Market Overview lockchain
Evolution in Travel Industry
Ever since, the online hotel reservation system started after the boundless internet connectivity throughout the globe. Tech companies came up with the idea that they should create easy to use hotel booking websites on which they’ll list hotels and properties all over the world, as travel industry is one of the biggest industries in the world and rapidly increasing day by day. These sites charge commissions from 15% to 25%. The end user has to pay at least 20% more than the actual cost of hotel expenses, all because of a middleman or a centralized booking website. Some of the topnotch booking sites even prohibits the hotel owners not to list their property on their own sites on rates lesser then they published on the booking site (which includes commissions and is 15–25% higher than the original rate) so the clientele of these booking sites actually believe that they are getting an accommodation on the lowest possible price.
Efficient Blockcahin
Lockchain embraced the blockchain technology which is unparalleled in efficiency, inexpensive as compared to others, undoubtedly valid information and very fast response time. Blockchain is composed of a p2p network in which data can never be compromised as it is not stored in a single server but same data is stored in millions of computers around the world and secured with unmatched security. The inter-country European Consumer Centers concluded in a 2015 study that the leading names in the online travel and booking sites that fall in hotel industry (estimated worth $500 billion) are “unreliable”, it stated that these sites charge their customers much more than they actually ask (hidden charges, commissions). One the contrary blockchain framework is much more transparent the customer will be asked to pay what he actually has to pay, without any commissions and without tricking them into booking at a certain price and then charging them hidden charges.
Travel Agencies for Online Booking
All the sites engaged in the services of providing their customers with the facility to search and book airline tickets, vehicle rental and hotels. These companies only act as a middleman in the transaction and charge commission for the intermediary services.
There are three kinds of revenue streams, Firstly, agency revenues; where an OTA introduces a traveler to a travel service provider and charge a considerable commission in return, this is precisely what we at Lockchain are determined to put an end to, in this way the end customer will enjoy a benefit because he will pay zero commission. Secondly, if a site owner bears transaction cost, credit card processing fees that adds up in the transaction making it more expensive for the end user but by using LOC token will remove these costs too. Third source of revenue is the advertising although, it is the smallest source but we will focus on it more and will convert it into freemium instead of premium, listing hotels and properties will be free for all.
How to Overcome Pricing?
Market-dominating booking giants prevents the hotel owners and OTA from giving lower rates than they are offering it automatically makes their rates “cheapest” but in reality they aren’t. This is contrary to the globally harmonized anti-monopoly legislation.
“Stop clicking around” was a program initiated to fight back the monopoly of the booking giants by the Hilton similar programs are launched by Marriott and other hotels. Several Government forums are now speaking up against anti-competitive pricing.
Lockchain will present options/opportunities to hotel & property owners to create a win-win situation for them, for us and ultimately the end customer.
Decentralized LOC Ledger
World is not embracing crypto-currencies on larger extent, or world is still not willing to get it so we can say crypto-currencies are present in its basic or childhood level and at this time blockchain is trying to provide a better transactional facilities to world and making such apps and trying to develop such system which is far much beyond the financial sector which world is using in present time. Lockchain accepted that technology to open a new era and introduce a new structure which will be easy to use for ordinary people in travel and tourism sector. By using already present concepts and technologies- and accommodations in hotel, online booking procedures and online purchasing, and by developing substitute marketplace which use decentralized LOC ledger, Lockchain is trying to compete in market and not only to compete but also to dominate the market of payment processors, online booking, travelling, tourism department and meta search instigators. Lockchain also gives forum that charge zero commission for accommodation and in property rental department. A rough estimate quoted that this online hotel booking and travel business is around 500 billion dollars in field of crypto currencies or we can say crypto currencies have developed business of 500 billion dollars in field of online bookings as William Mougayar told that in “Vanity metrics” and its increasing with every ICO launch which is really important in crypto-currency industry.
Launching of Crypto-Currency
In the world of blockchain, even big parties confused to launch their currency because of the low success rate of crypto-currencies. According to data nine out of ten currencies remain unsuccessful even after their launch. According to experts success rate is low even after a normal start is because of the disbalance between the technical aspects and actual business project because of the users that are not capable to validate in expected time after the successful sale of tokens. Wait time for the development of the technology is approximately 2 years which is a long time and to think on how different businesses can embrace or accept that technology which is a difficult step.
Lockchain Travel Industry
That’s is why Lockchain is trying to develop a substitute to existing system a decentralized engine with user-friendly or easy to use and fully integrated system to speed up proof of concept. For now Lockchain has signed an agreement with travel industry host, which supply approx 7000 properties all over the world. Lockchain is making a plan to integrate these properties in their system and expulsion or elimination of the middleman and their credit processing partners fully, with the help of affordable and advanced blockchain technologies and by transferring that technology into an immediate approachable marketplace that compete directly with the already developed market leaders.
To achieve this there’s need to develop a relation between already present technologies in sense to upgrade an existing business model whose demand is much higher than ever before. It just does not mean to expel all existing way of transactions but to create a new system which is user friendly and help customers and owners of hotels, motels, and properties at zero or no cost.
Regulation of Payment
That is why they are trying to develop a Decentralized LOC ledger which will regulate payments between clients and owners of properties and hotels. And system will run through the help of smart contracts installed in Ethereum Virtual machine. It will store all the records of transactions in it which will help clients and owners whenever they needed and by using such system they will definitely succeed to develop trust of clients and owners to use that system with full confidence.
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