A Practical Application of Blockchain for the Travel Industry: Winding Tree Whitepaper
Source: Windingtree.com; Oct 11 2017, The travel industry is dominated by a handful of companies which, through market power and industry politics, have created a highly-concentrated market. They are able to charge superior margins, cause double marginalization, and, in some cases, simply collect rent. Rent-collection and superior margins inflate the cost of supply, with consumers ultimately bearing the artificially increased costs.
The consolidated nature of the travel distribution platforms creates a situation where the intermediaries have no incentive to use new technologies. Instead, they spend resources on locking their customers into using systems that were in some cases created decades ago.
Current archaic technological solutions hinder innovation and create extremely high barriers to entry for new platforms. Blockchain technology allows for a ground layer to be built for a truly free and competitive market in travel distribution.
Lufthansa invests in blockchain via partnership with Winding Tree
Oct 10 2017, Lufthansa has announced a partnership with Winding Tree, a specialist in blockchain-based B2B travel bookings, which will help the airline group introduce blockchain applications to its own digital products.
Lufthansa established its relationship with Winding Tree through the Lufthansa Innovation hub, which aims to identify and capitalize on the new technologies which will drive travel in future.
Winding Tree hopes to disrupt travel distribution by using blockchain to break down barriers of current GDS and OTA business models, while streamlining the exchange of data and currencies.
Airbnb reportedly eyeing long-term home rentals
March 8 2017,The home rental company may be stepping into Craigslist territory by offering people more permanent places to stay.
Airbnb is mostly for people who want to get away for a short trip, while Craigslist is used for people who’d like to stay a little longer. But this may change. Airbnb is reportedly exploring the possibility of adding long-term rentals to its offerings, according to Bloomberg. This means people could use Airbnb to search for months-long stays or even a permanent home.
In just under a decade, Airbnb has gone from a small startup catering to traveling couch surfers to a billion-dollar business with a massive online presence. It lists roughly 3 million homes for rent in more than 65,000 cities in 191 countries.
Morgan Stanley: Airbnb’s Threat to Hotels Is Only Getting Sharper
Nov 14, 2016, Bloomberg, The survey, in which more than 4,000 consumers from the U.S., U.K., France and Germany participated, was meant to gauge not only the growth of Airbnb but also the biggest sources of demand for the service. There is a variety of opinions on whether Airbnb is more of a threat to hotels or to online travel companies like The Priceline Group Inc., and Morgan Stanley is now of the mind that hotels are going to take the bigger hit.
New Data Suggests Airbnb’s Impact on Hotels Is Less Than Perceived
Oct 12 2016, STR used data provided by Airbnb for seven U.S. markets (Boston, Los Angeles, Miami, New Orleans, San Francisco, Seattle, Washington, D.C.) and six international markets (Barcelona, London, Mexico City, Paris, Sydney, and Tokyo) from the period between August 2015 to July 2016.
Airbnb’s revenue soars 89 percent
Sept 01 2016, The data comes from a report from e-commerce analytics firm Slice intelligence, which gathers its data from e-receipts. Slice does not disclose revenue figures, only revenue growth.
The Impact of AirBnb on Hotel and Hospitality Industry
Mar 07 2016, The emergence of multi-sided technology platforms, collectively known as the “sharing economy”, has enabled individuals to collaboratively make use of under-utilized inventory via fee-based sharing. Consumers have so far enthusiastically adopted the services offered by firms such as Airbnb, Uber, Lyft and TaskRabbit.
New study confirms Airbnb’s negative impact on hotel industry