In an industry dominated by intermediaries, predatory commission schemes, and inconveniently fragmented service points for customers around the world, a disruptive vision is emerging. With the next generation of technology, such as AI and blockchain-powered smart contracts, travelers can experience a brand new way to explore their dream destinations. Through the power of web3, Arakis is powering personalized experiences, affordable prices, authentic reviews, and increased transparency and accessibility.
Why is Travel so Expensive?
Some of the industry’s costliest factors for users include volatile rates and a pervasive reliance on middlemen like bed banks. Bed banks purchase hotel rooms in bulk at a discounted static price and sell them to online travel agencies for a profit, who go on to resell them to end consumers at a markup. With dynamic pricing schemes, the end price often tends to be artificially inflated based on external factors like big events, concerts, and tourist seasons.
We’re disrupting this model by creating a decentralized bed bank where community members can buy and sell hotel rooms directly to each other, cutting out unnecessary intermediaries. This allows them to purchase hotel rooms at lower static rates and sell them at slightly higher rates when demand is high.
To prevent unfair price manipulation, every booking in our community is backed by a smart contract. This contract sets a maximum price, so rooms can’t be sold above the market value. Travelers can trust they’re getting a fair deal, while the community can make a profit without resorting to unethical practices.
Implementing a decentralized bed bank comes with its challenges, such as needing significant capital to buy rooms in bulk. However, at Arakis, we strongly believe in the potential of this disruptive approach to shake up the travel industry for the better. Our goal is to create a more equitable marketplace that benefits travelers and not just the intermediaries.
Using Web3 to Enhance the Web2 Experience
Web3 technology brings countless exciting possibilities to the travel industry. By using decentralized platforms and blockchain technology, web3 empowers users with personalized experiences. They gain access to curated content and authentic reviews, helping them make better informed choices. Web3 also enables more affordable travel prices and seamless payment experiences, making travel accessible to a wider audience – including those who don’t use crypto. And the best part – because these systems can be monetized, anyone can earn income through web3-based platforms, adding an extra layer of excitement to the entire experience.
Security is a top priority, and that’s where blockchain technology comes in. Blockchain is decentralized and tamper-proof, making it perfect for protecting sensitive travel information. It enhances transparency by creating an unchangeable record of all travel bookings and payments made, reducing fraud and disputes. This fosters trust between travelers and travel providers.
Travel 3.0: The DeFi Effect
Decentralized Finance, or DeFi, through blockchain technology, also provides entirely new ways for users to transact in the travel industry reliably. Using cryptocurrencies as payment for travel bookings and services brings faster and more secure transactions with minimal fees. Smart contracts within DeFi streamline payment processes and remove intermediaries, ensuring safe and hassle-free transactions for all parties. Additionally, decentralized lending and borrowing platforms offer accessible and affordable financing options, making travel more feasible.
When we embrace web3 technology, we unlock a world of possibilities for an inclusive and equitable travel landscape. By using decentralized platforms and blockchain technology, we can provide transparency and security that reduce unnecessary fees and eliminate intermediaries, ultimately making travel more affordable and accessible for everyone. We strongly believe in the ability of web3 to foster community-driven travel experiences, connect people with local communities and empower local businesses. At Arakis, we’ve combined the worlds of travel and web3 into a unique digital ecosystem that allows travelers and local communities to thrive and create mutually beneficial, lasting connections.