Why Online Travel Agencies Charge High Fees and How to Stop It

What’s wrong with the travel industry? Take a look at the source of the “ailment”.

Online travel agencies (OTA) are charging high fees or commissions because they dominate the booking industry. Holiday makers rely on them for travel arrangements and hotels count on them for most of their revenues. They set up their commissions based on page views, meaning, as page view rates increase, so does their commission. For example, an online booking company’s commission was just 15% in December 2017, but when its page view rate had risen to 19% a few months later, the commission also increased to 17.4%. However, a new blockchain-based booking platform is designed to change this situation and reduce travel booking costs to affordable levels: TravelBlock.

A Proposed Cure – immutable, secure, and irreversible

TravelBlock is a blockchain-based travel booking system that is designed to directly connect travelers to providers. Through its direct peer-to-peer (P2P) system, TravelBlock can reduce travel costs by as much as 60%. Imagine a $1,600 (USD) offer by a major OTA website for a five-night stay at a luxury Las Vegas hotel, inclusive of two round-trip tickets, taxes, and fees, reduced by 60% to just 640 dollars? Great savings!

Furthermore, blockchain’s immutable, secure, and irreversible transaction processing significantly increases the reliability, transparency, and security of the booking process. This effectively resolves the security issues like compromised personal data and hacking threats faced by OTAs and global distribution systems (GDS).

High fees charged by OTAs will make their prices no longer competitive

TravelBlock’s success in effectively reducing the high fees of travel will hinge on its mass adoption and commercialization. Existing consumer-focused brands should take the initiative to engage developers and experts, and incorporate blockchain technology into their own businesses while promoting it for mass adoption to end users.

How can this be done? By partnering with TravelBlock, hotels, airlines, cruises and transportation companies can facilitate the mass adoption of blockchain into the mainstream travel booking ecosystem. When this is achieved, the high fees charged by OTAs will make their prices no longer competitive, forcing them to rethink their marketing strategy.

Also, TravelBlock’s system eliminates all the hidden fees and external taxes from its final pricing as all components will be accessible through the blockchain. This will result in 30% to 60% reduction in final costs to the travelers and complete transparency of transactions. TravelBlock’s platform also eliminates travel agent and online service commissions to guarantee that its price offerings are the lowest marketwide.

Become a Partner of TravelBlock’s amazing system

With the growing adoption of blockchain technology in various industries, TravelBlock’s system is expected to continue this path. In fact, the company’s partner hotels has grown to more than 350,000, a sign of its effectiveness. Other travel brands and travelers alike can take advantage of TravelBlock’s amazing system by becoming a partner, as well as by purchasing its TRVL tokens and becoming a member of its private consumer group. To facilitate the processing of transactions by members unfamiliar with crypto, TravelBlock has partnered withProcessing.com to provide seamless conversion between fiat currencies and TRVL tokens directly on their platform.

You were listening to a TravelBlock production.Travelblock ensures that you will always get what you want, where you want, when you want it. Book your Vacation Now! Visit TravelBlock.io.