Disruptive Tech: Bitcoin's Future in the Australian Hotel Industry

This management report critically discusses the impact, role, and future trends of Bitcoin, a disruptive technology, on the Australian hotel and hospitality industry. It begins by defining cryptocurrency and Bitcoin, highlighting its decentralized nature and the underlying blockchain technology. The report then examines the potential role of Bitcoin in the hotel industry, weighing the associated risks such as market volatility and regulatory challenges against the opportunities like easier booking processes, enhanced transaction security, and the use of digital IDs and smart contracts. Furthermore, it explores future trends such as tracking guests via digital IDs to improve service delivery and enhance customer satisfaction. The report concludes that while challenges exist, the integration of Bitcoin and blockchain technology holds significant promise for revolutionizing the Australian hotel industry, improving efficiency, security, and customer experience.

Critical Discussion on the impact, role and future trends of disruptive
technology (Bitcoins) on the Australian Hotel and Hospitality
Industry
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Contents
Introduction................................................................................................................................3
Cryptocurrency: Bitcoins...........................................................................................................4
Hotel industry and Cryptocurrency (Role).................................................................................5
Opportunities and future trends in the hotel industry.................................................................6
Conclusion..................................................................................................................................9
References................................................................................................................................10
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Introduction
In the past few months, it has been found that the trends of the development of
cryptocurrency have raised in a significant manner and the public consciousness is now
cemented with the cryosphere. This has made it exciting to analyse the industries that would
be benefitted from this technology. the majority of attention from the use of this technology
has been paid to the industry of hospitality and tourism which is one of the first industries to
adopt the blockchain technology in its systems and use the Cryptocurrencies as the medium
of exchange. It should be noted that the blockchain technology is foundational and disruptive
in nature like the internet itself (Antonopoulous, 2014). This will not only open the portal to
the new and enhanced services but will also help the consumers to get hands on new and
developed products as well.
In the management report provided below, special emphasis has been paid on the
development of cryptocurrency and its impact on the industry of hospitality and tourism of
Australia. The report will help the reader to gain the insights on the risks and opportunities
that are presented by the blockchain technology to the hotel industry of Australia. It will also
present an analysis of the future trends that might have the impact on the working of hotel
industry of Australia.
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Cryptocurrency: Bitcoins
Cryptocurrency can be defined as the electronic currencies that are made secure through the
means of encryption and are kept in the soft i.e. digital form. Unlike the fiat o the traditional
currencies that are managed and circulated by the government of the country, the
Cryptocurrencies are decentralised in manner and operates on the technology known as the
blockchain technology which is linked together with a distributed ledger. It should be noted
that even in this market there are over 1000 bit currencies that are in circulation around the
words including the most famous currency known as Bitcoins (Bentov et. al., 2016). There
are other major currencies too such as Etherium, Ripple, Litecoin etc. Most of these
currencies have identified to be supportive of the technologies and underlying protocols
which are one of the major reasons behind the reach and adaptability of this currency.
Bitcoins and its impact
Bitcoin is one of the cryptocurrencies that is accepted in a universal manner as long as the
user is connected to the internet. This is one of the first cryptocurrencies that was made
public and since then it has identified to be shifting the paradigm of major industries such s
banking, finance and hospitality. One of the major factors that make this currency so
attractive and common among the people is the fact that this currency does not require a
centralised banking system. This also means that in order to accept of lend this currency,
there is no inclusion of the interest rates and the only manner in which this currency can
change its value is the volatility rather than the regulations of the bank or of the government
of the country. It has been identified from the stats the awareness and usage of Bitcoins in the
industry of Australia have increased by 8% since the year 2012 (Manrique & Manrique,
2015). Another major advantage that makes this currency so popular among the citizens is the
base of the currency which is blockchain technology. Not only this technology is valid and
reliable in nature but is also secure. It has been found that the techno0logy is close to
impossible to be hacked by any means. The currency also helps the user to maintain its full
anonymity which is another security feature of this currency.
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Hotel industry and Cryptocurrency (Role)
The major impact of the introduction of this technology is nowadays is seen on the hotel
industry as not only this currency is easy to use but also economic in nature which is one of
the major preferences of the consumers. The major question here still remains the same is that
how the hotel and hospitality industry can utilise the technology in order to gain the
competitive advantages in the marketplace. It has been identified that there are various
advantages that the Australian industry can use, there are some risks too that are associated
with this technology which have the potential to hamper the development and the potential
advantage that can be utilised from this technology.
Risks
The markets of Cryptocurrency are highly volatile in nature and it has been found that there
are huge gains and losses that take place in a daily manner. in order to mitigate some risks,
there are some measures that could be taken such as clients that can help in conversion of this
cryptocurrency into the fiat currency such as USD, AUD, Pounds, Euro etc. as soon as the
transaction takes place. However, it has been found that the hotel company would be still at a
greater risk due to this tumbling of the currency and it is important for these companies to
scrutinise their payment providers such that they are able to insulate themselves from the
losses that happen due to the exchange rate of this currency. It has also been found that there
are many countries that have made strict regulations in order to use this currency, for example
in the case of Russia, where the Bitcoin is not illegal but it is illegal to pay for goods and
services using a currency other than Rubble. This would make the currency a no-no for the
hotel industry of that country which further adds to the sceptical nature of the currency
(Leung & Dickinger, 2017). Though there are issues in relation to the use of Bitcoins in this
industry, it should be noted that there are many possible benefits that might have a significant
impact on the development of products and services that are currently being provided in the
hotel industry. These benefits and opportunities would be explained in the next segment of
this report.
