Cryptocurrencies remain polarizing, with some viewing them as essential new assets and others eyeing them skeptically. However, as time passes, cryptocurrencies are becoming more relevant and useful in day-to-day life. Today, people can use cryptos to order food, pay for coffee, or even buy a car or book a trip. This expanding utility holds significant implications across industries. But in this piece, we want to look specifically at some of the reasons cryptocurrency might ultimately become significant for regular travelers.
It’s Becoming Easier To Pay For Travel With Crypto
The travel booking industry has had a bit of an up-and-down journey with crypto. Some major booking businesses were among the first large companies to get involved with Bitcoin, only to subsequently back out. Now however, while big players like Virgin and Expedia don’t directly welcome cryptocurrencies, more travel businesses are accepting Bitcoin and other popular digital assets in an indirect manner. For example, travelers can purchase plane tickets and book accommodations through apps that accept crypto –– like Cheapair and Travala. Even Airbnb-style alternative accommodations can be paid for via crypto through platforms like DTravel (although for this you will need to acquire their proprietary currency).
Crypto Simplifies Currency Exchanges
Before most international trips, it’s necessary to change your money into the currency used at your destination. Naturally, this process becomes a bit more complex when you plan to visit multiple countries, and while you can still use a credit card, chances are your bank will apply steep fees to cover exchange rates.
As more businesses around the world accept popular cryptocurrencies like Bitcoin or Ethereum though, travelers may not have to worry as much about exchanging currencies while traveling. Cryptocurrency effectively knows no borders, and while its acceptance is not yet as universal as it needs to be in order to change travelers’ habits, we may be on our way to that point.
Booking Through Smart Contracts
Some of the most common issues travelers face are unreliable bookings. No matter how much you pay to reserve a flight ticket or room, it can always be randomly canceled or changed by the company. Data from Canada on the subject is limited, but for general reference a report from the U.S. Bureau of Transportation Statistics suggests that in a single year alone (back in 2016), 471,000 passengers were stopped from boarding a plane. Now, not all of these instances can be fixed –– but better booking systems would surely solve some of the problems, which brings us to smart contracts.
In a smart contract, the terms of an agreement are written in code stored in a blockchain. As a result, smart contracts cannot be altered without alerting the whole network, making them irreversible. The concept was more or less born with Ethereum, and now many use Chainlink as perhaps the most prominent smart contract-oriented crypto platform. This and other, similar crypto and blockchain services can be used to set up smart contracts for any number of purposes –– including travel and accommodation bookings that would be far more difficult for companies to alter or cancel.
Cryptocurrencies Could Revolutionize Digital Travel
Nothing will ever replace the feeling of visiting a new city or country. Things like admiring monumental buildings, smelling street food, and trying on clothes made of unfamiliar fabrics can’t be recreated with technology. Having said that, virtual tourism is nevertheless an excellent way to get to know far-off landmarks and attractions that you might never “see” up close otherwise.
As we expressed in our ‘Toronto City Virtual Tour’ post, VR technology has improved considerably in recent years, providing truly immersive experiences like exploring historical buildings or safely approaching wild animals. The ground is being laid for a whole new virtual tourism industry, and one in which crypto payments figure to play a natural role. Virtual currency transactions will result in access to VR travel opportunities.
Cryptocurrencies are still viewed as high-risk investment opportunities. But as technology evolves and more people come to understand cryptos, these assets are slowly becoming the useful, decentralized form of exchange they were designed to be. In a few years’ time, this evolution may well result in a host of new opportunities that change the landscape for regular travelers.
