How Bailsman can be used in the accommodation industry
Accommodation industry is another vast sector where security deposits are commonly used and needed. The global hotel and motel industry’s total revenue was valued at $722.9bn in 2016. Usually, when a person checks in the hotel or motel, he/she inadvertently faces the problem of the security deposit. However, unlike the real estate market, security deposits in this market are held from customers’ accounts.
In most cases, the security deposit required by the hotel or motel is held from the credit cards of the client for the period of stay. Understandably, such practice can cause great problems for those who are close to their credit limit, those who are frequently traveling or those who don’t own a credit card at all. In the first and second case, the customer can easily exceed the credit limit and consequently be charged a higher interest rate, while not having enough available funds to use. In the third case, the booking can be declined entirely by the accommodation provider. Many businesses will not accept cash deposits and debit cards, and many people are not able to get a credit card.
So what can be done to prevent all these problems? Bailsman aims to bring a solution for both accommodation providers and their customers. Replacing a security deposit with a guarantee, customers no longer need to lock up their finances on a credit card, and therefore, their credit limit will not be affected in any way. At the same time, accommodation providers are assured that they will always receive their claims. Customers with no credit can use the accommodation and don’t need to apply for a credit card.
As Bailsman`s guarantee requires only a small fee from the customer, it is a more convenient solution. Potential partnerships for Bailsman can be anything from a small B&B to a large international hotel chain. Bailsman enables accommodation providers a set security deposit sum at the level needed to cover their risks, as clients will be able to afford Bailsman’s low fees. At the same time, Bailsman’s solution leaves clients’ credit card funds available for other services available at the accommodation provider or elsewhere. So as can be seen, the accommodation industry would benefit greatly from the solution presented by Bailsman.