[Feature] Crypto Tourism: Changing the Travel Industry One Coin at a Time

The growth of cryptocurrency has changed many aspects of our lives, and that includes tourism. Also called “crypto tourism”, it capitalises on the yearning to encompass modern technology with crypto traders’ financial power so as to establish a new style of travel. Crypto tourism grew in the pre-pandemic period but COVID-19 heavily hampered its growth. Despite that being the case, it prospered in other aspects of our lives during the lockdowns. As normality is slowly restored domestically and internationally, and more borders eased their travel restrictions, crypto once again started gaining ground in the travel industry. You make payments using physical money and digital cash, so why not crypto as well since it is a virtual currency after all?

One example of crypto tourism: Between 2019 and 2020, four cruises were held with roughly 2,500 holidaymakers joining the Mediterranean blockchain cruise organised by Scottish crypto wallet, CoinsBank. One of the major events that occurred was Coinbene and McAfee signing a contract to cooperate and develop a new ecosystem to prevent corruption in the crypto world as well as to protect the community from scams.

Nexo, Brickblock, United Traders Exchanges, HOSHO, and more, participated in the Blockchain Cruise event.

Do you know which industry is the biggest crypto adopters? Out of any business sector or industry, travel companies have been the biggest adopters of crypto. Some examples include Expedia leading the way in crypto adoption with customers being able to make payment for hotel bookings using Bitcoin (BTC); airlines like Vueling, AirBaltic, and the likes, also made the move to accept crypto as a form of payment; Emirates Airlines too announced in May that it would soon accept BTC as payment.

Based on a recent study by Traders of Crypto, travel companies have been the biggest adopters of crypto, with 11.54% of crypto-accepting companies. This includes booking websites, airlines, and hotel groups

Even organisations not related to the travel sector, like World Economic Forum (WEF), had also launched the Known Traveller Digital Identity System (KTDI) whereby the blockchain collects and hosts data from international travellers to streamline their next customs declaration and clearance experience. One of the crypto-friendly destinations, the Bahamas, even has its own digital currency called the Sand Dollar.

Crypto tourism comprises of more than just booking trips using crypto or heading to crypto-friendly places; it includes travelling for crypto and blockchain events, seminars, and conferences.

The CEO of Airbnb, Brian Chesky, conducted a poll this January on Twitter to survey the company’s followers on what they would like the company to launch this year (see below).

4,000 people participated in the poll with a majority keen to see BTC or other popular crypto being offered as a mode of payment

In this era where crypto is gradually being accepted as a form of payment, enabling it would allow the travel industry to attract a wider demographic, as well as keep with the times and technology. Nonetheless, nothing is perfect: there are advantages and disadvantages to crypto tourism, especially when it comes to payment. On one hand you avoid financial intermediaries like banks so you do not have to fret over forex conversions or losing physical currency; on the other hand, because it is still a relatively niche market, options are limited.

In an article on PhocusWire (a comprehensive daily news companion for the industry, powered by Phocuswright, the most respected travel research authority and events brand in the world), Artūrs Garais, Web3 project lead at AirBaltic, noted that,

“With the current market situation, [crypto] payments are not very popular at the moment… However, we have been in these cycles before and have recovered. The situation currently is slightly different due to the overall financial situation, but as it is more than currency, we believe that in the long term, there should be a recovery and growth.”

Although Alice Ferrari, founder and CEO of airline API technology provider Kyte, concurred that crypto is not a hugely demanded payment method as of now, things can potentially change as stablecoins become more popular so now might be the time to get ahead of the trend.

She went on to espouse the benefits of blockchain technology on the travel experience,

“The blockchain technology behind it is soon going to be used to power all kinds of travel experiences, in particular loyalty and points programs as they become ─ perhaps totally unbeknownst to the user ─ NFTs based on blockchain.”

All in all, despite COVID-19 rearing its ugly head resulting in worldwide travel bans (many places have eased up significantly to date) and the recent bear market blues, crypto is gradually becoming a popular payment method across industries, and the travel sector is no exception. It will play a role in shaping the future of payments.

Disclaimer: The content in this article is, one: solely the author’s opinion and is by no means financial/investment advice, and is purely for educational/informational purpose only; two: research done based on relevant and proper news channel.