Jorge Coromina
Cryptocurrencies and tourism
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Last year was a record year for the cryptocurrency market, which surpassed $3 trillion in value during a brief period in November 2021.
Bitcoin, in particular, made headlines in February last year when it reached a market value of $1 trillion, sparking debate over whether the cryptocurrency would become an accepted form of payment for travel.
Today, as the market struggles with inflation, Bitcoin's price has fallen below $20,000 in the past week, and experts expect the ups and downs to continue.
Travel providers that accept cryptocurrencies say they are experiencing a similar fluctuation - when the price of Bitcoin, or other cryptocurrencies, goes up, so does business - but that is not uncommon.
Latvian airline airBaltic, which claimed to be the first airline to accept Bitcoin in 2014, has observed a similar trend. Comparatively, in September last year, the airline reported that during the third quarter of 2021, the number of bookings paid for with cryptocurrencies increased by 44% compared to the same period in 2020.
Market volatility aside, there are other barriers to the widespread adoption of cryptocurrency payments in travel.
For one thing, in developed countries, credit card companies have a fairly strong stranglehold on funding and how to pay. Of course, consumers pay for credit card services, but no one realises how much they are paying for it.
For travel providers, allowing customers to pay in cryptocurrency brings its own set of technological challenges. Many hotels, for example, still struggle to accept credit card payment over the internet.
Travel providers are also likely to need an intermediary platform, such as Coinbase or BitPay, to handle payment. With more than $1 trillion currently invested in cryptocurrencies, the travel industry should not miss the opportunity.
Cryptocurrency, and the blockchain technology that underpins it, can also help travel brands build customer loyalty.
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The authors are responsible for the choice and presentation of the facts contained in this document and for the opinions expressed therein, which are not necessarily those of Tourism and Society Think Tank and do not commit the Organization, and should not be attributed to TSTT or its members.
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