According to a joint report provided to Cointelegraph by Binance Pay and the crypto travel platform Travala, consumer spending on travel bookings using cryptocurrency is more than twice that of regular travelers using fiat currency.
In 2024, the amount of cryptocurrency-based bookings on the Travala platform reached $80 million, a significant increase from $45 million the previous year. The spending power of cryptocurrency travelers far exceeds that of fiat users, with an average booking value of $1,211 per transaction, which is more than 2.5 times the $469 of fiat users.
The report further points out that due to longer stays and higher repeat booking rates, the value created by cryptocurrency users over the entire consumption cycle is three times that of traditional users, and cryptocurrency travelers are 57% more likely to make repeat hotel bookings.
Source: Binance Pay, Travala
Juan Otero, CEO of Travala, attributes this travel preference to the flexible nature of Web3 work: "Many people work in the digital asset industry or have a flexible remote work lifestyle, which makes them more inclined to travel frequently, stay longer at a single destination, and seek travel destinations that support seamless global payment systems."
Cryptocurrency-based transactions are becoming increasingly popular in the travel industry and other sectors. According to a report released by Triple-A on February 21, airline bookings that have integrated digital currency payment systems have increased by 40%, with the travel and hotel industry accounting for 14% of all cryptocurrency transactions in 2024.
Jonathan Lim, Global Head of Binance Pay, stated in an interview with Cointelegraph that the biggest advantage of traveling with cryptocurrency is its borderless global usability. He added, "Travelers can avoid currency exchange queues, evade foreign exchange transaction fees, and make instant payments using assets they already hold."
The growing population of cryptocurrency users is also driving an increase in the number of people traveling with crypto payments. The Triple-A report shows that the compound annual growth rate of cryptocurrency holdings is as high as 99%, far exceeding the growth rate of traditional payment methods. Among cryptocurrency holders, 65% expressed their intention to use it for everyday payments.
Founded in 2017, Travala is one of the most popular crypto-native travel platforms, allowing users to pay for flights, hotel stays, and travel services using 141 different cryptocurrencies, including Bitcoin (BTC) and USDC, through Binance Pay.
The first real-world Bitcoin transaction—using 10,000 BTC to purchase two pizzas—occurred 15 years ago today, on May 22, 2010, which is now commemorated as Bitcoin Pizza Day. Since then, crypto payments have expanded into high-end retail, luxury goods, and more recently, the fast-food industry.
The first real-world purchase using Bitcoin Source: bitcointalk.org
The earliest retail businesses to accept cryptocurrency payments primarily targeted high-income consumers. In 2021, the fashion brand Philipp Plein became one of the pioneers in accepting cryptocurrency, followed by Gucci, luxury watch manufacturers Franck Muller and Norgain, as well as high-end car dealers and manufacturers.
As the base of cryptocurrency holders expands, more retailers are beginning to accept digital currencies for everyday transactions. On May 16, the American fast-food chain Steak'n Shake started accepting Bitcoin as a payment method.
However, even with the implementation of Lightning Network technology, a Steak'n Shake customer revealed that a burger originally priced at $5 could end up costing over $8 due to network fees, and the payment confirmation process could take more than 20 minutes.
With Binance Pay, payment confirmation takes only a few seconds. Lim told Cointelegraph that this is because "Binance Pay operates as an off-chain, closed-loop payment solution within the Binance ecosystem."
However, most cryptocurrency travel payments on Travala still use stablecoins, such as Tether's USDT and Circle's USDC. Binance Pay transactions are ultimately converted to fiat currency at the point of sale by merchants or payment partners based on preset exchange rates.
Related: Trump's crypto "tsar" David Sacks says stablecoin bill "will pass"
Original: “Crypto Travelers Bring 3x Greater Lifetime Value Than Fiat Users”
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