Executive summary. Vision

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2 Executive summary Vision Every single one of us was and will be a traveler. In our journeys, we have encountered recurring problems, same as every other traveler did. We then discovered that they are in fact industry issues. We made it our goal to find the right solutions, for better travel experiences. It became our mission to make the world your home and transform traveling into a rewarding experience for all actors involved in the travel industry, whether businesses or travelers. We envisioned that we could revolutionize the tourism market by creating a global network that connects businesses, agents promoting and representing them, and travelers. That is exactly why we designed Entrato, a blockchain-based marketplace platform for all actors part of the travel industry. Moreover, we integrated a commission and reward system, in order to offer all parties the opportunity to gain revenue, and Social Media capabilities that will enhance the trust and nurture communication. The main problem Entrato addresses is the current state of the tourism and travel market. The tourism and travel industry became highly centralized and closed, due to the success of the few OTA leaders on the market, like Booking, Airbnb, and Expedia. The market became highly segmented due to the continuous growth of OTA number that follow the same business principles, but also due to an increased number of other intermediaries. This result in unwanted consequences for both businesses and travelers. In order to achieve success and get ahead of the competition, businesses have to pay high commissions, upwards of 25 percent of the hotel s revenue, or even more, to be listed and promoted on OTAs. As a consequence, travel and tourism services are more expensive for travelers. They always end up paying more for holidays. 2

3 On Entrato, there will be NO COST for the users and agents, NO COMMISSION on any transaction to be paid. Another issue is that travelers can t fully trust feedback left on OTA platforms by other travelers, as they are unknown to them. TripAdvisor is one example. Travelers can register and leave feedback. But the platform doesn t have true Social Media capabilities to allow people to become friends. It is a well-known fact that people tend to trust recommendations from friends or close relatives more than they trust businesses. It turns out, these kinds of recommendations enhance brand credibility. Entrato integrates the Social Media component that many other travel and tourism platforms such as TripAdvisor lack. Travelers will be able to communicate with other travelers and become friends with them or other people they know. To encourage and ensure a fast growth of the Entrato community, we designed the Entrato Token, METT: More Entertainment, Travel and Tourism. It will stand at the core of Entrato s internal economy and reward system. On Entrato every user will be able to pay for entertainment, travel and tourism services with the METT token. Hotel or another kind of accommodation, airline tickets, car rentals, dining or drinking, concerts or other event tickets or lots of other services and products will be paid in METT token, totally or partially, in addition to fiat currency. The reward system integrated into the platform will enable all users to win real-time exchangeable METT tokens. Agents that represent businesses on Entrato can be part of promotion groups, dedicated exclusively to them, based on their interests and needs. This will give them the opportunity to easily make deals that bring significant revenue. For every action or interaction, users will be rewarded with METT token. All users can become agents and gain even more revenue, after being recommended by certified businesses on Entrato. 3

4 What is Entrato Entrato is a blockchain-based marketplace for all actors in the travel and entertainment industries: accommodation providers, airlines, railways, rent-a-car companies, transfers, restaurants and bars, cruise lines and boat rentals, worldwide attractions, concerts and events organizers, MICE, tourism promotion agencies and any other tourism and entertainment service provider. Having a utility token incentivized mechanism of commissions and rewards combined with a framework to build applications, it will allow any tourism-related business to integrate easily with the system. Entrato, a decentralized platform, will help connect consumers, vendors, and agents in a completely transparent environment. This will help simplify the operational process for all parties involved in the tourism and traveling industry. At the same time, it will improve customer planning journey when traveling. With integrated Social Media and gamification components, all users will have the opportunity to get paid for their actions, such as reviews, video and photo sharing, checking-in or simply for the time spent on Entrato platform. Users also have the chance to become agents, with the condition that they are recommended by a tourism service providers enlisted on the platform. 4

5 The goal is revolutionizing the tourism market by creating a global network of agents, based on commission in METT tokens as a reward. Entrato will be a unique type of social network from which the user earns both money and tourism products and services. Travel Industry Overview The tourism market brings an enormous contribution to the global economy and job creation annually. Is currently one of the world s largest and most dynamic industry with a global direct, indirect and induced economic contribution. Taking its wider indirect and induced impact into account, the sector contributed with US$7.6 trillion to the global economy and supported 292 million jobs in This was equal to 10.2% of the world s GDP, and approximately 1 in 10 of all jobs Direct Contribution Total Contribution Economic impact in trillion U.S. dollars

