Trippki ICO details
Start Date: 2018-7-23
End date: 2018-9-14
- Category: Tourism
- Token: TRIP
- Platform: Ethereum
- Type: ERC20
- Initial price: 0.19 USD
- Bonus: DAXT Pre-Sale 23 Jul – 29 Jul 60% Discount Public Pre-sale Week 1 30 Jul – 05 Aug 40% Discount Public Pre-sale Week 2 06 Aug – 12 Aug 20% Discount Public Sale 13 Aug – 14 Sep No Discount
- Accepting: ETH
- Soft cap: 3,600 ETH
- Hard cap: 27,500 ETH
Trippki – makes travel more rewarding
Online hotel booking is a classic example of a market that heavily relies on intermediaries. This creates overheads at the expense of both customers and businesses while third parties keep control of customer data in silos and hinder customer relationships. We propose a new decentralised ecosystem – Trippki – that substantially reduces platform commissions and enables direct relationships between the customer and the business. Trippki provides an easy to use crypto token loyalty framework that is designed to align economic incentives and create a broad network effect. An open system that combines booking and customer reward systems can make the travel industry more cost effective and enhance customer/business relationship at the same time.
We propose a new decentralised ecosystem – Trippki -An open system that combines booking and customer reward systems that can make the travel industry more cost effective and enhance customer – business relationships at the same time.
Trippki is a new hotel booking channel and customer reward system that incentivises sharing the value transaction in the booking process between guests and hotels – the players that actually create value. By disintermediating the current OTA (Online Travel Agent) model, Trippki gives control back to customers and hotels, allowing not only value sharing, but reducing the costs associated with traditional centralised booking platforms.
Such systems were not possible before the emergence of decentralised cryptographically verifiable computing that allow participants to cooperate and enter business relationships without trusting each other or relying on a third party. Trippki aims to solve common problems with traditional booking platforms and enable more sustainable relationships between customers and hotels.
Hotel booking has become increasingly centralised and is dominated by a small number of OTAs. While on the surface they provide convenient aggregation portals, in truth they distort the free market in travel accommodation. This results in a sub-optimal marketplace with low margins, high commissions, low customer retention and difficulty in reaching new customers.
Hotels want to have a direct relationship with their customers. That’s how they can offer their guests the best service and the best deals. Reward systems offer an answer, but hotels are struggling with how to implement a reward solution that really works, something that creates true value and ultimately builds loyalty with their guests. Current reward systems are expensive to run, have a low usage, are proprietary and do not encapsulate value and are not transferable.
Trippki replaces the traditional closed silo model with an open protocol powered by an Ethereum based token system. In the Trippki model, part of each booking payment is converted into TRIP tokens (see Section 4 – Trippki Ecosystem Architecture) which are given to the customer as a loyalty reward. TRIP token’s data persistence and immutability is provided by the Ethereum network, granting a built-in system of reputation that allows hotels to tailor specific, reputation based, offers to their guests.
In the Trippki model, part of each booking payment is converted into TRIP tokens which are given to the customer as a loyalty reward.
The TRIP token value is derived from access to a cost-efficient universal loyalty points travel economy. TRIP is a cryptographically secure and decentralised token. TRIP is a crypto-asset that is robust and redeemable at the holder’s discretion, unlike any other reward point. For customers, TRIP has immediate utility as it can be used to pay for hotel bookings and services on the Trippki platform. Over time, customers can build reputation on the platform, allowing hotels to serve them with bespoke offers, hence forming a direct relationship with their guests.
Trippki utilises crypto-economic alignment for the different players within the travel economy. Our goal is to build and maintain a network effect that can dramatically reduce channel costs (commissions) from up to 30% within the existing OTA model down to 2.5%
Current State of the Industry
When the world wide web started gaining adoption in the early 1990’s one of the first industries to be disrupted was the high street travel agent, as airlines could simply reach out and sell seats through their own platforms, resulting in many retail travel agents closing down.
For hotels the internet meant that, for the first time, they too could also reach out to the consumer, but it was a poor user experience as the onus was on the customer to spend their time on research. The Online Travel Agent (OTA) solved this problem by providing the customer with the tools to research and select hotels according to their budget. Hotels could now reach customers through a cost effective distribution channel.
However, what at first was a mutually beneficial model for all the players (hotel, guest, travel agent) has evolved into a distortion of an open free market with the OTAs becoming a dominant centralised channel creating a sub-optimal marketplace.
Issues within the marketplace include:
- High Commissions: Hotels pay between 10-30% to OTAs which cuts straight to their bottom line and results in a poorer customer experience as there is less revenue for hotel improvements, staff remuneration and customer discounts.
- Brand Hijacking: OTAs use the commissions they take from hotels and spend it on massive marketing budgets to compete with each other to get customers to utilize their platforms. OTAs then blatantly hijack search keywords on Google et al. to leverage hotel brands and to drive consumers to their websites.
- Rate Parity: OTAs commit hotels to what are known as Rate Parity Agreements, to ensure that rates are consistent for the same product across all channels, displaying cartel like behaviour in this respect. This means that no matter what channel the con sumer uses, whether it be an OTA or with the hotel directly, they pay the same price. Undercutting in rates is believed to cost hotels $1b per year.
- Indirect Relationships: Consumers have a better experience when not having to deal with intermediaries, as the end supplier takes responsibility for the service they are providing. Hotels are in the business of providing a rewarding experience to their guests and can better achieve that through a direct relationship with their customer
- Loyalty: Customer acquisition is costly and with the whole service industry looking to improve margins and improve customer loyalty, it is therefore vital to reward consumers with the best experiences and the best incentives by which they can make the most of in house services. This will result in repeat visits & brand loyalty.
- Rewards Systems: Hotels use reward systems to build loyalty with customers, spending a significant percentage of their budgets on such programmes, but to little avail. These programmes are expensive to run and provide a poor consumer experience. they’re inflexible, non – transferable, cumbersome and result in minimal redemption. The current hotel booking model is not sustainable. It drives an inferior consumer experience, it squeezes profit margins and further erodes the direct link between the hotel and its guests. Trippki provides the solution to this problem by establishing a new decentralised ecosystem which uses TRIP rewards to align economic incentives between hotels and consumers.