Digital Currency-Based Payments for Airlines
Wipro Limited has developed a blockchain-based payment solution for Travacoin, a digital payment system which enables airlines to refund and compensate passengers in a timely manner when a disruption occurs.
Passengers will be notified of a delay or cancellation and refunded in this digital currency, which can be used to repurchase airline tickets, book hotels and avail other airport and travel related services, said Wipro in a news release on 22 May 2019.
Passengers will benefit by way of a significant reduction in the waiting time for compensation. In addition, passengers can use Travacoins at retail stores in and around the airport and avail attractive discounts offered by retail partners.
By compensating passengers with Travacoins, airlines will be able to reduce their administrative overheads and channel the savings to offer a better travel experience to fliers.
A recent study conducted by FTI Consulting, and commissioned by Travacoin on the commercial feasibility of using digital tokens for refunds and compensation for flight delays indicates that Travacoins will save airlines between 20% and 40% of what they are currently paying passengers in cash and will also increase customer loyalty towards airlines through improved convenience during travel disruptions like airline delays.
Travacoi Chief Executive Officer Brian Whelan said: “Travacoin is a unique solution to a common problem faced by the airlines industry today. With every delay, be it caused by a staff strike or a technology problem, comes an increasing number of claims from passengers.
“Airlines respond defensively, consequently losing customer loyalty as well as millions in hard currency along the way. This solution offers airlines a cost-effective way to reconnect with their passengers in a positive way, turning adversity into opportunity.
“As we expand, the plan is to grow the solution to encompass other payment and settlement functions, turning Travacoin into a unique payment solution for the entire travel industry,” he said.
“Wipro’s deep domain know-how of the industry processes, blockchain expertise, and ability to rapidly co-innovate and scale-up the solution has been critical to our success.”
Wipro Vice President – Service Transformation and Blockchain Theme Leader, Krishnakumar N Menon, said: “We are encouraging blockchain innovation by actively engaging with firms focused on solving real-world business problems.
“It has been exciting to work with Travacoin to build an innovative industry-leading travel currency for the airline industry. The blockchain-based solution will help airlines optimize costs through the reduction of administrative overheads and facilitate quicker payments and settlements,” he said.
Travacoin is a company specializing in an eponymous digital payment solution. fiinews.com
