Travel agency Travala.com has introduced a new Bitcoin cashback program aimed at rewarding its top-tier travelers. The program, which is part of Travala’s loyalty reward program, is available to users who have reached the Smart Diamond tier on the AVA Foundation’s blockchain platform. Travala.com CEO Juan Otero stated that the scarcity of Bitcoin, as well as its status as the most recognized cryptocurrency, made it an appealing reward mechanism. He also mentioned Bitcoin’s recent approval as a spot exchange-traded fund as further evidence of its mainstream appeal.
The cashback rewards are credited to the user’s account within 24 hours of completing a trip, and users have the discretion to decide how they want to use their Bitcoin rewards. They can either utilize them for other travel products on the platform or transfer them to an external wallet, exchange, or platform. Bitcoin is currently one of the top three payment methods on Travala.com, with approximately 9% of travel bookings made using the cryptocurrency. In 2023, travelers spent over $5 million in BTC on flights, hotels, and activities.
To qualify for the Bitcoin cashback scheme, users must own a Travel Tiger NFT and stake 2,500 AVA tokens to activate Smart Diamond membership. There is a limited number of rewards available, as only 1,000 Travel Tiger NFTs exist. These NFTs are randomly generated collectibles on the Ethereum blockchain, with a minimum value of 2.6 Ether, equivalent to approximately $9,800.
Travala also believes that cryptocurrency-based cashback programs could disrupt traditional Web2-based programs. By utilizing Bitcoin, cashback providers could potentially reduce fees associated with traditional payment methods and mitigate the risks of chargeback fraud. The CEO of Travala.com sees Bitcoin rewards as an opportunity to introduce new users to the Web3 ecosystem through their BTC and AVA rewards programs.
The AVA Foundation, which operates the loyalty reward program, uses its native AVA token to distribute cashback and loyalty rewards, offer payment discounts, and provide gated access benefits. Travala.com’s Bitcoin cashback program aims to leverage the appeal and scarcity of Bitcoin to incentivize travelers to use cryptocurrency for their daily payments.
I’m not interested in joining the Web3 ecosystem just for some Bitcoin rewards.
The CEO’s claim that Bitcoin rewards will introduce new users to the Web3 ecosystem feels like wishful thinking.