Hype or a model for the future?, Hospitality News, ET HospitalityWorld
NFTs have made a big buzz around many industries such as gaming, healthcare, logistics, real estate, etc. With the rise of the metaverse, the hospitality industry has finally realized its potential. NFTs can provide huge opportunities for hospitality businesses to streamline their processes, and many hotels are already taking advantage.
From better customer experience to digitizing all processes such as check-ins, contactless service, online ordering and payment, blockchain technology has the potential to completely transform the sector. Today, hotels are betting heavily on NFT Souvenirs to enrich their relationship with customers.
As the NFT market grows, it is important for hotels and restaurants to join the NFT league before their competitions so that they have the first mover advantage.
How hotels can use NFT technology
NFT souvenir
The first and foremost benefit of NFTs in the hospitality sector is that it can revolutionize hotels’ customer loyalty programs by creating a permanent record on the blockchain. Guests can keep these NFT souvenirs as loyalty badges for life without the risk of tampering. Through NFT-based Souvenirs, hotels can also maintain a long-term relationship with their customers and create a community of brand ambassadors for their brand.
Simple operation
NFTs and smart contracts can easily automate operations and reduce the workload of employees. With tokenization-as-a-service, hotels can eliminate all the tedious work like data management, check-ins by automating it, which in return can improve back-end operations and can save both time and money. Hotels can also create a virtual copy of their hotels via NFTs and easily manage day-to-day time-consuming tasks such as maintenance, supplies, cleaning, etc.
Market in the metaverse
With every industry taking a virtual leap, the age of physical advertising is slowly approaching. It is important for the hospitality industry to harness the power of blockchain to stay relevant in the digital age and switch to virtual ads in the metaverse to bring attention to their properties. By doing this, hotels can draw new customers from people who visit the virtual areas.
Why hospitality brands should follow the growing NFT trend
The above three areas are just the first use cases of NFTs in the hospitality industry. As this technology evolves and matures, hospitality brands can incorporate this futuristic technology in multiple areas and transform their brands to the next level. Some of the key areas are:
Gifts – Hotels can now leverage NFTs by allowing customers to buy, sell or use tokens for gifting purposes. Hotels can allow people all over the world to give special stays to their loved ones through NFTs.
Reservation Management – Reservation management is another gray area in the hospitality industry where NFTs fit very well. During peak times and seasons, guests can easily reserve premium rooms and tables through the use of NFTs, and do not need constant coordination.
NFT-based hotel brochures – As the concept of sustainability enters the limelight, all traditional markets are ripe for disruption. The hospitality industry can also invest heavily in sustainability by eliminating the problem of large paper booklets that are harmful to the environment and easily lost/damaged. Thus, hotels can issue NFT-based hotel booklets that are not only cost-effective, but also environmentally friendly.
Hotels as investment options – The most exciting concept that NFTs can bring to the hospitality sector is ownership models of fractional ownership and community ownership. Hoteliers can divide their properties into NFTs, in terms of rooms, areas or special sections and let people own a part as an investment option. By doing this, property owners can increase the liquidity of their business, while customers can enjoy the thrill of “owning” a hotel.
NFT technology in India is still in its infancy but poised to become the next big thing. With every industry riding the wave of digital transformation, it’s important for hospitality brands to stay abreast of new advancements and opportunities. NFTs open new avenues for hospitality brands to engage their guests, improve the overall guest experience as well as offer incentives and build greater loyalty. Hospitality chains like Mayfair Hotels & Resorts, Waxpol Resorts etc have already incorporated NFT Souvenirs to reward their customers.
NFTs and token-based bookings have already proven to be a solution to many challenges that arise in the hospitality industry, such as revenue management, operations, etc. By joining the league and leveraging the immense benefits presented by NFTs, hotels can transform themselves and reach a wider audience, improve their brand image and enhance the customer experience. In fact, NFTs are the future of the hospitality industry.
The author is the founder and CEO, Beyond Imagination Technologies
