Tourist businesses that accept Bitcoin have so far achieved some media coverage.
Online travel agencies, hotels, and airlines have started accepting cryptocurrencies like Bitcoin. But experts warn: that implementing this payment system can be a technological, legal, and accounting headache for companies, without forgetting the strong ups and downs in the price.
It also often happens that some companies announce that they will accept cryptocurrencies, but, after time and the initial euphoria, they stop doing so or end up resorting to intermediary platforms.
We can see, for example, the complex terms and conditions for payment with bitcoins on the Expedia website. The online travel agency advises that “to complete your reservation, you will be redirected to the Coinbase website, where you will see the total cost of your reservation in Bitcoin, based on an exchange rate established by Coinbase. The Bitcoin price for your reservation will remain valid for 10 minutes. If you do not initiate a payment during this time, the Bitcoin exchange rate will be updated and the Bitcoin price for your reserve may change.”
Let’s not forget that, in 2022, cryptocurrencies face severe falls in their prices.
Extra-accounting Register
According to Matthew Chapman, co-founder, and CTO of travel booking technology provider Vibe, “There are some travel companies that are starting to accept cryptocurrencies, yes. But you have to understand that in almost all cases they are using some kind of intermediary platform to handle the payment, like Coinbase or BitPay. In other words, they are adding crypto like they might add any other unimportant product.”
“If you are thinking about this, it is important that you consider that all these payment platforms charge providers a small commission and, of course, there are the necessary implementation resources to do it. There are also tax implications in some jurisdictions, which make an off-account record necessary. Basically, you have to ask yourself, does accepting cryptocurrencies leave better results on the network? Right now probably not, but that could change over time,” adds Vibe’s technical director.
Implementation Complications
James Montague, director of Security and Integrations at the company specializing in hotel technology Shiji, also warns about the complications to implement payment with cryptocurrencies.
He points out that, “We have had one or two hotel groups that have asked us about this, but once we explained the complications of allowing guests to pay with cryptocurrencies, it has not generated much interest, especially as a face-to-face payment method.”
“And it is that many hotels,” Montague adds, “even continue to have problems accepting credit card payments over the internet “instead of registering your data and then charging you with the physical card upon arrival.”
Even PayPal, AmazonPay or other alternative payment methods “are a problem for most hotels,” he adds.
Another added complication for payment with cryptocurrencies has to do with the deposit process, a procedure that is usually done when the guest registers with his credit card for consumption in the mini-bar or on the hotel terrace. “It would be quite difficult, as there is no way to do it currently with crypto: you would pay a deposit, but then when the refund comes, the value of that crypto might be different,” explains James Montague.
In conclusion, he says, “for all these reasons, and many more, you can believe me, in the next few years we will not see this being anything flashy, with the exception, perhaps, of a very small number of hotels.”
By Audy Castaneda
