Argentine airlines issue each ticket as an NFT

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Argentinian low-cost airline Flybondi integrates Web3 into its ticketing process by issuing e-tickets as non-fungible tokens (NFT).

The new integration announced on Thursday is called Ticket 3.0 and is an extension of its existing relationship with NFT ticketing company TravelX, which launched in September 2022. The NFT ticketing technology, built on the Algorand blockchain, allows passengers to rename, transfer or sell their “NFTickets” independently.

Flybondi says the NFT ticket “offers a more flexible travel experience that allows passengers to even buy in advance without having to define their travel plans or who the travelers will be.” In return, the airline is able to reduce customer service costs and increase revenues from merchant fees.

TravelX chief blockchain officer Facundo Martin Diaz told CoinDesk in September that the company does not charge a fee when users first purchase a ticket, but it receives a 2% transaction fee when trades are made on the secondary market. Airlines also get a 2% cut, he said.

Passengers can purchase travel tickets through the Flybondi website using fiat currency and TravelX issues a synchronized NFT ticket on top of the regular e-ticket. Travelers can then create a Ticket 3.0 account to manage and store their NFTs through Flybondi. Ticket-related rules and conditions are integrated into NFT’s smart contract by the airline.

“With this launch, we seek to generate a positive impact in the aviation industry through innovation and the use of blockchain technology,” said Flybondi CEO Mauricio Sana in a press release. “Changing the rules of the game is never easy, but we know that it is our goal to evolve and offer our passengers a new phase of the freedom to fly.”

TravelX partnered with Spanish airline Air Europa in April 2022 to launch a series of NFT tickets linked to special benefits and events. Latin American crypto exchange Lemon integrated TravelX on its platform in October 2022, allowing users to buy and sell airline tickets.

TravelX has also opened up its infrastructure so that other exchanges or marketplaces can use the TravelX API. According to the company, over 60 airlines worldwide are also investigating the use of NFT tickets.

See also: Latin American travel agency Despegar begins accepting crypto payments