STARTUP STAGE: TrustaBit uses blockchain to reimburse travelers for flight disruptions

TrustaBit

TrustaBit is a blockchain-based flight disruption management solution that automatically issues vouchers, miles or money to passengers experiencing flight delays.

Founded in 2017, TrustaBit is designed to restore harmony to the travel ecosystem by simplifying the compensation process so airlines can save money, agents can focus on escalations and travelers can continue their trip with ease.

Describe both the business and technology aspects of your startup.

TrustaBit is a flight disruption management solution helping airlines to harness the power of blockchain and smart contracts to improve the passenger experience. The software automates airline notification and compensation processes and can offer redemption in the form of vouchers, miles or dollars.

What inspired you to create this company?

As a frequent business traveler, I understand first‐hand the frustration caused when a flight is delayed. I also understand from a business standpoint that the airline has a unique opportunity to take initiative and alleviate this friction. TrustaBit was created to make this process simple and effective in order to improve the overall passenger experience and increase customer loyalty.

Give us your SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the company.

• Strength – We have a powerhouse team that is dedicated to helping TrustaBit change the way we travel, through technology.
• Weakness – Building brand awareness and competing in an industry as a new startup alongside prestigious airlines and household names.
• Opportunities – Streamlining flight disruption management with the ultimate goal of improving the passenger experience, from beginning to end.
• Threats – Compliance. We are using a new and innovative technology and must remain up to date on any regulations past that may affect our offerings and operations

What are the travel pain points you are trying to alleviate from both the customer and the industry perspective?

Current flight disruption management often leaves passengers frustrated and feeling as though they have no control when it comes to compensation and redemption. TrustaBit can help by offering passengers the power of choice – voucher, miles or dollars.

Airlines have difficulty with timely notification, voucher distribution and for European carriers, compensation regulations like EC 261. In 2018, one major carrier spent $500 million per year in flight delay compensation regulation payments alone. TrustaBit can help by simplifying and automating these processes.

So you've got the product, now how will you get lots of customers? Tell us what process you've gone through to establish a genuine need for your company and the size of the addressable market.

We have met with several major airlines that show interest in our solution and have validated a need for a flight disruption management solution like TrustaBit. Companies like IATA and Amadeus have also published whitepapers addressing flight disruptions and their impact on customer loyalty, citing a need for simplified flight disruption management. In today’s digital age, it is critical that airlines be technologically relevant and offer low-friction solutions. This is what TrustaBit offers.

Based on our research, we have found that our addressable market is $60 billion per year. With the number of daily travelers growing steadily, this number will only increase in the future.

How and when will you make money?

We charge a small fee for each transaction validated on our blockchain.

We are in talks with several major carriers and hope to begin beta testing by Q4. Once this is complete, we will launch and begin to realize revenue. Our roadmap is robust, and includes adding ride-share companies, hotels and airport vendor partners to the same blockchain, bringing in additional revenue.

What are the backgrounds and previous achievements of the founding team, and why do you have what it takes to succeed with this business?

Founder Saritta Hines has more than 13 years of experience in data analytics. Her expertise brings technical innovation and business teams together to transform the customer experience and she has established a key utility for businesses to streamline the delivery of products and services to customers using smart contracts.

Business strategist Deborah Crowe is a seasoned technology entrepreneur having co-founded and exited a successful mobile messaging business in New Zealand.

Our executive board is comprised of entrepreneurs who know what it takes to build a brand from the ground up and through a successful exit. The collective strengths, tenacity and business acumen of our team makes us uniquely qualified to create this solution.

What's been the most difficult part of founding the business so far?

Initially we thought the most difficult part of running this business would be breaking into the prestigious airline industry, which is known for its legacy systems. Since joining Ireland-based Aviation Accelerator, Propeller Shannon, we have been able to connect with and demo our solution to many airlines.

To date, the most challenging aspect of founding TrustaBit has been securing significant institutional funding. Our industry is niche, existing at the intersection of the travel and technology industries, and our technology is at the peak of innovation. We are not only seeking additional funding; we are simultaneously traversing the early adoption lifecycle.

Generally, travel startups face a fairly tough time making an impact ‐ so why are you going to be one of lucky ones?

Flight disruption affects everyone from the passenger to the airline agents to airport ground handlers. TrustaBit can restore harmony to the travel ecosystem by simplifying the compensation process so that airlines save money, agents can focus on escalations and travelers can continue their trip with ease.

This is solution that the airline industry critically needs and has the potential to change the way we travel.