Behind Arakis: Disrupting the Travel Industry with Blockchain and Web3 Technology
Welcome to another insightful conversation in our "Behind the Startup" series on Hackernoon.com. Today, we have with us Semil Vithani, the brains behind Arakis, a disruptive force in the travel industry that is leveraging web3 technology to challenge the status quo. Through this dialogue, we delve into Semil's journey from university studies and entrepreneurship in diverse fields to establishing Arakis in Dubai. He sheds light on the inspirations behind Arakis and its commitment to a community-driven approach in the tourism sector.
He talks about how Arakis is using blockchain technology and RST (Revenue Sharing Token), which converts all hotels and airlines in the world into a non-fungible token (NFT), to create a new era of customer empowerment. Let's unpack the future of the travel industry as we know it and delve into Semil's vision of an industry revolutionized by blockchain and web3 technologies.
Arakis: Integrating Web3 Technology and Blockchain into the Future of Travel
Ishan Pandey: Hi Semil, welcome to our series “Behind the Startup.” Please tell us about yourself and the story behind Arakis.
Semil Vithani: Hello Ishan, thank you.
I studied Global Business Management in Finance at Regents University in London and while studying, I started a few businesses such as dropshipping medical supplies during covid. I also helped local businesses with their online presence and managing their social media, managed 10 properties by leasing them out on Airbnb, and bought and sold cars as a side hustle. I also gained valuable experience working at companies like EY, Quintessentially, and Ten Lifestyle.
After graduation, I moved to Dubai and decided to start a travel business here in the UAE.
In settling upon the name of Arakis for the business, we draw inspiration from the Freemans, citizens of the planet Arakis in the movie Dune, who fearlessly revolted against those who sought to exploit and conquer them. Arakis is committed to revolting against the major corporations that are looting money from innocent people without their knowledge. Arakis believes that the power of decision-making in the tourism industry should be in the hands of the people, not the corporations. Arakis is committed to giving power back to the people and creating a new era of community-driven emancipation. Together, we can take charge and create a future that truly reflects and empowers the needs and desires of our communities.
https://www.youtube.com/watch?v=iu-cGNWhgTo&embedable=true
Ishan Pandey: Please tell us a little bit about Arakis, how you think web3 technology can be applied to the travel industry, and what benefits you anticipate this will bring.
Semil Vithani: Arakis is a revolutionary community-driven travel platform that has the potential to disrupt the travel and tourism industry by integrating the latest technologies in the form of blockchain and RST. Our business model allows the company to rapidly scale profits in an open and transparent manner by creating a productive asset that converts all hotels and airlines in the world into an NFT, which we call RST (Revenue Sharing Token). As the RST holder, you can earn a share of the booking commission from these hotels and airlines.
Web3 technology has the potential to revolutionize the travel industry by providing new ways to manage data and facilitate transactions using the RST revenue sharing model which is a productive asset with tradable rooms as an asset class.
Here are some potential benefits of web3 technology being applied to the travel industry:
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Decentralized platforms: web3 enables the creation of decentralized platforms that are not controlled by any central authority. This means that users can interact with each other directly, without intermediaries like travel agencies or booking websites. Decentralized platforms can provide greater transparency, accountability, and security for both travelers and service providers.
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Smart contracts: web3 technology also enables the creation of smart contracts, which are self-executing contracts that can automate complex transactions. Smart contracts can be used to automate payment processing, booking confirmations, and other tasks that currently require intermediaries.
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Improved data management: web3 technology can also improve data management in the travel industry. With decentralized platforms, users can control their own data and decide who has access to it. This can reduce the risk of data breaches and give travelers more control over their personal information.
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Creating a productive asset that converts all hotels and airlines in the world into an NFT, which we call RST (Revenue Sharing Token). As the RST holder, you can earn a share of the booking commission from these hotels and airlines. For instance, if someone owns the RST of a Hilton Hotel in London, the holder will receive 1% of each booking value made in that hotel through the bookings made on our travel platform.
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The travel industry relies heavily on intermediaries like bed banks, which purchase hotel rooms in bulk and then resell them to online travel agencies for a profit. Our community aims to disrupt this model by acting as a decentralized bed bank, with members buying and selling hotel rooms to each other.
There are two types of rates in the travel industry: static and dynamic. Static rates are set by the hotel and remain the same throughout the year, while dynamic rates change depending on external factors like sporting events or concerts. By doing research and identifying upcoming events, community members can purchase hotel rooms at a lower static rate and then sell them at a higher dynamic rate when demand is high.
To ensure fairness and prevent price gouging, each booking will be supported by a smart contract that prevents the room from being sold above market price. This way, travelers can be confident that they are getting a fair deal, and the community can earn a profit without resorting to unethical practices.
While there are some challenges to implementing a decentralized bed bank model, such as the need for significant capital to purchase rooms in bulk, this approach has the potential to disrupt the current intermediary-dominated travel industry and create a more equitable marketplace for travelers.
Overall, the application of web3 technology to the travel industry has the potential to make travel more affordable, accessible, and enjoyable for everyone involved. By reducing the need for intermediaries, improving data management, enhancing the customer experience, and providing more investment opportunities to earn passive income. Web3 technology can help to create a more decentralized and democratic travel industry.
