Through resales on the secondary market, airlines and events might be able to make more money with NFTickets.
Web3 technologies are being used by a lot of companies and industries, and the travel industry is no exception.
On September 21, Flybondi, an airline from Argentina, announced a strategic partnership with TravelX, a company that uses blockchain technology to tokenize flight tickets. The goal of the partnership is to let people buy airline tickets as non-fungible tokens through Binance Pay and pay for them with USDC.
Facundo Diaz, the co-founder of TravelX, told Cointelegraph that he was sure that Web3 technologies could help the travel industry grow, both in terms of the size of the market and the number of uses and benefits for travelers:
“In 1990 there were 1.2B of airline passengers, and the industry’s market size was valued at $250B. Thanks to Internet adoption, between 1990 and 2007, the industry grew to 2.5B passengers and a $510B market size.”
He told me that there was another rise in 2008. When the International Air Transport Association made it mandatory for its members to use e-ticketing services, the number of travelers grew to 4.5 billion a year, and the size of the market grew to $870 billion USD.
Diaz thinks that NFTickets could help travelers because it would let them auction, sell, trade, and move tickets from one wallet to another. This would give them full control over how they use and get rid of their travel assets:
“Imagine being able to sell your NFTicket if you cannot travel, or sending it by text message as a gift to your mum whenever you want.”
NFTickets may also make it possible for Airlines to raise their revenue by reselling tickets on the secondary market.Diaz told that, “Every time an NFTicket is resold in the secondary market, the airline collects a percentage of the upside based on the revenue sharing model defined in the smart contract.”
Speaking on his outlook for a promising future for the area, Diaz said:
“We believe the blockchain-based distribution and retailing infrastructure we are creating for the travel industry will help to evolve it into a more Transparent industry, ruled by clear smart contracts without black boxes, hiding fees, or conditions.”
He added, “But probably the most interesting new use cases are the ones that we couldn’t imagine yet.“
TravelX doesn’t intend to monopolize the market, according to Diaz, but it does seek to establish a precedent for the standardization of NFTickets within the travel sector.
“We just created the first layer of infrastructure, and we are opening it for the actual travel industry and new players, like Exchanges, DeFi protocols, or entrepreneurs, to connect and/or build new solutions on top of it.”
Because of its “performance, security, cost, and scalability, but mainly because it is an environmentally friendly blockchain, considering its proof of stake, achieved the status of being carbon negative,” he explained, the blockchain company is constructing its infrastructure on the Algorand network.
In order to have the biggest influence on the travel business, TravelX, a US-based company, is now concentrating on airline inventory distribution.Mr. Diaz shared: “TravelX is in negotiations and working with more than 60 airlines from Europe, the Middle East, and the US for them to integrate TravelX’s standard and infrastructure for their inventory management and distribution.”