Hospitality meets NFT Technology to Improve Guest Experiences
Let's investigate the potential of NFTs to stimulate mass innovation in the hotel and hospitality industry as hotel chains aim to position themselves to benefit from the NFT boom.
The hotel and hospitality industry has been slow to adopt non-fungible tokens (NFTs). However, as NFTs show their potential to provide tangible benefits for hotels and other hospitality brands, they could have a profound impact on the sector. For example, they could be used to improve guest experiences by incentivizing repeat visits or creating loyalty programs that reduce costs for hotels without sacrificing quality.
What are Non-Fungible Tokens (NFTs)?
Non-Fungible Tokens (NFTs) are a digital representation of a unique asset. They can represent anything from physical objects to virtual goods and services. In the case of hotels and hospitality, this means that NFTs could be used to represent hotel rooms, brand loyalty points, or even entire vacation packages.
Because they are unique, NFTs cannot be copied or transferred to another owner, meaning that each token has its own identity on the blockchain platform it is being built upon (more on this later). The same goes for their programmability; every token has its own programming logic embedded within it by default so as not to interfere with other tokens on the same chain.
How NFTs Can Benefit Hotel Chains and Hospitality Brands
NFTs aren’t just for the consumer market, they can also be used to improve your guest experience.
The use of NFTs in hotels and hospitality brands is still in its infancy, but it’s not hard to envision how this technology could benefit hotel chains and hospitality brands. For example:
NFTs can give guests a more customized experience by allowing them to select their preferences from the comfort of their own homes or when checking into a hotel. This could include things like favorite room type or room preference (such as balcony vs non-balcony).
Hotels can generate revenue from their NFT inventory by selling add-ons like snacks or toiletries as part of an upgraded package that includes access to specific products using an individual's preferred payment method via blockchain technology such as Bitcoin Cash (BCH) / BCHSV / BSV * Hotel chains can increase brand awareness by creating branded virtual goods that are shared on social media platforms like Instagram.
How to Create a Successful NFT Strategy
To build a successful NFT strategy, hotel chains and hospitality brands should consider using NFTs to:
Reward guests for engaging with the brand.
Encourage guests sharing of experiences with their friends and on social media platforms.
Promote loyalty programs.
Drive direct bookings through unique promotions or loyalty rewards (e.g., “book now and get 10% off”).
Create a sense of community around the brand’s values and mission (e.g., “join our customer advisory council to help shape future products/services").
NFTs have the potential to stimulate mass innovation within the Hotel and Hospitality industry.
The NFT market is still in its early stage but it has made major strides since the launch of CryptoKitties in 2017. Some experts expect the crypto-collectible market to grow into a $1 billion industry by the end of 2022, and if that happens, hotel chains have a unique opportunity to become early adopters of this new asset class.
As an example of how NFTs can be used as an innovative revenue stream, consider that Google’s DoubleClick ad network has already been integrated into the blockchain-based advertising platform AdChain so that marketers can purchase ads on websites using cryptocurrency. In addition to introducing sponsorships through their own branded tokens or loyalty programs (see below), hotels could partner with companies like Google by incorporating their own NFTs into advertisements shown on hotel websites—a move which would position them ahead of other brands as early adopters who recognize the potential value in this nascent field.
Conclusion
As blockchain technology continues to advance, NFTs are becoming a viable option for companies looking to engage with their customers in new ways. It’s no longer enough just to offer guests physical goods and services—hotels need to be able to offer experiences that can’t be replicated anywhere else. Thanks to these unique digital items, hospitality brands are able to make their properties more memorable than ever before—and even more valuable as time goes on!
