The discussion around real-world assets (RWAs) is heating up at an explosive pace. In Web3 context, RWA defines a digital twin of a traditional asset -such as real estate, art or commodities- stored on a blockchain network. Naturally, it opens up vast opportunities for businesses that benefit from migrating from physical to digital.
When talking about traditional “assets,” the initial focus of the RWA trend, the travel industry might not be the first line of business that springs to one’s mind since it’s more about providing an “experience” than digitized or tradeable assets. However, this $850 billion industry is shaping to become the RWA transformation’s torchbearer.
But how?
Most digital technologies the travel industry has been functioning on were “borrowed” from other industries. With the introduction of Camino Network, the global industry finally has the chance to build and control its own infrastructure. From communication to e-commerce, it has come a long way from “writing airline tickets by hand and conducting reservations by telex” to using blockchain networks for better communication and faster payments, according to Thomas Stirnimann, the chairman of the Camino Network Foundation.
Stirnimann, a travel industry expert and visionary, is the current chairman and owner of Alpha Golf Travel AG. He previously held key roles as CEO and board member of Hotelplan Holding AG. Priorly, Stirnimann spent over 20 years with Kuoni Travel Holding AG, where he was responsible for the Swiss, Scandinavian and Greek markets. The chairman of the Camino Network Foundation was also responsible for Travelhouse and initiated the founding of Edelweiss Airways.
Stirnimann brought his decades of experience in travel and hospitality to blockchain space with Camino Network. Meaning “path” or “way” in Spanish, Camino is a layer-1 blockchain specifically developed to address the needs of the travel industry. “From the beginning, we, the founders, knew it would be a journey,” he noted, “Because we all come from the travel industry and clearly see both perspectives and bottlenecks.”
Highlighting the fragmentation in the travel ecosystem, Stirnimann explained that almost every travel vertical has its own set of solutions. “It is very hard to imagine a more fragmented industry than travel,” he added. Some have the legacy infrastructure, while others do better to keep up with the tech evolution. “However, many of these verticals must communicate with each other to cover travelers’ needs,” he explained in an exclusive interview.
Travel industry bottlenecks
API, short for application programming interface, is the “magical word” here. It has enabled interoperability between different stakeholders of the travel business and, as a result, provides a seamless experience for travelers. However, fast forward to today, it is “all the times expensive, many times unreliable and always in need of maintenance.”
Camino Network was born from the vision of providing a reliable, shared and affordable system that belongs to businesses from within the travel industry itself. A system designed to simplify and reduce the cost of travel operations. The inherent transparency, traceability and immutability of blockchain helps fight against fraud plaguing the key processes of the travel industry, such as ticketing and payment fraud.
“Camino Network is a travel industry sandbox. We are bringing travel companies together like never before. Our community actually owns and decides on future changes and developments.”
This environment helps simplify complex processes like settlements, payments and verifications, Stirnimann continued. “With clear travel standards, developers can switch from maintaining countless APIs to actually developing innovative, consumer-focused products.”
Camino Network lays a solid foundation for the travel industry to operate and communicate on blockchain, and tokenized RWAs are a key step in their vision. Stirnimann exemplified asset tokenization with the booking process, stating that key components of the process -such as airplane seats or room nights- can become simpler and more straightforward with blockchain. Tokenized requests will be sent from wallet to wallet to request tokenized assets. Tokenization also brings security and transparency when making last-minute changes and cancellations, further reducing fraud.
Conversations have already started about dynamic pricing models and personalized offers in the travel tech community, and the Camino Network Foundation chairman believes that Web3 will enable new pricing models that adapt in real time to changes in demand and supply.
From what Stirnimann emphasized, the main benefit of RWA tokenization in the travel industry boils down to getting closer to “real time” and increasing operational efficiency, which is direly needed. Because, in its current state, huge-scale facilities like hotels and airports are operated by a myriad of different systems that are barely connected, he explained. Managing key travel facilities would become much easier with real-time data and efficiency.
Real-world assets, real-world benefits
Turning each component of the travel business into a tradeable asset opens up doors for a wave of new investors, earning a big win for the whole industry. Tokenization can break down high-value travel assets, like hotels or even cruise liners, into smaller, purchasable tokens, according to Stirnimann.
Regulations stand as the tricky part in the equation of implementing innovation for real-world use. Travel is global, and there is a high chance that legislation differs from departure to destination in one flight. Stirnimann takes a rather realistic approach here and admits that while Camino Network is built as the most interoperable and compliant network, there is much homework to do due to the “conservative” nature of the travel industry.
“Security and trust within the Web3 travel ecosystem is of high priority. Plus, we are keeping in mind the complexities of tax laws and respecting privacy regulations like GDPR and other international rules to keep everything smooth for the worldwide community.”
The Camino Network Foundation, the Swiss-based nonprofit that drives the development of the Camino Network ecosystem, is mindful of securities laws to build compliant solutions across different regions, he explained. “It’s crucial for Camino Network to bring innovation to the industry responsibly.”
Tokenized RWA applications in travel
When asked about the low-hanging fruits of RWA tokenization in the travel industry, Stirnimann told the good news that there are already some ideas being utilized by a number of businesses — both startups and large-scale companies.
One notable application in development by the members of the Web3 travel ecosystem is the tokenization of vacation properties, which shows how easily properties can be tokenized, according to Stirnimann. Similarly, the hotel industry is exploring tokenization to enhance reservation systems and open up secondary market opportunities.
Another major component of the travel experience is everything that is bookable, like airline, train and bus seats, where tokenization enables e-ticketing in the form of nonfungible tokens (NFTs). Furthermore, the main steps of travel, such as hotel nights and airline seats, can be easily tied to attractions like scuba diving or a segway tour thanks to on-chain communication, Stirnimann explained.
Membership and loyalty programs can also benefit from converting points into digital tokens, adding value and convenience.
Camino Network continues to grow with new supporters from the travel industry. Source: Camino Network
With its layer-1 blockchain designed by a team of travel tech experts, Camino Network -the first blockchain infrastructure owned by businesses from the travel industry- stands at the pole position to lead RWA tokenization in the travel space. “It is a secure place where all participants are verified. Thus, the companies can trust the network,” explained Stirnimann, adding that this trust is one of the keys to kicking off the tokenization process for assets like hotel rooms, airline seats and vacation rentals.
“By focusing on interoperability and compliance, Camino Network ensures that all the assets can be seamlessly integrated and traded across different platforms and jurisdictions. With a community-driven approach, we work closely with industry partners to set standards and practices that benefit all stakeholders and the network.”
No more ‘funny internet money’
The Camino Network Foundation chairman drew a future projection where new trends emerge at the intersection of blockchain technology and the travel industry. “Firstly, we will see an increasing interest in companies in tokenized assets,” Stirnimann argued, “As we see, more and more regulators start considering digital assets as ‘real’ and not just funny internet money.” This will lead to clear legislation and frameworks that will shape the travel industry’s digitalization process, he added.
“To predict the trends now is the same as predicting the trends of the early internet in 1995,” he summarized, “Camino Network is a new blue ocean for the travel industry.”
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