Cryptocurrencies in the tourism industry

Cryptocurrencies in the tourism industry

Silicon Valley does not stop innovating in the world of technology, and we in the tourism sector cannot be left behind. The arrival of the so-called Web 3 and its countless new features make the future of technology very promising and something that we must take advantage of in our sector.

In recent months the words “metaverse”, “cryptocurrencies”, “NFT’s” etc. have been present across many media channels, being part of the new technological evolution of the Internet called Web 3.0. In short, the internet is advancing and innovating as new creations exist and are implemented in networks, this being its third “version”. There are no official versions, they are only numbered to represent where we are now.

But all this revolution comes from an invention: the blockchain

The blockchain is a virtual structure for storing data in a way that is almost impossible to falsify. A public electronic passbook that can be shared openly between users and that creates a record of any transaction made using the technology. 

This breakthrough has led to the creation of different elements around it, such as cryptocurrencies.

So what are cryptocurrencies?

As their name suggests, cryptocurrencies are virtual currencies, which use digital encryption in their operations (the blockchain). Today there are thousands of types of cryptocurrencies, each with different objectives. The best known are: Bitcoin and Ethereum.

In order to obtain these cryptocurrencies we can resort to various websites, which after a brief introduction of our data, ID and personal photo, will create a virtual wallet where we can store our coins. After this, we will need to introduce on to the website an amount of real money, in the currency that we desire (EURO, USD…) and finally we will be able to make the exchange for the value of the chosen cryptocurrency.

Nowadays there are several websites that offer these services, such as: 

  • Binance: It is simple and offers a wide variety of cryptocurrencies in addition to having minimal interest per transaction.
  • Crypto.com: It is the most widespread and has a great mobile app.
  • Coinbase: It is the easiest to start with, but has high interest rates per transaction.

Once cryptocurrencies are obtained, what benefits do they give us as travellers or tourism companies?

They give travellers several advantages, the first and most important is the possibility of travelling anywhere in the world without the need to change currency. It is the only time in history that you can move around the world without having to go to a bank to change money. 

The blockchain offers total decentralisation, so you don’t need to be tied to a bank. It is also totally secure from fraud and hacking, something that is very common among banks lately.

For tourism companies, it offers options for travellers, so they can reach a larger number of customers, people who are interested in this technology and who also want to travel using it. Thanks to blockchain, you don’t need to be tied to a bank, so you are in complete control of your money. As well as for travellers, cryptocurrencies offer a great deal of security to businesses that no other bank can offer. 

And finally, it gives an image that the company is at the cutting edge of technology and is interested in constantly renewing itself.

However, there are downsides, for both travellers and for companies. Investing in cryptocurrencies is a great risk, mainly because of its constant change of price since they are not regulated, this at the same time that is a great liberation since it is totally decentralized, and can make any tourist or company lose hundreds or thousands of euros in hours.

Is it possible to travel only with cryptocurrencies nowadays?

The answer is: Not at all.

Today Booking offers the possibility to pay with cryptocurrencies and until 2018 Expedia also allowed it, so this means that you can book hotels with this technology, but not the means of transport. 

The same is true once you arrive at your destination. There are no transport apps, (such as Cabify or Uber) that offer this payment method, so transport would be complicated or even impossible,

Another big problem is food, there are very few restaurants, supermarkets or resorts that offer cryptocurrencies as a method of payment, removing another important element of travelling.

With this in mind, it is currently impossible to travel solely using cryptocurrencies.  There are still many advances to be made, and in particular a great deal of trust must be built up among all users in order for it to be considered a useful currency. 

However, despite these challenges, there is no denying that this technology has a promising future. Though this is an isolated case, cryptocurrencies are also already being used in hotels in Dubai. Just like the price of Bitcoin tomorrow, the future of cryptocurrencies in the travel industry faces a volatile, yet potentially revolutionary future.

To conclude, Web 3.0, cryptocurrencies and blockchain technology are advances that will gradually be incorporated into our daily lives, and it is up to us to get ahead of the curve and start using them within the tourism industry. The sooner we become familiar with it, the more advantages we will have over the competition.

