B2B within five to ten years.” Early adopters who overcome the hurdles now will likely hold a decisive advantage in trust, transparency and efficiency.

Nonetheless, blockchain is not a cure-all, but it is steadily carving out a role in travel. From PwC’s corporate booking tool to Singapore Airlines’ Kris+ app, early results already show gains in transparency, efficiency and customer engagement. TUI’s BedSwap demonstrates blockchain’s ability to streamline distribution whilst digital identity pilots highlight its potential to improve trust at borders. For travel professionals, the message is clear: adoption will be gradual, but the impact is significant. Now is the time to monitor developments, run pilots and target pain points such as costly intermediaries or data silos. Those who move early will be best placed to deliver the seamless, trusted experiences travellers increasingly expect. By the 2030s, decentralised systems may operate quietly in the background: powering identity checks, automating refunds, enabling interoperable loyalty and improving baggage transparency. For an industry built on trust and efficiency, blockchain’s “quiet revolution” could become one of its most transformative technologies.