Flying high with crypto: the future of payments in the travel industry

The tourism industry, though offering travelers a wealth of choices, is hindered by fragmentation and monopolies. This complexity often leads to inefficiencies in payments, which introduce multiple methods and intermediaries in the payment process. However, the rise of cryptocurrency payments presents a solution to streamline transactions, reduce fees, and offer greater transparency. 

In this article, we explore the inefficiencies hidden within the travel industry, examine how blockchain technology is revolutionizing it, highlight blockchain startups driving the change, and explain how to adopt cryptocurrencies in tourism without the high costs, both in terms of money and time.

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Major issues of the tourism industry

The tourism industry mostly reflects the modern global economy in all its glory and obscurity. On one hand, travelers have numerous options and providers of various kinds of goods and services. On the other hand, this market is segmented, with different niches like hotel and transport ticket booking, and car rentals being occupied by various aggregators and intermediaries. It complicates a process of booking and traveling, touching on the matter of payments. Sometimes, even planning a trip requires multiple payments, and not all of them can be made with one method.

Major players, such as airlines, hotels, and online travel agencies (OTA), which sell travel services through websites or apps, prioritize their business needs over improving customer satisfaction. Often, these companies try to push bookings through their own websites to avoid paying commissions to OTAs and global distribution systems (GDS) such as Amadeus, Sabre, and Travelport, which manage and distribute airline and hotel inventory worldwide.

Monopolies dominate the travel sector. OTAs like Expedia and Priceline control a large portion of online bookings, while airlines and hotels have handed control of their inventory to GDSs, losing the ability to set their own prices or manage customer interactions. This is akin to “Uberization”, where companies manage only physical assets while larger corporations control the core business operations.

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How crypto payments can improve the tourism sector

Introducing crypto payments into booking and tourism apps could address several issues. Traditional payment methods often come with high transaction fees, currency conversion costs, and delays, especially for international travelers. 

Cryptocurrencies, on the other hand, provide lower fees, faster transactions, and enhanced security. This payment method is by default borderless, offering a more efficient, global payment solution. By integrating crypto payments, travel companies could reduce dependency on OTAs and GDSs, lower their operational costs, and pass those savings on to customers.

Additionally, blockchain technology would enhance transparency and trust, allowing travelers to manage bookings directly without intermediaries. Implementing crypto payments could change the travel industry for good by streamlining processes, reducing costs, and improving the overall customer experience, driving much-needed innovation in a sector, both for businesses and end-users.

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Blockchain-related advancements and applications in the travel industry

With the ongoing process of clarifying regulation, and the overall growth of crypto adoption, many hospitality companies strive to integrate cryptocurrencies as a payment method.

Dtravel

Launched in 2021, Dtravel positioned itself as a “blockchain-based AirBnB rival.” This platform enables direct interactions between property owners and travelers without relying on centralized intermediaries. Communication is set via the Nite Protocol, which allows for storing property listings and all data about them, including prices and rental conditions, on-chain.

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The platform is powered by its native utility and governance token, TRVL. Serving as an incentive in loyalty and referral programs, this token can also be used for paying rentals in Dtravel, among other popular cryptocurrencies like Polygon (MATIC) or USD Coin (USDC).

LockTrip

One example includes LockTrip, a European-based platform for booking hotels in over 190 countries using payments with different cryptocurrencies, including Ethereum (ETH), Bitcoin (BTC), XRP, Litecoin (LTC), Solana (SOL), along the most popular stablecoins Tether (USDT) and USDC.

AirBaltic

There are crypto adopters among airlines, as well. In 2014, airBaltic became the first airline to accept cryptocurrency as a payment for tickets, and in 2021, the company extended its range of accepted crypto by implementing a crypto payment gateway from BitPay. In addition, the company has been developing an NFT-based loyalty program called Planies, with each token having different utilities. These NFTs are even traded on OpenSea, making them a real digital asset.

