A unique solution to eliminate no-shows in the service sector based on a blockchain solution.
BlockServation resolves the problem of no-shows and restores trust in the service sector by installing a secure and transparent deposit system. It secures that restaurants which provide service in advance (=reservation) will benefit, and therefore have an incentive to still provide their services in the future.
This business idea is based on the increased number of no-shows arisen from anonymous booking possibilities.
Restaurant owner demand a new solution:
The number of no-shows increased dramatically. Surveys show that within the last four years the no-show rate increased by 30%. Arisen from new booking possibilities which make it quick and easy to reserve a table without any commitment. But nowadays people book several tables to decide spontaneously where to go or just change their plans on short notice, and due to anonymity, they see no need for cancellation. This phenomenon results in huge financial losses for restaurant owners. In conclusion restaurant owners are dissatisfied with the current state and call for a change. Here the service of BlockServation comes into play and offers a solution to the platform providers to make their customers happy again.
BlockServation offers the installation of a plug-in into booking platforms which collects a pledge from booking platform users when reserving a table online. The graphic show how the business model including all stakeholders works:
Revenue is generated by charging a service fee per booking:
Restaurants already need to pay a fee for every booking made via the platforms. The additional service provided by BlockServation will be charged on top. Market research shows that restaurant owners face a monthly damage of 3000-4000€ and are willing to pay extra for a service which solves this problem. If the costs for the additional charge undercut this number, the service will be used and BlockServation is in the game. The additional revenue stream created via the technology is shared 50/50 between BlockServation and the platforms.
BlockServation offers several advantages to platform providers:
- By using an anonymous and intermediary free blockchain solution credit card fraud and abuse of sensitive data will be avoided
- Partners (booking platforms) can be hold by offering a cheap and beneficial service for them which would be costlier to implement by their own and gives them the opportunity to concentrate on their core skills
- Trust and transparency are created by securing quick and easy transactions
- The whole plug-in implementation and training is conducted by BlockServation, effortless installation for customers
- Absorption of buying power: Being the first blockchain supplier gives the advantage to serve the big players and absorb their customer base which makes it difficult for new players to enter the market
- Established partnership network help to ensure a smooth introduction and a high ease of use
The whole user experience is easy and quick:
- A seamless booking process ensures high end-user engagement
- Fiat-user onramp through inclusion of traditional payments
- Intuitive and known user journey, few clicks needed to complete reservation
- Blockchain and token agnostic
- Integration of multiple hot & cold wallets
- Smart contract: make payments easy, fast and secure
- Secure data: eliminates credit card fraud and abuse of sensitive information
A promising market awaits BlockServation:
Evaluating the target market of BlockServation shows a high attractiveness offering high profits and growth potential.
BlockServation will expand throughout the world within the next five years:
The initial launch of the service will take place in Germany in the beginning of 2020 with the support of strong partners in BlockServation’s home market. Followed by an expansion into the DACH-region on all major platforms. In 2022 the expansion to UK is planned as the market offers low entry barriers due to high technological affinity and since it is the second biggest market for online booking of restaurants. Afterwards the U.S. market will be entered, the biggest market for online reservations and where pledges are already standard.
Team behind BlockServation:
The idea was developed by four dedicated blockchain enthusiasts from TUM School of Management in the seminar “Blockchain and the Future of Business Models, Value Creation and Organization” #lifewithblockchain
If you would like to get to know them, please contact @bcranger @lea.stemmer @rpd @anni-bcs
Thanks to Pascal Mehrwald (@pascalmehrwald), Benjamin Pabst von Ohain (@benpvo), Prof. Dr. Isabell M. Welpe and the TUM seminar participants!