Why the luxury tourism industry is latching onto Blockchain technology – ET TravelWorld
With the number of global crypto-millionaires increasing to more than 100,000 in 2021, there is a sizeable interest displayed by this ever-growing community in using their crypto gains to indulge in new experiences.
The travel and tourism industry stands to benefit the most from this growing class of investors who want to fulfill their travelling desires with highly personalised services enabled through the use of popular cryptocurrencies as legal tender.
Moreover, with millennials representing more than 50 per cent of the global luxury market potential and 58 per cent of the crypto investor community by volume, brands, and services involved in the global luxury tourism market are increasingly adopting crypto today. In a bid to attract this growing class of investors and to make their systems more efficient, travel firms are augmenting efforts to adopt Blockchain technology that lies at the core of crypto assets.
As a technology, Blockchain will enable tourism-focused companies to facilitate crypto transactions in place of services, create efficient loyalty programs that reward their users, and even tokenize physical assets such as resort spaces in the form of Non-fungible Tokens (NFTs).
In fact, with the rise of the Metaverse, Blockchain technology will be instrumental in converting popular and niche travel destinations into their digital avatars. The possibilities are endless and are the primary reason why many luxury tourism players are jumping onto the crypto bandwagon.
Recently, global platform LynKey, that powers luxury resort and vacation property with blockchain and AI technology, today announced a project for tokenising and offering NFT solutions of over USD 8 billion for travel and tourism using smart contracts to digitise luxury resorts and properties at multiple destinations, offering them over its blockchain-powered token marketplace and ecosystem, seeking to tokenise all aspects of property development- purchases, leases, land use, and related tourism entertainment- in an international blockchain-powered ecosystem.
“Using NFTs with AI data-driven protocol sets, the company is revolutionizing the travel destination and entertainment space with smart tourism. LynKey connects the global audience with a blockchain-powered platform and a token that empowers an ecosystem with time-sharing, and reward solutions at premium luxury tourist spots,” says Dinis Guarda, founder and non-executive Chairman of LynKey.
Dileep Seinberg, Founder and CEO, Thinkchain, Crypto, NFT & Blockchain Consulting company says tourism drives two significant aspects for any nation, its cultural heritage and value for land ownership or real estates
“Blockchain-based smart contracts and NFTs enable fractional ownership for any property which will attract more foreign buyers. Also, art is protected by NFT ownership, which can fuel national cultural values and drive income for its local artisans,” he added.
As global vaccination coverage improves by the day and the intent for travel increases proportionately, the global luxury tourism industry is set to witness high double-digit growth rates in the foreseeable future. Companies that are Blockchain and crypto ready will no doubt be in a better position to capitalise on the increased demand from crypto users along with the traditional travel community.
Additionally, with most cryptocurrencies amid an epic bull run, companies can earn even more from crypto-based payments by capital appreciation on the underlying assets. In summary, faster and borderless transaction ability, more lucrative reward mechanisms, and a growing younger consumer class are just a few of the reasons why this trend is here to stay.
Raj Kapoor, Founder – India Blockchain Alliance and Chief Growth Officer at Chainsense LTD, said that as blockchain technology progresses there is increased interest in digital securities from the real estate and luxury tourism sector and the deal sizes and pipeline have grown exponentially over the past year.
“I believe that there’s huge potential for technology to enable new business models in the real estate ecosystem that lower operational costs and increase liquidity. Platforms can now optimise timesharing, prepaid leasing, or licensing of property-based experiences geared towards tourism while offering an exclusive reward system for its users thereby connecting a global audience with a blockchain-powered platform and tokens that empowers an ecosystem with time-sharing, and reward solutions at premium luxury tourist spots,” he said.
Telos, a decentralised blockchain built by developers for developers to power Web 3.0 and Telos Kitchen DAO LLC, which operates as a block producer on the Telos blockchain has collectively purchased 35.84 acre of real estate in Laramie River Ranch, Wyoming with block rewards received from the network for an equivalent value of USD 25,000, seeking to automate many functions of real estate by making the process quicker by removing intermediaries and providing the technology needed to store and process the data, while leaving it easily accessible and immutable.