Zinger Key Points
- Full on-chain travel infrastructure is unlikely soon, as existing supply partners lack incentive and resources for integration.
- Startups must rethink distribution rather than tech to succeed, targeting untapped user bases through embedded crypto ecosystems.
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Crypto payments are gaining traction but face significant barriers to mainstream adoption in the travel industry due to consumer discomfort with wallet-based transactions, according to Mathias Lundoe Nielsen, founder and CEO of EnTravel.
In an interview with Benzinga, Nielsen emphasized that mainstream consumers find crypto wallets inconvenient, predicting that crypto-linked cards and stablecoin-based agent transactions will drive future adoption.
"It's difficult for lot of the normal mainstream consumers to work with wallets, non-custodial or custodial, it doesn't matter.
It's not comfortable, it's not fast, it's not easy, it's not convenient," he said.
Nielsen highlighted the rise of crypto cards, such as those offered by BitGet, EtherFi, and Bybit, which provide cashback and ease of use, making them a more appealing option for travelers.
"These master cards connected to crypto holdings… This is a big trend because the cards are giving cash back and people are okay using their crypto when they pay with the card," he noted.
For agent-driven bookings, such as AI platforms like ChatGPT arranging travel, Nielsen foresees stablecoin rails enabling seamless agent-to-agent payments, bypassing traditional payment friction.
"We will see the agents paying other agents using stablecon rails as the only thing," he predicted.
EnTravel, a Web3-based travel platform, is tackling these challenges by integrating its services into crypto apps like BitGet Wallet, which has 80 million users.
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This allows access to 1 million hotels worldwide at 30-40% lower rates than Booking.com, payable with crypto or cards via BitGet Pay.
Nielsen stressed that such integrations are key to disrupting the travel industry, dominated by major online travel agencies (OTAs) like Booking.com and Expedia, which control 40% of the $1 trillion online accommodation market.
The travel industry's systemic barriers, such as fragmented hotel distribution and high marketing costs, make it difficult for new entrants to compete, Nielsen explained.
"You cannot bid more than Booking.com. It's not possible. The unit economics does not make sense," he said.
EnTravel avoids these channels, focusing on crypto-native distribution to offer lower prices and transparency, ensuring consistent rates regardless of user location or device.
Nielsen also sees AI and Web3 reshaping travel. AI can streamline booking processes, but the industry underutilizes it due to poor data quality and payment friction.
"This flow would only be smooth if the payment is not done with card," he said, advocating for agent-driven stablecoin transactions.
On sustainability, he suggested blockchain could enable carbon offset options at booking, but noted that full on-chain adoption is distant due to stakeholder resistance.
"It would require adoption from a very large amount of stakeholders that are not prepared," he said.
Looking ahead, Nielsen predicts that embedding travel bookings in crypto wallets and neobanks will disrupt consumer behavior within five years, driven by lower prices.
"If the price is lower, the behavior can change," he said, urging startups to prioritize innovative distribution channels over technology alone.
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