The tourism and travel industry as a whole is facing unprecedented challenges from the Covid-19 pandemic. For the first time in history, almost 90% of the world population is subjected to travel restrictions. What this means is that roughly 120 million travel-related jobs are at risk. If the global quarantine continues, the World Travel and Tourism Council estimates that the global travel industry will lose almost $2.1 trillion in revenue.
With many families putting on hold their holiday plans and thousands of canceled flights, the airline and tourism sectors are struggling to stay afloat. One of the affected businesses is Travala, a leading crypto travel agency. Its CEO and co-founder, Juan Otero, told a virtual blockchain conference that the platform saw a 90% drop in booking volumes.
Just before the lockdown, the Binance-backed travel booking platform was experiencing rapid growth with a gradual rise in total bookings. The technological revolution that brought people closer together by simplifying how to travel easily with cryptocurrency was almost halted by the pandemic. Surprisingly, several first such as Travala, have managed to cope with the harsh circumstances and hopefully will bounce back soon.
Are We Expecting a Recovery Soon?
While a majority of the world’s commercial airlines are still grounded due to the partial lockdown, most of them have seized the opportunity to help transport supplies to grieving areas around the world. Some have made a special impact by transporting stranded students, government employees, and military officials to various destinations. There is also hope that most areas will open for flights to resume.
In fact, recent activity at Travala indicates that the online crypto travel booking site could be set to bounce back. Juan Otero reported that the travel agency witnessed a 200% growth in bookings in May. In June, the firms also saw a 160% month-on-month rise in hotel bookings by domestic travelers. Surprisingly, the recent demand is almost two times what the firm was handling at the same time in 2019.
If the site registers the same growth going forward, Otero believes that the travel platform could finally see a full recovery of international bookings before the year ends.
Impact of Crypto in the Travel Industry
Most experts seem to agree that cryptocurrencies are likely to disrupt many industries. Going by the growing number of crypto startups in the travel industry, we could soon see an industry-wide adoption of cryptos, especially when it comes to payment processing. Blockchain will also be useful when it comes to incorporating intermediaries. Besides, crypto also holds promise for cutting down the transaction costs and enhancing loyalty programs.
Steven Peterson of IBM Institute for Business Value said that crypto is among the recent innovations that could easily become a rising tide that lifts every boat. Some believe that its influence in the travel industry…