Is it possible to travel solely on the basis of the cryptocurrencies in your wallet?
The question would have raised some eyebrows a few years ago, but not today! The tourism industry has come a long way, from booking itineraries through intermediaries to implementing Blockchain for stability, security, and operations. Cryptocurrencies are now a common form of payment for travel industry services.
Do you know how? Continue reading to learn about the various applications of crypto tokens in the travel industry. But first, let us define crypto tourism.
Understanding Crypto Tourism
Crypto tourism is a product of the growing popularity of digital assets. Despite the industry’s instability, there has been a rapid expansion of Blockchain technology, primarily for the safety and security it has to provide.
Besides, with the increasing number of users investing in crypto tokens, the general audience wanted to explore their options with spending their earnings. This was when several tourist companies started organizing trip packages for Blockchain and cryptocurrency enthusiasts, leading to the birth of crypto tourism.
In a nutshell, crypto tourism is a type of service catering exclusively to the core users of digital assets. It involves cashless travel while reaping the benefits of the safety and security of the Blockchain network.
Now that you have an idea of crypto tourism let’s look at how it is changing the future of tourism.
How Cryptocurrencies Are Changing The Face Of The Travel Industry
Easy, Transparent Payments All-Around
Earlier this year, Airbnb came up with a poll on Twitter, asking the users about what the company should launch this year? Unsurprisingly, ‘bookings using crypto’ topped the list of suggestions. In addition, another survey suggests that over 22 percent of American travelers now want to travel cashless and use crypto tokens for their transactions.
Luckily, the tourism industry has quickly adapted to the latest demand boom. With travel giants like Expedia now accepting Bitcoin as a legal tender, the movie was soon started being followed by airlines like LOT Polish Airlines, Norwegian Air, and AirBaltic.
If you look at it, crypto adoption has redefined the industry, helping it avoid the manual paper-based process that the industry has been infamous for. With Blockchain technology, the industry also entails various touchpoints of a traveler’s experience. Everything ranging from booking a car rental to booking package activities is now done using a transparent system, making the entire process safer, faster, and more reliable.
Redefined Loyalty Programs
Data from MasterCard suggests that over 90% of US Adults are signed up with some form of the loyalty program. Loyalty and cashback programs have been the core of the influential travel industry, allowing the businesses to compete with other platforms while attracting new and retaining existing customers.
But even though the traditional loyalty programs have existed for decades, they’ve lost their core values over the years. So this is another aspect where crypto has taken over operations, making it better in the process. Here’s how:
Most loyalty programs have a significant flaw; they don’t provide enough value! Today, reward points are the most popular kind of incentive program. But, since the firm has complete control over them, customers have no recourse if it decides to stop offering them or to provide less in return.
However, since cryptocurrencies are decentralized, their value will change according to consumer demand. Additionally, it allows tourists to swap or exchange their loyalty points for cash, giving them a new reason to engage and get value in other ways.
Bidding Goodbye to Physical Tickets and Manual Confirmations
The travel industry has long resonated with paperless travel. However, it has yet to completely adapt to it, primarily for the increase in checkup points it needs to adapt to. This is where the use of Non-fungible tokens (NFTs) might take over. The use of valid proof of digital ownership could soon be replacing the likes of passports and tickets that need to be presented and verified for safer travel.
It would no longer be necessary for travelers to use multiple platforms or make lost or incorrect reservations. Instead, travelers might simply keep all the data in their wallets using NFTs, reducing the possibility of fraud while improving the customer experience.
For instance, LynKey, a global platform powering vacation properties and luxury resorts, is leveraging Blockchain and artificial intelligence (AI) to simplify travel for its users. This way, the platform has unveiled a marketplace initiative for tokenizing and providing NFT solutions for travel and tourism.
Given the rate of its adoption, many leading service providers are yet to adopt the likes of crypto payments in the travel industry. But what if we told you that you could still put your digital tokens to good use?
Thanks to the leading payment processors, you can now exchange your crypto token for travel gift cards. For instance, you could easily buy Airbnb gift cards in exchange for your purchased cryptocurrencies using Coingate. Once done, you could easily redeem it with your favorite travel platform, increasing your loyalty points, while reducing the overall expenditure in the process.
The Future Of Crypto Travel Is Better!
While businesses and travelers have yet to experience the use of cryptos and Blockchain to its full extent, the change has already begun. Besides, it won’t be wrong to say that the future of crypto travel is a bright possibility, and when it happens, the early adopters will be able to make the most of it. Stay tuned!