These days, almost everyone knows how to purchase crypto, since trading and investing in digital currencies has become a common practice. There are numerous exchange platforms where one can purchase all types of different cryptocurrencies and turn themselves into a crypto investor with just a few simple clicks.
However, when it comes to using crypto out in the real world, things seem to get a bit more complicated, and people start scratching their heads, not knowing what that actually entails. Cryptocurrencies only exist in the virtual space, and for the most part, the general public has thought of them as an investment avenue and nothing else, so associating digital assets with tangible use cases in the physical world is rather unusual.
If you’ve been wondering what you could do with the crypto coins you’ve amassed, other than patiently waiting for them to appreciate, which may or may not happen, you are not the only one. There are over 560 million crypto users worldwide, and many of them are probably wondering the same thing.
Over the years, crypto and blockchain have entered various industries and markets, and, therefore, their applicability has expanded to many different settings and situations. So, if you’re a travel enthusiast, you’ll be happy to know that crypto can also be used to fuel your travel adventures. Curious about how crypto can support your desire to explore the world? Buckle up because you’re about to be taken on a journey where the virtual and the physical realms converge.
The Dawn Of A New Crypto-Powered Era Of Travel
Crypto tourism is a newly coined term that refers to travel experiences where digital currencies and blockchain technology play a central role, either as a form of payment or as a theme of the event. The first instances of crypto being integrated into tourism products and services emerged around 2017. That’s when various tourism companies thought about developing special travel packages for crypto holders and enthusiasts.
Most focused on providing tours where one would have the opportunity to attend panels, conferences, and networking events, mingle with like-minded individuals, and meet industry insiders at lavish parties, and really immerse themselves in the crypto lifestyle, all while having fun and visiting picturesque destinations like Monaco and Ibiza. It was a mix of leisure, education, and networking that allowed attendees to enjoy the best of both worlds. Unfortunately, the onset of the COVID-19 pandemic stopped the travel industry in its tracks, causing crypto tourism, which had just started to take off, to come to a sudden halt as well.
Obviously, tours and cruises centered around digital assets and their underlying technology are not all that crypto tourism has to offer. The most widespread form of crypto tourism is represented by the use of virtual money as a method of payment for different travel services. Before the pandemic hit, travel companies from around the world started accepting crypto as a payment option, allowing tourists to use their crypto funds to book flights or pay for accommodation, tours, and other travel-related services.
There are also certain destinations popular with tourists, such as Grenada, Cyprus, and the Bahamas, that encourage visitors to make purchases with digital coins. So, you may not yet be able to go to the convenience store around the corner and buy a bag of chips with crypto, but you can use your tokens to plan your trips.
Who Are The Crypto Tourists?
According to the latest data, crypto tourism is poised for continued growth, as the demand for the inclusion of cryptocurrencies in the travel sector is on the rise. Aware of the trend and seeking to align their offering with the expectations of modern explorers, travel and hospitality companies such as Destinia, Alternative Airlines, CheapAir.com, and Travala.com have started integrating digital currency payments into their payment structures. Last year, crypto payments accounted for 78% of all bookings on Travala, while credit and debit cards were used in less than 8% of instances.
But who are the people who are so eager to embrace crypto-friendly travels and shell out their digital coins to roam around the world? Naturally, the target audience is represented by crypto holders, since they have the necessary funds and can easily use them to pay for their travels. But not every person who owns crypto is necessarily interested in using it for travel purposes. Crypto tourism is particularly appealing to wealthy individuals and celebrities whose crypto holdings are large enough to pay for different travel expenses without feeling they’re making any financial effort.
This doesn’t mean regular people with more modest incomes are excluded from the equation. As long as one is willing to give crypto travel a try, their tokens are as good as anyone’s.
Weighing The Pros And The Cons
Bringing crypto into the tourism sector is generally seen as a beneficial move, as it provides travelers with yet another option to pay for their vacations. The fact that digital currencies are borderless enhances their appeal as a payment solution for international travelers, since users don’t have to worry about fees, conversion rates, delays, and other issues often associated with fiat transactions processed by the banking system. This also makes it easier for travel operators to broaden their reach and cater to a wider audience.
Nevertheless, there are also downsides to crypto tourism. The market is still small, with only a limited number of travel and hospitality providers that accept crypto payments remains rather small, which narrows travelers’ options. Furthermore, crypto remains in a grey area regulation-wise, meaning that travel agencies and platforms that plan on integrating crypto payments have to tread carefully and deal with all sorts of challenges to remain compliant with legal requirements and ensure that this addition doesn’t end up hindering their activity.
Final Thoughts
Crypto opens a world of possibilities in the tourism industry, but for the time being, it’s just scratching the surface of what it can do. With digital currencies becoming an increasingly ubiquitous financial instrument, we’ll likely see them expand their presence and involvement in the travel sector as well, which could only mean that crypto tourism has a bright future ahead.
By Gregory O'NeillGreg is a modern-day explorer with an insatiable love for travel. His passion for adventure has led him to far-flung corners of the world, where he immerses himself in diverse cultures and experiences. Greg's zest for life is epitomized by a continuous pursuit of new horizons and captivating journeys.
