“Chain keep us together.”
–Fleetwood Mac, 1977
We recently discussed how Fintech companies are using blockchain technology to remove financial institutions from the equation by simplifying money exchanges to a peer to peer level.
Similarly, a new potential disruptor to the hotel industry recently launched that removes commissions received by middlemen and other excess charges from the hotel booking process.
LockChain utilizes blockchain technology to streamline hotel booking in an effort to eliminate commissions to booking sites like Airbnb and Trivago. Hotel prices have continued to rise each year since 2014, and they are projected to increase another 3.7% in 2018. However, corporate travel programs that jump on board with this nascent technology could earn huge savings.
When business travelers arrange hotels through aggregator sites likes Booking.com, they are paying a significant portion of the listed price on commissions, often between 10%-25%, as well as credit card processing and other overheads not related to their stay.
LockChain has created its own marketplace with more than 7,000 hotel accommodations and private properties to choose from. Blockchain technology allows business travelers on LockChain’s hotel marketplace to rent with 0% fees by cutting out commissions and payment processing completely. LockChain’s marketplace operates on a freemium model, so there’s no signup or membership fees to get started.
For travel managers who are undaunted by the challenge of dealing with this new digital technology, LockChain could reduce your corporate travel hotel spend by up to 20%.
Blockchain Protects Users from Fraud
In addition to lowering costs, booking through LockChain’s marketplace is also more secure, as the blockchain technology is decentralized and transparent. Instead of credit cards, business travelers pay for hotels in LockChain tokens (LOC). All transactions are tracked via the LOC Ledger, a database that keeps track of all payment details. Typical hotel transactions outside of the LOC marketplace involve sharing credit card information through a vulnerable channel. There have been numerous examples of hacked credit card information from poor hotel data security. However, the LOC Ledger is decentralized, storing protected copies of the transaction in many places to prevent fraud. Transactions are time-stamped, secured through cryptography and added to the chain in a visible and reflexive way so that any tampering would be detected. This chain protects you against pesky credit card scams and sketchy hidden fees.
Nevermind Currency Exchange Rates for International Bookings
LockChain innovated a clever currency exchange feature that mirrors transactions made in foreign currency so that international business travelers mitigate varying currency exchange rates. A US traveler booking in Europe won’t have to worry about variable exchange rates from day to day.
Low Risk, Big Gains for Your Company
Although the LOC marketplace runs on LOC utility tokens, travelers can instantaneously buy in to the marketplace by exchanging fiat currency, Paypal, other cryptocurrencies or even via credit card. Once you’ve converted to tokens, their inherent value will increase as the use of this growing technology does.
Maintaining a cache of extra tokens can also benefit your corporate travel program, as the value of tokens is tied to the value of LockChain itself. So if you’re not yet comfortable with gambling on cryptocurrencies, you can get in and get out. Or, if you’re feeling lucky, you can earn value over time by betting on the prosperity of this rising technology.
At 0% fees, no payment processing and over 7,000 properties to choose from, LockChain is too tempting to pass up for a growing corporate travel program. You won’t have to worry about lost or hacked credit card info, or sneaky hidden fees. The blockchain keeps your booking secure while you decide how to spend that booking commission fee that’s now in your pocket.
David is a digital media attorney and the Editor in Chief at 30SecondsToFly. As an American expat living in Luxembourg, David feels closest to his higher self whilst traveling and expressing his gratitude for new eye-opening experiences through storytelling and filmmaking on his blog www.FarOutExpat.com