Ishan Pandey: How can web3 technology be used to enhance the travel experience for tourists, and what benefits do you see in this approach? In what ways can web3 technology be used to support community engagement and social connections in travel, and what benefits do you see here?
Semil Vithani: The use of web3 in travel can offer several benefits to the public. One of the advantages is that travelers can access more curated and authentic content and reviews, leading to a more personalized and genuine travel experience. Additionally, web3 technology can enable travelers to access cheaper travel prices and enjoy a seamless payment experience, which can make travel more accessible and affordable. Another benefit is the opportunity for individuals to earn through our revenue sharing model. It is for individuals who want to earn while others travel.
Ishan Pandey: What role do you see blockchain playing in the future of the travel industry, and how can it be leveraged to create more secure and transparent travel experiences?
Semil Vithani: Firstly, blockchain can be used to secure personal data and travel information, as it is a decentralized and tamper-proof ledger. This means that travelers' sensitive data can be protected from potential cyber attacks and data breaches. Additionally, blockchain can enable travelers to have more control over their data, such as who has access to it and how it is used.
Secondly, blockchain can improve the transparency and traceability of travel transactions. For example, blockchain can be used to create a digital ledger of all travel bookings and payments, providing a transparent and tamper-proof record of each transaction. This can help to reduce fraud and disputes, as well as increase accountability and trust between travelers and travel providers.
Furthermore, blockchain can be used to facilitate more efficient and secure payment processes, such as through the use of cryptocurrencies and smart contracts. This can reduce the need for intermediaries and increase the speed and accuracy of payments, leading to a more seamless and convenient travel experience for consumers.
Ishan Pandey: How can decentralized finance (DeFi) be integrated into the travel industry to facilitate seamless and secure payment transactions? Do you think web3 technology be used to foster more equitable and inclusive travel practices that benefit all travelers?
Semil Vithani: Decentralized finance (DeFi) can be integrated into the travel industry to facilitate seamless and secure payment transactions in several ways. One way is through the use of cryptocurrencies as a form of payment for travel bookings and services.
By integrating cryptocurrencies such as Bitcoin or Ethereum into the travel booking process, travelers can benefit from fast and secure payments, low transaction fees, and the ability to make cross-border payments without the need for a traditional banking system. Moreover, DeFi protocols can enable the use of stablecoins, which can offer price stability and minimize the risks associated with using volatile cryptocurrencies.
Another way DeFi can be integrated into the travel industry is through the use of smart contracts. Smart contracts are self-executing contracts with the terms of the agreement directly written into code, which can automate the payment process and eliminate the need for intermediaries, such as banks or payment processors.
For example, a smart contract can be programmed to release payment to the hotel once a traveler has checked in and verified their stay, ensuring that the payment is secure and that there is no dispute over the transaction.
DeFi can also be used to provide more accessible and affordable financing options for travel, such as through the use of decentralized lending and borrowing platforms. This can enable travelers to access travel loans at lower interest rates and without the need for a credit check, increasing the affordability of travel for more people.
Overall, the integration of DeFi into the travel industry can bring significant benefits, including more secure and efficient payment transactions, greater accessibility to financing, and a more seamless and convenient travel experience for consumers.
Yes, web3 technology has the potential to foster more equitable and inclusive travel practices that benefit all travelers. By using decentralized platforms and blockchain technology, web3 can create a more transparent and secure travel industry that eliminates intermediaries and reduces fees, making travel more affordable and accessible to all.
Web3 technology can also facilitate community-driven travel experiences, allowing travelers to connect with local communities and support local businesses. This can create a more authentic and meaningful travel experience for both the traveler and the local community. Additionally, smart contracts and decentralized finance (DeFi) can ensure that travelers are fairly compensated for their contributions to the community and that local businesses receive their fair share of the profits.
Ishan Pandey: What role do you see decentralized finance (DeFi) playing in the future of travel, and how could it be integrated into NFT-based travel services?
Semil Vithani: DeFi in travel can entail the use of decentralized exchanges (DEXs) to facilitate the trading of travel-related assets, such as hotel rooms or airline tickets, in a peer-to-peer manner. This could enable travelers to purchase these assets directly from other individuals or entities, rather than relying on intermediaries such as travel agents or online booking platforms and booking it directly from hotels and airlines. Another use case for Arakis is RST, allowing the booking revenue to be shared with the holder of the revenue sharing token.
Ishan Pandey: How do you see web3 technology and travel evolving in the coming years, and what potential opportunities and challenges do you anticipate?
Semil Vithani: One potential opportunity is the ability to create more decentralized and community-driven travel experiences, where individuals have greater control over the decisions that impact their travel experiences. This could lead to more customized and authentic travel experiences, as well as more equitable and sustainable practices.
However, there are also potential challenges to overcome, such as the need for greater education and awareness around web3 technology and its potential applications in travel. Additionally, there may be regulatory and legal challenges to navigate, as well as concerns around privacy and security.
As the use of web3 technology in travel continues to grow, it will be important to prioritize collaboration and open communication between stakeholders, including travel companies, blockchain developers, and travelers themselves. By working together, it may be possible to create a more transparent, inclusive, and innovative travel industry that benefits everyone involved.
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