The adoption of cryptocurrencies in the travel and accommodation space seems to be on the rise, with major players adding cryptocurrency payment features to their platforms.
The global travel industry is likely to get a break as governments relax COVID-19 restrictions . Airlines, agencies, hotels and others will seek to make up for lost time as well as revenue.
Collaboration between Expedia and Travala
Hospital cryptocurrency firm Travala on Monday announced a partnership with global travel giant Expedia. As part of the collaboration, Expedia's extensive network of 700,000 partner hotels is now available on the Travala website through Expedia's "Fast" application program interface (API).
Expedia has a Bitcoin (BTC) adoption history dating back to 2014. However, in mid-2018, the company stopped accepting BTC due to price volatility .
The announcement marks another milestone for crypto adoption in the travel industry. Travala allows clients to book vacation trips using more than 30 different cryptocurrencies , including Bitcoin, Binance Coin (BNB), as well as its own native AVA token.
Commenting on the association, Travala CEO Juan Otero commented:
“With the adoption of cryptocurrency on the rise, we want to make sure that our users have transparent payment options and prices for each trip booked. EPS Rapid is the best API product in the travel industry and this partnership unlocks a greater variety of accommodation and availability for our users, including 4- and 5-star hotels in major destinations. "
In June, Elrond (ERD) also partnered with Travala and TravelbyBit to enable ERD as a payment option on the respective platforms. The collaboration saw the adoption of crypto payments to 600 airlines and two million hotels worldwide.
Recovery on the horizon for the travel sector
Travala's partnership with Expedia comes amid recovery plans in an industry devastated by the coronavirus pandemic . To curb the spread of the virus, governments around the world ordered blockades that dramatically reduced the volume of international travel.
With the summer months in the northern hemisphere in full swing and a marked decline in the death rate, some countries have begun to ease restrictions. In early July, the European Union (EU) announced the opening of its borders to visitors from 15 "safe" nations.
According to Otero, Travala did not escape the coronavirus- induced decline that spread throughout the travel industry. Appearing on Unitize , an ongoing blockchain conference, Otero revealed that Travala saw a 90% decrease in travel bookings on the website during the height of the pandemic.
The Travala CEO predicts that the full recovery in bookings volume will begin late in the third quarter or early fourth quarter of 2020. The company is also beginning to see some improvement with weekly figures from its website. Traffic increased 50% and monthly hotel bookings increased 81% in June.
The popular online rental center Airbnb, which was also hit by the coronavirus pandemic , is experiencing a significant increase in gross reserve value. Such is the state of the company's recovery that there is talk of reviving its IPO plans.
Blockchain emergence in the hospitality sector
In addition to crypto payments, there is still an argument for further blockchain adoption in the travel and lodging sector. From baggage tracking to robust identity management systems and even loyalty reward points, the new technology has the potential to alter various facets of the industry.
International travel generally involves the exchange of data between multiple actors, including airlines, credit card companies , rental agencies and hotels , among others. The large volume of participants in the user data exchange chain also means that the industry has possibly the largest number of intermediaries.
Each link in the data exchange chain constitutes a vulnerability, exploitable by hackers. Blockchain technology can eliminate the need for these intermediaries. Distributed networks could host customer information that can only be accessed by the required participants.
Airlines can also use the technology to accurately track customers' luggage, which is likely to reduce incidents of lost belongings. On the loyalty bonus front , cryptocurrencies are also proving to be a viable tool for customer rebates and bonuses.
