For a long time, cryptocurrencies were used almost exclusively as a store of value or other forms of investment. But this reality is changing, and currently, tourism and the luxury market increasingly accept digital assets as a form of payment.
Niches aimed at high-net-worth users are developing exclusive experiences, reserved for those who wish to make payments through their digital wallets. Tesla, Gucci, Bentley, and Porsche are some of the industry icons that have entered this reality.
In this vein, businesses built on blockchain technology are taking advantage of the progressing regulation to provide legal security to consumers. Thus, all parties are protected from potential problems. But there are some points that lead to the success of this phenomenon, as explained below.
Strategic Partnerships in Tourism and the Luxury Market
Large companies and fintechs seek to establish partnerships with blockchain developers to customize their products and services. For instance, the Aura Blockchain Consortium is a luxury goods consortium created by the Louis Vuitton brand and provides traceability and authenticity to purchased items, given the high number of counterfeits in this segment.
This partnership allows users to identify the origin of goods, while facilitating the logistics mechanisms of manufacturers and suppliers.
Travelers can pack their bags without spending paper currency. Decolar, one of the largest online travel agencies in Latin America, is developing blockchain solutions to optimize its loyalty systems. With this, exclusive and tailor-made bonuses can be built for customers, allowing a more immersive and satisfying experience.
In addition to loyalty programs, reservation systems have been improved at TUI Group through blockchain technology. Data decentralization ensures greater transparency, security, and accessibility to audiences, regardless of their economic class.
Maksim Izmaylov, CEO of the Winding Tree project (discontinued in July 2024), brought a different concept to the tourism market: to directly connect hotels and airlines, drastically reducing the need for intermediaries.
Although canceled, the project served as inspiration for the creation of decentralized travel marketplaces, digital identification systems, and custom non-fungible tokens (NFTs). Platforms like Travala are linked to tens of thousands of establishments worldwide, expanding the range of options for users.
New Millionaires Fuel the Industry
Photo: Gonzalo Suarez Barcena/ Shutterstock
Many people have become wealthy in a few years through cryptocurrency investment. Exame wrote an article (In Brazilian Portuguese) about individuals who became millionaires (or even billionaires) with digital assets: the first name mentioned is Satoshi Nakamoto, the pseudonym behind bitcoin (BTC). There are about 968,000 BTC in his possession, which is worth about US$80 billion, according to the current exchange rate.
MicroStrategy President Michael Saylor is world-renowned for his pro-crypto stance and large financial investments in cryptocurrencies. Much of the tycoon’s fortune, estimated at US$9 billion, came from investments in digital assets. The twins Tyler and Cameron Winklevoss, owners of the Gemini exchange, stood out for their past investments.
According to The Crypto Wealth Report 2024, prepared by Henley & Partners, it suggests that 173,200 new crypto-millionaires were formed between 2023 and 2024. About 85,200 struck it rich by investing primarily in BTC.
With a 95% increase in crypto-millionaires, business possibilities in tourism and the luxury market become increasingly interesting. It is a consumer market on the rise, increasingly connected with new money and emerging technologies.
Breaking the Habit in Tourism
The Revista Dados & Informações do Turismo no Brasil brought to light curious data: in its 2021 edition, the government reported that the tourism sector was one of the most affected by the pandemic. This made online visits to museums and tourist attractions a reality. The metaverse took big steps during the period, allowing not only virtual tourism, but also the purchase and sale of related products and services.
Individuals who wish to visit certain destinations, but do not have the time availability, can hire digital tours, talk to live tour guides, and purchase souvenirs that will be delivered to the destination address, for example.
Whether physical or virtual tours, physical wallets and paper currency are increasingly becoming tools of the past. Cryptocurrencies as a means of payment facilitate negotiations and avoid the need for intermediaries, making digital payments easier.
According to the Crypto Industry Report, produced by Sumsub, these are the 10 most pro-crypto destinations for tourism and the luxury market:
- Switzerland
- Singapore
- United Arab Emirates
- Hong Kong
- Canada
- United States
- Cayman Islands
- Bermuda
- Australia
- Panama
The chances of finding establishments that accept crypto as a means of payment in these destinations are much higher than in most countries. The degree of adoption of digital solutions is quite high, which makes the use of digital wallets to close deals more interesting.
Something that all the countries mentioned above have in common is the construction of a regulatory framework favorable to innovation. For example, Panama is building legislation capable of protecting users against fraud and scams, and, so far, there is no kind of taxation on such transactions.
The Swiss government has a very permissive and favorable pro-crypto regulation. It has served as a model for several countries in the world, including Brazil. In Rio de Janeiro, Porto Maravalley is being developed to build a “hub” of blockchain companies, which can directly affect the tourist performance of the state in the long term.
A Myriad of Possibilities
Tourism and the luxury market are two niches that have an increasingly significant presence of high-net-worth individuals. As a rule, millionaires tend to serve as a kind of “test battery” for certain trends and technologies, causing more accessible options to be developed for the general public.
In any case, the connection between new technologies and high-level markets is taking shape and gaining new followers. Entrepreneurs interested in exploring these niches do not necessarily need to invest heavily to get ahead: innovative ideas, capable of reducing costs and borders between users and businesses, can build an increasingly favorable bridge for entry into the Web 3.0 economy.
Authenticity, traceability, security, transparency, and personalized experiences are already a reality, therefore, and all of this is provided by blockchain technology, which makes consumers feel increasingly belonging to brands, which are presenting new products and services to change, once again, the way business is done.
