They are using the "instant exchange" feature of Coinbase: https://coinbase.com/...

		barmstrong on Dec 10, 2013 \| parent \| context \| favorite \| on: CheapAir accepts Bitcoin They are using the "instant exchange" feature of Coinbase: https://coinbase.com/docs/merchant_tools/payouts The USD price is locked in, and they never need to hold bitcoin. It is just a cheaper payment method.