Summer 2021 has been in full swing, which naturally means a flood of people traveling from one location to another for vacations, fun activities being booked, and an overall sense of leisure. While this year's summer will be more complicated due to the COVID-19 pandemic and global vaccination efforts, many people are still hoping for some semblance of normalcy during this time.
While the summer may represent recoupment of investment for the travel and tourism industry, which was severely impacted by the pandemic, it means something entirely different for the crypto industry. More specifically, it could herald the rise of travel tokens, which are expected to be the industry's next big thing.
What is a Travel Token?
As many of us are aware, cryptocurrencies are typically linked to a specific ecosystem or platform. Ether is the Ethereum blockchain's official token, bitcoin is the Bitcoin blockchain's native token, and several commercial entities are now developing their own native tokens.
Travel tokens come into play here because they are typically native tokens of specific travel companies or platforms dedicated to travel and tourism. The AVA token, which is the native token of Travala, a popular travel booking platform, is one of the most popular.
These tokens serve as the heart of these platforms, allowing users to book and pay, earn rewards through staking, and so on. In the case of AVA, these tokens can even be used to pay bills in Australia thanks to a third-party partnership Travala has with Satoshi's Living Room.
Given the variety of cryptocurrency use cases, it is not surprising that travel tokens are becoming more popular, and we can expect to see more travel companies and airlines develop their own.
Why They are On the Rise
The utility of travel tokens has been well established, but in the future, we will see increased use as well as increased visibility. To begin, we must remember that the world of tourism was effectively halted in the last year due to the pandemic, and that, while vaccinations are being administered globally, the industry has not fully recovered. When it does, there will be a massive increase in demand for travel and tourism services, as well as an increase in demand for travel tokens.
They are new to the travel space, but once the financial benefits of these tokens become clear, such as a rise in the value of specific travel tokens, more platforms will begin to develop their own. It is likely that having one's own native token will become an industry standard for travel-related businesses over time. Travala is among the first to do so, but platforms such as hotels.com, booking.com, and others are likely to follow suit.
Consumers will also find it more convenient to make payments with these tokens, and given the variety of cash-back rewards and staking options available, a market rally for a number of travel tokens will increase demand, even more, driving up the price.
Even for those who do not intend to use travel tokens to book travel packages, the appeal of investing in a rapidly growing token sector will be significant. After all, most people who invest in dogecoin aren't likely doing so because they're blown away by its blockchain infrastructure or mission, but rather because they want to make a profit.
Simply put, money moves the crypto market, and once travel tokens demonstrate their ability to generate revenue for both the platforms and investors, they will gain traction. In the long run, this will increase collaboration between the cryptocurrency and travel industries. This will benefit both consumers, who will be able to make payments with greater ease and benefit financially, and travel companies.
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