6 Over the past six decades, tourism has experienced continuous expansion and diversification and it became one of the largest and fastest-growing economic sectors in the world. Moreover, as a worldwide export category, tourism ranks third after chemicals and fuels and ahead of automotive products and food. In many developing countries, tourism is the top export category. This statistic shows the direct and total economic impact of travel and tourism on the global economy from 2006 to The direct economic contribution of travel and tourism amounted to approximately 2.31 trillion U.S. dollars in The number of international tourist arrivals, as data indicates, is only growing, rapidly and steadily. Numbers have more than doubled, with an estimated 1.24 billion arrivals in It is expected that the rate of growth will gradually decrease over time, slowing from 3.8% at the beginning of the period to 2.9% towards But it should be noted that this is on top of growing base numbers. In absolute numbers, international tourist arrivals will increase by some 43 million a year, compared with an average increase of 28 million a year during the period 1995 to At the projected rate of growth, international tourist arrivals worldwide are expected to reach 1.4 billion by 2020, and 1.8 billion by the year The flexibility and growth capacity of tourism market is proved by a number of success stories of leading businesses in the industry. OTA Visits/Month Booking.com 1,113,000,000 TripAdvisor.com 553,800,000 Expedia.com 227,900,000 Hotels.com 222,300,000 Actual OTAs (Online Travel Agencies), aim to connect travelers with tourism services, like accommodation and other related services, and to solve the problem of distribution that many tourism services providers encounter. But now the service providers find it very hard to develop and have profits because they have to pay such big commissions to OTAs. So they are looking for new sales channels and marketplaces with lower or even no commission. 6

7 Using OTAs services should make the journey of booking less of a bother. But rarely the price marketed as the lowest on the market really is. On some sites, customers looking for accommodation and other travel related services can also check reviews, search for places to visit nearby and also see pictures took by other travelers. But they can t really interact with known people or get rewarded for their actions. Key Market Challenges The option to make the travel plans through the internet contributes in a great manner to the tourism industry growth and development. But even though traveling has become more accessible to most people, the industry still faces some challenges. The main problem for travelers For travelers, the first step is deciding where to go. Yes, but where do you look for a destination? What about accommodation? How do you get there? What are you doing once you got there? The main issue travelers experience today is that there are only a few big players which own most of the online travel market, like Expedia and Priceline, two of the world s leading OTAs that currently own 95% of the OTA market. This only gives travelers the illusion of choice when they look to book a vacation. The reality is that such platforms monopolize the travel market and transform it into a close, concentrated industry with no fair competition. The traveler journey from deciding on a place they want to visit, to organizing the trip is still complicated and time-consuming. The reason is market segmentation, which gives endless options for research and purchase. According to Expedia, in order to make their reservations, shoppers surf through different websites: OTAs websites, hotel websites and metasearch. Travel shoppers visit them all before completing a hotel booking. The main problem for businesses 7

8 The Online Travel Agencies have the last word in regarding the terms and condition of the collaboration with businesses in travel and tourism. They became an unwanted intermediary between businesses in the travel industry and their customers, disrupting communication between them and imposing businesses significant fees. Although the OTAs solve the online distribution problem that tourism and travel service providers encounter, the number of OTAs is permanently growing as the market expands. This results in unfair competition. Large hotel chains can be offered lower booking commissions while smaller chains or independent hotels will be paying higher. The reason is larger hotel chains can negotiate with OTAs in order to obtain better commission because even OTAs can t afford not to have Marriott, Hilton or other large hotel chain listed on their site. On the contrary, independent hotels become more and more dependent on OTAs and this kind of sales channel. Moreover, the fee paid to OTAs by hotels will not remain unchanged. The higher the commission the hotel pays, the better ranking position it will have on OTA website. This means lower profit margin for hotels. Businesses do not own customer data of the customer that booked directly with the OTA. The consequences that businesses in the travel industry have to suffer: They become highly dependent on OTAs when it comes to selling their services; The customer retention rate is low; They encounter difficulty in reaching new customers; High commission that could have become profit; They don t have the possibility to create a relationship with their customers; They are not able to communicate in a transparent manner directly with their customers; According to PhocusWright, OTA vs Hotel Brand (direct online booking) ratio fell to 51:49 in the year 2016, compared to 46:54 in Expedia and Millward Brown Digital conducted a research in which looked at over 28 million instances and 144 scenarios of how people are searching for hotel travel to highlight key consumer behaviors and surface areas of opportunity for travel marketers. They discovered that while hotel brand sites dominated the purchasing phase, the point of in- 8

