As cryptocurrency becomes increasingly popular, more consumers are turning to digital currencies like Bitcoin, Dogecoin, and Ethereum to pay for a wide range of goods and services. The travel industry is among the sectors embracing cryptocurrencies as a form of payment. While there are definite advantages and drawbacks, a growing number of travelers seem eager to use their crypto for booking flights and hotels.
Which companies accept cryptocurrency?
Several online travel agencies, including Travala, Destinia, CheapAir, BTCtrip, Abitsky, and Berkley Travel, accept Bitcoin and other cryptocurrencies. Through these agencies, travelers can purchase airline tickets and reserve hotel stays. If you prefer to book flights directly with airlines, that’s also possible. AirBaltic became the first airline to accept cryptocurrencies in 2014, followed by LOT Polish Airlines and Virgin Galactic.
In 2021, the Universal Air Travel Plan (UATP)—a global payment network—announced that it would start accepting payments in 10 popular cryptocurrencies. Thousands of travel merchants, including major airlines and travel agencies, participate in the UATP network. Luxury hotel brand Kessler Collection also now accepts Bitcoin, Dogecoin, and Ether as valid payment methods.
As more people want to pay for travel using cryptocurrencies, it’s likely that even more businesses will adopt digital currencies in the future. According to a survey by Travala.com, 22% of American travelers plan to use cryptocurrency to pay for at least part of their next trip.
How to book your next trip with cryptocurrency
If you’re interested in booking a trip with cryptocurrency but haven’t bought any yet, there are several easy-to-use online exchanges where you can get started. Simply create an account on a reputable exchange, such as Binance, Coinbase, or Gemini, deposit funds, and add crypto to your digital wallet. When you’re ready to make a purchase with a participating travel agency or airline, select crypto as your payment method and you’ll be redirected to the relevant platform. PayPal also lets customers buy digital currencies directly.
What are the pros of booking travel with cryptocurrency?
Paying for flights and hotel rooms online with cryptocurrency is typically straightforward, similar to using a credit or debit card.
Many travelers appreciate the security provided by cryptocurrencies, as transactions are managed through decentralized blockchain technology. Since travel purchases are often high-value, secure and reliable transactions are especially appealing.
Using cryptocurrency can also help you save money by avoiding high currency exchange fees. Bitcoin ATMs allow you to convert your local currency to BTC, which can then be exchanged into another country’s currency with minimal or no fees. If you’re traveling to a country with an unstable currency, paying with crypto instead of exchanging cash might save you hassle and even money.
Loyalty rewards programs can be quite profitable for frequent travelers. Fortunately, when you book travel with cryptocurrency, you can still earn these rewards, now tokenized as digital assets.
What are the cons of booking travel with cryptocurrency?
Unfortunately, cryptocurrencies are known for their price volatility. So depending on your destination, using crypto might not offer full protection from market swings.
While some travelers value the security of crypto transactions, others stick with credit cards. Credit card companies offer customers fraud protection under the Fair Credit Billing Act, a benefit not available to crypto owners.
Perhaps the biggest drawback of using cryptocurrency is its acceptance: while more online agencies and businesses are welcoming crypto payments, many major players have not yet joined in. If your favorite travel site doesn’t accept cryptocurrency or you want the best deal, cashing in your Bitcoin may not always be possible.
In addition, several countries—including Algeria, Bolivia, China, Egypt, Nepal, and Vietnam—have banned the use of cryptocurrencies for purchases, and you won’t find businesses accepting digital currencies in Russia or Pakistan.
There’s no doubt that cryptocurrency is becoming a more common payment method across industries, and travel is no exception. Whether the pros outweigh the cons depends largely on your priorities and the specifics of your trip.
