What could cryptocurrency do for the airline industry?
Revenue of commercial airlines worldwide from 2003 to 2019 (in billion U.S. dollars) according to Statista the online portal for statistical data.
As a travel agency that has been accepting Crypto for the last 6 years, Future.Travel is aware of the benefits to the airline industry from cryptocurrency.
Here are 8 examples on what Crypto currencies can do if utilised in the airline industry:
- The first and foremost benefit to the airline industry is the reduction of costs from international cross-border exchange rates and transfer fees. This alone would be worth billions of dollars annually.
- Second in line to benefit the airline industry is the reduction of credit card fraud, where the airline/agents loose to banks as customers charge back for fraudulent transactions. This alone would be worth billions of dollars annually.
- Interairline payments where airlines are directly compensating each other with payments. Crypto reduces the transfer times and costs, again saving billions per year.
- Following on would be the reduction of friction in the transaction (abandoned shopping carts/transactions) as credit card failures or lack of credit cards prevent valid transactions from completing
- Reduction of time spent in transactions both in processing time and human resources as the fraud issue is reduced to nil. No time/HR required for chargeback defense.
- Higher volume of profits for airline/agency as costs are reduced. Lower cost to passengers if saving are passed through to the customer.
- Agencies and Airlines that accept Crypto in the future will become more competitive against their non Cryto peers as volumes of transactions increase.
- Generational shifts to Crypto as a payment pathway will increase uptake by generational buyers who are migrating away from cash, cards, and border restrictions on their funds.
It should also be noted that some USA/NZ companies are already paying employees in Crypto… this trend will grow and the airline industry can benefit if they are flexible enough plan for the transition away from legacy payment methods.
With the first three items on the list there are billions of $ in annual savings (shareholders love this) from the almost $1 Trillion airline annual revenue stream.