Identification issues in tourism and how to solve them

It’s obvious: people are ready to travel the world again without any restrictions. Europe, in particular, appears to be more popular than it was before the pandemic. In 2024, the continent welcomed approximately 747 million international tourist arrivals, representing a 5.5% increase year-over-year. In addition, analysts estimate that travelers spent over €800.5 billion in total in the same year, representing a 13.7% increase compared to 2023.

 Travel and hospitality companies are under immense pressure

 However, the tourism boom is pushing providers to their limits. They are not prepared to accommodate travelers who have grown increasingly accustomed to frictionless digital experiences over the past few years. It’s not that the industry doesn't want to transform, but the transformation cannot come soon enough. Many travel and hospitality companies are still struggling with various challenges:

• Papers, please!
  Many providers are still relying on paper-based processes. Especially in hotels and rental services, travelers must physically sign registration documents, data protection and privacy forms, or transaction authorizations – even though their online booking has already been confirmed. This outdated method not only creates huge friction but is also vulnerable to loss, forgery, and legal disputes.
• Repetitive and heavily fragmented
  Identity verification processes and regulations differ throughout the entire European travel industry. That means: if electronic verification methods are standard in the country you depart from, that doesn’t mean your destination is also able to gather, process, and manage your identity electronically. More often than necessary, travelers are also repeatedly required to present their ID info and physical documents – e.g., during flight booking, hotel check-ins, and again to rent a car. This fragmentation not only causes frustration but also annoying delays. It also yields the risk of documents not being accepted at all.
• Scam alert
  For several years, online travel providers and booking services have been reporting an increase in fraudulent activity, including identity theft and phishing. One popular scam involves attackers sending users emails about a recent booking, asking them to re-verify credit card details for confirmation or cancellation. Since providers typically contact their users through internal messaging platforms, attackers are going to great lengths to create websites that closely resemble these platforms, prompting their victims to share sensitive information. Therefore, travel companies need to provide strong authentication methods to verify users and providers reliably. This way, they protect both their customers’ data and their reputation.

These challenges negatively impact customer experiences, hinder further growth, and limit both viability and competitiveness. Travel companies must find a way to eliminate outdated, user-unfriendly processes to meet the increasing demand without compromising travel convenience, as well as their customers’ personal safety and information security.

Meeting the tourist rush with digital identities

Digital identity solutions, such as digital wallets, securely and centrally store all relevant electronic documents. Users can keep their eID, payment, and account details, licenses, and other certificates in it. To guarantee authenticity, trust service providers verify the user’s identity and the validity of every other document. This makes them a pivotal player within the digital identity ecosystem, particularly in the travel industry, as personal data, financial details, and legal agreements must be securely and verifiably managed across different jurisdictions. As soon as the information is saved in the wallet, holders can access it locally through an app on their smartphone, which is safeguarded by either a biometric lock or a PIN. Additionally, they maintain control over their data and can choose which information to share with whom.

Thus, a wallet supports the secure, unambiguous, tamper-proof digital identification. Also, all the information travelers need during their trip is readily available at their fingertips. Every time a provider needs proof of identity or to verify specific data, users can share these electronically without repeatedly presenting a physical ID, tickets, vaccination records, or even themselves at a check-in desk. This makes manual, fragmented processes, the excessive use of paper, and handwritten signatures a thing of the past.

That being said, due to its versatile usage, a digital wallet might become the most important piece of luggage in the future. Good thing, it is not very likely to be forgotten on the dinner table.

Download our latest whitepaper about eIDs as a game changer for travel and hospitality to learn more!