As the travel industry crumbles, crypto’s own Booking.com, Travala, sees profits soar
In January 2020, Travala announced it would start to accept Tether (USDT) for hotel and accommodation reservations. Crypto = freedom = travel? It’s a formula that immediately appeared coherent for Travala’s founders. The platform appears to have escaped the wrath of lockdown, seeing its sales soar in May 2020 despite a reduction in activity levels compared to March 2020.
A successful getaway for Travala
The Travala reservation platform has won a risky, if not crazy bet: to increase its sales during lockdown.
According to its sales statistics for May 2020, the pandemic does not seem to have dampened the enthusiasm of Travala users, with a 45.8% increase in overnight stays compared to April 2020.
The platform’s revenue increased 208%. Nevertheless, the amount of bookings before the lockdown in March 2020 were 60% higher than in May 2020.
Travala CEO Juan Otero said platform users take every opportunity to organise a little getaway. Reservations are made more in the immediate vicinity and for relatively short periods.
Otero wants users to feel more free to pay in crypto, a payment method with less friction, and therefore improve their user experience.
The Travala and TravelByBIT merger in May 2020 has served as a springboard for Travala’s sales.
While most booking sites receive their payments by credit card or PayPal, Travala accepts payments in cryptocurrency – Bitcoin (BTC), Travala.com (AVA) and many more – for accommodation on the Booking.com website.
60% of reservations on the site are made in cryptocurrencies, a figure that could very well increase in the future.
Traveling at the speed of light is not possible for now, but paying for trips in crypto is already a reality. The travel, hospitality and accommodation industries could very well play a major stepping stone role in the adoption of cryptocurrencies as well as vice versa. How long will it be before private jets are tokenised, with usage time proportioned to the shares held?
Just your average global millennial embracing, and interested in, the future of money and finance. Excited by blockchain tech as well as fintech but have a special passion for DeFi and Yield Farming, what will this technological disruption bring next?