Transforming Tourism Loyalty Programmes through Private Blockchain

This paper presents the design and implementation of a private blockchain-based loyalty programme tailored for the tourism and hospitality industry to address challenges in traditional loyalty programmes such as limited interoperability, high administrative costs, fraud susceptibility, and data privacy concerns. By leveraging private blockchain technology, the proposed system enhances trust, transparency, and operational efficiency among administrators, merchants, and customers. A comprehensive PESTLE and SWOT analysis was conducted to assess external and internal factors influencing the adoption of blockchain technology, identifying key success factors and potential risks. A use-case diagram illustrates the system’s interactions, highlighting the roles of administrators managing the blockchain and loyalty system, merchants integrating services and managing rewards, and customers earning and redeeming loyalty points. A prototype was developed using the Meta61 Blockchain platform to demonstrate practical applicability, featuring secure transaction recording, smart contracts for loyalty point management, and enhanced data privacy. While acknowledging limitations such as initial integration costs, complexity for SMEs, and dependency on a central authority, the paper suggests future work including exploring hybrid blockchain models, integrating decentralised identity management technologies, and developing user education strategies to increase adoption. In conclusion, the implementation of a private blockchain-based loyalty programme has the potential to transform the tourism and hospitality industry by improving multi-party trust, operational efficiency, and customer engagement, positioning blockchain technology as a transformative force addressing inherent limitations of traditional loyalty programmes and fostering enhanced collaboration among stakeholders.