Although the hospitality and travel sectors are two of the most rapidly-growing industries in the world they were also negatively affected by COVID-19’s economic limitations. These restrictions, which have been gradually disappearing, had a negative impact on their growth.

Despite the negative impact the pandemic had on consumers and all aspects of these industries, they have been able to scale up and adapt to the changes. This is thanks to technological advances and improvements in health care.

Notably, blockchain has played a vital role across several industries since COVID-19’s arrival, providing alternative, sustainable solutions where there previously were none, or where the systems being employed were outdated, for lack of a better word.

Blockchain is being used in certain hospitality and travel business areas to revolutionize the experience of both the owners of these businesses and those who support them, including end-users.

Winding Tree is a prominent player in the area. It’s an Ethereum-based, decentralized marketplace for B2B services, including travel agencies and hotels.

Winding Tree uses blockchain technology to promote fair and competive travel distribution.

In an exclusive interview with Maksim Izmaylov, CEO of Winding Tree, the serial entrepreneur and blockchain enthusiast discusses the company’s approach to re-engineering the economics of travel-related transactions.

Izmaylov believes that current conditions in hospitality and travel are not optimal. He says this is due to the existence of too many intermediaries.

“Anyone familiar with the travel industry understands that any travel-related transaction, such as a hotel reservation made online today or an airline reservation, involves at least five, if not ten, middlemen, each of whom, of course, charges a small fee. And, you know, they basically just garble the data that flows from one provider to another,” Izmaylov noted.
Winding Tree will eliminate intermediaries that have been in place for many years. It will lead to lower airfares and more comfortable travel bookings. Interestingly, the benefits don’t end with the businesses involved, as end-users themselves would also be beneficiaries of cheaper pricing.

Winding Tree Demands Unlimited Data Flow between Market Players

Winding Tree is looking to not only solve the problem with multiple intermediaries in the transactions between sellers and buyers, but also to improve the way data collection works. Izmaylov claims that there is much data discrepancy in current hotel, airline, and travel agency booking systems due to such intermediaries.

“For instance, suppose you’re a customer speaking with an online travel agency, and they already know a lot about you. They asked for your name and age.

However, if the data passes through 5-10 intermediaries, you can imagine the amount of data disparity that may ensue,” Izmaylov noted.
Izmaylov further explains that, at the end of the data flow, the hotel will most likely only obtain the customer’s last name, first name initial, and email.

Even worse, they can’t tailor offers to a potential customer, and they may not be able to provide a better deal because the customer belongs to a certain age group, or because they belong to a certain association, or something similar. They lose all that information.

Hence, by ‘unbounding’ the data flow, i.e, eliminating intermediaries between market players, Winding Tree is able to not ease the process of data collection for businesses, but consequently ensures the delivery of a great and tailored experience for end-users at a very affordable cost.

Winding Tree wants to expand its offerings beyond travel

Izmaylov pointed out that the essence of any market is about the company that created it. Winding Tree’s decentralized marketplace is focused on travel. However, according to the company’s CEO, the theoretical plan is to extend to other industries and services.

The platform uses smart contracts to interface with blockchain, so any company can easily connect their social media accounts, website and other digital assets.

Part of the company’s plan is to create what Izmaylov described as a ‘system of self-sovereign identity’ or SSI for organizations. This particular feature, according to Izmaylov, makes use of a customized underlying technology known as ‘OrgID,’ which effectively means identity for organizations.

“It’s incredible when you consider the possibilities of the SSI system. Imagine, for example, that you can prove your identity to a company or network of organizations within a decentralized environment without any central authority. Is there anything you will be allowed to do? You know, where everyone can connect to anyone without asking permission,” Izmaylov explained.
Another major benefit of the SSI program is the online management of information and profiles. Izmaylov stated that their goal is to connect existing business entities with blockchains and create online identities.

Winding Tree has created a common platform for companies like Winding Tree to connect with one another and recognise each other online.

Izmaylov stated that Winding Tree was developing a solution with unlimited potential. It is difficult to know what the future will bring. The company remains optimistic regarding the many purposes it will serve in the future.

To The Flipside

• Blockchain and cryptocurrency are not yet well understood by many businesses, so they are reluctant to be used.
• Innovation is not a priority for many businesses, and even those who do tend to lack the necessary resources to implement it effectively.

What are the reasons to care?

Travel and hospitality consumers are often selective and prefer personalized service providers. Businesses that use Winding Tree are more likely to attract clients.

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