GLOBAL TRAVEL COIN - What Is Global Travel Coin - GLobal Travel Coin ICO Review
A recent report published by Allied Market Research projects that the global online travel market is estimated to reach $1,091 billion by 2022. Asia-Pacific is expected to witness the highest growth during the forecast period. Direct travel Suppliers, such as hotels, airlines and car rental companies, which offer booking facilities on their websites, dominate the market, whereas Online Travel Agencies (OTAs) will witness substantial growth over the next 5 - 6 years.
SBC - Swiss Capital Ag (“Swiss Capital”) is very well placed to be the technology partner of choice for the hospitality sector. Swiss Capital is a technology company that wants to assist the hospitality sector by improving the current travel payment and settlement ecosystem by lowering friction costs currently arising in the hospitality sector. It intends to achieve this through the implementation of Distributive Ledger Technology and the introduction of a global settlement token to be called the GTX Token.
Currently, Online Travel Agencies charge Airlines and Hotels a commission on each booking and then pay the airline or hotel using a Virtual Visa/MasterCard which has a high acceptance cost of around 3% per transaction. Hence, based on the projections by Allied Market Research, by 2022 that will mean over $32 Billion in merchant fees will be paid. It is these unproductive merchant fees that need to be addressed so as to improve the bottom line financial position of the hospitality sector. Further, the use of these virtual Visa/Master Cards also has a delay factor in settlement which in today’s economic environment is unacceptable. The Swiss Capital GTX Token will address both the unreasonable cost of operating but also accelerate payment to a more productive economic position.
EXISTING SETTLEMENT SYSTEM
- – Consumer makes booking
- Travel Co initiates payments such as credit/debit Card, Invoice or eWallet
- – On Confirmation of Payment Travel Co generates a Virtual prepaid card (VPC) and sends to Supplier
- – Supplier provides Services
- – Supplier redeems funds from Virtual card
- – Travel Co confirms commissions and supplier payments
To overcome the above inefficiency, the SBC ecosystem through an API call would generate a configured smart contract between the parties and pricing for each party based on set fiat and GTX Token price would be passed between the two entities to initiate settlement of the transaction.
GTX TOKEN SETTLEMENT SYSTEM
- – Consumer makes booking
- Travel Co (Agent) initiates payments such as credit/debit Card, Invoice, eWallet or GTX Tokens
- – On Confirmation of Payment Travel Co (Agent) buys GTX Tokens in their local currency
- – Supplier provides Services
- – Supplier sends GTX Tokens before delivery and redeems GTX Tokens for local currency
- – Travel Co (Agent) confirms commissions and Supplier payments
This use of a standard crypto currency with a smart contract using a GTX Token will have industry wide appeal and adoption much the same way the virtual card has been for many years. The massive reduction in cost and substantial improved efficiency will drive the hospitality sector interest and adoption. Attached to each settlement will also be loyalty tokens (GTX Rewards) which will be earned by the Consumer and the Agent as well as the Supplier as a part of the settlement proces
Swiss Capital is a private company that will manage both the SBC ecosystem and the GTX token economy. Currently, the founders of Swiss Capital run Foreign Exchange businesses, Customs payments solutions and have real world experience in the banking and international payments and travel industry rewards and loyalty. This is a team of old heads with industry expertise but recognize the need for innovation and change.
The twenty first century gives to people a lot of new opportunities, so it would be wrong not to use it. The SBC ecosystem will replace the Virtual Credit Card payments system between distributors (Online Travel Agents) and Suppliers (Hotels and Airlines) with the GTX Token real-time settlements ecosystem to be known as the SBC ecosystem. This will substantially reduce the cost for travel agents, hotels, airlines, rental car companies etc. by moving from a variable % model to a fixed cost per transaction model.