Flying high: Cryptocurrency in the world of travel

Aeroplanes have been in existence for over a century, commencing in 1903, courtesy of brothers Wilbur and Orville Wright who invented their aeroplane, The High Flyer.

In the past, holidays were procured through travel agents and paid in cash instalments or by traveller’s cheques. The 1990s witnessed the proliferation of the internet and the emergence of package holidays that were booked and paid for online via debit and credit cards or in cash if reserved in person.

For two decades, this style of holidaying reigned supreme in the travel industry, and no one batted an eyelid at the phrase “I’ll just book a holiday online”. Over the last decade, the acceptance of digital currency has expanded the potential of cryptocurrencies, including utilising them to pay for trips and holidays. Cryptocurrency has also morphed into a unique trading industry.

How cryptocurrency made travel easier

Commencing as a trading opportunity and quick income source, cryptocurrency globally has evolved into a viable payment method for goods and services including holidays. This not only includes purchasing holidays but also the act of travelling. As numerous countries have accepted cryptocurrency globally, hotels, travel agents, and shops have followed suit to incorporate it into their operations.

Cryptocurrency has simplified travelling for several reasons. Increased acceptance translates into enhanced public visibility, leading more companies to offer it after witnessing benefits such as fewer refunds and heightened customer satisfaction. This, in part, has simplified travelling for holidaymakers as the technology cryptocurrency is built on offers quick online booking without security or administrative hurdles, or added expense fees. Crucially, it eliminates the requirement for currency exchange before or during travelling between countries, making continental travel straightforward. Consequently, tourists are more likely to spend money on souvenirs or online shopping.

The Dawn of Cryptocurrency in Travel Cryptocurrency was introduced into travel payments around 2013. The American-based site Cheap Air began accepting it as payment for flights. Introducing cryptocurrency into the travel industry was not a simple process. One report by a crypto trading company identified the travel industry as the sector with the largest number of companies adopting crypto as a payment method, with 11.54 percent of travel companies in the report doing so.

Travel giant Expedia joined the trend and began to accept cryptocurrency for booking package holidays and hotels in 2017, further legitimising cryptocurrency as a serious payment method while reaping the benefits.

No Currency Conversion The main distinction between using cryptocurrency and regular currency is the need to convert money. Depending on the destination, travelling abroad can necessitate visiting a currency exchange to convert money into the host country’s national currency. Exchanges typically offer less value for money as travellers have to accept the current worth of the currency. With cryptocurrency, travellers can make payments without added fees and the inconvenience of currency conversion or acquiring leftover, unused money at the end of their holiday.

European countries tend to lead the cryptocurrency travel movement, with popular tourism destinations like Spain hosting numerous eateries, hotels, and places that will readily accept it.

Anyone in need of a guide to where to travel to spend digital currency or eager for that ‘euro summer’ experience can find a comprehensive list of the most crypto-friendly destinations to dodge those pesky currency conversion fees!

Outside Europe, Dubai is an excellent destination due to its proactive approach towards cryptocurrency.

Enhanced Clarity and Security Maintaining transparency between the traveller and the companies with which they opt to travel is vital in encouraging repeat business and new travellers. Word-of-mouth and social media have the power to build or destroy a company’s reputation, so they must be clear in all aspects. Offering cryptocurrency not only shows financial inclusion but also a commitment to using the latest technology to ensure secure and transparent travel bookings.

Smart contracts via blockchain technology protect transactions and securely store data surrounding transactions, bookings, and tickets without the need for physical identification. Instant records can be advantageous if travellers need to show proof of booking for any reason as it cannot be lost on the blockchain, and the company will always have it to hand. This protects travellers from losing money or deposits and from having their identities or payment information stolen. In a foreign country, this can be a common security risk on public Wi-Fi networks or general internet use.

Opportunities for Loyalty Programmes Customer loyalty is a significant draw for the tourism industry, which can be offered through cryptocurrency and blockchain technology. As blockchains store an array of data on a singular network, they can be used to manage reward system points and tokens.

Increased accessibility on both sides allows travellers to be eligible for rewards more frequently if they use cryptocurrency enough. Traditional rewards through cards take much longer to earn whereas cryptocurrency rewards can be earned from anywhere without limits.

Cryptocurrency Tourism Benefits for the Industry Cryptocurrency improves customer accessibility to those who may not have a bank account or don’t wish to use it to pay for holidays, which will naturally lead to increased revenue for travel agents. The safety of decentralised finance that cryptocurrency provides means there are fewer instances of theft and no card fraud, so no hefty refunds or investigations need to occur to appease customers who are victims of this. Therefore, cryptocurrency is beneficial for both sides and may be the future of travel.

The editorial unit