NFT Tickets: A Game Changer for the Airline Industry
Can the NFT ticket system provide an additional revenue source for the Airline Industry, and how would this benefit the passengers?
Since NFTs entered our lives, their use cases have also evolved and changed, and beyond the art, the concept of “utility” has been introduced to us. As a result of the emergence of utility, projects or companies that offer clear use cases and benefits for NFTs, have carved out a niche for themselves in the industry.
The airline industry is one of the most suitable markets for these use cases, with the possibility of airline companies increasing their profits with the help of resales on the secondary market, as well as individuals benefiting from this increase in ticket availability.
Recently, in September 2022, low-cost Argentinian airline, Flybondi, announced their collaboration with the blockchain technology company, TravelX.
TravelX is currently creating a new blockchain-based distribution and retailing infrastructure for the travel industry. As part of their collaboration, Flybondi will start issuing tickets as Non-Fungible Tokens (NFTs), which will expand the options of the customers in terms of how they use them.
Airline tickets purchases will be made by using the USD Stable Coin $USDC, via Binance Pay.
TravelX shared on their website that, “this innovation in the industry will allow greater flexibility for travelers who will be able to anticipate their travel plans by accessing better rates without the risks associated with purchasing tickets well in advance.”
Meanwhile, TravelX Co-Founder and Chief Blockchain Officer of TravelX, Facundo Diaz, declared his trust in Web3 technologies, and their ability to boost the travel industry, especially the airline industry. He further stated that this expansion will not only be in the form of market capitalization, but also in terms of interest for travelers. He also shared a comparison of passenger numbers from 1990 and 2007.
“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 also made reference to another surge that occurred in 2008, when e-ticketing services became mandatory for International Air Transport Association members. When this took place, the market size went up to $870 billion, with the number of global passengers increasing to 4.5 billion.
Of course, not only will the airlines benefit as token issuers, but passengers will also be able to sell or trade their tickets with other passengers, as well as being able to transfer them. This means that ticket owners have full custody of their purchases, and the ability to decide whether to use, dispose of, or trade them. It is expected that there will be some sort of deadline imposed on this activity, but nevertheless, this represents a major step towards true buyer ownership and decentralization. In the past, countless passengers have lost out because tickets cannot be transferred to other passengers, or because the ticket wasn’t flexible. Historically, despite being the ticket owner, the passenger has had no control over their own purchase, which clearly doesn't make any sense.
Still, the new system will of course benefit the airline companies as they will be getting a percentage of each ticket sold in these secondary markets.
Diaz elaborated:
“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 is hoping to launch a model for NFT ticket (NFTickets) standardization for the whole travel industry, but despite this, their intention is not to overtake the market, according to Diaz:
“I can say that this is a very important step. 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.”
He further explained that the blockchain company is building its infrastructure on the Algorand network, 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”.
Source: www.travelx.io
analyst opinion
Eda Tutkun
Since NFTs entered our lives, their use cases have also evolved and changed, and beyond the art, the concept of “utility” has been introduced to us. As a result of the emergence of utility, projects or companies that offer clear use cases and benefits for NFTs, have carved out a niche for themselves in the industry.
The airline industry is one of the most suitable markets for these use cases, with the possibility of airline companies increasing their profits with the help of resales on the secondary market, as well as individuals benefiting from this increase in ticket availability.
Recently, in September 2022, low-cost Argentinian airline, Flybondi, announced their collaboration with the blockchain technology company, TravelX.
TravelX is currently creating a new blockchain-based distribution and retailing infrastructure for the travel industry. As part of their collaboration, Flybondi will start issuing tickets as Non-Fungible Tokens (NFTs), which will expand the options of the customers in terms of how they use them.
Airline tickets purchases will be made by using the USD Stable Coin $USDC, via Binance Pay.
TravelX shared on their website that, “this innovation in the industry will allow greater flexibility for travelers who will be able to anticipate their travel plans by accessing better rates without the risks associated with purchasing tickets well in advance.”
Meanwhile, TravelX Co-Founder and Chief Blockchain Officer of TravelX, Facundo Diaz, declared his trust in Web3 technologies, and their ability to boost the travel industry, especially the airline industry. He further stated that this expansion will not only be in the form of market capitalization, but also in terms of interest for travelers. He also shared a comparison of passenger numbers from 1990 and 2007.
“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 also made reference to another surge that occurred in 2008, when e-ticketing services became mandatory for International Air Transport Association members. When this took place, the market size went up to $870 billion, with the number of global passengers increasing to 4.5 billion.
Of course, not only will the airlines benefit as token issuers, but passengers will also be able to sell or trade their tickets with other passengers, as well as being able to transfer them. This means that ticket owners have full custody of their purchases, and the ability to decide whether to use, dispose of, or trade them. It is expected that there will be some sort of deadline imposed on this activity, but nevertheless, this represents a major step towards true buyer ownership and decentralization. In the past, countless passengers have lost out because tickets cannot be transferred to other passengers, or because the ticket wasn’t flexible. Historically, despite being the ticket owner, the passenger has had no control over their own purchase, which clearly doesn't make any sense.
Still, the new system will of course benefit the airline companies as they will be getting a percentage of each ticket sold in these secondary markets.
Diaz elaborated:
“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 is hoping to launch a model for NFT ticket (NFTickets) standardization for the whole travel industry, but despite this, their intention is not to overtake the market, according to Diaz:
“I can say that this is a very important step. 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.”
He further explained that the blockchain company is building its infrastructure on the Algorand network, 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”.
Source: www.travelx.io
Previous
Next
