Cryptocurrencies Are Streamlining Travel, From Booking To Boarding

The travel industry is relatively unchanging, with planes, trains, and automobiles taking passengers to their destinations in much the same way for decades now. However, Web3 technology, through blockchain and cryptocurrencies, is bringing changes to the sector. This shift could change how the public books and pays for airline trips, how security is handled, and could even reduce prices.

Camino Network and Travala.com are making advancements, while retaining a stance of practical acknowledgement in terms of regulatory uncertainties.

How Blockchain Could Enhance Travel

The data security of the travel industry is in question. On March 21, 2024, the "U.S. Secretary of Transportation Pete Buttigieg… announced the Department of Transportation (DOT) will undertake a privacy review of the nation's ten largest airlines regarding their collection, handling, maintenance, and use of passengers' personal information. The review will examine airlines' policies and procedures to determine if airlines are properly safeguarding their customers' personal information. In addition, DOT will probe whether airlines are unfairly or deceptively monetizing or sharing that data with third parties. As DOT finds evidence of problematic practices, the Department will take action."

This announcement comes after Which? Magazine's investigation in 2020 of 98 travel firms that found Marriott, British Airways, and easyJet to be high risk. According to Which?, "All three firms have already had breaches affecting nearly 350 million customers combined, which has resulted in hundreds of millions in proposed fines from regulators. Our experts found 497 vulnerabilities on Marriot owned websites alone. More than 100 of these were assessed to be ‘critical’ or ‘high’."

Blockchain technology is one potential solution to this issue.

For example, Camino Network, "the L1 blockchain designed for the travel industry and fueled with CAM token," is designed to address security flaws across the sector. While the transition is needed, however, it will take some time.

Thomas Stirnimann, Chairman of the Council for the Camino Network Foundation, explains, "The most significant barrier to the broader adoption of blockchain technology in the travel industry is time. As industries evolve, the adoption of new technologies often hinges on a gradual realization of their benefits. While blockchain's advantages are significant, they require time for full appreciation and integration. The travel sector, which is diverse and highly fragmented, must first recognize how blockchain can solve existing business problems and enhance operations before widespread adoption can occur."

By leveraging decentralization, blockchain-based travel platforms offer improved reliability.

Profitable airlines may feel that there is no need for change. Afterall, airlines experienced a "$27.4 billion industry-wide net profit ($4.0 billion higher than the previous forecast)" in 2023 according to the International Air Transport Association (IATA).

Blockchain may be an answer for this too: By being open-source, it offers high scalability when compared with existing ticketing systems, which aims to lead to faster innovation in various services. Additionally, this tech makes transaction fees and product onboarding simpler, enabling the affordability of participation in the new ecosystem.

It's mutually beneficial: Customers and travel industry partners alike can benefit from increased transparency, enhanced flexibility, more choices, all engendering lower costs.

The Next Layer: Crypto

Juan Otero, CEO of Travala.com, a blockchain-based travel booking platform, says, "Cryptocurrencies enable travelers to transact globally without intermediaries. They solve these problems by using blockchain technology to disintermediate and cryptographically secure transactions, resulting in efficient, verified, and cost-saving transactions for all parties."

Imagining American Airlines or Delta accepting Bitcoin and Ethereum makes this vague notion more understandable. Wider acceptance of crypto is growing, with Security.org reports that "cryptocurrency awareness and ownership rates have increased to record levels: 40% of American adults now own crypto, up from 30% in 2023. This could be as many as 93 million people."

Travala.com already does this, accepting Bitcoin, Ethereum, and its native token AVA.

For those wondering if it's possible to use Travala.com and still fly the airlines they know and love, the platform partners with popular travel providers like Expedia, Booking.com, and Agoda to ensure that customers have access to the selection of accommodations and flight to which they are accustomed.

In fact, some airlines already joined the crypto movement: AirBaltic and LOT Polish Airlines do accept Bitcoin. AirBaltic began this practice as early as 2014, making it one of the first airlines to do so, with LOT Polish following suit in 2015. Now, AirBaltic also accepts Ethereum, Dogecoin, and more.

Roadblocks & Legalities

However, as Stirnimann hinted, there are challenges that come with this significant change, with regulatory uncertainties, volatility in the crypto market, and widespread adoption being the main obstacles.

Some countries are addressing crypto's increasingly widespread influence, with some implementing licensing systems for cryptocurrency exchanges. Some of these regulatory frameworks in place recognize crypto as a valid form of payment.

The future of monetary norms is evolving quickly, with legal frameworks striking a balance between volatility and security. In the travel industry, the potential benefits and risks must be carefully evaluated.

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