The rapid emergence and growth of cryptocurrencies have created a huge demand for travel services. This has led to the emergence of various new applications in the travel industry. According to a study, the sector is the most crypto-friendly industry. In fact, the impact of cryptocurrency on the travel industry is set to be huge.
Many of these solutions are designed to address the various pains that travellers experience when they travel. For instance, a blockchain-based identity system developed by consulting firm Accenture aims to help international travellers avoid unnecessary customs procedures. Due to the nature of cryptocurrencies and their underlying principles, the travel industry is expected to experience significant changes.
Transparent, Easy Payments
In January, Airbnb CEO Brian Chesky asked his followers on Twitter what the company should launch in 2019. The results of the survey revealed that the most popular response was the ability to pay for bookings using cryptocurrencies. This shows the influence of cryptocurrency on the travel industry and how it’s set to take over.
Another survey also revealed that over 20% of American travelers want to pay for their trips using different cryptocurrencies. The travel industry has already reacted to this growing demand by allowing its customers to pay for their hotel bookings using Bitcoin. Some of the airlines that are already accepting cryptocurrencies include Norwegian Air, AirBaltic and Polish Airlines.
The travel industry is already in need of a paradigm shift, as it has been historically characterized by a fragmented and rigid system. With the use of cryptocurrencies, travellers can now pay for their trips securely and conveniently. This eliminates the need for third-party intermediaries and manual processes.
Redefining Loyalty Programs
According to a study conducted by Mastercard, the number of people who are members of loyalty programs has never been higher. These programs are vital for the travel industry as they help businesses compete with aggregators and attract more frequent travellers.
Despite the evolution of loyalty programs over the years, they have lost their shine due to the increasing number of crypto rewards. One of the biggest issues with loyalty programs is that they don’t provide enough value to their members. Currently, the most common type of reward program is the one that’s fully controlled by the company. This means that if the company decides to stop offering a certain amount of value, its customers have nothing to do with it.
This is why, in 2019, a new generation of loyalty programs will allow members to exchange their points for fiat. This new type of reward will provide them with a new incentive to participate.
No More Physical Tickets or Manual Confirmations
Non-fungible cryptocurrencies, such as NFTs, are expected to be a critical innovation in the travel industry in 2019. They could be used as a form of ticket or passport that can be used to access the various services and goods in the industry.
With the use of NFTs, travellers would no longer have to deal with the hassle of having to use different platforms to book their trips. They would be able to simply log in to their wallets and have all their details stored there.
This eliminates many of the pain points that travellers experience when it comes to travelling, such as dealing with local currencies and the lack of transparency. Through the use of cryptocurrencies, they can now easily modify or cancel their trips without going through the cumbersome processes associated with them.
Although the use of cryptocurrencies is still in its infancy, both travellers and travel businesses are likely to encounter some initial resistance. However, as the market matures, these initial users will be the ones who will be able to navigate the space. What are your thoughts on cryptocurrency on the travel industry? Let us know in the comments below!