9 spiration in the hotel space the first travel site visited and where people begin their shopping journey was a bit more diverse, split among OTAs, meta, and hotel sites. During this initial stage, 40% of shoppers began on hotel websites, while 39% started with OTAs, and 21% began with meta search. Inspiration Mid-Funnel Booking Meta 21% ALL OTA 39% Hotel 40% Meta 14% ALL OTA 49% Hotel 36% ALL OTA 40% Meta 10% Hotel 51% In the research and consideration phase, these numbers shifted rather significantly, with nearly half of all shoppers visiting OTAs, at 49%, while hotelier sites and meta received 36% and 14% of visits, respectively. This tells us that for hoteliers, OTAs play a significant role throughout the research and consideration stage of the travel consumer s journey to purchase, offering hotel marketers a channel to influence shoppers throughout the process. In examining the top 10 most prevalent hotel shopping scenarios (which accounted for nearly 40% of the scenarios and 11M individual paths) it was found that five of these top ten journeys started on a hotelier s site, while four of these ten began at an OTA, and one out of the ten most popular journeys initiated with meta. Although 70% of purchases were made at hotel sites, while 30% were with an OTA, a full 70% of the top ten shopper journeys included OTAs at some point in the middle. The solution Entrato, an integrated platform of TTE (travel, tourism, entertainment) services and products. Its mission is to bring together information, offering, trading and promotions for the entire tourism market and to integrate a reward system with the capabilities to create customer retention. It is based on a WIN-WIN-WIN system inspired by successful models such as Facebook, Booking, AirBNB, Expedia, Uber, and TripAdvisor, developing a new and dynamic business with ongoing 9

10 interaction and rewards. Entrato will enable businesses to eliminate intermediaries, reduce the commission for sales through the OTAs and offer their customers rewards and better satisfaction. We solve the problems identified by providing all of the above information in one place where users can get directly in touch with other users, not just based on reviews. Also due to the integration of well-established reward system, they will be able to earn money for completed actions inside the platform: interactions or transactions. All information and travel history will be kept and protected indefinitely in the blockchain. This will contribute to a high sense of transparency and security. Entrato will not sell personal data of its users to third parties. In order to implement and to develop the best customer experience we, at Entrato, choose one of the key industry players worldwide for delivering software technology solutions in the travel and tourism industry, with over 16 years experience in this field. Together as a team, we have the mission to always have in depth knowledge and be up to date with all of the changes of this market, to strive for improvement and to deliver excellence in each and every step. Entrato Entrato s objective is to revolutionize the travel industry. The platform will help connect consumers and vendors directly, in order to discuss their deals with no fee or commission associated and no third parties involved in the operational process. Being an integrated, blockchain-based platform of TTE (travel, tourism, entertainment) services and products it will bring together information, offering, trading and promotions for the entire tourism market. Entrato will create not only a platform for travel, tourism and entertainment services, but also a global network of agents, based on commission and token rewards. A decentralized blockchain platform that will reinforce communication between all actors involved in the tourism and travel industry and will enable every user to generate revenue for all actions or interactions. 10

11 How does blockchain enables Entrato Blockchain offers a great advantage: it enables the elimination of third parties. This means no additional transaction fees in the Entrato ecosystem, no matter the size of the transaction. Moreover, blockchain technology enables Entrato to define a safe and transparent environment, facilitating the honest communication between service providers and customers. The outcome is that prices will be fairer. Through the use of blockchain, Entrato will enable direct communication inside the platform, through the incorporated chat. As all activity and transactions will be permanently logged in the blockchain, disputes will be easier solved. Key features Blockchain based platform Creates an ecosystem, fully decentralized economy with no central authority Creates a transparent marketplace for the travel and tourism industry Reinforces trust: all user profile will be real in the blockchain, thus reviews or interactions can t be fake Decentralized Loyalty and reward system through Mett Token Increased accessibility to all travel related services Platform roles - the 100 factor Within the platform there will be 3 types of entities as follows: 1. Business: travel, tourism, and entertainment service providers that can have up to 100 agents. For every agent, each business must provide the platform with one of its services per year. This enables Entrato to have no cost or commission on any transaction made through the platform. 2. Agents: connect businesses and users by promoting businesses and travel destinations. They are not intermediaries, they will be appointed by the businesses, which pay them a commission on every sale. Every agent may promote up to 100 businesses. 11

