Fees at booking and short term rental sites range from between 15 – 25%.
Payment processing fees typically add another 3% to the customers costs.
Customers who don’t want to pay these high fees have little choice, unless they are able to deal directly with the hotel or property owner.
That is until now.
LockChain (https://lockchain.co/) is a radical new way of booking properties. The best part?
There are zero fees for the customer making the booking.
Even better there aren’t even any payment processing fees.
Lockchain is able to do this because of the introduction of blockchain technology.
Blockchain technology is transforming many industries. Payments through the blockchain can be done incredibly inexpensively and quickly.
They don’t require any middlemen and all of the transactions are completely transparent.
Here’s how it works…
From the users perspective using Lockchain is incredibly simple.
Property owners who have a property that they want to list can do so for free. They simple need to create and then edit the listing for their property in much the same way as they would if they were listing their property on AirBnB.
There is even a one click option which enables them to quickly move their listing from existing platforms onto Lockchain.
For customers the experience will be equally familiar to anyone who has used a booking website in the past.
There is both a web and mobile app available for using Lockchain. With a user friendly interface the customer can search for properties and make a booking.
All of the payments for their booking can be made in their local currency using standard payment methods like credit card.
It is only in the backend that these payments are exchange into the native token for Lockchain known as LOC.
But How Does Lockchain Make Money?
You might wonder if they are charging zero fees how can Lockchain make money from their booking platform.
Essentially they are taking the premium model that currently operates for the booking industry and turning it into a freemium model.
This means that everyone will be able to use the decentralised platform for free whether they are making a booking or listing a property.
Lockchain makes its money by charging added payments for extras and comfort features.
At the moment Lockchain is looking at two different models.
The first of these is a pure Freemium model. In their model everyone would be able to use use the property for free but would pay for extras. Property owners can list their property on the platform without paying for the listing but if they want to increase the visibility of their listing then they would need to pay a small amount of LOC token in order to do so. This would push their listing up into a higher position in the search results. Another example would be charing a fee for adding additional photographs to this listing.
The other business model being considered is subscriptions. In the subscription model the subscribers would be the property owners. In this model they would be charged a single fixed subscription feed of between $19 to $99 a month depending on the property that is being listed. This would give them that property full access to use LockChain to promote their property.
High fees are a cost that both customers and property owners have not been able to avoid until now. If LockChain is able to deliver a user experience which is on par with existing platforms in the accommodation space but without the fees, it will be obvious choice for booking holiday accommodation.
LockChain Website: https://lockchain.co/
LockChain Whitepaper: https://lockchain.co/whitepaper_v1.2_s.pdf