This is part one of a two part article about the problems faced by the broader tourism sector and how the Tryvium Company LTD aims to solve them with blockchain technology.
Crypto promises freedom, yet most of us are only truly free two or three weeks a year, during our vacations. That is the time when we want to be fully hassle free, relax, enjoy without a single care in the world.
With the promise of this freedom and enjoyment, tourism has grown to $7.4 trillion in annual revenue and it keeps rising. Blockchain on the other hand barely reached $800 billion at its peak, but despite the vacation industry’s success, it is facing major problems which are not just slowing it down but threaten to reverse it.
The issues stem from mega-corp’s monopoly, greed, unfairness as well as architectural obsoleteness. These are all areas that the blockchain tech was designed to fight and correct. Cryptocurrencies on the other hand lack real-world adoption, because the mainstream society lacks the incentive (or rather, fails to see the incentive) to push vendors into supporting mass adoption.
In 2018 Tryvium Company LTD was founded with the sole purpose of joining the two industries, thus saving the tourism industry and bringing crypto to the masses, both in one swift move.
Its team consists of longtime crypto enthusiasts and developers on one hand and of longtime crypto proponents and businessmen on the other hand.
These Tryvium founders saw that cryptocurrencies are failing because every project, every ICO is either building for vendors or for users. No-one built a platform that would benefit both sides equally and thus one side was always missing from the supply/demand equation.
As established businessmen the founders knew they need to:
- Provide incentives for the end users
- Provide incentives for the vendors
- Solve a real problem
- Communicate the solution to the vendors and clients
Stemming from the hospitality industry, the founders knew the problems of their industry very well. They had not just observed it, they have personally had to live with it. They knew it inside and out, and now they joined forces to solve it.
The biggest problem that the Tourism industry faces is that there is no competition to the two largest OTAs (middlemen between hospitality services providers and their clients). This results in hefty fees that tourists and hoteliers have to pay. The fees amount up to 33% of the entire price paid for a booking!
As the OTAs are a vital link in the tourism’s supply-demand chain, they cannot simply be bypassed. Completely eliminating them, would be for tourists and hoteliers the same as it would be for website owners and readers to eliminate search engines - i.e. Google. Thus we need to keep the service and structure and fix the issues of greed and corruptness.
The first is a matter of either company policy, or of free-market forces (competition). To solve this, the Tryvium Company LTD has vowed to keep it’s commissions at max 8%, making it up to 75% cheaper than the competition. Due to low overhead Tryvium can easily afford such low commissions and can even lower them if the need for that arises in the future.
The second part of the current booking industry’s problem as mentioned above is corruption. It manifests in unfair and untransparent preferential treatment of some vendors over the others. This not only negatively affects the market prices (driving the tourists’ costs up) but also detrimentally impacts the quality and variety of the services available on the market.
When we sum all this up, it means not only are hoteliers’ and tourists’ funds being actively drained but also that the entire industry is losing $100’s of billions in unrealized profit. The Tryvium Company LTD aims to rectify these issues as described above and solve several other B2B and B2C pains in the process.
It all starts with TYM
To realize this the Tryvium Company LTD is building a blockchain, smart contract based platform to compete with the two dominant OTAs (Booking com and Expedia). In the time of publishing this Tryium has already been in technical development for over 12 months, and it has also been acquiring its first hospitality services providers.
Its native token - TYM - will be integral to the Tryvium Platform and will be directly redeemable for hospitality services such as hotel/apartment booking, restaurants/dinners, etc., at all vendors partnered with the Tryvium Company LTD.
More detailed information is available at tryvium.io.
We hope you have enjoyed this article, and will join us for the next one where we will talk about logistical and legislative problems faced by providers and tourist alike, and how blockchain can solve them.