The Travel Industry will Soon Undergo a Makeover with Web3

Travel industry

The travel sector is one of several industries integrating Web3 technology into their organizational frameworks

Web 3.0 is currently replacing Web 2.0 on the internet. It is, to put it simply, the third iteration of the internet, which is anticipated to give the current internet autonomy through the use of decentralized technologies and artificial intelligence. The proliferation of mobile devices, social media, and data are only a few of the variables influencing this change. Web 3.0 will attain its full maturity during the next two to three years. The adoption of Blockchain technology is the key driver of Web 3.0. Although the extent of this transition is still up for debate, one sector that is impacted is the tourism industry’s information systems (TIS).

The travel sector is one of many that are integrating Web3 technology into their organizational frameworks. Argentinian carrier Flybondi established a strategic partnership with TravelX, a provider of blockchain technology for tokenizing airline tickets, on Wednesday. Through Binance Pay and USD Coin (USDC), the alliance aims to make it possible for users to buy plane tickets using nonfungible tokens. In an interview with Cointelegraph, TravelX co-founder Facundo Diaz expressed his complete conviction that Web3 technologies may help the travel sector grow, not just in terms of market size but also in terms of use cases and advantages for travelers:

“In 1990, there were 1.2 billion airline passengers, and the market size of the industry was estimated at $250 billion. Between 1990 and 2007, the sector saw growth to 2.5 billion passengers and a $510 billion market. He mentioned that 2008 saw yet another rise in the business. When using e-ticketing services was made required for International Air Transport Association members, there were 4.5 billion travelers annually and an $870 billion market for the sector. Travelers could benefit from NFTickets, according to Diaz, because it would give them complete control over managing and disposing of their travel assets freely and seamlessly. Flyers could auction, sell, trade, and transfer tickets from wallet to wallet. Imagine being able to sell your NFTicket if you are unable to fly or sending it as a gift to your mother via text message whenever you like. In addition, NFTickets might be able to help airlines raise their revenue by reselling tickets on the secondary market. According to Diaz, “each time an NFTicket is resold in the secondary market, the airline receives a portion of the upside depending on the revenue sharing scheme stated in the smart contract.” Diaz said when asked about his outlook for the space’s dynamic and promising future: “We believe the blockchain-based retailing and distribution infrastructure we are building for the travel industry will help it evolve into a more transparent business, governed by unambiguous smart contracts without hidden fees or conditions.” But the new use cases that we couldn’t have predicted are for the standardization of NFTickets within the travel sector. They have recently finished building the initial layer of infrastructure, and they are now opening it up for use by the actual travel sector as well as new parties like Exchanges, DeFi protocols, or entrepreneurs to connect to and/or create new solutions on top of it. In his explanation, he said that the Algorand network is chosen by the blockchain company as the foundation for its infrastructure because of its “performance, security, cost, and scalability, but primarily because it is an environmentally friendly blockchain, considering its proof of stake, achieved the status of being carbon negative.”

The distribution of airline inventory is the most difficult area of the travel business where improvements may be made right now, according to TravelX, a U.S.-based company. The following was stated by Mr. Diaz: “TravelX is in discussions and working with more than 60 airlines from Europe, the Middle East, and the United States for them to incorporate TravelX’s standard and infrastructure for their inventory management and distribution.”

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