Web 3: A Game Changer For The Travel Industry?
Web 3 is the ultimate disruptor. Blockchain technology is well placed to disrupt multiple industries: from education to health care, music to the movie industry.
But what about travel? Are we about to experience the age of the Web 3 Airbnb? How might decentralized technology shape the future of travel? Let’s investigate.
What is Web 3?
Let’s rewind quickly for all those who might be new here. What exactly is Web 3?
Web 3 is the collective name given to ecosystem powered by blockchain technology. The Web 3 ecosystem is made up of NFTs, cryptocurrencies, and interoperable metaverses, all of which are run by – and on – the blockchain.
Web 3 differs from Web 2 most obviously in that it is decentralized. The kings of today’s internet aren’t regular users. They’re all-seeing, all-knowing, all-powerful corporations – think Google, Amazon, Meta, Spotify, etc. Nothing is free, because personal data is digital gold.
But in Web 3, we have a chance to change things. The very nature of blockchain ensures immutability, but also user privacy; it cuts out the need for intermediaries. The most obvious example is cryptocurrencies – digital currencies that run without the suited middlemen (bankers!).
So how does this help the travel industry? What’s on the market at the moment, and who is leading the charge with Web 3 travel? Let’s take a look at a few examples…
Web 3 and tickets
One of the clearest use cases for the integration of blockchain technologies is ticketing.
We’ve covered this when it comes to ticketing for music festivals, gigs, and events, as well as the creative industries – but what about travel ticketing?
In September, the Argentinian airline Flybondi announced a partnership with a Web 3 technology company. Travel X, the company in question, tokenizes flight tickets on the blockchain.
What does this mean for tourists and travelers?
Firstly, anyone buying an airline ticket can purchase it as an NFT through Binance Pay.
When it became mandatory in 2008 for airlines to adopt e-tickets, the market grew – and significantly so: annual travelers reached $4.5 billion a year, and the market size leaped to £870 billion, while the industry itself saved $3 billion in operating costs.
Why? Well, in part because with e-tickets, the travel booking experience became easier. Processes were less of a hassle and customers gained more choice and autonomy.
NFT integration will take this further. “NFTickets” allow travelers to auction, trade, and transfer tickets from wallets.
Perhaps you end up unable to travel on the date for which you bought a flight. Seamless integration will allow you to gift that ticket (by text!), according to Travel X co-founder Facunda Diaz. Or you could put it up for auction on the marketplace, whereby the buyer would receive the NFTicket directly into their crypto wallet, ready to fly.
For airlines, it’s a win-win – happier customers, and also the opportunity to collect secondary revenue with resales, based on code defined in the smart contracts. So could Web 3 be set to turbocharge the industry just like e-ticketing did?
Web 3 booking platforms
It’s clear the space isn’t short of optimism – it’s not just airlines getting in on the action. One online travel platform already effectively utilizing blockchain technology is Travala.
At first glance, Travala looks like a standard booking operator: users can search and pay for events, connections, and locations all over the globe. The Web 3 integration isn’t the first thing you notice with Travala – but it’s certainly there. Users can pay using several cryptocurrencies, including the platform’s own AVA coin, which allows consumers to receive loyalty rewards and the operator to seamlessly process refunds.
The multi-tier membership program offers discounts and proof-of-travel stamps, and employs a democratic element, too: users can vote and give feedback on platform upgrade proposals. The highest tier of the service gifts holders a Travel Tigers NFT, which provides access to concierge services, airport lounges, random luxury travel experiences, metaverse and IRL events, and more.
Web 3 and luxury travel
Where Web 3 arrives, you won’t find luxury offerings far behind. It’s the nature of the game – NFTs are the perfect vehicles for offering exclusivity, members’ clubs, and otherworldly experiences.
“Using Web3 and blockchain for the travel industry has many advantages and benefits, including less transaction fees, faster processing times, and a reduced carbon footprint for our environment,” Quathi Faddora, founder of Crypto Jets Club, told Meta Hollywood.
“The combination of these elements will revolutionize and recreate how traditional bookings are made today by making it more accessible and secure for everyone to use. People would be able to book private jet flights and pay by using cryptocurrency through our future Web 3 platform. This reduces the costs for the traveler and simultaneously lowers operating costs for the charter company.”
Credit card fees for charter flights often exceed thousands of dollars, but with crypto integration, fees will be cut drastically, while flight sharing options will minimize the carbon footprints of jets (though won’t eradicate them, of course).
The future of Web 3, travel and NFTs
From Toucan NFTs offering holders special access to boutique hotels, festivals, and international community meetups, to the travel photography experts at Explorest building
a creator-focused Travel Membership NFT – it’s clear that while the industry isn’t yet overrun with offerings, quality has preceded quantity from the get-go.
With travel and Web 3, it’s all about personalization, heightened experiences, and seamlessness. Take what the team over at Roomza are building: frictionless stays, curated by guests themselves – think total power over check-in and -out times, free date changes, and cancellations, and contactless (but not connectionless) arrivals and departures. Think Web 3 Airbnb, but a cut above.
The travel industry is only just getting started with Web 3. But for us it’s clear: this is a partnership that simply can’t come quick enough. We’ll take an upgrade, thanks!
Featured image by JESHOOTS.COM on Unsplash