Silicon Valley does not stop innovating in the world of technology, and we in the tourism sector cannot be left behind. The arrival of the so-called Web 3 and its countless new features make the future of technology very promising and something that we must take advantage of in our sector.

In recent months the words “metaverse”, “cryptocurrencies”, “NFT’s” etc. have been present across many media channels, being part of the new technological evolution of the Internet called Web 3.0. In short, the internet is advancing and innovating as new creations exist and are implemented in networks, this being its third “version”. There are no official versions, they are only numbered to represent where we are now.

But all this revolution comes from an invention, the blockchain. 

The blockchain is a virtual structure for storing data in a way that is almost impossible to falsify. A public electronic passbook that can be shared openly between users and that creates a record of any transaction made using the technology. 

This breakthrough has led to the creation of different elements around it, such as cryptocurrencies.

So what are cryptocurrencies?

As their name suggests, cryptocurrencies are virtual currencies, which use digital encryption in their operations (the blockchain). Today there are thousands of types of cryptocurrencies, each with different objectives. The best known are: Bitcoin and Ethereum.

In order to obtain these cryptocurrencies we can resort to various websites, which after a brief introduction of our data, ID and personal photo, will create a virtual wallet where we can store our coins. After this, we will need to introduce on to the website an amount of real money, in the currency that we desire (EURO, USD…) and finally we will be able to make the exchange for the value of the chosen cryptocurrency.

Nowadays there are several websites that offer these services, such as: 

  • Binance: It is simple and offers a wide variety of cryptocurrencies in addition to having minimal interest per transaction.
  • Crypto.com: It is the most widespread and has a great mobile app.
  • Coinbase: It is the easiest to start with, but has high interest rates per transaction.

Once cryptocurrencies are obtained, what benefits do they give us as travellers or tourism companies?

They give travellers several advantages, the first and most important is the possibility of travelling anywhere in the world without the need to change currency. It is the only time in history that you can move around the world without having to go to a bank to change money. 

The blockchain offers total decentralisation, so you don’t need to be tied to a bank. It is also totally secure from fraud and hacking, something that is very common among banks lately.

For tourism companies, it offers options for travellers, so they can reach a larger number of customers, people who are interested in this technology and who also want to travel using it.  Thanks to blockchain, you don’t need to be tied to a bank, so you are in complete control of your money. As well as for travellers, cryptocurrencies offer a great deal of security to businesses that no other bank can offer. 

And finally, it gives an image that the company is at the cutting edge of technology and is interested in constantly renewing itself.

However there are downsides, for both travellers and for companies. Investing in cryptocurrencies is a great risk, mainly because of its constant change of price since they are not regulated, this at the same time that is a great liberation since it is totally decentralised, can make any tourist or company lose hundreds or thousands of euros in hours.

Is it possible to travel only with cryptocurrencies nowadays?

The answer is: Not at all.

Today Booking offers the possibility to pay with cryptocurrencies and until 2018 Expedia also allowed it, so this means that you can book hotels with this technology, but not the means of transport. The same is true once you arrive at your destination. There are no transport apps, (such as Cabify or Uber) that offer this payment method, so transport would be complicated or even impossible,

Another big problem is food, there are very few restaurants, supermarkets or resorts that offer cryptocurrencies as a method of payment, removing another important element of travelling. With this in mind, it is currently impossible to travel solely using cryptocurrencies.  There are still many advances to be made, and in particular a great deal of trust must be built up among all users in order for it to be considered a useful currency. 

However, despite these challenges, there is no denying that this technology has a promising future. Though this is an isolated case, cryptocurrencies are also already being used in hotels in Dubai. Just like the price of Bitcoin tomorrow, the future of cryptocurrencies in the travel industry faces a volatile, yet potentially revolutionary future.

To conclude, Web 3.0, cryptocurrencies and blockchain technology are advances that will gradually be incorporated into our daily lives, and it is up to us to get ahead of the curve and start using them within the tourism industry. The sooner we become familiar with it, the more advantages we will have over the competition.

Álvaro Ochoa

Social Media Team

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