Why Blockchain Is Not Going To Wipe Out OTAs
Vinod Kelwani, chief executive of Technoheaven, says online travel retailers have nothing to fear from decentralised marketplaces and, in fact, have the scale and technological knowhow to profit from them
When you evaluate the basis for a decentralised hospitality market, as a travel agent or OTA, when the subject is raised you’d be forgiven for telling most people to go and wash their mouth out.
Anything that could potentially cut you out of the supply chain is an absolute non-starter and should be stamped out immediately. On the flip side, for a hotelier and their paying guests it all makes perfect sense. But the reality is far less black and white.
Blockchain technology forms the foundation for a decentralised platform that connects consumers to hotels without requiring large commission fees. Tech companies that provide blockchain solutions can save consumers as much as 50% on traditional booking fees.
This is no small beer and hotels are seeing the benefits of blockchain platforms on a global scale. Tui has been using the system to swap beds across its properties, moving 100 million beds nights to its private blockchain to wherever there is higher demand.
We are seeing more hotels using our own system with reservation systems, payment processing, and data sharing for direct transactions with customers. The software enables real-time transactions with no middleman fees.
Blockchain technology has been making steady progress in the last few years. Hotels can publish and modify listings for their rooms, lock down deposits for future disputes and refunds and take direct payments.
Customers can find and book rooms and if there are any disputes an independent arbiter can step in to resolve the issue.
But this does not mean that OTAs will struggle to find their role in a decentralised market or are going to be squeezed out with smaller margins and less bookings. Far from it.
