The travel industry is one of the most fragmented industries in the global market space. Unless it is domestic travel, it almost always requires complex and expensive cross-border financial transactions involving various counterparties. Multiple levels of transaction fees and middlemen cut significantly into all travel suppliers’ bottom line.
All the largest travel suppliers in the world use a select few payment providers. They are very expensive and entrenched in the industry. Companies just use them because “they are there”. They charge annual fees ($150K / year) and transaction fees. Suppliers easily see 2 – 10% of the bottom line go to transaction fees. 30 years ago, these companies were the best solution. This is no longer the case.
Our industry transacts to the tune of 7.8 trillion dollars per year and growing.
Payment is a B2B issue and it’s industry-wide.
With distributed ledger technology, companies can trade between each other at near zero cost using Travelkoin.