Tourism is one of the world’s largest industries and one of the fastest-growing. With the support of Internet, many online tourism platforms have been born. After years of competition, the current online tourism platforms have actually formed an oligopoly pattern.
At present, the global online tourism platform is mainly monopolized by four major groups. They are Priceline, Expedia, Ctrip and TripAdvisor. In the market environment with basically fixed competitive pattern, OTA platform has mastered the pricing power of channel. Hotels become the offline “service party” of OTA and fail to share in the dividends brought by OTA’s booming development.
Currently, the commission of OTA platform is generally 15%-20%, and the transaction procedure fee is as high as 6%. These high costs ultimately hurt the tourism industry and the tourists.
In the traditional tourism, there are a series of industrial problems, such as multiple tedious authentication of tourist identity, disclosure of sensitive information, high price of tourism services and difficulty in complaints, which have seriously affected the healthy and sustainable development of the whole industry.
According to a survey, more than 70% of tourists prefer to book online on OTA platforms, but the complaint rate of OTA platforms remains high all year round. In other words, the demand for tourism is rising while tourist satisfaction is falling.
Blockchain technology is likely to be one solution.
The development of blockchain, which is essentially a decentralized database, is listed by Sabre as one of nine technology trends that will affect the future of tourism. The most important feature of blockchain is its openness, transparency and untamability.
At present, there are many prototypes or application scenarios in the application of blockchain in the tourism industry, such as hotel inventory management, providing digital identification with biometric technology, and simplifying the management of airline mileage points, etc. Numerous travel companies are also introducing blockchain technology, including Airbnb, which has hired blockchain experts to enhance its ability to manage supply and demand.
Seeing the huge potential of blockchain technology in the tourism industry, OTT(Online Travel Token) is committed to using the blockchain technology to design and develop a new generation of tools for the tourism industry, while innovating the tourism industry. Through blockchain, OTT(Online Travel Token) will reshape the global tourism market in the following three aspects:
Reconstruct incentive mechanism. The value that the sharing economy currently brings to community participants does not increase as the market grows. The introduction of blockchain into the tourism industry will restructure the incentive mechanism, adjust and optimize the value allocation of the market through the blockchain, and continuously motivate the participants in the sharing economy community.
Reconstruct the credit mechanism. By using Taifang’s public distributed ledger, a credit system is built to provide a user experience based on trust and security for ecological participants.
Reduce economic costs. Based on the intelligent contract, service providers such as OTT hotel reservation, travel reservation and scenic spot reservation do not have to pay any commission, which greatly reduces the operation cost. Users will get better services at lower prices.
OTT has taken the first step of blockchain + tourism. It is believed that the accelerated integration of blockchain technology and tourism will bring a new vision for the holiday economy and new development opportunities for the tourism industry. OTT’s exploration and attempts in the tourism industry will bring rich experience to blockchain applications in other industries.