Crypto-friendly travel agency Travala.com is rolling out a Bitcoin (BTC) cashback program, citing the scarcity of BTC as a desirable reward mechanism for its top-tier travelers.
An announcement shared exclusively with Cointelegraph outlines Travala’s new reward scheme, which is available to users who have unlocked the Smart Diamond tier of the loyalty reward program operated by the AVA Foundation’s blockchain platform.
Travala.com CEO Juan Otero highlighted Bitcoin’s position as the most recognized cryptocurrency, as well as its finite supply and position as a scarce digital asset as drivers of the new cashback program. He said:
“Bitcoin is here to stay, and it’s now becoming more appealing to mainstream audiences, thanks to the recent approval of the first spot Bitcoin exchange-traded fund.”
Otero adds that providing Bitcoin cashback rewards on travel bookings broadens the appeal of using cryptocurrency for daily payments. Travala also confirmed that rewards are credited to a member’s account within 24 hours of completing a trip.
Members will have carte blanche over how they use their Bitcoin rewards. They can pay for other travel products on the platform or withdraw their BTC to an external wallet, exchange or platform.
Cointelegraph understands that Bitcoin is one of the top three payment methods used on Travala.com. Bitcoin payments account for approximately 9% of travel bookings made on the platform. Travelers spent over $5 million in BTC on flights, hotels and activities in 2023.
There is, however, an element of exclusivity to Travala’s BTC cashback scheme, given that users need to own a Travel Tiger NFT and stake 2,500 AVA tokens to activate Smart Diamond membership.
A finite number of travelers will be eligible for the rewards scheme, given that only 1,000 Travel Tiger NFTs exist. The NFTs are randomly generated utility collectibles minted on the Ethereum blockchain. Market data from OpenSea pins the floor price of Travel Tiger’s at 2.6 Ether (ETH), valued at around $9,800 at the time of publication.
Travala also touts cryptocurrency-based cashback programs as potentially disruptive to conventional Web2-based programs. The company claims that using Bitcoin could help cashback providers cut down on fees associated with traditional payment rails and reduce chargeback fraud risks.
Travala’s CEO believes that Bitcoin rewards could introduce new users to the Web3 ecosystem through its BTC and AVA rewards programs. The AVA Foundation is a blockchain-based rewards platform that uses its native AVA token to distribute cashback and loyalty rewards, payment discounts and gated access benefits.
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