A Quick Recap
Start with a decentralized identifier (DID), a sort of virtual identity that resides in a secure, encrypted and verifiable format on a blockchain. An individual owns and controls their DID, which could be almost anything about them, like a driver’s license or passport. It could also be a hotel guest profile, with preferences, loyalty program identifiers, tiers, and payment methods.
A DID can form the basis for verifiable credentials (VCs), which are managed in a digital wallet, presumably on a mobile device. VCs are considered authoritative and accurate and don’t require contacting the issuing authority for verification (like the state government for a driver’s license or a national government for a passport). The individual can choose what elements from their VCs they share, and with whom. Again, the underlying tenet is that the individual is in control of their data now.
SSI can accelerate bookings and check-ins while also increasing transaction security. VCs contain profile and loyalty program information, simplifying the booking process. At check-in, the user can instruct their wallet to share the reservation and information necessary to complete the process, such as name, address, and age-over-21 – but without recording any personally identifiable information, like the actual birthdate.
Not only does SSI speed up and simplify booking and check-in, the ability to share the profile enables a greatly elevated level of personalization.
The guest never has to repeat themselves or fill out another form. The hotel company doesn’t need to secure sensitive personal information. Compliance with privacy regulations is greatly simplified. All told, the hotel company gets to deliver enhanced guest experience, improves data security, reduces its regulatory compliance burden and gains a substantial amount of operational efficiency.
Why Isn’t SSI More Widespread?
A lot of development remains before SSI tools can operate across the famously siloed hospitality technology ecosystem. Investing in the process requires the vendor universe to buy into the concept while waiting for the customer, but the customer is, in turn, waiting for the vendors.
Different nations and different jurisdictions within nations have varying regulations about the definition of acceptable identification. Record-keeping requirements and those for reporting guest information to authorities also vary by locale. These regulations will need to evolve to allow SSI and related technologies to fulfill their requirements.
Finally, the guest isn’t there yet either. People are using digital wallets billions of times in a week for boarding passes and gym entry, but more nuanced SSI application remains unknown for most travelers.
Where Are We Headed?
There are some encouraging pilot programs in progress. These are typically being led at the national level and generally focus on – or at least touch on – travel alone, or travel and hospitality. They include:
- A formal pilot in Germany, with hotel check-in as a lead use case
- A production application in Aruba to simplify border entry
- A national identification application in Bhutan
- The Digital Wallet Consortium is driving digital identity with a particular focus on travel within the European Union (https://eudiwalletconsortium.org/0)
The private sector is also involved in many ways. The International Air Transport Association (IATA) has its Travel Pass program. IBM and Microsoft are major drivers of SSI technology. Microsoft ION uses the bitcoin blockchain to create DIDs. And there are countless smaller firms occupying some corner of the SSI space, each working on bringing their piece of the puzzle to market.
Nonprofits are also impact players in the SSI world. Notably, the Decentralized Identity Foundation (DIF) sponsors a Hospitality and Travel Special Interest Group as well as a related Working Group. These volunteers dedicate time, talent and effort to furthering SSI’s evolution. (https://identity.foundation/)
Self-sovereign identity and decentralized digital identity systems represent a transformative opportunity for the hotel industry.
As privacy concerns mount and digital expectations rise, embracing SSI allows hoteliers to offer secure, seamless, and personalized guest journeys. Working with leading SSI practitioners and aligning on global standards will keep hospitality brands and technology providers at the forefront of the next generation of travel and guest engagement.
