Consumer demand for more cryptocurrency use cases in travel has increased along with the explosive growth of cryptocurrencies over the past few years. While there is still a long way to go, the progress made thus far is unquestionably encouraging: according to a recent survey, the travel sector is the most cryptocurrency-friendly.
Blockchain-based solutions, many of which are intended to address the most common traveler pain points, have saturated the market, whether a cutting-edge crypto startup or a worldwide conglomerate introduced them. For instance, the World Economic Forum (WEF) and the consultancy behemoth Accenture recently collaborated to present the Known Traveler Digital Identity System. Our blockchain gathers and hosts their data to make customs declaration and clearance easier for regular foreign travelers.
It is already abundantly evident that cryptocurrencies and the concepts that underpin them will significantly impact the travel industry. How? Read on.
Consumer demand for more cryptocurrency use cases in travel has increased along with the explosive growth of cryptocurrencies over the past few years. While there is still a long way to go, the progress made thus far is unquestionably encouraging: according to a recent survey, the travel sector is the most cryptocurrency-friendly.
Blockchain-based solutions, many of which are intended to address the most common traveler pain points, have saturated the market, whether a cutting-edge crypto startup or a worldwide conglomerate introduced them. For instance, the World Economic Forum (WEF) and the consultancy behemoth Accenture recently collaborated to present the Known Traveler Digital Identity System. Our blockchain gathers and hosts their data to make customs declaration and clearance easier for regular foreign travelers.
It is already abundantly evident that cryptocurrencies and the concepts that underpin them will significantly impact the travel industry. How? Read on.
Transparent and Easy Payments
The CEO of Airbnb, Brian Chesky, polled his followers on Twitter in January about what the business should roll out this year. The outcome? Unsurprisingly, the ability to use cryptocurrency to pay for reservations came in first.
These results are consistent with another survey that revealed 22% of American passengers now prefer to pay with cryptocurrency instead to pay with a Bank Card. Fortunately, the market has reacted quickly to this rising demand, with websites like Expedia enabling users to pay for hotel reservations with Bitcoin. AirBaltic, Norwegian Air, and LOT Polish Airlines are just a few airlines that now accept cryptocurrency payments. Airlines are beginning to follow suit.
Crypto is ideal for the travel industry because it can unite a traditionally rigid and fragmented sector with numerous manual and paper-based processes. After all, a traveler’s experience involves a variety of touchpoints, from flights and vehicle rentals to reservations for restaurants, lodging, and activities. Travelers may pay directly, quickly, and safely for their experience using a single, transparent system that avoids gatekeepers and pricey third parties.
Enabling cryptocurrency payments is also essential for drawing in a growing generation. Global crypto millionaires increased to over 100,000 in 2021, and many are keen to spend their cryptocurrency profits on vacation experiences, especially those that emphasize luxury and individualized services.
Redefined Loyalty Programs
Data from MasterCard show that loyalty programs have been less popular than they are when 90% of US individuals participate in at least one. Loyalty and cashback programs are essential for the travel industry because they support firms’ ability to compete with aggregator platforms, attract repeat business, and motivate clients to travel more frequently.
But while conventional loyalty programs have been around for a long time, they are less prevalent than thrilling crypto benefits.
Most loyalty programs’ major flaw is that they need to provide more value. The most popular incentive systems today are reward points, which the corporation completely controls. The client has no recourse if it decides to stop offering them or offer fewer in return.
However, because cryptocurrencies are decentralized, their value will change according to consumer demand. Additionally, it allows tourists to exchange or trade their loyalty points for cash, giving them a new reason to participate and benefit in novel ways.
For instance, Northern Pacific Airways, a brand-new airline that will debut later this year, intends to offer flyCoin as a perk to frequent travelers. Customers can use the token to get free flights and premium airline status.
There have also been issues with cashback utilization in the travel sector. Since it frequently depends on a particular place and does not account for inflation, the award value decreases over time. Customers can cash out or spend their rewards anywhere in the world using cryptocurrency cashback, regardless of the currency. With cryptocurrency, cashback turns into an investment: Every time a traveler books a trip, they invest and earn coins that can be used for various experiences.
No more Physical Tickets
To revolutionize travel, non-fungible tokens (NFTs) will also be a crucial blockchain-based innovation. NFTs could serve as a type of passport or ticket to give verifiable and transparent access to products and services within the travel sector by representing legitimate proof of digital ownership (that can manifest in the real world).
It would no longer be necessary for travelers to use multiple platforms or make lost or incorrect reservations. Travelers might use NFTs to store all the data in their wallets, reducing the possibility of fraud while improving the user experience.
Even though the field is very young, it has tremendous potential. Pioneers are also already acting: For instance, LynKey, a worldwide platform that uses blockchain and artificial intelligence (AI) to power premium resort and vacation properties, has unveiled a marketplace project for tokenizing and providing NFT solutions for travel and tourism.
In the end, these initiatives will assist travelers in avoiding various difficulties, such as coping with local currencies, the demand for greater transparency, and losing money to exchanges and third parties. With the help of crypto solutions, they can customize, alter, cancel, or even sell their travels without losing money or going through time-consuming administrative hoops.
It can be scary for travelers and travel agencies who still need to dabble in cryptocurrency. While there are particular difficulties, such as changing restrictions and value volatility, they will disappear as the market develops. The early adopters will be the most adept at navigating the environment and succeeding when it occurs.
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