In the second quarter of 2019, the total number of bookings was 92 with a combined volume of 35,046€. This puts the average booking value at 381€. Cancelled bookings are not included in those numbers.
One of the major reasons for the slowdown was the introduction of a minimum cancellation amounting to 20% of the booking. This measure effectively made fully refundable bookings partially refundable, where the customer receives 80% of the booking value back in case of a cancellation. The intention of this feature was to protect the platform from heavy abuse.
An unexpected consequence was that business travelers throttled their booking activity due to them having high probabilities of cancellation.
We since replaced the 20% fee with a penalty model that only kicks in if abuse has been detected. This change on its own was enough to double the booking rate in the final month of the quarter (June), compared to the first two months (April and May).
Our flights section is still in its alpha stage and average savings are much lower compared to the hotels section. Nevertheless we received 11 bookings with a total value of 2,430€.
If you follow LockTrip closely, you might know that we have not yet deployed the booking smart contract for flights. The consequence of this is that currently there is no lock-up mechanism for flight bookings, which makes up the core of the LOC economy.
As we mentioned in our previous announcement, we will soon be discussing a major upgrade to the LOC economy with LOC holders.
To bridge the gap until then, we have decided to implement a token burn for flight bookings at 2.5% of the booking value.
This will ensure that each flight booking has a strong long term impact on the LOC economy until the community discussion leads to a permanent solution.
The booking volume of 2,430€ translates into 142 LOC being burnt forever. The burning transaction can be found below and can be publicly verified through the blockchain.
Proof that the tokens were previously bought on HitBTC:
Thank you for your patience. We are looking forward to discuss the upgraded LOC economy with you soon!
LockTrip is the first marketplace with 0% commission where you can save on average 20% on your hotel and rental bookings compared to anywhere else. Read how to buy LOC tokens here!