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Web3 technologies could be a game changer for the travel industry

Web3 technologies could be a game changer for the travel industry

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Many companies and industries incorporate Web3 technologies into their business structures, and the travel industry is no exception.

On Wednesday, Argentine airline Flybondi announced a strategic alliance with TravelX, a blockchain technology company responsible for tokenizing airline tickets. The purpose of the partnership is to enable passengers to purchase airline tickets as non-exchangeable tokens through Binance Pay using USD Coin (USDC) payment transactions.

Speaking to Cointelegraph, TravelX founder Facundo Diaz shared that he is fully convinced that Web3 technologies could enable the travel industry to expand, not only in terms of market size, but also in terms of use cases and benefits for travelers:

“In 1990, there were 1.2 billion air passengers, and the market size of the industry was estimated at 250 billion dollars. Thanks to the introduction of the Internet, the industry grew between 1990 and 2007 to 2.5 billion passengers and a market size of $510 billion.

He explained that in 2008 there was another addition. When it became mandatory for members of the International Air Transport Association to use electronic ticketing services, the number of passengers increased to 4.5 billion per year and the market size to 870 billion dollars.

Diaz believes that NFT tickets could be beneficial to travelers as it would allow flyers to auction, sell, trade and transfer tickets from wallet to wallet, giving them full control over the management and disposal of their travel assets freely and seamlessly:

“Imagine being able to sell your NFT ticket if you can’t travel, or text it as a gift to your mom whenever you want.”

In addition, NFTtickets could potentially allow Airlines to increase their revenue through resale on the secondary market. Diaz told Cointelegraph that “Every time an NFT ticket is resold on the secondary market, the airline collects a percentage of the increase based on a revenue sharing model defined in the smart contract.”

Speaking about his vision for the space’s bright and exciting future, Diaz stated:

“We believe that the blockchain-based distribution and retail infrastructure we are creating for the travel industry will help it evolve into a more transparent industry governed by clear smart contracts without black boxes, hidden fees or conditions.”

He added: “But probably the most interesting new use cases are the ones we couldn’t imagine yet.”

TravelX also hopes to set a precedent for NFT ticket standardization in the travel industry, but has no intention of monopolizing the market, Diaz said.

“We just created the first layer of infrastructure and open it up to the tourism industry itself and to new actors like Exchanges, DeFi protocols or entrepreneurs who can connect and/or build new solutions on top of it.”

He explained that the blockchain company is building its infrastructure on the Algorand network because of its “performance, security, cost and scalability, but mainly because it is an environmentally friendly blockchain, considering its contribution, achieved the status of carbon negative.”

For the time being, US-based TravelX is focused on airline inventory distribution, which is the most challenging area of ​​the travel industry that can be positively influenced. Mr. Diaz said, “TravelX is negotiating and working with more than 60 airlines from Europe, the Middle East and the United States to integrate TravelX’s standard and infrastructure into warehouse management and distribution.”