What Impact does Bitcoin have on Spain’s Hotel Market?
According to a survey by https://lnroute.com/ , 77% of hotels in Spain do not accept payments with bitcoin, even though they are aware that this cryptocurrency exists, and some of them (23%) have already had customers who requested it.
7 Ways How Bitcoin Benefits the Hotel Industry of Spain.
- Increases in international tourism.
The adoption of Bitcoin in the hotel industry would positively impact international tourism in Spain since these digital assets are used for foreign exchange transactions that allow travelers to pay directly when they arrive at the destination, where the cryptocurrencies are accepted.
The easiest way for this is online exchanges through which the traveler can exchange dollars or euros for bitcoins, which would be converted into local currency at the destination.
- Payment by credit card from abroad. The use of cryptocurrencies as a means of payment allows tourists to travel with only their mobile device without bringing large amounts of cash or withdrawing them from ATMs, which have high commissions to accept transactions abroad.
In addition, this mechanism would allow thousands of Spanish hotels to benefit from international bookings.
- Tracking digital assets and the hotel chain that uses them.
Everyone knows where the money goes with cryptocurrencies, so every property could be assigned a wallet associated with their corresponding property or IBAN to receive funds without intermediaries.
- Reduce commissions to receive payments.
The use of Bitcoin would make it possible to reduce the payment commission, which is usually between 3% and 4% since there are no intermediaries involved in this type of international exchange.
- Without the need for financial institutions or credit payment firms, transactions may be completed more quickly.
The ability to pay faster with Bitcoin anytime during the day or night, without waiting for transactions to be cleared by banks or credit card companies, usually between 3 days and four weeks.
- Modifications in currency rates are guarded against.
The use of Bitcoin will protect hotel owners from changes in the currency’s value since there is no fixed reference value; therefore, they could not be affected by the devaluation or remonetization of the money.
- The growth of cryptocurrencies as a parallel currency.
Like any other currency, Bitcoin has an exchange rate with the euro, so its value can be higher than the euro, making it possible to use digital assets as a parallel currency in international hotel bookings.
7 Things How Bitcoin Hurts the Hotel Industry of Spain.
- This new type of digital asset is still little known. It has high volatility, and its development can change your business model since it is still tough to predict how Bitcoin and other cryptocurrencies will behave in a few years.
- The lack of regulation or legal protection for this type of payment. There is still no regulatory system that controls this new type of currency, so it could be used to finance illicit activities such as money laundering, making tourism businesses vulnerable to abuses, defaults, or disputes.
- The lack of compatibility with the current network. At present, no companies accept payments in digital assets or compatible systems for this payment method, so companies who use alternative payment methods to cryptocurrencies must have an interface that allows them to change these tokens into euros at any time.
- Tax implications. Driving down the price of Bitcoin to zero is not punishable, but if the tokens are converted into euros, there will be tax implications. There may also be reporting obligations for companies with transactions on their accounts.
- The lack of stability and security. No one backs cryptocurrencies, so they do not have any guarantee or protection against possible changes in their value, unlike the euro guaranteed by the Eurosystem, which is made up of the European Central Bank and national central banks.
- The inability to pay via credit card or bank transfer. You can not use cryptocurrencies for online purchases on sites that only accept traditional forms of payment. For example, hotels must wait until someone buys digital assets as a form of payment, which may take time since they are still little known.
Conclusion
The benefits of using Bitcoin as an alternative payment method for international hotel bookings are not currently significant enough; that is why most Spanish hotels will continue to use credit cards to process their reservations.
