Cryptocurrencies as a form of payment for travel, a hot trend

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https://en.travel2latam.com/nota/66973-cryptocurrencies-as-a-form-of-payment-for-travel-a-hot-trend
Cryptocurrencies as a form of payment for travel, a hot trend
Wed April 14, 2021

According to a study published today, the interest of travelers to pay for their reservations with different virtual currencies is growing. The industry thus adds a new and attractive challenge


In recent years, the emergence of the blockchain has generated a stir in different sectors due to the potential it has to drastically change the way data or information is stored and used. This technology promises to improve transparency and security in transactions. 

But above all, what is the blockchain?

The blockchain is a technology that stores, in a public way, all the transactions that take place in a certain network. Its main objective is to achieve greater security on the web, allowing information to be stored in a way that cannot be lost, modified or deleted.

The records are encrypted and grouped into blocks that form a chain, hence the name of blockchain or chain of blocks. 

The main characteristic of blockchain technology is that the data is decentralized; that is, they are distributed by the different nodes or computers that make up the network and each one of them has a copy of all the information collected. Every time a block or a record is added it has to be confirmed by all the members and is included in the copy that each one stores. In this way, the information is prevented from being altered or modified. Thus, the data stored in the blockchain network is safe, traceable, immutable and transparent.

3 advantages of blockchain technology

Blockchain technology, by its very nature, offers a series of advantages or characteristics that can be transferred to any sector, including tourism and technology. That is why by 2022 an annual growth of 51% is expected in different markets according to a study carried out by MarketWatch.

1. Data persistence
The data that the blockchain network houses is decentralized through various nodes; Therefore, since there is no single point of failure, we can say that the persistence of the data is assured.

2. Immutability
The algorithms used by the blockchain are designed to avoid modifications in the blocks. This is so thanks to a chain of trust, which guarantees that the stored data has not been modified.

3. Decentralization
Decentralization in blockchain occurs because there is no single entity that has control over all information processing, but rather it is spread over different nodes. 

The blockchain and tourism have the potential to become a very advantageous combination and this technology can provide security and transparency in certain key points. For example, when a travel agency books flights and hotels for a client, it sends their data to the different companies. The blockchain can make the transfer and storage of this information easier and more secure, since responsibility is shared by an entire network. The same goes for payments abroad, which increases the level of trust between all parties.

Travala.com, the world's leading cryptocurrency online travel agency (OTA) with more than 3,000,000 travel products in 230 countries and territories covering 90,124 destinations, today announced the results of its survey on the impact of COVID-19 on Americans' travel plans and their travel expectations in the second half of 2021. Overall, the results showed a strong appetite to spend more on travel this year and a greater desire to use cryptocurrencies like Bitcoin to pay for that.

The survey, which surveyed 1,000 Americans on April 1, 2021, revealed that a year of blocked travel led to 38% saying they plan to travel more after the pandemic, and 71% expect to spend more annually on travel than before. of the pandemic to make up for wasted time. In fact, nearly half (48%) said they were willing to spend more than a full paycheck on a national vacation during the second half of 2021, while nearly one in four (23%) were willing to spend more than two full paychecks for one international. When asked how they plan to pay for travel in the second half of 2021, an impressive 22% said they plan to use cryptocurrency to pay for part of their trip.

"This study reveals two key trends: Americans, and to some extent the rest of the world, are very optimistic about travel in the second half of this year, and an increasing number of them want to pay in cryptocurrency," said Juan Otero, CEO of Travala.com. "These two appetites are reflected in Travala.com's metrics, where we have seen a record number of bookings and payments made in crypto, which has quickly become a desired payment vehicle amid a strong crypto market and a surge. in the places to spend. in the real world. We're looking forward to getting people back to traveling safely and giving them more flexibility and freedom in how they pay. "

Travel Nostalgia and 2021 plans
As countries begin to reopen their borders, enthusiasm for travel increases. This enthusiasm is already manifesting itself in increased bookings between OTAs and recent travel data showing a steady increase in global air traffic and an increase in the number of travelers screened through TSA checkpoints. for the past few weeks. The vast majority (82%) of Americans surveyed said traveling has been one of the things they missed the most during the COVID-19 pandemic, citing creating memories (61%), escaping from work and daily life (58%) and watch a long time. distancing family and friends (52%) as the main experiences that were missed.

When asked about the occasion of their expected trip in the second half of 2021, Americans mentioned family reunions (56%), winter vacations (53%) and Thanksgiving (51%) as their main reasons to travel. Additionally, the most popular first vacations after the pandemic will be taken to the beach (41%) and the majority (62%) plan to travel with immediate family. However, this will not be limited to local travel, as more than a quarter (26%) indicated that they are highly likely to travel outside of the country during the second half of 2021.

Crypto and Travel
After a record year for cryptocurrencies, in which the price of Bitcoin and Ethereum reached all-time highs and pushed the total market value of cryptocurrencies above $ 2 trillion, an estimated 106 million people in everyone now has some cryptocurrency and they are looking for more ways to spend on everyday purchases. The favorable cryptocurrency market conditions, coupled with the pandemic, created the perfect opportunity for Travala.com to exceed expectations and grow explosively. This translated into unprecedented revenue growth for the Binance-backed OTA and a highly successful equity crowdfunding campaign, which raised 197% of its target.

As travel optimism returns, nearly one in four (22%) respondents say they will use crypto to book at least part of their trip in 2021. Of those planning to use crypto, they expect to use Bitcoin (70%) , USDT (45%), Ethereum (37%) and AVA (35%), the native currency of Travala.com, which can be used for payments, loyalty rewards, discounts, exclusive bonuses and more. Travala.com accepts more than 40 cryptocurrencies and has seen the growing interest in cryptocurrencies for travel; In March 2021, 65% of its $ 1.7 million in reserves were paid for with cryptocurrencies.

Additional key findings from the survey include:

  • The public events they are most likely to travel through are concerts (52%), sporting events (49%) and theater shows (36%).
  • While 90% of those surveyed plan to travel by car during the second half of 2021, almost half (48%) plan to complete part of their travel by plane.
  • More than a third (37%) will use an OTA to book travel.
  • While 53% of Americans said COVID-19 set them back on their travel goals, about a third (31%) also said it gave them time to set more travel goals and 30% indicated it made them want to. to travel. more

Survey Methodology:
These findings are based on a Pollfish survey of 1,000 Americans. The survey was conducted on April 1, 2021.

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