Many companies and industries are integrating Web3 technologies into their business structures and the travel industry is no exception.
On Wednesday, Flybondi, an Argentine airline, announced a strategic alliance with TravelX, a blockchain technology company responsible for tokenizing airline tickets. The partnership intends to enable travelers to purchase airline tickets as non-fungible tokens via Binance Pay, using USD Coin (USDC) as a means of payment for transactions.
“In 1990 there were 1.2 billion airline passengers and the market size of the industry was estimated at $250 billion. Thanks to the advent of the Internet, the industry grew to 2.5 billion passengers between 1990 and 2007 and a market size of US$510 billion.”
He explained that in 2008 another increase took place. When it became mandatory for members of the International Air Transport Association to use e-ticketing services, the number of travelers grew to 4.5 billion annually and the industry had a market size of US$870 billion.
Diaz believes that NFTickets could be beneficial for travelers as it would allow passengers 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 would have:
“Imagine being able to sell your NFTicket when you can’t travel, or text it as a gift to your mom whenever you want.”
Additionally, NFTickets could potentially allow airlines to increase revenue through resale on the secondary market. Diaz told Cointelegraph, “Every time an NF ticket is resold in the secondary market, the airline receives a percentage of the upside based on the revenue sharing model defined in the smart contract.”
Discussing his vision for a bright and exciting future in space, Diaz stated:
“We believe that the blockchain-based distribution and retail infrastructure we are creating for the travel industry will help transform it into a more transparent industry, governed by clear smart contracts with no black boxes, hidden fees or terms.”
He added, “But probably the most interesting new use cases are the ones we haven’t yet imagined.”
TravelX also hopes to set a precedent for standardizing NFTickets within the travel industry, but has no intention of monopolizing the market, Diaz said.
“We have just built the first layer of infrastructure and are opening it up for the actual travel industry and new players like exchanges, DeFi protocols or entrepreneurs to connect to and/or build new solutions on.”
He explained that the blockchain company is building its infrastructure on top of the Algorand network because of its “performance, security, cost and scalability, but mainly because it’s a green blockchain that has achieved carbon status given its Proof of Stakes.” Negative.”
TravelX, a US-based company, is initially focused on airline inventory distribution, which is the most difficult area to positively impact in the travel industry. Mr. Diaz shared, “TravelX is in negotiations and working with more than 60 airlines across Europe, the Middle East and the US to integrate TravelX’s standard and infrastructure for their inventory management and distribution.”