Does your hotel accept Bitcoin?

What is Bitcoin? Bitcoin is a type of digital currency. It is the first example of a growing form called ‘cyptocurrency’. Cryptocurrency uses cryptography to secure and validate the exchange of funds. So explained simply, Bitcoin purchases goods and services from suppliers securely as an electronic medium through an open-source peer-to-peer network of users. Bitcoin is independent and decentralized from our banks.

Why should we accept Bitcoin? Bitcoin uses cryptography to control its creation and transactions. Users around the world control Bitcoin collectively. Bitcoin is simple. Bitcoin payments are easier than credit/debit card payments. You require nothing more than a mobile app or computer program that will provide your hotel with a Bitcoin wallet to send and receive Bitcoins. Therefore, as hoteliers, this payment system can be a lucrative alternative. There is no merchant fee and easy set up. By providing your guest with a QR code, your guest can scan the QR code, your payment address will appear and they click send. For record keeping, Bitcoin shares a public ledger, known as ‘Block Chain’. The Block Chain holds stores records of all transactions ever processed and it helps you to validate each transaction received. A digital signature protects each transaction so you will be able to reference payments with each unique sender’s address. Bitcoin is growing. There is growing number of people and businesses using Bitcoin. By the end of August 2013: the value of all Bitcoins in circulation exceeds $1.5 billion and millions of dollars of Bitcoins exchange frequently. There is no fee to receive Bitcoin but with most merchants, there is a small fee. This fee is completely up to you. The higher the fee, the faster you will receive the confirmation of the transaction.

Many people are unaware of Bitcoin. Small trades, events and business activities will affect the exchange price of Bitcoin. Bitcoin is in beta. There are many incomplete features and in some way, you may view the software available to be incomplete.----

Expedia, one of the largest online travel companies has been quick to adopt Bitcoin. Coinbase is the partner merchant processing all Bitcoin payments made through the site. When a traveller books’ your hotel through Expedia and select Bitcoin as their payment method. They go to Coinbase’s website. They will see their entire booking, including cost on the Coinbase website, which on the current Bitcoin exchange rate to their local currency. If their payment is idle, every 10 minutes, their bookings costs reflect the new exchange rate. By paying Bitcoin through a non-Coinbase wallet, a small transaction fee applies by the Bitcoin network to the total cost of the booking. Once the Bitcoin payment has been finalised, they are unable to cancel it, provided they do not seek a refund. REVPARGURU collaborates with BitPay to release ‘GuestLeader’, which is the worlds’ first and only Bitcoin compatible bookings engine. How it works is at checkout, the guest selects Bitcoin as the payment method, their payment then converts to cash and automatically transfers to your hotel’s bank account in the local currency. Hotel chains such as the Marriott and Hyatt indirectly accept Bitcoin. They do this through egifter.com and gyft.com. The traveller can either purchase by Bitcoin, the gift card or receive it as a gift and use it to pay for rooms at the Marriott or Hyatt.

List of hotels ahead of the game:

The D Las Vegas Casino Hotel – Las Vegas, NV, USA

The Golden Gate Hotel Casino – Las Vegas, NV, USA

Clevelander Hotel – Miami Beach, FL, USA

Hotel Residence Gallery – Abruzzio, Italy

Hotel Coppede Roma – Rome, Italy

Prodeo Hotel – Buenos Aires, Argentina

Hotel San Martin – Mendoza, Arizona

Bandolm Hotel – Bandolm, Denmark

Pedro Inn – San Pedro, Belize

Hotel van Walsum – Rotterdam, Netherlands

La Magnolia Hotel Sorrento – Sorrento, Italy

Mariners Inn – Cambria, California, USA

The use of Bitcoin is in its early days. There has not been a start-up currency like this of its kind ever before. In this article, I hope your insight into the world of Bitcoin has been enlightened. An alternative payment method that you as an hotelier can offer to your guests will be advantageous over your competitors. The numbers of Bitcoin users and members are growing. You need to ask yourself, reservations and front office staff. “Will you accept Bitcoin as a payment method”? If you answer no, .You could be losing potential business and the hotel next door may just be saying yes.

 Does your hotel accept Bitcoin?