The essential thing in a business is the satisfaction of customers. Therefore, a simple mechanism with a reasonable goal to provide great happiness and pleasure to the customer is to fulfill his need, whatever it may be. You can check ProfitEdge to learn more about bitcoin trading.
The best way to make a customer happy is by giving discounts on hotel rooms because everyone knows that no one can refuse a discount offer.
6 reasons bitcoin benefits the hotel industry in India
- The first significant benefit of accepting bitcoin from the hotel industry is that they can quickly provide discounted rooms to their customers; since bitcoin has a good exchange value in the market, it doesn’t go for a toss when currency rates change frequently. In India, currency rates change up to 50% per year, and hotels have to suffer losses because of this, but if they accept bitcoin, it’s all good because when the hotel books a room for an amount, let’s say INR 10k, which is about $150.
- The second benefit is that there are no banking charges or service taxes which have to be paid from the money earned. If a hotel industry wants to increase profitability, they need a discount offer to attract customers, and digital currencies like bitcoins can help them.
- The third benefit is that there are no chances of any corruption because bitcoin is decentralized, and no one can change anything without going through the whole process. There is no scope for black money transactions, unlike cash on delivery (COD) options where online customers pay money directly to the hotel staff. Cash on Delivery only helps hotels engaged in illegal activities like black money dealings and money laundering.
- The fourth benefit is that there are no chances of selling a room to more than one person because bitcoins can only be used for one transaction. Once it’s done, there aren’t any other possibilities of using it for another person without transferring ownership. In India, if two people pay 1 lakh each for a room, which is a total of 1 lakh, and the hotel sells one room. Then its revenue is equal to 1 lakh. Still, if two customers pay 50% each, then the total income of the hotel will be two lakhs instead of 1 lakh because all bitcoins can be used for unlimited transactions even after ownership changes.
- The fifth benefit of using bitcoins is that there is no chance of fraud because if someone pays for a room with INR 10k, which equals $150, and after some time, he sells his purchased room for $100 to another person, so he gets half of the money. But if someone pays $150 for a room but instead its owner sells his room for $100 to another person, both are equal in the loss.
- The sixth benefit is that the hotel industry doesn’t face any losses due to currency rate changes because bitcoin’s value doesn’t change for a short period. So if they get bitcoins worth 10k, they can save that money slowly because its value doesn’t go down to half in just two days.
3 reasons bitcoin can negatively impact the Indian hotel industry
- The First problem is that if bitcoins value goes up by 100%, they will get only 50% of the money instead of the original 100%. In India, currency rates change up to 50% per year, and hotels suffer losses. If a hotel accepts INR 10 lakhs as a payment for a room and the currency rates change from 50 to 55 per dollar, they only get five lakhs instead of 10 lakhs.
- The second concern is that there are no regulations that support digital currencies like bitcoins in India, so if someone wants to invest in bitcoins, there is no guarantee that they will get the desired result in the future. Investing in bitcoins costs a lot, so it’s better to invest INR 10 lakhs in Indian banks, which gives about 7% interest per year, whereas investing in bitcoins costs about 15% per year.
Conclusion:
People should use bitcoins in India to save the hotel industry, but they should avoid investing in bitcoins because of the risk involved. Instead, one should always use money with some value and don’t go down in a concise time frame because this gives an investor better returns.
