Travelers using cryptocurrency for bookings spend more than twice as much as regular travelers using fiat money, according to a joint report by #Binance Pay and the cryptocurrency travel platform Travala.
Cryptocurrency bookings on Travala reached $80 million in 2024, which is $45 million more than the previous year. Cryptocurrency travelers also spend more than their fiat counterparts, with an average booking cost of $1211 per transaction, which is more than 2.5 times higher than fiat users, who spend $469.
Furthermore, the report states that cryptocurrency users are three times more valuable over their lifetime due to longer stays and more frequent repeat bookings, with the likelihood of rebooking a hotel by crypto travelers being 57% higher.
Juan Otero, CEO of Travala, explained these travel preferences by the flexible nature of work in Web3:
'Many also work in the digital assets industry or lead a flexible, remote lifestyle, which increases the likelihood that they will travel frequently and stay longer in one place, choosing destinations that support seamless international payments.'
Cryptocurrency transactions have become more common in the travel sector and beyond. Airlines that have integrated digital currencies into their booking systems have reported a 40% increase in bookings, with travel and hospitality accounting for 14% of all cryptocurrency transactions in 2024, according to a Triple-A report from February 21.
The main advantage of using cryptocurrency for travel is its limitless global utility, said Jonathan Lim, Global Head of Binance Pay.
'Travelers can avoid queues at currency exchange points, avoid overseas transaction fees, and pay instantly using assets they already have,' he added.
The growing number of cryptocurrency users is also driving the increase in travelers using cryptocurrency to pay for trips. A Triple-A report shows that cryptocurrency ownership has a compound annual growth rate of 99%, significantly outpacing the growth of traditional payment methods. Among cryptocurrency owners, 65% express interest in using it for payments.
Founded in 2017, Travala is one of the most popular cryptocurrency travel platforms, allowing users to pay for services such as flights, hotel stays, and tours with 141 different cryptocurrencies, including Bitcoin ($BTC ) and USD Coin ($USDC ) through Binance Pay.
Cryptocurrency payments are covering more and more retail sectors.
The first real Bitcoin transaction – 10,000 BTC for two pizzas – took place 15 years ago today, May 22, 2010, which is now celebrated as Bitcoin Pizza Day. Since then, cryptocurrency payments have spread to luxury retail, luxury goods, and, more recently, fast food.
The first retail companies accepting 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 watchmakers Franck Muller and Norgain, as well as car dealerships and manufacturers of elite cars.
As the base of cryptocurrency holders expands, more and more retailers are beginning to accept digital currencies for everyday transactions. On May 16, the American fast-food chain Steak’n Shake began accepting bitcoins as payment.
But a Steak’n Shake customer reported that even with the implementation of the Lightning Network, a $5 burger can cost over $8 when accounting for network fees, and payment confirmation can take over 20 minutes.
With Binance Pay, payments are confirmed within seconds. Lim explained that this is because 'Binance Pay operates as an off-chain solution for closed payments within the Binance ecosystem.'
Nevertheless, most cryptocurrency payments for travel on Travala are made using stablecoins such as Tether (USDT) and USD Coin (USDC) from Circle. Binance Pay transactions are ultimately converted to fiat at the point of sale by the seller or payment partner based on a predetermined exchange rate.
