Touyi Group CEO: Block chain will subvert Expedia and Airbnb

nnnFritz Joussen, chief executive of the TUI Group, confirmed the positive role of the chain chain in the tourism industry in an interview with Skift, revealing that the technology was being used to improve a range of businesses. He believes that the chain chain will change the tourism distribution ecosystem by a small number of companies control the situation, so that hotels and airlines have more autonomy, and is conducive to entrepreneurial companies to participate in, and promote market competition.n
nnTranslated by: Inan
nnThe block chain is essentially an immutable large database, and its security features and de-centric features may pose a threat to traditional intermediaries. Some companies are seeking to use the block chain to change the current pattern of tourism distribution.n
n- Dave Montalin
nIs the block chain the next one?n
nFritz Joussen, chief executive of TUI Group, is convinced that it has this potential and said, “It eliminates the monopoly of knowledge on a few platforms.”n
nBlock chain is the bottom of the market has reached about 45 billion US dollars of the bottom of the technology. Bitcoin is a digital currency that eliminates the traditional brokers of money, and the chain-chain technology derived from it is considered by many to be a great innovation.n
nThe block chain is essentially a distributed database, allowing only new data to be added, which means that historical data is not lost or destroyed.n
nA few weeks ago, Fritz Joussen attended the Noah Conference in Berlin and received an interview after that.n
nJoussen believes that the block chain will break Priceline, Expedia and Airbnb almost “monopolize” the current situation of accommodation and distribution of ecosystems. This may exaggerate the control of the distribution of these platforms, but the point is right.n
n”Intermediaries will have a hard business case that will cost billions of dollars in advertising coverage and then create monopoly profits through sales and marketing,” he said. “They are selling and marketing It is a great brand, but its huge profits stem from its own monopoly structure, and the block chain will change that situation.n
nSince the birth of Bitcoin in 2009, there has been a lot of innovation in the chain area, and new platforms such as the Tower and Lisk have created a chain of blocks as a basis for developers.n
nJoussen’s block-chain vision is the key reason for the sale of Hotelbeds at $ 1.2 billion last year to get rid of the role of the enterprise-business agent, which he believes will be easily replaced by the chain. The idea is to make it easy to become a truly comprehensive company.n
nJoussen said: “I think we are moving in a complete and comprehensive direction, which is the only sustainable way to create long-term value.”n
nTouyi has transferred all the contracts to its private chain. “We are now using it primarily to build a mechanism for exchanging bed frames between different property management systems (PMSs), and the next step will put the entire inventory record on the block chain,” Joussen said.n
nJoussen believes that the use of smart contracts can easily manage and automate most of the bed and hotel capacity on all markets. This is cheaper, more productive, and ubiquitous.n

nTogan show slides at Noah Conferencen
nMoving all inventory records to the block chain is more complex, but it’s easy to create a large database that can be updated in real time.n
nTouyi also held talks with Winding Tree, a company based in Bay Area, which intends to build a decentralized travel distribution platform. The chain of chains is now private, open to the public and does not gain significant economic benefits, and Winding Tree is creating a public chain for the tourism industry.n
nWinding Tree does not monetize transactions and distributions on its platform, because the platform is completely decentralized. The company is planning to fund its projects through ICO. ICO (the first tokens issue) is a decentralized organization to raise funds for the financing mechanism that will auction the tokens, similar to the IPO. Recent successful ICOs include Bancor (raising $ 150 million), Status ($ 100 million) and Tezos (which has raised $ 200 million and continues).n
n”The oligopolistic situation in the tourism industry today makes the traditional participants have no innovative economic motivations and set too high a threshold for start-up companies,” said Maksim Izmaylov, founder of Winding Tree. “Even if lucky and successful, We are building a travel distribution platform without a middleman, and the block chain is a tool for realization.We want to return the rights of the distribution to the hotel and the airline.n
nWhen asked about the block chain plan, Maksim said: “The value of the block chain lies in its security that is positively related to the use, so the public chain is safer than the private chain, and we think that a single company should not have Travel distribution. “n
nIf the tourism industry to use the chain chain for distribution, then some business models may be significant changes. While online travel agencies are seen by some as intermediaries, their impact on business model change may be minimal.n
nThe block chain is essentially a large database where the hotel in Berlin may have 800 results, and search companies may still help users find their favorite hotel and provide a list.n
nAs everyone can search the hotel through the block chain, the market competition will be more intense, no longer set by the intermediary distribution rate, start the company into the field of the threshold will also change.n
nIn theory, it will be entirely up to the hotel and the airline to decide whether to pay the commission, if necessary, how much to pay.n
nMeta-search companies may be more susceptible to this technology because their business model relies heavily on the use of current distribution defects and price differences.n

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