Travel hacking has always been about finding clever ways to stretch your money further when it comes to booking flights, hotels, upgrades, or even getting freebies.
Traditionally, that has involved leveraging credit card points, airline miles, and loyalty programs; however, now thereโs something new on the horizon thatโs catching peopleโs attention: Bitcoin.
This has resulted in some influential players in the industry asking, โCould holding Bitcoin become the next travel hacking strategy?โ.
This post will explore what makes Bitcoin different from traditional credit card points and airline miles. It will also highlight how you can use it for travel, and whether it actually makes sense to treat it as part of your overall travel plan.
What Is Travel Hacking and How Does It Work?
At its core, travel hacking is about optimising your spending. Essentially, itโs about using the money youโre already spending in smarter ways to enable you to get something extra in return.
Typically, that has meant using credit cards that reward you with airline miles or hotel points every time you make a purchase with them. However, it can also involve earning loyalty status with certain brands, which unlocks perks like free upgrades, lounge access, or late check-outs. Some people even open new credit cards for the signup bonuses and then use the points for flights and accommodation.
That said, itโs not always straightforward, and there are plenty of rules you will need to understand. For instance, points can expire, loyalty programs change, and there are often blackout dates or restrictions. Still, the payoff for many people is worth it.
When done right, travel hacking can help you travel further and cheaper, and often in more comfort than youโd usually pay for.
How Bitcoin Is Changing the Travel Game
Over the last few years, Bitcoin has begun to creep into the world of travel rewards.
Indeed, some travellers are asking if it could become a modern way to fund trips. Prophesying whether, instead of collecting frequent flyer miles, what if you simply bought Bitcoin, held onto it, and then used it when the time was right?
The logic works on the premise that if your Bitcoin increases in value over time, your savings might stretch further than if you had kept them in cash. On top of that, a growing number of travel companies now accept Bitcoin directly as payment. That means you could use your holdings to pay for flights, hotels, or other travel expenses without converting back to dollars.
If youโre curious about how it might work for you, it is easy for you to buy Bitcoin online through a trusted Australian platform. From there, youโll be able to explore how it might fit into your own travel-hacking toolkit.
Bitcoin vs Frequent Flyer Miles
When comparing Bitcoin to frequent flyer miles, it is easy to see why some people are drawn to the idea of using the former for travel hacking and why others remain sceptical of doing so.
As frequent flyer miles are relatively predictable, you know exactly how many you have at any given time. You also know the rules of the program, and as long as you play within those rules, you can use them for flights, upgrades, or other perks.
Bitcoin, on the other hand, is volatile, and its value can move up or down sharply, literally overnight. Of course, that can be a blessing if it goes up before you intend to travel, because suddenly your travel fund is worth more. But it can also be a curse if it drops, and therefore leaves you with less than you expected.
Another big difference between the two is flexibility. Frequent flyer miles, for instance, are tied to specific airlines or partners and usually have restrictions. However, Bitcoin, on the other hand, is far more flexible. You can sell it, convert it to dollars, or spend it where itโs accepted.
Ultimately, the trade-off is risk. Where frequent flyer miles slowly lose value through devaluation, Bitcoin can gain or lose value much more quickly.
Paying for Flights and Hotels with Bitcoin
Perhaps one of the most exciting recent developments in travel hacking is that some travel booking sites and even airlines now accept Bitcoin directly. This makes the idea of crypto travel bookings more real than ever. As a result, you could, in theory, skip the hassle of dealing with points and just use your Bitcoin for a flight.
Hotels are also beginning to follow suit, by offering the option to pay for your stay with digital currency. However, itโs not without limitations. Comparatively speaking, only a small percentage accept it and some even add extra fees or conversion charges if you attempt to use it as tender. In addition, you may lose access to loyalty points or perks if you pay in crypto instead of using a traditional card.
That said, despite these drawbacks, the trend is growing. Subsequently, if more travel providers adopt Bitcoin, paying for flights or hotels with it could become a popular way to book a trip.
Risks of Using Bitcoin for Travel
Of course, before you start using Bitcoin as part of your travel hacking strategy, there are plenty of risks you need to think about.
The most obvious is the volatility of Bitcoin, because your holdings might be worth more or less at the exact time you need them. If you are really unlucky, you could end up paying more for your trip than if you had just stuck with cash or points.
As mentioned, thereโs also the question of acceptance. Not every airline, hotel, or booking platform is set up to take Bitcoin, and it seems a long way off until such time as they might.
On top of that, Bitcoin transactions can involve high fees at busy times and take longer to confirm, which is a problem if youโre booking something last-minute. Lastly, its worth noting that in Australia, every time you dispose of crypto, including using it to pay for travel, itโs considered a taxable event. So, youโll need to understand the tax implications of doing so.
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