How Cryptocurrency Helps in the Hospitality Industry
The hotel business is one of the most active in following the developments in the world of cryptocurrencies. New types of technology are being launched in the hotel sector daily to make the lives of customers a little simpler. Because of the fierce competition, staying on top of technological advances is critical if you want to succeed in this field. Blockchain technology is being evaluated for the future of this business because of their simplicity of implementation.
Tourism Sector And Cryptocurrencies
Cryptocurrencies are advancing rapidly, as according to TripleA, just around 5 percent of markets have adopted cryptocurrencies, and there are about 300 million users worldwide. This might climb to 600-750 million or more in 2022, if present adoption rates continue to improve as a result of a broad variety of innovations that could boost the prominence and simplicity of purchasing crypto assets, according to Fast Future's forecasts. When it comes to travel, a rising number of these people are getting paid in crypto, and wish to utilize it for the majority of their purchases, including travel.
Tech-savvy individuals worldwide who feel that decentralized technology may have a transformative effect on society are becoming more commonplace. Cryptocurrency is expected to develop significantly over the next few years as it becomes more integrated into existing banking and payment systems, a consequence of several factors. Cryptocurrency payments are already being accepted by several airlines, hotels, and travel firms.
There has been a growing desire for crypto payments in the conventional economy, and several major card networks have made substantial measures to facilitate this. These cards may be used at many different retailers, and the underlying scheme provider converts crypto to regular fiat currency so that merchants can be paid in traditional currencies. First, Mastercard plans to allow any bank and merchant to accept, sell, or keep cryptocurrency on behalf of their clients in the United States.
The most apparent practical use of the blockchain in the hotel business will be about safe payment. As a result, hotels' expenses may be decreased by accepting cryptocurrencies such as Bitcoin and Ethereum or by providing a safe and secure worldwide ledger for bank payments.
How BTC And Other Cryptos Are Used In The Hospitality Industry
Customers won't have to worry about currency conversions when using Bitcoin to pay for services in the hotel business, which is a significant plus for this new payment method. The value of this immaterial money is the same across the globe. In order to perform transactions, there is no need to worry about currency exchange rates across nations.
The travel and hotel industry is already taking advantage of blockchain technology, despite the technology's theoretical potential. Let’s go through a few of the more notable ones below, along with the benefits these innovations provide for both hotel guests and the business as a whole.
Travala
Travala is a booking platform with over 500,000 properties worldwide. It aims to become a “next generation online travel agency” focused on crypto, as the Travala team has embarked on implementing blockchain technology to help the travel industry reduce costs, make travel packages less expensive, create a secure payment platform, and enable seamless management of loyalty programs. At the heart there is the Travala Token (AVA), which helps the platform offer tokenized incentives to its customers and any other users that can help the platform grow. In addition to AVA, platform users can choose from over 40 supported cryptocurrencies to pay for their trips.
Bed-Swap
"Bed-Swap," an in-house Blockchain initiative launched by TUI, the world's biggest travel firm, was one of the first to fully commit to blockchain technology. TUI can analyze the demand and transfer inventory in real-time thanks to the new technology. Based on demand, it may then adjust the selling margins.
LockChain
Hotels and other hospitality businesses may rent out their properties directly via LockChain, a marketplace enabled by blockchain technology. Allows both property administration and payment to take place in one location. In addition to eliminating middlemen, LockChain has a subscription model with a zero percent fee policy that makes it an attractive option for customers.
Trippki
With the debut of its loyalty reward system, Trippki has begun to use the blockchain. Another advantage is that the service eliminates the need for a middleman, putting guests in touch directly with the hotels that supply their rooms. Tokens called "TRIP" are given to customers who use hotel facilities or stay at a hotel. They may be used to schedule future trips or redeemed for cash since the TRIP tokens are maintained in the ledger and never expire.
Beenest
Using BeeToken or Beenest, users may book and pay for homestays on a blockchain-based home-sharing network. No commissions are paid because of the network's peer-to-peer transactions and the decentralized structure of the platform. Customers and hosts alike benefit from the BeeToken platform's payment, reputation, and arbitration processes.