12 Agents will each belong to promotional groups, which they are free to create and administrate by themselves, based on their interests. An agent may not be part of more than 100 groups. The goal is to encourage agents to promote businesses services. Each time an agent makes a deal, another 2% reward from the deal goes to his group and distributed depending on their performance inside the group. A group is allowed to have a maximum number of 100 agents. 3. Users: are entitled to a 4% reward in METTs each time they spend on Entrato platform. These will be used for future spending or traded on exchanges. They can become agents for additional earnings and benefits. Platform costs 1. Businesses Businesses will be charged 8% in their own services, which will be transformed in METTs. There will be NO commission charged on ANY transaction made using the platform. The 8% percentage can be considered a marketing cost. The platform will retain nothing from this commission, which will be distributed as follows: 4% direct user/customer discount 4% commission for agent/business agents. 12

13 Following the model, 50% of the annual access fee will be reintroduced into the system in the form of promotions and loyalty campaigns for users and agents. 2. Agents There will be NO sign up costs for agents, only the assignment of a certified business on Entrato. 3. Users There will be NO sign up costs for users. On the contrary, they will be rewarded for every deal or interaction through the platform. Use cases Blockchain tech is already defining the future. A blockchain-based marketplace designed for the travel industry will pave the way for more satisfactory travel services. With Entrato, our goal is to create a global database of travel services for customers and businesses in the travel industry. This will lead to a better knowledge of what customers desire and will encourage businesses to provide tailor-made recommendations. Opportunities Opportunities for businesses A new source of customers Costs are much lower compared to the OTAs (ex. Booking.com charges a commission fee of 15% -25%). Entrato directs 50% of the revenue to promote also the business, not only its brand. Customer loyalty through loyalty and reward system based on METTs Motivate your employees by registering them as agents Up to 100 agents to actively promote the business both within the platform and other online methods but also offline Up to 10,000 promoters through groups (100 agents in 100 groups of 100 agents) Opportunities for agents Two platform sources for gaining METTs 2% of the sales generated for each business it represents 2% Mett of the sales generated by the promotional group they belong to 13

14 They can earn METTs from different promotions and contests they can use for their own interest or monetization Freedom to work from their own living room or from anywhere in the world Opportunities for users Lowest price guarantee compared to OTAs and other travel agencies 4% additional discount in METT, used for future spending or trading Collecting METTs for any interaction with the platform and time spent on it The advantage of having all the necessary information and reservation options in one place Ability to interact with other users, similar to any other Social Media Channel, thus transforming searching or gathering information into a more human experience Option to become agents and to generate additional income Business Model Entrato s income sources: Direct: By selling advertising for businesses, local and national agencies, Destination Management Organizations (area where marketing budgets are very consistent) or any person linked to a tourism destination. By allowing agents to boost their posts for reaching more users and enhance audience engagement. Indirect: through the monetization of 50% of annual access fees for listing the business on the platform. Businesses will be able to join Entrato platform by ceasing some of their services, free of charge on our behalf, on a yearly basis. The number of services ceased differs depending on: The particularity of the services they have to offer (e.g. hotel rooms, other hospitality services, spa access, event tickets etc.); The number of own agents they would like or need to have on the platform. Entrato will use 50 percent of the revenue for covering the platforms operational expenses. The other half will be invested in marketing purposes such as: rewards for loyal customers (free accommodation nights, free entrance to places of interest, free event tickets etc.), contests prizes and any other programs in order to make the platform more attractive to its users and to offer 14

