Decentralized IDs: Future of Safe, Easy Travel

Published Date : 7/18/2025 

The travel industry is gradually moving towards a decentralized digital identity model, enhancing security and privacy for travelers. This shift is driven by the EU Digital Identity Wallet Consortium and various industry leaders. 

The travel industry is slowly shifting to a more decentralized model of digital identity. This was one of the key points EU Digital Identity Wallet Consortium (EWC) Advisor Annet Steenbergen and NetSys CEO and DIF Travel & Hospitality Working Group Co-chair Nick Price discussed during a webinar on “How Digital ID Is Reshaping the Travel Industry.”

Steenbergen shared her extensive experience in travel policy, including her involvement with the Aruba Happy Flow program and her role as Aruba’s representative to IATA. She highlighted the importance of digital identities in enhancing regulatory compliance and addressing privacy concerns.

Price introduced a seamless travel project he has been leading in an unnamed Middle Eastern country, focusing on use cases within the country after arrival. He emphasized the benefits of digital identities like ICAO Digital Travel Credentials (DTCs), which provide a higher level of assurance compared to sharing a copy of a passport.

Digital identities not only enhance regulatory compliance but also improve traveler experiences beyond the airport. Hotels often have regulatory requirements to know who their guests are, leading to the collection of passports and long check-in lines. However, with digital identities, travelers can share their preferences with organizations, leading to a more personalized service.

Price explained that this information needs to be stored with the traveler themselves, as they are the only ones who truly know their preferences. With the right tools, travelers can provide this information at every point of interaction, sharing only the necessary details for each specific interaction, such as hotel check-in, taxi services, or restaurant reservations.

Digital identity also plays a crucial role in agent-to-agent interactions for travel bookings, physical access control, and modernized loyalty programs. Price believes that with the right tools in the hands of enough travelers, the landscape of loyalty programs will be transformed.

Insights from the EU’s large-scale pilots for its Digital Identity Wallets will soon be shared by the EU Commission, as these pilots are wrapping up. One of the pilots involved completing a payment, proving student status, and receiving a ticket within a single flow, demonstrating simplified travel interactions.

Phase 3 testing of the EU Digital Identity (EUDI) Wallet for the travel industry has begun, with Amadeus and Lufthansa testing an integration for end-to-end seamless travel. The EUDI Wallet is integrated with Amadeus software to support the online check-in process, bag drop, pre-security check, and flight boarding.

Steenbergen referred to this project during the webinar as an example of how identity providers and the travel industry are working together to operationalize the new way of sharing ID data. The EWC is currently inviting people to help test an online airline check-in process using the digital identity of a fictional persona named “Hanna.”

Steenbergen also discussed work with an ISO PhotoID format, which is used in this test. She hopes it will graduate to an official specification soon, allowing selective disclosure with ICAO DTCs, which do not natively support them.

The future of travel may also include digital IDs for things, such as hotels, possibly based on GLEIF. When these assets change hands, the asset management transfer is currently time-consuming and laborious, according to Price.

For digital identity to work for travel, it needs to “scale down.” Small businesses will not be able to participate if complicated back-end systems and major upfront investments are necessary. Price, Steenbergen, and Lambert discussed the importance of making it easy for organizations to verify digital IDs to build up the ecosystem.

A shift in public mindset must also accompany the adoption of decentralized digital identity to replace the centralized systems that collect personal data indiscriminately. People are already concerned about sharing their personal information with the travel industry. Jumio’s 2025 Online Identity Study shows that 44 percent of respondents do not trust the travel industry to protect them against AI-powered fraud like identity theft or account takeovers.

Half of those surveyed do not feel their data is adequately protected by “sharing economy” businesses, and the percentages are even worse among Americans, with 60 percent and 55 percent, respectively, reporting a lack of trust. A report from Wired and 404 Media revealed that data broker Airlines Reporting Corporation (ARC) sold access to traveler records to the U.S. Customs and Border Protection (CBP) agency and blocked it from sharing the data sources.

ARC is owned by at least eight American air carriers, and representatives of major airlines, including Delta, Southwest, United, American Airlines, Alaska Airlines, JetBlue, and European airlines Lufthansa, Air France, and Air Canada, sit on its board of directors.

Correspondingly, the number of travelers who would pay for more secure identity verification continues to increase, from 71 percent last year to 74 percent this year. 

Frequently Asked Questions (FAQS): 

Q: What is a decentralized digital identity?

A: A decentralized digital identity is a system where identity information is stored and managed in a distributed manner, rather than being centralized. This enhances security and privacy by reducing the risk of data breaches and unauthorized access.

Q: How do digital IDs improve traveler experiences?

A: Digital IDs can streamline processes such as check-in, bag drop, and security checks at airports. They also allow travelers to share their preferences with hotels and other service providers, leading to a more personalized and convenient travel experience.

Q: What is the EU Digital Identity Wallet?

A: The EU Digital Identity Wallet is a digital identity solution being developed by the European Union. It aims to provide a secure and convenient way for citizens to manage and share their personal data, including for travel purposes.

Q: What are the privacy concerns with traditional travel data sharing?

A: Traditional travel data sharing involves the collection and storage of personal information, often in centralized databases. This can lead to privacy concerns, as data breaches and unauthorized access are potential risks.

Q: How can small businesses participate in the digital identity ecosystem?

A: For digital identity to be effective, it needs to be accessible to small businesses. This requires simplified and cost-effective solutions that do not require significant upfront investments or complex back-end systems. 

More Related Topics :