Travel and cryptocurrency now go hand in hand through a company called Travacoin.
Travel Delays Lead to Crypto Payments
The enterprise recently partnered with a platform known as Wipro Limited, which will be developing a specialized blockchain-based payment system for Travacoin. The latter company allows airlines to refund or compensate passengers quickly should problems with flights occur.
This is interesting in the sense that the company is already designed to issue refunds quickly. By adding blockchain solutions to the platform, customers can potentially expect their money even sooner. In addition, they’ll be refunded in the Travacoin cryptocurrency, allowing them to then transfer their funds into USD if they so wish.
However, the digital currency can also be used to purchase new plane tickets, book hotels and garner other travel-related services for customers. They can also use the currency at the stores stationed in whatever airports they utilize for travel. These retailers will often offer discounts to users of Travacoin.
Brian Whelan, CEO of Travacoin, explained in a statement:
Travacoin is a unique solution to a common problem faced by the airline industry today. With every delay, be it caused by a staff strike or a technology problem, comes an increasing number of claims from passengers. Airlines respond defensively, consequently losing customer loyalty as well as millions in hard currency along the way. This solution offers airlines a cost-effective way to reconnect with their passengers in a positive way, turning adversity into opportunity.
Giving refunds in crypto isn’t only slated to assist customers. It’s also likely to do wonders for the issuing airlines, which will be able to reduce their administrative overheads and “channel the savings to offer a better travel experience to fliers.”
FTI Consulting recently released a new report on Travacoin, claiming that it will be able to save airline companies anywhere between 20 and 40 percent of what they are currently paying to customers. In addition, the report also suggests that stronger customer loyalty will be experienced and witnessed across the board due to what it calls “improved convenience.”
An Exciting and Easy Way to Refund Customers
As we expand, the plan is to grow the solution to encompass other payment and settlement functions, turning Travacoin into a unique payment solution for the entire travel industry. Wipro’s deep domain know-how of the industry processes, blockchain expertise, and ability to rapidly co-innovate and scale-up the solution has been critical to our success.
Krishnakumar N. Menon, vice president of service transformation and a blockchain leader at Wipro also stated:
We are encouraging blockchain innovations by actively engaging with firms focused on solving real-world business problems. It has been exciting to work with Travacoin to build an innovative industry-leading travel currency for the airline industry. The blockchain-based solution will help airlines optimize costs.