What is Blockchain?
Blockchain is a type of digital ledger technology that records transactions across many computers in a secure, tamper-proof way. Instead of relying on a single central authority like a bank or payment processor blockchain uses a decentralised system where each transaction is verified and stored across a network.
Blockchain’s value lies in the background—connecting global systems, just as cities connect travellers and providers.
In business travel, there’s often as much happening behind the scenes as there is in the journey itself. One of the most crucial aspects is how payments are made. Not just by travellers themselves, but by businesses and finance teams coordinating travel the world over.
So, with increasing digital innovation and the rise of AI and automated systems becoming part of businesses’ daily operations, it’s no wonder that curiosity around blockchain’s potential role in the corporate financial world is growing. A 2024 report by Deloitte found that fewer than 30% of organisations are currently investing in blockchain, yet 76% of those that do report seeing real value. Adoption is being led by sectors such as life sciences and healthcare, while the greatest returns are being seen in energy, resources, and industrials. This suggests that when applied strategically, blockchain can yield tangible benefits, even in complex and operationally demanding environments.
In the context of business travel, where payments span many countries and providers, blockchain represents a compelling topic for exploration.
Smart features in apartments hint at a future where intuitive tech quietly enhances the stay-from temperature to transactions.
How Do Travel Payments Work Today?
It’s important to understand how things work currently to know whether Blockchain has a legitimate place or whether it’s a “if it ain’t broke, don’t fix it” type of situation. Let’s dive in and get a better picture of this.
Currently most companies rely on tried-and-tested methods when it comes to paying for business travel:
- Corporate cards – used by employees to book and pay for travel directly
- Virtual or centralised cards – managed by a company’s travel team or booking agent to simplify control and reporting
- Invoicing – especially common with accommodation providers, where the company is billed after the stay
- Reimbursements – when employees pay upfront and claim the costs back later
These systems are supported by banks and expense platforms and usually get the job done. But they aren’t perfect-especially for international transactions, which can be slow, expensive, and hard to reconcile. There’s also a degree of manual work involved and some risk of fraud or error when managing multiple currencies, time zones, and vendors.
Blockchain and Business Travel: A Growing Connection
While blockchain is still new to the travel sector, it might help fix ongoing problems with payments-especially for international bookings or multi-vendor arrangements.
In theory, blockchain could:
- Speed up international payments
- Automate invoicing and settlements using smart contracts
- Improve transparency for reconciliation and reporting
- Reduce fraud risk by cutting out some middlemen
In areas like serviced apartments, where stays are often longer and invoicing is more complex, this could make a real difference. It’s not something you’d change overnight-but about exploring whether blockchain could quietly fit in behind the scenes.
So Why Isn’t Everyone Using It Already?
Despite its promise, blockchain adoption remains cautious. One major concern is volatility-particularly when cryptocurrencies are involved.
“The value can be highly volatile and creates a significant financial risk to companies,” explains James Buckley, SilverDoor’s CFO. “There are ways to mitigate this- like converting to fiat currencies immediately-but the exposure is still real.”
Another challenge is compliance. The decentralised and sometimes anonymous nature of blockchain introduces risks around anti-money laundering (AML), regulatory reporting, and taxation.
“Some jurisdictions treat crypto as property rather than currency,” James adds. “This means fluctuations in value could trigger capital gains tax.”
Subtle, seamless check-ins reflect the evolving guest experience
What Happens When Blockchain Fails?
While blockchain holds promise, there have been high-profile cases where its implementation fell short-showing why businesses need to tread carefully:
Australian Securities Exchange (ASX):
ASX attempted to replace its CHESS clearing system with a blockchain based solution. After years of delays and hiccups around scalability, the project was abandoned in 2022. This lead to a financial write-off of around A$250 million. In 2024, Australia's financial regulator took legal action, citing misleading conduct regarding the project’s status.
IBM and Maersk – TradeLens:
TradeLens was designed to digitise shipping logistics using blockchain. Despite early support, many stakeholders were reluctant to adopt a system seen as controlled by competitors. The project was discontinued in 2022 due to lack of commercial viability.
These show that technology alone isn’t enough. Success depends on people trusting it, using it, and knowing what it’s really for of how blockchain fits within a given industry.
Balancing Innovation with Responsibility
SilverDoor’s CFO puts it plainly:
“We’re in an ever-moving technological world where innovation can change the landscape of business very quickly. There’s a risk of getting left behind-but directors also have a responsibility to protect the business and its stakeholders.”
He points out the dangers of overcommitting to unproven technologies:
“On 12th March 2020, Bitcoin dropped 37% in a single day. If a company were holding operational funds in a cryptocurrency, that could have threatened its financial stability.”
What’s the Path Forward?
James suggests a balanced approach to exploring blockchain:
- Convert cryptocurrency to fiat at the point of payment
- Factor in margins to protect against fluctuations
- Use blockchain for backend operations rather than customer-facing tools
“Once you offer a solution, it’s hard to pull it back,” he warns. “So be sure the business case is clear, and the risks are covered.”
Final Thoughts
As the travel industry continues to digitise, blockchain may offer quieter, background improvements to how payments are processed, verified, and settled. Platforms like SilverDoor’s OBT already help clients centralise and simplify bookings-there’s potential to complement these tools with secure, scalable tech in future.
For now, however, most businesses are wise to stick with what’s stable and works well. Blockchain could one day sit alongside your finance stack-not as something that helps, not something that changes everything overnight. One block at a time.
For further insights into advancing technologies shaping the industry, take a look at our blog on AI’s environmental impact and innovation.
