Why the luxury tourism industry is clinging to blockchain technology

With the number of global crypto millionaires growing to over 100,000 in 2021, this ever-growing community is showing tremendous interest in using their crypto earnings to indulge in new experiences.

The travel and tourism industry is expected to benefit the most from this growing class of investors who wish to fulfill their travel desires with highly personalized services made possible through the use of popular cryptocurrencies as legal tender.

Additionally, with millennials accounting for over 50% of the potential of the global luxury market and 58% of the crypto investing community by volume, brands and services involved in the global luxury tourism market are increasingly adopting more crypto today.

In an effort to attract this growing class of investors and make their systems more efficient, travel agencies are stepping up their efforts to embrace Blockchain technology that is at the heart of crypto assets.

As a technology, Blockchain will allow tourism-focused businesses to facilitate crypto transactions in place of services, create effective loyalty programs that reward their users, and even tokenize physical assets such as resort spaces under the form of non-fungible tokens (NFT).

In fact, with the rise of the metaverse, Blockchain technology will play a pivotal role in converting popular and niche travel destinations into their digital avatars.

The possibilities are endless and are the main reason many luxury tourism players are getting on the crypto train.

Recently, the global LynKey platform, which powers luxury resorts and vacation properties with blockchain technology and AI, today announced a project to tokenize and deliver NFT solutions of more than 8 billion dollars for travel and tourism using smart contracts to digitize luxury resorts and multi-destination properties, bringing them to its marketplace and blockchain-powered token ecosystem, seeking to symbolize all aspects of the real estate development – purchases, leases, land use and related tourist entertainment – in an international ecosystem powered by blockchain.

“Using NFTs with AI data-driven protocol sets, the company is revolutionizing the travel destination and entertainment space with smart tourism. LynKey connects global audiences with blockchain-powered platform and a token that enables an ecosystem to share time and reward solutions in high-end luxury tourist sites, ”said Dinis Guarda, founder and non-executive chairman of LynKey.

Dileep Seinberg, Founder & CEO, Thinkchain, Crypto, NFT & Blockchain Consulting Company says tourism drives two important aspects for any nation: its cultural heritage and its value for land or property ownership.

“Blockchain-based smart contracts and NFTs allow fractional ownership of any property that will attract more foreign buyers. Additionally, art is protected by NFT ownership, which can fuel national cultural values ​​and generate income. for its local artisans, ”he added.

As global immunization coverage improves day by day and the intention to travel increases proportionately, the global luxury tourism industry is expected to experience high double-digit growth rates for the foreseeable future. Blockchain and crypto ready businesses will undoubtedly be in a better position to take advantage of the increased demand from crypto users as well as the traditional traveler community.

Additionally, with most cryptocurrencies in the midst of an epic bull run, businesses can earn even more from crypto-based payments through capital appreciation on the underlying assets. In summary, a faster, borderless transaction capability, more lucrative reward mechanisms, and an increasingly younger consumer class are just a few of the reasons this trend is here to stay.

Raj Kapoor, Founder – India Blockchain Alliance and Director of Growth at Chainsense LTD, said that as blockchain technology progressed there was increased interest in digital securities in the real estate and tourism sector. and the size of transactions and the pipeline had grown exponentially over the past year.

“I think the technology has enormous potential to enable new business models in the real estate ecosystem that reduce operational costs and increase liquidity. Platforms can now optimize timeshare, prepaid rental or licensing of tourism-oriented real estate experiences while offering an exclusive reward system service for its users, thus connecting a global audience to a platform and blockchain-based tokens that allow an ecosystem to share time and reward solutions in high-end luxury tourist sites.

Telos, a decentralized blockchain built by developers for developers to power Web 3.0 and Telos Kitchen DAO LLC, which operates as a producer of blocks on the blockchain Telos has collectively purchased 35.84 acres of real estate at Laramie River Ranch, Wyoming with block rewards received from the network equivalent to $ 25,000, seeking to automate many real estate functions by speeding up the process by removing middlemen and providing the technology to store and process data, all by leaving them easily accessible and immutable.

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