15 them a better satisfaction. These campaigns will be promoted not only on the entire Entrato ecosystem ( platform, social media groups, newsletters that will be sent to each and every user, agent or business owner) but also on other marketing channels. For example, if a hotel has 200 rooms, it means it has hotel nights (200 rooms x 365 days). For having 2 agents on Entrato, this hotel will cease 2 nights. One will be sold and used for operational expenses, the other one will be offered as it is or through METTs for marketing purposes. Entrato token - METT Entrato token will stand at the core of all transactions that take place inside the Entrato platform. Even if the customer use fiat currency for paying the services provided, they will be transformed in Entrato s token, METT, will be the only payment method utilized. Mett loyalty points system Meet METT, Entrato s loyalty points: More Entertainment, Travel and Tourism. Mett loyalty Token System will be Entrato s currency and will be the core of Entrato s loyalty system. They can be used to purchase networked products or services or generate profit. They come from the business listing fees introduced into the system and barter special offers. How does it work: Businesses can join the platform in exchange for their services. When signing up on Entrato, as a business they will do so in exchange of the services they promote and sell, thus contributing to the development of the reward system. When users buy services on Entrato platform, the revenue will be distributed between the agent that will intermediate the sale, the group the agent belongs to and the user, as a reward, for future spending. Reduce operational costs by minimizing currency use. The value of 1 Mett is 0.05$ and it will be fully integrated with Entrato platform. 15

16 Mett Advantages 1. Business The main benefit for businesses is the lack of extra fees that OTAs use to charge. 2. Agents Entrato platform can be used as a tool to motivate agents through various campaign mechanisms that integrate the Entrato reward system. 3. Users Entrato can become a viable solution for customer loyalty by providing token as rewards for each transaction and interaction completed by users. Crypto Tourism Academy Designed for a better understanding of the possible users and agents of what cryptocurrencies are and how they can be used for satisfying the travel, tourism and entertainment needs of anyone in the world. A distinct part of the Entrato platform that will help everybody understand how to benefit from joining the platform, how to gain more rewards and have a better experience on it. Well known travel professionals but also Entrato s team will offer all the informations needed to understand the world s travel and entertainment ecosystem, how to have a better travel experience, how to get more entertainment for the same costs or how to travel more spending less. Mett Token Generation Event The METT Token Generation Event will have as main objective allowing the development of Entrato platform, by raising funds from all parties interested in contributing to Entrato project. Name: METT Token Symbol: METT Price: 1 Mett = 0.05$ Contribution: ETH Soft Cap: USD Hard Cap: USD 16

17 Token distribution Mett Token distribution model is meant to support the complete decentralization of Entrato project. Token Split Incentives, Early Adopters, Partners, Development 15% Air Drop 1% Crypto Turism Academy 2% Token sale 60% Bounty 2% Team & Advisors 20% Project Budget After the Token Sale is completed, the funds will be used to finance the launching of Entrato and the platform s further development. The funds will be distributed according to the following diagram: Use of Funds Legal, Security, Others 5% Platform development 40% Marketing 35% Business development 20% 17

18 Roadmap Q Entrato idea and concept Q Adapting the concept to blockchain Forming the project team Q Private Pre-sale Public Pre-sale Q ICO Demo Version Team Development Q B2C Booking Platform (Entrato as OTA) Listed on exchanges Agents Crypto Tourism Academy Q Businesses Integration Groups of Agents Chat & Social Media Q Full integration Mobile Apps 18

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21 Conclusion With Entrato, traveling will reach new heights. All travel and tourism business owners (restaurants, hotels, transportation and more) will be able to integrate their business on Entrato platform. Users will be able to buy these services with Mett tokens. The advantages it has to offer exceed those of the existing platforms which exploit the idea that Time is money. Yes, they do provide customers the opportunity to save, both time and sometimes money. But Entrato enables all customers not only to get promotions for all traveling services, but allows them to earn from their and other traveler s holidays. And most important of all, Entrato is a one-stop shop. As demonstrated by the successful examples of new companies in the field and taking into consideration the market size and its capacity to significantly grow every year, it is safe to say that there is room for new players. Due to the competition between hoteliers and OTAs (Online Travel Agencies) and also the steady growth of mobile content requirement, it is the perfect time for Entrato, a blockchain-based marketplace, meant to make things easier and cheaper for the users and more profitable for all actors in the travel industry. Entrato will help build a decentralized, secure and transparent marketplace for purchasing all travel-related services. This will also enable businesses to gather powerful insights in regarding of what customers desire. This will empower businesses to tailor their services depending on deep learnings and powerful insights on their customers, thus perfecting the customer service. Every single one of us was and will be a traveler. Entrato will help crypto to become mainstream, because it will be possible for anyone to pay for its travel and entertainment needs in cryptocurrencies. 21