Travel Industry Empowered with Blockchain Technology





What are Travel Monopolies?
Travel booking platforms like Expedia or Yatra are some of the most visited sites for making hotel and travel reservations online. Although they may seem decentralized, the monopoly that they hold in the travel industry is quite significant. The previous method of travel or transport in the past would be to go to a travel agency office and do the bookings there. With this system, the middlemen would make huge commissions and large scale businesses could form alliances to promote themselves over other companies. Over the years travel agencies went online leading to Expedia and Booking.com among many more. They essentially do the same thing just on a different platform. However, the new option or P2P accommodation booking like Airbnb, made a dent in the industry and making renting and staying inexpensive and convenient for everyone.

Although the rise of Airbnb has changed the way people do online bookings, it is a centralized system in itself. Only, in this case, Airbnb is the middleman. Hosts on the site are charged booking fees and usually claim 15 to 45 percent of these fees. This leads to hosts increasing their prices in order to make a profit. In fact, both the host and the guest bear the brunt of the fees charged by Airbnb. Guests are charged around 12 percent for service fees and 3 percent in service fees from the host which are considered as middlemen fees, essential for the company to operate.

Blockchain for Decentralization
The most convenient use of Blockchain in the accommodation and travel industry would be to remove the need for a middleman in the first place. They are able to manage and work better than any company employee and are more efficient and secure. With smart contracts, all handling of transactions, terms and conditions can be regulated and safeguarded. Along with digital ledgers any deal can be tracked and verified, identities established and the transparency can allow processes like booking flight tickets to be much cheaper.

A good P2P platform can connect the host or vendor with a guest or buyer without intermediaries. Some sites like Concierge.io can connect its vendors and buyers and does not ask for the commission in the process. This means that prices are lower for the renter and the hosts even have the option of paying via cryptocurrencies, tokens from the site, CGE, or normal payments.

How does P2P work?

The peer to peer networking can be established by bringing two parties into contact and giving them a platform to communicate and create their own deals. Most P2P businesses can be successful, efficient, and cost-effective by incorporating blockchain and removing the necessity of a middleman. Some platforms use NEO contracts that protect the interests of both parties so that each gets a good deal in the process. They can also retain money in them so that no party can get away without fulfilling the terms of the agreement.

Competent Alternatives for Blockchain Technology

NEO uses Blockchain and provides it as a service to users, like that of Ethereum. This allows users to build and trade on the NEO Blockchain. They also use an algorithm called Delegated Byzantine Fault Tolerance (DBFT) which is meant for consensus and establishing secure transactions, capable of up to 1000 transactions per second. It can support multiple programming languages and also deals with digital contracting. It is a popular option and competitor to Ethereum.


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