The International Air Transport Association (IATA) — the trade association for world airlines, representing over 330 airlines and over 80% of global air traffic — announced a new framework and plans for using decentralized digital identity (DDID) to provide end-to-end travel experiences for domestic and international passengers. The experience includes check-in, immigration/border controls, and boarding.
Despite recent negative developments around DDID adoption (such as the Sovrin Foundation likely shutting down MainNet operations), IATA’s announcement has the potential to find market traction. Here is why:
Proven past track record. Digital COVID-19 immunization certificates (Travel Pass) for travel use cases were utilized by IATA and ICAO (International Civil Aviation Organization) and were based on W3C (World Wide Web Consortium) DDID standards. A study found personalization of the digital experience to be an important factor in overcoming adoption barriers, so there has already been partial adoption and implementation of DDIDs, albeit on a much smaller scale. This proves to airlines that IATA has the technology to implement DDID-based digital identities.
Business need. There is a business need (with forecasts calling for a doubling of global passenger volume by 2040 from current levels) to offer a better customer experience to travelers, one that is cost-efficient and doesn’t increase airlines’ and airports’ operational costs. Automation, technology, and digitized solutions play a key role in improving the entire passenger journey from online check-in to boarding.
IATA and ICAO’s current power and influence. IATA has significant influence in the global airline travel industry. All airlines need to comply with and follow current and upcoming IATA regulations. This means if IATA makes this digital ID a reality, it will gradually apply to all travelers. IATA is in a great position to operate the blockchain network behind its recently proposed DDID framework.
Governments’ increasing issuance of digital identities. IATA’s proposal builds on governments’ digitally issued identities natively. Given the Global Acceptance Network’s rollout for further standardization of trust for DDID, as well as the European Union’s eIDAS adoption, IATA’s chances of amalgamating trust are high.
Currently, there are no DDID-based IATA passenger ID ecosystems in live production. Forrester expects actual implementations within 18–24 months. Forrester customers who have questions or concerns about DDID should schedule an inquiry or guidance session with me.
