How DLT is transforming the travel and hospitality industry
Booking a tour, a flight or a hotel online has never been easier, the development of mobile applications has allowed travelers around the world to comfortably connect with local providers of travel experiences.
Companies like Booking.com, Tripadvisor and Expedia are still at the top of the industry with a big market share and significant distribution channels, however, it is no secret that local providers of travel experiences are still facing challenges reaching out to clients globally. According to the World Bank; there are approximately 1.7 billion people who do not have a bank account. This is a big problem if you consider that the great majority of those people are living in emerging countries.
Another problem is related to the transaction costs. There are many fees behind every online booking and a reduction of only 1% or 2% in the costs per transaction, can make a huge difference in this multi-million industry.
In the research “TRAVEL Payments Study”, made by PYMNTS.com and AMADEUS, they found that companies in the travel industry pay $74.5 billion for online payment services, with an average payment processing fee of 5.4%. This is, of course, not considering the 10–30% of the commission that OTAs and travel retailers apply per each transaction.
High costs, delays on payments and chargebacks caused by credit card fraud ($21 billion according to eNett), has made it clear that when it comes down to the processing of online bookings, there is still a lot of space for improvement.
We at Experio, believe that these processes can be done in a more efficient way. The combination of our marketplace, and our payment processor, powered by the Stellar Network, allow us to create an ecosystem where companies in the travel industry can sell their products to travelers worldwide, reduce costs and access to a new market of people who desire to pay with cryptocurrencies.
Our strength lays in our payment API which uses distributed ledger technology as a medium of exchange for cross-border payments. Transactions are automated by smart contracts which distribute the respective assets according to the outcome of the booking. Our goal is to enable an open source protocol where cheap and direct interactions between travelers and companies in the travel industry are possible.
Join our Telegram Group today and keep updated about the release of our private beta and our wallet, where you will be able to create activities and perform test transactions on the Stellar Test Network. Testers will also benefit from our “Early Adopter Reward Program”, join us! we will be happy to get to know you. → https://t.co/5QayCYT42X
Olvis Gil Rios
co-founder and CEO at Experio
“Peer-to-peer payment platform for the travel industry. Join our incentive-based decentralized ecosystem built on the Stellar Network.”
Follow Experio on social media.