GOeureka (Next-Gen Solution Shaping the Future of Online Hotel Booking)

iamadebolaji (9)in #goeureka • 6 years ago

GOeureka is a travel tech company utilising blockchain technology to build a hotel booking platform. Our mission is to decentralise the hotel booking sector and deliver greater transparency by allowing hotels to directly connect with their customers. As a technology partner to hotels, GO aims to provide a dynamic digital experience to users and eradicate the high commission structures imposed by online travel agents. By reducing the financial commitments of hotels to third-party booking platforms, GO’s vision is to enable hotels to focus more resources on providing better intrinsic value and services to travellers around the globe.

The GOeureka (GO) platform leverages blockchain technology to position itself as an unbiased and transparent technology partner to hotels, transforming traditional loyalty systems and delivering increasing value to all hotels and their customers. GO aims to create a new symbiosis where hotels maintain control over their brand while unlocking unprecedented value for consumers on its platform.

HOW RELIANT ARE HOTELS ON OTAs?

The online travel agent business was a model initially adopted by hotels as a means to clear unsold inventory. However, the entry and rapid expansion of OTAs are reshaping the travel industry. Hotels now rely heavily on OTAs for online sales, and not just as a channel for clearing unsold inventory.

The Expedia and Priceline duopoly continues to control the online booking sector, allowing them to out-market hotels by offering consumers more attractive offers and packages. OTAs are also able to showcase a huge range of choices to consumers in a user-friendly manner, something an individual hotel is unable to do. Hotels struggle to offer breadth of choice and do not have the same amount of resources to compete on a level playing field with the OTA. They are beholden to working with third-party booking engines often under unfavorable terms. Increasing dependency, coupled with reducing alternatives, limit hotels’ negotiation capabilities for commissions payable. With commissions ranging from 15% to as high as 30% depending on the OTA and size of the hotel/chain, partnerships with OTAs are necessary, however at the expense of a hotel’s margin.

EFFECTS OF OTAS’ INFLUENCE ON HOTELS

The increasing influence of OTAs over hotels has had severe effects on hotel margins, especially for smaller hotel brands. While larger hotel chains are able to negotiate lower commissions given their global exposure and market strength (~15%–25%), independent brands face OTA commissions as high as 30% of the room fee.

Small hotels either have to increase their price per room or be forced to reduce their profit margins to survive in an OTA-controlled environment. In many cases, hotels are also limited by OTAs’ insistence on best price guarantee and rate parity. Partner hotels have signed agreements with OTAs which ensure that rates offered on these sites match those listed on the hotel-owned website.

REVENUE MODEL

GO will charge a 5% transaction fee for all payments made via credit cards and cryptocurrencies accepted as a mode of payment (e.g., Ether, Bitcoin). Payments made using GO Tokens will NOT be charged any fees on our platform. This is to protect the interest of all our token holders moving forward.

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