Excerpt from Strategic Coin
In 2016, the global hotel industry generated a staggering $550 billion dollars in revenue. Of this, $199.3 billion came from the US alone, with 88% of American customers preferring to make their reservation online, and 72% preferring to use an online travel agency instead of directly booking with their hotel of choice.
Old-timers will remember that travel was one of the first industries disrupted by the Internet. Travelocity and Priceline.com were followed by Kayak and other sites that disintermediated airlines, hotels and especially traditional travel agencies. This article focuses on the hospitality but blockchain upstarts are again trying to shake things up.
The hotel industry continues to perform well, despite of threats from online travel agencies and new and innovative alternatives such as AirBnB. Hotel executives are scrambling to keep pace with these two relative newcomers to the space, saying they’re creating a supply problem, and driving up booking prices to make up for third-party booking fees. While AirBnB and online travel agencies are posing significant challenges for the industry, there may be a newcomer in the rat race that few businesses are prepared to deal with: blockchain technology.
The goals of blockchain technology in the hospitality/hotel industry is eliminating third-party costs, and encouraging direct provider to consumer interaction. Blockchain companies like Abab, Lockchain, Trippki, Fujinto, Emphy, and Pally are creating platforms that aim to cheaply and transparently connect customers to room and rental providers that can best meet their needs, whether that be through providing an affordable hotel booking, or a unique room in a house, or a new way of using loyalty points.