With more travellers increasingly eager and able to pay for their holidays with cryptocurrency, travel companies should consider developing experiences in the metaverse to cater for younger people and new audiences, says a digital currency expert.
Futurist and chief executive of Fast Future Rohit Talwar told delegates at a recent global travel show, “Accept crypto to target growth segments – 350 million people hold crypto now.”
He highlighted pioneers in the travel sector that are making use of cryptocurrency opportunities, such as Expedia, the Dolder Grand Zurich hotel, air Baltic, Brisbane Airport, and the city of Miami – which is investing in its infrastructure thanks to developing its own cryptocurrency.
Commenting on the metaverse opportunities, he said: “It is a way to reach people we cannot otherwise serve.”
He told show delegates that 78 million people attended a two-day Ariane Grande concert last year in Fortnite, describing it as “like a digital version of Disneyland.”
“There is a whole generation growing up as gamers in those worlds, buying and selling in the metaverse,” he said.
Early adopters in the metaverse include Istanbul airport, Helsinki, and Seoul, he added.
The Bitcoin bounce
At the same time, while just months ago, all forms of cryptocurrency appeared to be going up in flames, with bitcoin plunging from almost US$50,000 at the start of 2022, to less than $17,000 when 2023 rolled around.
However, Bitcoin has since soared more than 60% above $27,000, in part thanks to economic data earlier this year seemed to suggest that inflation had peaked, raising the chance that the US Fed would ease off on rate hikes, and the recent collapse of Silicon Valley Bank and Signature Bank, which actually fuelled investments in bitcoin.
“As the economy heads towards a recession, the cryptoverse could look more attractive than equities,” wrote Edward Moya of Oanda in a research report. “It appears the downside risks are greater for the S&P 500 than they are for Bitcoin.”
The future of travel
Meanwhile, at the trade show, futurist Talwar also moderated a panel of experts talking about the future of travel, which highlighted sustainability and diversity as key trends for the 2020s and beyond.
Fahd Hamidaddin, Chief Executive at the Saudi Tourism Authority, said climate change has been “factored into” the destination’s 2030 vision. “Saudi is committed to contributing to the net zero contribution of the [tourism] sector by 2050,” he added.
He said the destination is developing rewilding schemes for 21 species and making sure Red Sea developments can preserve the coral and marine environments.
Peter Krueger, Chief Strategy Officer at TUI AG, highlighted how tourism is a “force for good,” acting as a “value transfer from wealthy countries to less developed destinations.”
He pointed to the Dominican Republic, which has developed its economy and schools thanks to its tourism industry, while neighbouring Haiti’s economy is less developed because it has very little tourism.
Sustainability is an opportunity, he added, citing the example of solar panels on hotels in the Maldives, which offer a return on investment within three years.
Julia Simpson, President and Chief Executive at the World Travel and Tourism Council, highlighted the importance of investing in sustainable aviation fuels (SAF).
She urged delegates to use WTTC resources to help them on their journey to net zero – and to find out about ways to support nature and biodiversity.