Last updated July 26, 2024
Blockchain technology is buzzing around the world these days. So it’s no wonder it eventually made its way to the travel industry.
Before we dive into those specifics and get our NFT wallets (or passports) ready, let’s back it up a few steps and talk about the basics.
What Is Blockchain Technology?
First things first. What is blockchain technology? Blockchain technology is a digital ledger that stores data of any kind. It consists of records called “blocks.” These blocks record transactions.
Without getting too technical (and to keep it relevant to travel), imagine blockchain as a bit like a passport. Your passport contains a stamp from each country you’ve visited. Similarly, blockchain is like a global-entry book that records all your travel transactions.
What Are NFTs?
Non-fungible tokens (NFTs) are digital assets stored and transacted on the blockchain. They can range from photos, videos and utility tokens to sound clips, and can even represent real-world items like real estate and artwork.
The Ledger
An NFT’s data is stored within the ledger, an online service that allows users to safely manage their NFTs. The ledger can run on various blockchains, including Ethereum, Solana, Polygon, Tezos and Cardano.
What Makes NFTs Special?
NFTs are special because they are indestructible, unique and verifiable. Indestructible means they cannot be destroyed, removed or replicated. Unique means each NFT is one-of-a-kind, with ownership residing solely with the buyer. Additionally, NFTs are verifiable as they can be traced back to the creator via smart contracts, which record all transactions on the blockchain.
NFTs, Travel & Passports
Still with me? Great. Let’s revisit our travel and passport metaphor. Think of NFTs as the stamps you receive upon entering different countries—a unique and indestructible record of your journey. This could actually make for an intriguing NFT.
How Does Blockchain Technology Relate to Travel?
Most NFTs are related to art, games and the ever-expanding Metaverse. However, NFTs are also making waves in the travel industry, with hospitality brands already testing the waters. Hospitality brands using NFTs:
Marriott
Marriott Bonvoy launched its first NFT collection during Art Basel Miami Beach 2021. Winners received a piece of art along with member points. Fun fact: The Dream Hollywood Hotel is the first to host an NFT gallery.
AirBaltic Airlines
AirBaltic is the world’s first airline to issue NFTs, starting with a limited collection to boost tourism in Latvia. Artists showcasing travel NFTs are another entry point into the blockchain and tourism space.
NFTs Are Still New
There’s much more to explore about what is currently being done and what can be done with NFTs in travel. It’s important to note that NFTs are still very new, presenting a wide-open opportunity for innovation and creativity.
As with any new technology, blockchain in travel faces challenges. Regulations and standards are one aspect, but the biggest conversation revolves around the environmental impact of NFTs.
NFT “gas fees” are currently high due to minting on the Ethereum blockchain. This has raised concerns about environmental harm, with some arguing that NFTs are worse for the planet than travel itself. Gas fees are what users must pay to perform any function on the blockchain, specifically Ethereum.
Fortunately, there are other options for minting NFTs that require little to no gas fees, and more are becoming available to address this major disadvantage.
The Ethereum Merge
The Ethereum Merge, transitioning from proof of work to proof of stake, is set to go live in 2022. This change aims to reduce the environmental impact of blockchain transactions. Additionally, other sustainable platforms for minting NFTs include Polygon, Tezos, Cardano and Aspire.
What Opportunities Lie Ahead?
It’s still too early to map out all the opportunities for NFTs and travel, but their global reach for immediate transactions will reduce the need for intermediaries, including banks. Instead of relying on a middle person to manage our transactions, we can directly track and trace payments, make them more secure and monitor our accounts just as we do with stock market tabs at work.
What About Tourism?
NFTs and blockchain technology have a fundamental role in tourism. Beyond their basic functions, the possibilities are endless. Imagine buying a membership with cryptocurrency to attend your next wellness retreat via an NFT token. This token could offer travel benefits similar to those from Triple-A, Capital One or Fidelity, granting you access to numerous destination attractions and allowing you to move between resorts within a brand seamlessly.
Picture yourself checking out of your New York office for a lunch break in Thailand or joining a meditation session in the Metaverse after a yoga session in Spain—all within an hour. These possibilities may seem far-fetched now but they could become a reality someday.
This is a lot to cover in one article. If you take anything away from this, understand the basics of NFTs and blockchain technology. Be aware of the many potential opportunities ahead in the travel sector. Keep an eye out for these developments and don’t hesitate to experience them.
Let’s open the conversation. What have you heard about NFTs or blockchain? Have you seen any instances of them in the travel sector during your searches or adventures?
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