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Travala

However, the undisputed emerging leader of the pay-with-crypto tourism is an OTA called Travala. This blockchain-based online travel booking platform allows users to book accommodations, flights, and travel activities while paying with cryptocurrencies as well as traditional currencies. Launched in 2017, Travala seeks to provide a decentralized travel booking experience by integrating blockchain technology to enhance transparency, security, and efficiency in transactions.

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The platform supports payments with more than 90 cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), and Travala’s native token, AVA. AVA is used to offer loyalty rewards, discounts, and other benefits to users. Travala’s inventory includes a wide range of travel options from major booking providers, making it competitive with traditional OTAs.

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Apart from crypto payments, blockchain is used in Travala for leaving user reviews. It also facilitates the loyalty program: a portion of payment for booking returns back to a user in AVA tokens he can further spend on the platform.

Travala has successfully partnered with the industry giants. In 2020, the platform integrated hundreds of thousands of hotels and accommodations provided by Expedia. And in September 2024, it established a connection with Booking.com to tap into its vast hotel inventory.

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How to integrate crypto payments into an online travel agency or a booking service

While cryptocurrencies provide clear advantages, including lower transaction fees and borderless payments, setting up and managing a crypto payment system poses significant challenges. Building a robust in-house solution requires work by an expert in blockchain technology, which is scarce and expensive. Furthermore, travel businesses must address issues like secure storage, transaction tracking, and regulatory compliance across multiple jurisdictions.

Cryptonix, a licensed crypto payment provider registered in Lithuania, offers a seamless solution to these challenges by providing a ready-made crypto payment gateway designed to the needs of the travel industry.

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Crypto payment gateway: easy installation and customization options with the API

First and foremost, the crypto payment gateway from Cryptonix is easy to integrate on any booking website as another payment method in addition to existing ones. A gateway is displayed on a page as a classic widget in the form of a payment button. The crypto payment API that Cryptonix offers has more customizable setups, allowing travel companies to adapt the gateway’s design and functionality to the specific needs of their customers. The processing of crypto payments is completely taken care of by Cryptonix.

Business crypto-fiat wallet

Another major feature of Cryptonix is its crypto wallet for business. This crypto-fiat wallet allows travel companies to manage multiple digital assets processed from customer payments, convert incoming crypto payments to national currencies like USD or EUR, and withdraw them directly to business bank accounts, working as an off-ramp solution for crypto. The ability to set an automatic conversion from crypto to fiat ensures that businesses can maintain liquidity without worrying about crypto market volatility. With support for 15 major crypto assets, including Bitcoin, USDT, and Litecoin, the Cryptonix platform covers the most widely used assets in the travel sector.

Crypto invoices: an ideal choice for B2B travel agencies 

A B2B travel sector has shown a great dynamic in recent years, and keeps a positive forecast. According to Global Market Insights, this sector was valued at $30.7 billion in 2023, and is about to grow to $73.5 billion by 2032 with a 10.6% CAGR.

Cryptonix can also offer solutions for this segment. The platform simplifies B2B payments through its crypto invoice generator, which enables travel companies to create customized, time-bound payment pages for each transaction. Whether it's an invoice for a hotel chain or a tour operator, the payment process becomes more efficient. 

Additionally, detailed reporting tools ensure that travel businesses can track transactions and comply with accounting and tax requirements, all while adhering to EU crypto regulations.

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Conclusion

The tourism industry faces numerous inefficiencies due to its fragmented structure and dominance by centralized platforms. However, blockchain technology and crypto payments offer transformative solutions, streamlining transactions, lowering fees, and reducing reliance on intermediaries. 

Crypto payment processors and providers like Cryptonix are at the forefront of this shift, building innovative tools for travel companies to adopt cryptocurrencies easily and securely. As more travel businesses integrate these solutions, they stand to improve operational efficiency, enhance customer experience, and gain a competitive edge in an evolving market driven by technological advancements. This makes the future of travel payments increasingly decentralized, transparent, and cost-effective.