Roberto Lista, the Founder and CEO of blockchain-powered travel platform, Tryvium, has shared how his startup is taking a more modern approach to disrupt the sector.
The travel booking sector is expected to reach $1,955 billion by 2026. Online hotel room bookings are dominated by companies such as booking.com and Expedia. The giants of the digital booking sector have bought out smaller competitors and can charge hotels as much as 30% commission.
Having few companies dominate the market is not a healthy scenario for consumers or hotel owners in terms of cost or choice.
Lista is looking to disrupt the industry and he’s relying on blockchain technology to provide the technological edge in doing so.
The Italian entrepreneur maintains that blockchain is simply cheaper. He believes that the giants in the sector are benefiting from the monopolistic position that they hold, allowing them to hike service charges.
Should they face a competitive challenge, they could be in a position to drop such charges to 10-12%. Tryvium plan on a fee structure that weighs in at 8% – having accounted for their own margin within that figure.
With blockchain in vogue in recent times, it’s often been found to be applied for use cases which are served perfectly well by conventional systems. However, in this instance, Lista maintains that it’s key to the company’s offering:
“First of all, it’s immutable – the message remains there and everybody can see it. There’s no corruption and no third parties that can manipulate it.”
The use of its own token on the system allows consumers to take advantage of greater savings as it cuts out credit card fees. Otherwise, implementing the technology will result in cost and overhead savings for the platform itself by comparison with the current incumbent booking sites.
“They have a really old structure with offices and call centers worldwide," he explains. “They’re using obsolete and old technologies and it could cost lots of money for them to improve that technology or opt for an alternative technology”.
The difficulty for the established market leaders is akin to that experienced by established banks in fending off the threat posed by fintech upstarts – it’s much more difficult to implement new technology with existing systems in place.
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