Web 3.0 tools, blockchain can transform the travel industry
The travel industry is no stranger to market headwinds. Closely related to the aviation and hospitality industries, the travel sector is tested by global geopolitical events, new technologies and changing trends every few years.
A couple of decades ago, OTAs (online travel agencies) like MakeMyTrip and Expedia made the traditional travel agency redundant. In the late 2000s, Airbnb’s business model disrupted the short-term rental market, and the hospitality sector took years to adapt.
Despite the aftermath of the Covid-19 pandemic, the industry is now poised for rapid growth. According to FICCI, the Indian travel market alone is estimated to reach $125 billion by FY 2027.
With most countries finally reopening their borders, a number of travel tech startups are now extending existing business models with Web 3.0 and blockchain tools to transform our travel experiences in the decade ahead.
Pay via cryptocurrency
Perhaps the most obvious use case for blockchain technology in travel is the use of cryptocurrency as a payment option for travel bookings.
Travala.com is one such blockchain-based travel booking platform that also offers a wide selection of hotels, apartments, villas, hostels and 5-star luxury resorts from around the world. Their native token, AVA, can be used for payments and redemption of loyalty rewards. Their Travel Tiger Utility NFTs (non-fungible tokens) unlock value for users in the form of access to airport lounges and travel experiences.
Sam Woolard, Chief Marketing Officer at Travala.com, says: “About 80 percent of our orders are paid with cryptocurrencies. Blockchain technology also enables us to create more engaging loyalty programs, tokenize trips with NFTs and develop interactive metaverse travel experiences.”
Tokenized flights and hotels
Most travelers have had to bear the inconvenience of canceling or changing their travel plans at some point. Undoubtedly, a non-refundable ticket that is not used is a loss for the passenger, but the airline is also at a disadvantage, as it could have sold the ticket at a higher price to another customer.
TravelX, a South American-based startup, leverages blockchain technology to reduce these market inefficiencies and create a frictionless distribution model with NFTickets.
By tokenizing airline tickets, travelers can sell these NFTickets on a secondary marketplace, recouping the original cost, or sometimes even making money in the event that travel plans are changed. Meanwhile, the airline can earn a smart contract-enabled royalty every time a ticket is sold on the secondary marketplace.
India-based Buk is experimenting with a similar business model for the hospitality industry. Recently seed-funded by Polygon Studios, Buk promises a tokenization platform that enables the open trading and resale of hotel room reservations in the form of NFTs.
Says Arul Prakash, Founder & CEO, Buk Technology, “Hospitality as an industry is well poised for technical innovation. Our model ensures a better user experience for customers while simultaneously solving hotel distribution as well as price parity inefficiencies that we see in the market today. Our MVP (minimum viable product) must be ready by March 2023.”
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