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Opportunities and future trends in the hotel industry
It should be noted that though the use of Bitcoins is not in the prevalence there are many
advantages that the industry of hotel and tourism can gain from the use of Bitcoins. These
trends of the future can not only help the industry to ensure the satisfaction of the consumers
but can also help them to gain the competitive advantage in the market by making available
the lucrative products and services which can be effectively used in order to attract the
consumers in a significant manner. It should be kept in mind that the advantages have been
explained keep in mind the advantages yielded by using both Bitcoins and blockchain
technology.
Easier Booking
It has been found from the recent development in the industry that the bookings for hotels and
trips are now easier than ever and this has been made possible majorly because of the internet
of things. Companies like Intrepid Travels, Expedia, Qantas, etc. provide the consumer with
effective portals which can be used by the customers in a detailed manner in order to book
their hotels and trips. Though the process is easy, it has been found that there are possibilities
of further developments too which can not only enhance the experience of the consumers but
can also help in the effective and efficient facilitation of the services. It has been found that
while staying or booking in the Australian industry the consumer has to pay 25% extra
amount as tax and other duties. With the implementation of the blockchain technology in
their system the costs can be eliminated and the consumer can make easy payments using the
Bitcoins as the currency. It should be noted that in the system of hotel or trip booking the
banks generally charge the processing fee which increases the cost for the consumer (Talwar,
2016). With the use and implementation of the Bitcoins which is not governed by the bank,
not only the customers would not have to pay the extra fee but also the speed of transaction
would increase in an effective manner.
Security of transactions
This is one of the major advantages that if offered by the Bitcoins. It has already been
analysed above that this technology is secure and safe in nature due to its distributive ledger
technology in which the copy of transactions is sent to millions of nods which confirm the
transaction. This feature of safety and security of the technology can not only help the user in
ensuring that their transactional safety is ensured but also helps in making sure that there is
no kind of fraud that might occur in these transactions. The unhackable nature of the currency
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is one of the added factors which help in increasing the security of transactions. The easy
confirmation of data further helps in ensuring that there are no issues faced by the failure of
transactions which is currently a problem in the prevailing banking systems 9Chrier et. al.,
216).
Digital ID
It has been found that with the current system there is an issue with the theft of identity which
cannot have a financial but also a legal implication on the user. The usage of the Bitcoin
technology proves an effective solution to the problem by making sure that the ID of the
consumer remains safe in a digital manner. These IDs can help the customers and the tourists
check into their hotel rooms, flights and also use the product and services provided by the
hotels. Similar to the security of the QR codes, these digital IDs can also be stored in a
cryptographic manner which can help in verification of a person without checking their
personal information to determine their validity. This is one of the major trends in future
which has the potential to reshape the hotel and hospitality industry of Australia (Adams,
2018). This kind of trend and technology has the potential to reshape the hotel industry of
Australia.
Smart Contracts
Smart contracts can be adopted in order to facilitate both kinds of transactions such as major
and minor in the hotel and hospitality industry of Australia. The technology of Bitcoin is
majorly based on the blockchain platforms which can be used by the hotels and service
industry of the hospitality industry to enter into contracts. Anytime the transaction occurs it
would be shared on the blockchain platform which can not only help in faster processing of
the payments based on the contractual terms but will also help in optimisation of the sales via
collaboration of the travel and hotel industries. These applications of the smart contracts can
be extended to the guests of the company which would not only eliminate the check-in
process but will also help the guests and the company to save their time. Thus it can be said
that the use of Bitcoins has a promising future I the hotel industry of Australia (Ally et. al.,
2016).
Tracking the guests
When the consumer is registered on a digital ID with the Bitcoin it is generally seen that they
are carrying a digital ID. This digital ID if shared with the hotels can effectively help them to
track the location of the guests. This would help the company to make their products and
services ready and available for the consumers which can not only help in enhancing their
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experiences but also ensure their satisfaction up to the optimum levels. This can also help the
hotels to significantly decrease the check-in time and increase the satisfaction of the guests.
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Conclusion
Thus from the management report provided above it can be concluded that the hotel and the
hospitality industry are the major contributors of the economy and it is important for these
industries to search for the platforms which can help them in sustainable development. It is
important for the companies in this industry to use disruptive practices in order to gain the
competitive advantage in the marketplace. It is also important that the use of this technology
should take place in an ethical manner and should not violate any rule and regulations that
have been set up by the industry.
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References
 Antonopoulos, A. M. (2014). Mastering Bitcoin: unlocking digital cryptocurrencies. "
O'Reilly Media, Inc.".
 Manrique, C. G., & Manrique, G. (2015). The evolution of virtual currencies:
analyzing the case of bitcoin. Inf. Commun. Technol. Public Adm. Innov. Dev.
Ctries, 195, 213.
 Leung, D., & Dickinger, A. (2017). Use of Bitcoin in Online Travel Product
Shopping: The European Perspective. In Information and Communication
Technologies in Tourism 2017(pp. 741-754). Springer, Cham.
 Tawlar, R. (2016). Flash Forward-Visions of the Future of Travel.
 Shrier, D., Canale, G., & Pentland, A. (2016). Mobile money & payments:
Technology trends. Connection Science & Engineering, Massachusetts Institute of
Technology. MTI.
 Adams, W. R. (2018). Strategic Implications of Blockchain.
 Ally, M., Gardiner, M., & Lane, M. (2016). The potential impact of digital currencies
on the Australian economy. arXiv preprint arXiv:1606.02462.
 Bentov, I., Gabizon, A., & Mizrahi, A. (2016, February). Cryptocurrencies without
proof of work. In International Conference on Financial Cryptography and Data
Security (pp. 142-157). Springer, Berlin, Heidelberg.
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