Why travel agencies are accepting crypto

The travel industry has bounced back remarkably post-pandemic, with global tourism seeing steady growth.

By mid-2024, international tourist arrivals reached 96% of pre-pandemic levels, with 790 million international travellers recorded in just the first seven months of the year, an 11% increase over 2023. This surge is being driven by rising demand across regions, especially in Asia-Pacific and the Middle East, which recorded higher-than-expected growth​.

​As travel rebounds, there’s growing demand not only for more destinations but also for payment methods that cater to today’s tech-savvy travellers – particularly crypto.

As a matter of fact, a study by Traders of Crypto found that 11.5% of travel agencies accept digital assets, the highest among surveyed sectors.

What’s interesting, however, is that consumer demand in the sector remains largely unmet, presenting lucrative opportunities for more travel companies to adopt crypto payments.

Who’s jumping to the challenge?

Online travel agencies (OTAs) are at the forefront of this shift. Platforms like Travala, which reported a 46% increase in crypto booking volumes between January 2023 and January 2024, allow travellers to book flights, hotels, and other services seamlessly, no matter where they are located​.

Indeed, research points to the fact that 89% of travellers would choose one airline over another if given the option to pay in their preferred currency.

For tour providers, crypto is particularly useful in facilitating last-minute bookings, especially in remote or adventure-focused locations. Cryptocurrencies enable instant payments, removing the reliance on bank transfers or card processing, which can be problematic in areas with limited financial infrastructure​.

In the luxury sector, high-end travel agencies are increasingly accepting crypto for exclusive experiences like yacht charters and private islands. These services often involve large transactions, where crypto offers advantages in terms of security, speed, and privacy. As more luxury brands embrace blockchain technology, clients are drawn to the seamless experience crypto provides​.

For specialty tour providers, including eco-tourism, accepting crypto appeals to a growing segment of environmentally conscious, tech-forward travellers. These customers value the decentralised, transparent nature of blockchain and see crypto payments as part of a broader commitment to sustainability​.

In short, the integration of crypto payments positions agencies to tap into new market segments and enhance the booking experience for a growing segment of travellers worldwide.

Benefits of accepting crypto for travel agencies

Aside from being able to cater to the needs of their audiences, accepting cryptocurrency offers several advantages for travel agencies, especially as the global tourism industry continues to recover.

1. No geographic limitations on payments
   Cryptocurrency transcends borders, making it ideal for international customers. Travellers can book flights, hotels, and tours from anywhere without worrying about currency conversion fees or delays caused by banking regulations. This seamless cross-border functionality opens doors for travel agencies to cater to a broader audience and remove friction from international transactions​
2. Faster transactions with reduced costs
   Crypto transactions are processed almost instantly compared to traditional payment methods, which often involve waiting periods for funds to clear. With crypto, there’s no need for intermediaries like banks, which cuts down on transaction fees. Travel agencies benefit from receiving payments faster, while customers enjoy a smoother, more efficient booking experience​
3. Security and reduced risk of chargebacks or fraud
   Blockchain technology ensures that transactions are secure, tamper-proof, and transparent. For travel agencies, this reduces the risk of fraudulent bookings and chargebacks, which are a common issue with credit card payments. Once a crypto payment is confirmed, it cannot be reversed, providing agencies with more financial security​
4. Attracting crypto-holding customers
   Many customers who hold cryptocurrencies prefer decentralised payment options due to their transparency, security, and the desire to avoid traditional banking systems. Travel agencies that accept crypto are more attractive to this growing market of tech-savvy, privacy-conscious travellers, particularly those looking to spend their digital assets on travel experiences​

Therefore, by integrating crypto payments, travel agencies can tap into new markets, improve efficiency, and enhance security in their payment systems.

Emerging and future trends

Aside from enabling crypto payments, there are two key trends poised to reshape the way travel agencies engage with their customers: NFTs as digital passports or tickets, and decentralised loyalty programs.

NFTs as digital passports or tickets

Non-fungible tokens (NFTs) are being explored as a potential solution for digital travel documents. An NFT-based passport or ticket could streamline the check-in process at airports or event venues, providing a secure and easily verifiable way to store and access travel credentials.

Travel platforms like Travala are already experimenting with NFT bookings, allowing users to hold proof of ownership for tickets, hotels, or events in the form of NFTs​. These digital assets could also be transferrable, allowing flexibility for users to resell tickets or rebook trips.

Decentralised loyalty programs for frequent travellers

Blockchain offers the ability to revolutionise traditional loyalty programs by decentralising them. Instead of points locked into a single airline or hotel chain, decentralised loyalty programs would allow travellers to accumulate rewards that are transferable across various travel services and even other industries.

This would enable a unified experience where points can be redeemed for flights, accommodations, or even experiences. Singapore Airlines already uses a blockchain-based loyalty program that allows miles to be tokenized and spent on a variety of services.

Of course, with these trends and more on the horizon, there’s more than just crypto payments to integrate – something to keep in mind.

Choosing a crypto payment provider

Travel agencies that haven’t yet integrated a crypto processing solution only have to take a few steps to get started, one of which involves choosing a provider.

While each has their own benefits, here’s what you can expect with one of the most-awarded crypto processing gateways on the market – CoinsPaid.

1. Easy setup and integration for different types of travel services
   
   CoinsPaid offers a streamlined integration process, making it simple for travel agencies to start accepting cryptocurrencies.
   The setup involves connecting the travel agency’s website with the payment gateway through an API, and the process is supported by a dedicated technical team. Each client also receives personalised assistance from an account manager throughout the integration.
2. Full support for major coins and stablecoins

   CoinsPaid supports over 20 leading cryptocurrencies, including Bitcoin, Ethereum, and stablecoins like USDT and USDC. This broad support allows travel agencies to cater to a wide range of crypto-holding customers, enhancing their global appeal. The platform also offers automatic conversion from crypto to fiat, simplifying accounting and reducing exposure to crypto volatility​.

3. Competitive transaction fees for agencies handling a high volume of bookings
   
   One of the standout features is CoinsPaid’s low transaction fees, which can be as low as 0.8% for crypto payments. This makes it an ideal choice for travel agencies that process a high volume of bookings, allowing them to significantly reduce costs compared to traditional payment systems​.

Final thoughts

From the remarkable post-pandemic recovery of global tourism to the increasing demand for seamless, tech-driven payment options, crypto is opening up new opportunities for travel agencies worldwide.

Moreover, by embracing crypto payments, agencies can reduce transaction costs, offer faster processing times, and attract a growing base of crypto-holding travellers.

If you represent a business that’s looking to learn more about integrating crypto payments, feel free to fill out a request form over at CoinsPaid.