ABOUT THE PROJECT

 

The $500 billion hotel booking market and cryptocurrencies

 

A new asset class has emerged since the invention of Bitcoin in 2009 by an anonymous founder under the pseudonym of Satoshi Nakamoto.

As a reminder, launched with a starting value of $ 0.0001, bitcoin is currently worth about $ 10,000. In December 2012, 1 Bitcoin was exchanged for $ 13.  This means that investing $ 1,000 in the end of 2012 would bring you 5 years later more than $ 1,150,000 today.

Cryptocurrencies are certainly one of the great changes that humanity is experiencing nowadays.

Built on the blockchain technology, these digital currencies offer the promise of reinventing the real economy. They are intended to disrupt many industries, including the hotel booking industry, as their decentralized nature, better secure and faster processing are vast improvements over traditional systems.

“Blockchain is a foundational technology, like electricity and the Internet”. That means it goes beyond disruption and enables a whole new range of activities that weren’t possible before.

Since its early years, it has been clearly appeared that the hospitality industry is one of the areas that will adopt blockchain technology first.

A Blockchain-powered hospitality market is for sure in the making.

Take advantage now to the huge Online Hotel Booking Industry by investing in the first decentralized and 100% independent cryptocurrency dedicated to homes and hotels reservations worldwide.

Built on the Ethereum blockchain, Boocash is an ERC20 based Token and a distributed technology tailored for the hotel booking economy.

Cryptographically secured smart contracts build a trusted investment network without the presence of middle man.

The problem

Booking a holiday has never been easier, with companies like Expedia, Airbnb, and Booking.com delivering a level of speed and range of selection that would have been unimaginable 20 years ago. But the success of these companies shows how much money there is to be made by further improvements. For example, booking a stay at online in a hotel will still usually see around 25% of the transaction being spent on booking platform and financial transaction fees. And consider that those 25% are calculated on the gross revenue, which for example in EU contains additional up to additional 20% VAT. This practically means that hotel owners pay an additional commission to Booking.com on the VAT amount that they remit to the state budget.

Given the fact that the global hotel industry is worth around $500 bln annually, this means that any new platform that eliminates these fees (like Boocash Hotel System) could deliver up to $125 bln in value to users each year.

Banks need to process payments, booking platforms need to present and verify both transactions and listings (including reviews), and of course a central currency needs to be backed by governments.

In addition, customers are also exposed to security risk when they are asked to give a copy of their credit cards to the hotel manager who usually also take a copy of the customer’s ID card or passport. So, it is not impossible that your credit card associated with your personal data could fall into the hands of malicious people.

Today,  with the advances possible with Blockchain technology, a new platform would not be another iteration of the same old business model. Much of the 25% that currently goes to the middlemen processors is a “necessary evil” of sorts.

Also, thanks to smart contracts, hoteliers won’t need your credit card to secure your booking.

The Solution

With cryptocurrencies, suddenly most of these limitations disappear. The network can be trusted to supply the currency and the ledger can serve to verify transactions.

Decentralized security and easy verification of data are what blockchains were designed to solve, after all. The accommodation providers and the customers can be allowed to interface directly without risk of double-spending, information disputes (such as fake reviews or denial of payment), or overbooking.

 Boocash system

Boocash is an open-source for-profit technology dedicated to: Democratizing cryptocurrencies and bringing it to the masses by creating decentralized tools for the world to seamlessly invest and spend in the hotel booking industry.

At the core is the Boocash protocol:  A blockchain protocol defining investment transactions between users and the Boocash smart contracts. Built on the Ethereum blockchain, Boocash is an ERC20 based Token and a distributed technology tailored for the hotel booking economy.

The coin token is named BOOCASH with BOO as the symbol.

Supporting the protocol is the BHB (Boocash Hotel Booking) Marketplace. The BHB is an App and a Marketplace that empowers anyone to book a stay online in a hotel, an apartment or a villa worldwide through the Boocash token.

To do so, users register on the BHB marketplace and make their bookings. The bookings are executed with the BOO token which are sent and held in escrow by the Boocash smart contract. The BHB and smart contracts keep track of all transactions data. To make a payment, users use any Ethereum based wallet.

Upon executing the service (i.e. user stayed at hotel and made checkout), the smart contract releases the transaction and funds are sent to the hotelier’s account.  All transactions and funds are digitally automated by open-source computer code and are never touched or managed by any third-party.

Boocash will develop an API to enable other platforms or hotels owners to propose the BOO token on their websites.

Boocash is creating a future where users have one platform and one token (BOO), that enables anyone to create make a hotel booking worldwide. Thereby reducing the cost, risk, confirmation delay and complexity associated with traditional OTAs (Online Travel Agencies).  Centralized third parties that are often needed in traditional hotel booking use cases are replaced with smart contracts that act as autonomous agents and programmatically compensate all users and owners within the entire Boocash ecosystem.

 Boocash revenue model

BHB will charge a single fixed commission of 1% on all bookings made through its marketplace. In the hotel booking industry, 3 types of business model are used: Agency, Merchant or Advertising business model.

The Agency business model

The agency model uses commission revenue model. Commissions are applied to all bookings made through the platform. For example, Boocash Hotels Booking (BHB) will have contracts with the hotels that it lists and will take a commission on each booking through its site between. But instead of a commission range of 10%-30% for Booking.com, BHB will charge only a fixed and low commission of 1%.

The Merchant business model

In this business model, the platform buys hotel rooms and then resells them to travellers. The merchant gets the rooms cheaper by buying the rooms very early as well as in bulk. Often, the merchant bundles them with airfares, rental cars and/or other things.

The Advertising business model

TripAdvisor is a good example of that business model where the main revenue of the OTA (Online Travel Agency) is made by selling advertisement services and packages.

For example, Tripadvisor will get paid for each click regardless if it leads to a booking or not. The recipient gets a lead. Such a click may cost more than a click directly from Google (and in some cases not). A higher fee would be warranted as the user is further advanced in their booking intent compared to a Google search. This is why you will find Booking.com and Expedia advertising heavily on TripAdvisor, making it 46% of TripAdvisor’s total revenues.