The Emerging Role of Cryptocurrency in Travel
Cryptocurrency is swiftly establishing its presence in the travel industry, from consumer bookings to business transactions. With stablecoin-powered payments and an increasing number of crypto-savvy travelers conducting high-value transactions, many industry leaders believe that a significant shift is on the horizon. Although cryptocurrencies currently account for a small fraction of global travel spending, the momentum for change appears strong.
“It’s moved well past the ‘theoretical’ phase,” said Massimiliano Silenzi, CEO of Cryptorefills, a platform allowing users to book flights and hotels using cryptocurrencies. “Globally, there are nearly half a billion crypto holders today, and we see that reflected in real purchasing behavior.”
According to Cryptorefills, over 80% of its users made at least one crypto purchase per month in 2024. This trend is particularly notable in travel, which ranks as one of the company’s fastest-growing segments, driven primarily by digital nomads and business travelers who also utilize the platform to buy eSIMs and book ride services.
Extending Reach Through Crypto Payments
“Travel is an emotional and high-value purchase,” remarked Damien Cramer, Senior Vice President of Global Travel at Nuvei. “Seventy-four percent of customers won’t complete a booking if their preferred payment method isn’t offered.”
While the appetite for paying with cryptocurrency is on the rise among consumers, businesses have been slower to incorporate crypto payments, particularly in B2B transactions. However, stablecoins are changing this landscape by providing a more predictable value and allowing faster transactions.
“The speed and ease of stablecoin transactions are becoming more profound,” Cramer observed. Yet, many travel companies remain hesitant. “We’re all pretty much new to this,” said James Lemon, Global Industry Lead at Stripe. “Stablecoins are like AI—a language we’ll all learn in the next two to three years.”
Who is Using Crypto for Travel?
The use of cryptocurrency in travel transcends various demographics, appealing to both budget-conscious travelers and those seeking luxury experiences.
“Our largest group today consists of digital nomads and business travelers,” noted Silenzi. Their bookings are generally aligned with mid-range offerings.
Travala, a cryptocurrency-focused online travel agency (OTA), reported that about 78% of its bookings in 2024 were made with crypto. “Credit and debit cards accounted for less than 8%,” explained Sam Woollard, Travala’s Chief Marketing Officer. High-net-worth individuals are also showing a growing interest in crypto.
“The luxury market has significant potential,” Woollard added. Travala’s Concierge service, which caters to affluent clients, offers personalized assistance for premium travel experiences.
Overcoming Barriers to Adoption
One of the significant hurdles to widespread crypto adoption in travel is the existing technical and infrastructural gap. Many travel service providers still rely on outdated systems.
“Convincing them to invest in new infrastructure can be difficult, despite the clear advantages,” remarked Woollard. “The advantages are compelling. Stablecoins on high-speed networks deliver fees below a cent and near-instant confirmations, with no chargebacks and 24/7 settlement,” said Silenzi.
Third-party payment processors like Stripe are working to ease the integration of cryptocurrency into travel. Several travel service providers, including Emirates, airBaltic, Capella Hotels, and Soneva, already accept crypto payments through partnership arrangements.
Cryptocurrency allows for direct, bank-free transactions, which can significantly reduce costs and improve profit margins. Woollard estimates that the travel industry could save approximately $270 billion annually by lowering fees to 0.1% through blockchain solutions.
Moreover, B2B transactions could experience a transformation, enabling real-time settlements, minimizing currency exchange risks, and negating the need for prepayments. However, the speed of crypto transactions varies significantly; for instance, “Bitcoin confirmation can take 30+ minutes, risking time-sensitive bookings,” Silenzi cautioned. Operators need to focus on fast, low-fee networks such as Solana or Optimism for effective transactions.
Direct compatibility with major exchanges like Coinbase and Kraken further simplifies the process for travelers, allowing them to pay directly from their accounts.
While cryptocurrency constitutes less than 1% of leisure travel spending today, Silenzi predicts this figure could increase to between 3% and 5% by 2030 and potentially reach double digits by 2035. He attributes this growth trajectory to the increasing number of cryptocurrency holders, which are expected to jump from 18 million in 2018 to 562 million by 2025—a remarkable annual growth rate of 99%.
“The rise of stablecoins and regulatory frameworks like the U.S. GENIUS Act will accelerate mainstream acceptance,” he added. Silenzi also sees long-term growth potential in emerging markets, where a burgeoning middle class, largely unbanked yet empowered by smartphones and broadband, could find stablecoins as their gateway to global commerce.
