In all booking platforms, we believe that centralization has led to an imbalance where online platforms are gaining more power over the actual service providers who bear the operational costs and investments. Digital network effects are preventing existing players from operating in a free market.
As a result, service providers are experiencing high commission fees ranging from 15% to 35%. Those fees are paid to the centralized “winner takes all” booking platforms.
Other issues with centralized booking platforms include, but are not limited to:
- Loyalty points are platform or service specific,
- End-user confidential information is at risk of large-scale hacks,
- Complementary services offered are limited.
With blockchain networks emerging as a new global infrastructure, we have the opportunity to create vastly different power structures. A public inventory and an open protocol lower operational costs while allowing fair competition between a higher number of market participants.