It's expensive to book a room in a hotel, especially after the commission fee is added to the bill. There are a few booking services that are offering rewards to combat this and give travelers a reason to use their services again, leading to a "comparison engine" trend that many of these platforms are beginning to implement.
Booking hotels can be an expensive business for consumers once commission fees are added in. And few booking services offer rewards or reasons for travelers to return to the platform, which leads to a “comparison engine” lifestyle.
A hotel booking platform that uses blockchain technology, GOeureka has released the alpha version of its platform, which allows its users to book hotel rooms with zero commission and receive loyalty rewards and benefits, all with no hidden fees.
GOeureka is ahead of many similar blockchain projects, with trial bookings on the blockchain through smart contracts on Ethereum and a significant infrastructure of available hotels. Its board includes C-level executives from Accor Hotels and Agoda, among others.
“ERC-20 smart contracts will be utilized for the security and immutability of data throughout the platform,” GOeureka founder and CEO Manraj Rai told me. “To increase performance and keep transaction fees to a minimum, individual transactions and bookings will be kept outside of the blockchain. The settlement of all transactions will occur off-chain, and fulfilled transactions will be aggregated each day and sent through the smart contract to be validated and stored on the blockchain.”
The problem GOeureka is solving is well known. The existing hotel booking infrastructure is controlled by a handful of booking sites that charge between 10 and 30 percent commission on top of the room rate. Those fees are also not transparent, so consumers don’t get to see how they are calculated. That means the retail price of a single room varies widely depending on transactions between the hotel, the bed bank wholesaler, and the online booking site.
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