There's no doubt that Bitcoin and other cryptocurrencies are on the rise. Some experts believe that they could eventually replace traditional currency altogether. But what does this mean for the aviation industry? We will explore how Bitcoin and other cryptocurrencies could potentially impact how we fly.
1. Increased Flight Options for More than Just Tourists
Where traditional currencies and online payment methods like credit cards attract tourists, cryptocurrencies may also increase flight bookings by non-tourists. Cryptocurrencies may make it easier for residents with unstable economies to purchase flights to more stable countries. Such currencies are also significantly safer than the cash often used for cross-border transactions, which can be lost or devalued during travels.
2. Easier Peer-To-Peer Sharing of Flights
As we all know, most airlines offer different types of tickets. There are usually flexible tickets, semi-flexible and non-flexible ones. Flexible ticket holders can change their flight dates and times or cancel their access at any time. However, those who purchase non-flexible tickets usually have to pay a lot of money for these privileges.
Flexible tickets can cost up to three times as much as non-flexible ones. It's not surprising that some people prefer the latter kinds of keys. However, with the help of cryptocurrencies, it may be possible to change this system entirely.
3. Price Transparency with Smart Contracts
Airlines often change their prices depending on when there is a reservation. They do so to satisfy demand and maximize revenue as much as possible. It may work well for most passengers, but not for all. For instance, it can be frustrating if a price drops after one has already booked a flight.
However, this could soon change with the help of cryptocurrencies and blockchain technology. These currencies rely on decentralized networks that use smart contracts. These enable people to make transactions without a third party or a central authority. Since no governing body is involved, smart contracts are less likely to be arbitrary.
4. Opportunities for Travelers across the World to Pay in Their Local Currencies
People who travel between countries often have to convert money into another currency first. It can take time and costs money too. Unfortunately, it isn't easy for people who do not have good financial services to take advantage of better exchange rates.
In the case of cryptocurrencies, it may be possible for travelers from developing countries to pay in their local currencies. One can transfer these currencies into several other digital currencies at a lower cost and fewer restrictions than regular money transfers.
5. More Efficient Airline Ticket Distribution through Decentralized P2P Exchanges
Today, airlines offer most of their tickets through online travel agencies. These companies, in turn, use ticket distribution systems controlled by middlemen to maximize profits and deliver tickets in the fastest way possible.
Such an approach can be problematic for A to B flights since they often get short-changed for promotions. This is why decentralized P2P exchanges could be a great way for airlines to deliver their tickets in the future.
Many people are not aware of the high fees for airline tickets that they have to pay. If cryptocurrencies can help airlines offer lower prices to their customers, this may encourage more people than ever before to fly. At the same time, this is likely to end traditional flight booking services and centralized ticket distribution systems since it becomes much easier for people to use a decentralized P2P platform.