Many companies and industries are incorporating Web3 technologies into their business structures, and the travel industry is no exception.
Flybondi, an Argentine airline, announced on Wednesday a strategic alliance with TravelX, a blockchain technology company responsible for converting airline tickets into tokens. The partnership aims to enable travelers to purchase airline tickets as non-fungible tokens through Binance Pay, using USD Coin (USDC) as payment for transactions.
“In 1990, there were 1.2 billion passengers on airlines, and the market size of the industry was $250 billion. Thanks to the adoption of the Internet, between 1990 and 2007, the industry grew to 2.5 billion passengers and the market size was $510 billion.”
He explained that another increase occurred in 2008. When it became mandatory for members of the International Air Transport Association to use electronic ticket services, the number of passengers grew to 4.5 billion annually and the size of the industry in the market was $ 870 billion.
Diaz believes that NFTickets can be beneficial to travelers, as it will allow travelers to auction, sell, trade and transfer tickets from wallet to wallet, giving them full control over the free and seamless management and disposal of their travel assets:
“Imagine being able to sell your NFTicket if you can’t travel, or text it as a gift to your mom whenever she wants.”
In addition, NFTickets can allow airlines to increase their revenue through reselling from the secondary market. Diaz told Cointelegraph, “Every time an NFTicket is resold in the secondary market, the airline collects a percentage gain based on the revenue sharing model defined in the smart contract.”
Speaking about his vision for a bright and exciting future for space, Diaz said:
“We believe that the blockchain-based retail and distribution infrastructure we are building for the travel industry will help evolve it into a more transparent industry, governed by clear smart contracts without black boxes, fees or hidden terms.”
“But perhaps the most interesting new use cases are the ones we haven’t even imagined yet,” he added.
TravelX also hopes to set a precedent for consolidating NFTickets in the travel industry, but has no intention of monopolizing the market, Diaz shared.
“We have just created the first layer of infrastructure, opening it up to the actual travel industry and new players, such as exchanges, DeFi protocols, or entrepreneurs, to connect and/or build new solutions on top of it.”
He explained that the blockchain company is building its infrastructure on the Algorand network, due to its “performance, security, cost, and scalability, but mainly because it is an environmentally friendly blockchain that, due to its Proof of Stake, has achieved a carbon niche.”
Currently, TravelX, a US-based company, is focusing on airline inventory distribution which is the most challenging area that can positively impact the travel industry. “TravelX is in negotiations and working with more than 60 airlines from Europe, the Middle East and the United States to integrate the TravelX standard, inventory management and distribution infrastructure,” said Mr. Diaz.