One of the main airline and travel payments related trends that I had not covered yet in an infographic is… ‘Crypto’, so here is my first attempt to ‘demystify’ this complex topic.
Over the last 10 years, Crypto as form of payment for bookings, has been a (hot) topic of discussion between strong believers and skeptics. If there was a ‘middle ground’ then it typically was related to the potential of blockchain technology in travel distribution. Recently, also as a result of the ‘Crypto winter’, the focus drifted towards the use of NFT’s for ticket changes and loyalty programs. Digital currencies are however here to stay and with the introduction of more CBDC’s, will go mainstream, in a controlled and regulated manner. So far we’ve been playing in the sandbox, we need to prepare for scaling up and this starts by educating and involving stakeholders outside the small group with an in-depth understanding of the crypto world mechanics.
In this infographic I try to summarize the process and factors that play a role for bookings, knowing that not all products / vendors operate in the same way (and that there’s always more detail). Also included a ‘mini score card’ to widen your view on this alternative form of payment. Currently the key challenge is adoption, both by customers and travel merchants. Most Crypto exchange account owners see it as an investment, so not as a form of payment. A large portion don’t own a wallet (yet) that is required to make ‘on the fly’ payments.
Another aspect is (hidden) costs. In most cases the merchant receives the booking amount in fiat currency, like for like. The customer therefore has to absorb the impact of volatility risk on the exchange rate spread. On a positive note, Crypto acceptance has proven to be great for marketing and for addressing those (younger) demographics that have a strong preference for paying in digital currencies.
Crypto for regular booking flow