Cryptocurrency Users Spend More
There’s a compelling incentive for travel providers to adopt cryptocurrency: higher spending. As stated by Triple-A, crypto transactions averaged 30% higher than traditional payment methods in 2024, with travel and hospitality accounting for 14% of those transactions. Airlines accepting crypto noted a 40% rise in bookings.
Travala reports that crypto users spent 2.5 times more per booking compared to non-crypto users and exhibited a lifetime value three times greater. “These users are also 3.5 times more likely to stay for three nights or longer,” Woollard highlighted, referring to data from 115,000 crypto-paid room nights totaling $45 million.
With over $100 million in booking revenue last year, $80 million of which was in cryptocurrency, Travala experienced an 80% year-over-year growth. The rising acceptance of cryptocurrency is becoming a dual trend: it thrives in developing markets, where inflation drives demand for budget travel, as well as among affluent cryptocurrency holders seeking luxury experiences.
“Crypto acceptance lets travel providers capture both growing mass-market volume and ultra-premium spenders,” Silenzi noted. Woollard describes this tendency as a “crypto wealth effect,” where users benefiting from crypto gains are more willing to spend.
Stablecoins Are Gaining Ground
Volatility in cryptocurrencies like Bitcoin continues to be a concern, which is where stablecoins have an advantage. As assets pegged to fiat currencies, stablecoins provide predictable value while retaining many benefits associated with cryptocurrencies.
“Stablecoin payments account for about half of our crypto bookings,” Woollard mentioned. Their global appeal is evident: stablecoin transaction volumes in 2024 surpassed those of Visa by 119% and Mastercard by 200%. Major entities are getting involved too, with PayPal launching its own stablecoin and financial regulations in regions like Dubai and Abu Dhabi paving the way for more stablecoin use.
“Almost every major bank is thinking about their own digital currency,” said Lemon. Stripe considers stablecoins to meet the ideal currency criteria: “programmable, instant, secure, low-cost,” he added.
In unstable currency markets, stablecoins could offer much-needed consistency for B2B users. “Does it seem crazy that 20%-25% of B2B transactions could be in stablecoins in a few years? Not really,” Lemon noted.
Roberto Da Re, CEO and Founder of Travel Ledger, agrees that due to their stability, stablecoins are more suitable for B2B transactions, especially since the stakes tend to be higher in larger transactions. He expects faster adoption in less globally connected regions, suggesting that technology often flourishes in areas where the necessity is greatest.
Loyalty and Marketing in the Crypto Era
Blockchain technology also holds potential for creating loyalty programs that offer non-expiring rewards usable across various ecosystems. For example, Travala users can earn back up to 10% of each booking in Bitcoin or Travala’s AVA tokens.
Non-Fungible Tokens (NFTs) are also emerging as a practical use case. Travala’s “Travel Tiger” NFT provides exclusive membership perks, such as lounge access and travel giveaways.
“There’s a tremendous opportunity here, especially for airlines with strong loyalty programs,” Cramer highlighted. Additionally, blockchain facilitates hyper-personalized marketing campaigns. By utilizing crypto wallet data, companies can analyze customer habits, which allows them to target offers with greater precision compared to traditional methods. “Using this information, companies can tailor campaigns to over 220 million active users,” Woollard stated. Furthermore, Web3 technology promotes data decentralization, empowering travelers to control their personal information.
A Growing Opportunity
Forecasts suggest that cryptocurrency payments will grow at an estimated annual rate of 17%. As the market continues to mature, the opportunities for travel companies to adopt cryptocurrency will likely increase.
“As the market matures, the opportunity is enormous,” Woollard emphasized. “Crypto travel payments could multiply five to ten times from their current levels by the end of the decade.”
Lemon urged travel brands to start exploring stablecoins now. “Take your first call about stablecoins. Listen to your first podcast,” he suggested. “It’s grown up. It’s stable. It’s part of a technology-led future.”
In a discussion with PhocusWire’s senior reporter Morgan Hines, Cramer elaborated on the rapid evolution of crypto and its growing mainstream acceptance, highlighting how enhanced transaction speeds and better fiat tracking are reshaping the industry. Adoption is particularly anticipated in sectors like hospitality, where innovative technology can provide a more affordable and efficient means of facilitating international fund transfers.
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