Cryptocurrency, bitcoin and NFTs were all just words I had heard of but never paid attention to. But when I heard that Travel NFTs were penetrating the travel space, I suddenly started paying attention to this digital world.
As an avid traveler, I often use the holidays to shop for travel-related gifts, such as new luggage, a refillable water bottle, and anything else that can make my trip more convenient. Recently, I heard about a travel gift that could one day be just as valuable as a TSA pre-check or the perfect carry-on. These travel gifts are NFTs.
In this article, I’ll break down what travel NFTs are, how they’re used, and whether they make a great stocking stuffer.
What are travel NFTs?
Starting with the basic definition of what NFTs are, they are non-fungible tokens. This definition didn’t make much sense to me, so I did some digging.
I discovered that NFTs are not tangible things. They are virtual assets that live in a virtual space known as the blockchain. Writing for BGN, Luke from USA Rover explained that NFTs “are typically created on the Ethereum network, which is the most popular blockchain platform for NFTs.”
According to John Nakata, a technical specialist at IBR, although NFTs are not something you can hold in your hand, they represent real objects. Nakata wrote to BGN explaining one of their uses. He shared that “they are often used to represent tangible assets such as airline miles, hotel points, or other travel-related rewards.”
What is useful about NFTs is that they are extremely difficult to change, modify or hack, which can offer a level of ease for anyone concerned about online fraud.
How do NFTs work for travel?
With a better understanding of NFTs, I was curious to know more about their function, so I contacted people who have used or bought NFTs.
According to an article on NFTevening.com, the Tourism Authority of Thailand has created a travel experience around collecting NFTs. Named Amazing Thailand NFTs, 3,999 of these tokens have been placed around various tourist spots in Thailand. Tourists eager to collect these limited NFTs can download an app to scan a QR code that will give them access to the NFTs. When visitors collect more than three NFTs, they can unlock special offers and deals. And depending on the travel NFT, there is the possibility of gaining access to events offered only to NFT holders.
So if I were to travel to a destination like Thailand or another destination that offers NFTs, I can collect them and create virtual memories of my visit. In fact, Neil Paul, Marketing Manager at Airbrush AI says, “They’re a great way to keep your travel memories alive. They’re easy to get hold of and they’re a great way to share memories with friends and family.”
With this information, I became a little more intrigued and wanted to learn more about the pros and cons of these digital tools.
(Source: Getty Images)
Advantages and disadvantages of travel NFT
I consider myself a travel conscious person. This means that when I take a trip, I do my best to consider the impact on the environment and local communities of the places I travel to. Therefore, I questioned whether NFTs are useful for local economies or whether they are just another money-grubbing system that exploits other countries.
I was pleasantly surprised to learn that travel NFTs can and do support the local economy. According to an article on Oveit.com, NFTs are often set up so that profits are shared between several participants. Typically when a travel NFT is purchased, a portion of the proceeds will go to the artist who created the NFT, and the other portion may go to the local tour company or restaurant that the NFT represents.
However, there is often a bit of bad that comes with a good thing. The process of creating or “minting” any form of cryptocurrency, including travel NFTs, requires the use of a powerful computer system that consumes a lot of energy. It is a carbon-heavy procedure that is not good for the environment. Despite this, NFTs seem to be trying to balance out this damage by partnering with sustainable and environmentally friendly companies.
For example, ClimateTrade has partnered with TravelX to help travelers offset carbon emissions when they travel. When a traveler buys a TravelX NFTickets, ClimateTrade notifies buyers how much emissions their flight will produce. When customers see their potential damage, they have an opportunity to make things right by contributing part of their purchase to one of the 60 verified global forecasts on the ClimateTrade market.
When the transaction is completed and they donate to projects focused on afforestation or renewable energy, for example, they receive a certificate showing how much CO22 they equalize.
Another example is the Trans-Bhutan Trail in Bhutan, which launched a collection of NFTs specifically aimed at hikers. As visitors walk this route, they can collect NFTs that offer exclusive experiences and community connections while funding sustainable projects.
(Source: Getty Images)
Are travel NFTs good holiday gifts?
After researching and talking to various professionals, I will be honest and say that I am interested in owning some travel NFTs. The question is should I add them to my holiday list as a gift for myself or my fellow travelers?
Martin included in her message, “Travel NFTs are also a great way to show your appreciation for someone special. If you’re looking to give your significant other or best friend a thoughtful and unique gift, a travel NFT is a perfect choice. It’s a meaningful way to show them how much you care while giving them access to exclusive travel experiences.”
Therefore, my final opinion is that travel NFTs can make great gifts for some travelers and perhaps great gifts for all travelers in the future. Because travel NFTs are still evolving in the travel space, they make great gifts for business travelers or travelers who are familiar with the cryptocurrency space.
However, I recommend keeping a close eye on the development of these tokens as they have been predicted by Euronews to be one of the many travel trends of 2023.
