Volatility makes using crypto on the road tricky – we break down the options.
Early adopters said cryptocurrency would be the new normal. While the promised computer-led utopia hasn’t quite materialized (…yet), many investors remain focused on keeping their holdings practical, sensible, and above all, profitable.
One industry where the currency is particularly hard to make use of is travel. Its volatility creates risk for both business and individual, namely due to the typical gap between booking and actually departing, meaning change in the market could quickly see the price of a hotel suite sharply rise or fall. The acceptance of crypto as a payment method from leading hotels and airlines is another sticking point.
Of the numerous reputable travel experts we contacted, many declined to comment. Red Savannah CEO and founder George Morgan-Grenville sums up the mood: “In the last 10 years, not a single client has requested to pay using crypto. And if they did, the answer would be negative,” he says.
“Despite a few pundits talking it up as the latest payment fad, it doesn’t really work for travel companies,” he continues. “The normal lag between time of booking and time of departure with various staged payments in between, is too susceptible to the volatility inherent within crypto. While it could work to a company’s advantage, it could also eradicate the entire margin and more. So, unless gambling is part of the finance strategy, crypto is not a viable payment channel.”
For those keen on exploring the world via crypto, however, Kevin A Thomas, founder of Omiga and former VP at Eightpoint, offers practical guidance: “Don’t rely on your wallet alone,” he says. “Even if you’re intrigued by the idea, the fact remains that most places don’t accept crypto directly.”
To get around acceptance concerns, travelers can use crypto conversion cards. These cards can be pre-loaded with your chosen cryptocurrency and used to purchase goods or services, operating in the same way as a debit or credit card. Similarly, some types of card can be connected to your crypto source and will automatically convert to fiat (local currency) at the point of service – the vendor will have no indication that crypto was used during the purchase. Use of these cards has “served as a lifeline in countries where traditional banking options are lacking,” says Thomas.
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As these cards are typically converted at the point of sale, rather than requiring conversion prior to your vacation, users can still benefit from a market swing in their favor. If using a pre-pay service, it is recommended to only load small amounts of currency at a time to avoid delays and compliance complications.
While this has become one of the more widely adopted ways to travel using crypto, Thomas still advises caution. “Unlike a credit card, crypto has no safety net,” he says. “If you make a mistake that you can’t reverse, you lose the transaction, so you need to be more deliberate about how you store and load funds that you keep in this account.”
You’ll find that a handful of hotels around the world do accept bitcoin as legal payment, without the need for pre-arrival conversions, although this is few and far between. A former big-name adopter was the Chedi Andermatt in Switzerland, which began accepting on-site payments for Bitcoin and Ethereum in 2021, but no longer does.
Alternatively, organizations such as Travela, a third-party booking platform that handles flights and accommodation, accepts crypto for all transactions. As with all third-party sites though, travelers should be mindful of booking terms, cancellation policies, and customer support limitations.
It’s also worth noting that not all cryptocurrencies are said to be as volatile as Bitcoin. So-called stablecoins, such as Tether (USDT) and USD Coin (USDC), are designed to hold a steady value by being attached to traditional currencies like the US dollar – one token is typically worth around $1.
This makes them a more practical option for travel payments, especially where there is a gap between booking and the actual vacation. Some platforms, including Travala, already support stablecoin payments and convert them into local currency, offering a simpler and more predictable way to spend crypto on the road.
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