NFTs as for hospitality brands, have been making waves in various industries. As consumers become increasingly interested in unique and personalized experiences, NFTs offer a new way for hospitality brands to stand out and provide their customers with a one-of-a-kind offering.
The hospitality industry is constantly evolving, with new technologies and trends emerging all the time. To be innovative, this sector has to constantly embrace innovative ways of doing business. NFTs provide an exciting opportunity to do just that. They offer a new way to engage customers through digital assets.
Why talking about NFTs in the Hospitality industry and what are the challenges?
NFTs have changed the way digital assets are represented, secured, with blockchain technology providing a new level of transparency and trust for consumers. Originally starting with digital art, NFTs have now expanded into a multitude of industries. The use of NFTs in the hospitality industry has become increasingly important. Companies are endlessly looking for to offer a unique customer experience in a highly digitized world.
As self-check-ins, contactless service, online booking, and app-based payment become the new norm, the hospitality industry has ramped up its efforts to provide a good customer experience that balances human and tech-enabled interactions. However, the challenge still remains in offering an experience that not only meets but exceeds customer expectations. In this regard, the integration of NFTs in the Hospitality Industry is proving to be a game-changer as it enables companies to offer customers a truly unique and personalized experience.
The opportunities for Hospitality Brands using NFTs
NFTs provide a range of benefits for hospitality brands looking to create a unique and memorable experience for their customers.
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Personalization & Authentication
NFTs allow for the creation of unique digital assets that can be used to provide customers with a personalized experience. For example, a hotel could create a custom NFT for each guest that includes their name, room number, and other important information. This is really helpful taking the fact that prestigious hotels are facing a high demand for reservations during peak seasons. Digital assets could offer guests the opportunity to secure premium tables through the use of NFTs. This eliminates the need for ongoing coordination.
Moreover, NFTs are based on blockchain technology. They provides a secure and transparent way to verify the ownership and authenticity of a digital asset. This means that customers can be confident that the NFT they receive is truly one-of-a-kind and not a copy. By utilizing blockchain technology to create permanent records of customer information, hotels can offer guests NFTs that serve as a representation of their loyalty, complete with all relevant information stored in the metadata. These NFTs can serve as a source of pride for guests, functioning as tangible badges of their loyalty to the brand.
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Monetization & Marketing
NFTs provide hospitality brands with a new revenue stream, as they can sell digital assets directly to their customers. A hotel for instance could sell NFTs for virtual room keys that provide access to a special VIP lounge or other exclusive areas of the hotel. Or brands can leverage NFTs for practical use by enabling customers to purchase, sell, or use tokens as gift.
As for a marketing tool, NFTs can be used to drive brand awareness and create a buzz around a hotel, restaurant, or other hospitality brand. A brand in such case could launch a limited-edition NFT series that features artwork created by local artists. It would not only drive sales but also promote the local arts scene.
Applications of NFTs in the Hospitality industry
From creating unique and collectible experiences for guests to improving customer loyalty programs and digitizing reward systems, NFTs have the potential to revolutionize the way hotels and hospitality brands interact with their customers. With the increasing popularity of NFTs, it is important for hospitality brands to stay ahead of the curve and understand the benefits and applications of this innovative technology.
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Booking luxury suites with NFTs in the Hospitality industry
NFTs can be particularly valuable for luxury hospitality brands looking to stand out and create a unique and memorable experience for their customers. As in for luxury hotel, it could feature a series of NFTs that represent each of their suites, each with its own unique design and features. Customers who purchase one of these NFTs would not only receive a unique digital asset, but also have the opportunity to book the corresponding suite for a stay.
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Digital Collectibles
Hospitality brands can create digital collectibles, such as virtual room keys, that customers can purchase and keep as a memento of their stay. Taking a hotel brand, it could create a limited-edition series of NFTs that feature special designs or themes. They can be a collection of NFTs that feature local landmarks or attractions. Customers who purchase these NFTs would have a unique and collectible reminder of their stay, which they could potentially sell or trade in the future.
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Virtual Experiences
NFTs can also be used to create virtual experiences that allow customers to engage with a hotel or other hospitality brand in new and exciting ways. A NFT-based virtual reality tour of one of a brand suite for instance, can give customers a taste of what it’s like to stay there before they even book a room.
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Special Offers and Rewards
NFTs can also be used to provide customers with special offers and rewards. An NFT can be created to provide customers with a discount on their next stay, or gives them access to a special event or experience. This would not only incentivize customers to purchase the NFT, but also create a sense of loyalty and encourage frequent business.
Some use cases
Using NFTs has opened up new opportunities for Hospitality brands to differentiate themselves. This provides as well unique experiences for customers, with some use cases including reward programs or more.
Marriott International hotel brand
Marriott International, known for staying ahead of the latest travel trends, made waves as one of the first hospitality brands to incorporate NFT technology in their business strategy. By partnering with talented digital artists such as Erick Nicolay, Marriott aimed to bring to life their marketing campaign centered around the theme of the “Power of Travel”. The artists were tasked to create unique digital art pieces that embodied this concept. Once completed, Marriott made these works of art available as prizes during the Art Basel Miami Beach 2021 event. This has not only created a positive buzz and media attention, but also showcased Marriott’s innovative use of NFTs in the hospitality industry. It also helped the artists gain recognition.
Marriott Bonvoy launched NFTs during Miami Beach Art Basel
Dream Hollywood Hotel
The Dream Hollywood Hotel, a sought-after destination in Los Angeles, California, is leading the way in adopting NFT technology for travel marketing. In its endeavor to stay ahead of the curve, the hotel joined forces with The Crypt Gallery to make history. It is the first hotel globally to host an NFT art exhibition in its lobby. The exhibition showcases NFT digital art pieces in a traditional gallery setting. It has provided a unique visual experience. And it has also educated visitors on the concept and functionality of NFTs in the hospitality industry.
Dream Hollywood to launch first hotel NFT membership program
Ca’ Di Dio using NFTs for his hospitality brand
The luxurious Ca’ Di Dio hotel, located in Venice made headlines with its innovative use of NFTs in the hospitality industry. The hotel utilized the OpenSea NFT marketplace to auction off a unique non-fungible token. It was aimed at guests seeking a touch of luxury. This NFT served as a highly sought-after collectable. It also granted the winner a once-in-a-lifetime opportunity to experience a night in the hotel before its official grand opening to the public.
Auction of a unique NFT by Ca’Di Dio Hotel
Wyndham Hotels and Resorts
Wyndham hotels, a well-known player in the hospitality industry, has teamed up with crypto start-up Bakkt. It was to bring a unique value proposition to their guests. The partnership resulted in the creation of a Bitcoin rewards program. It allowed guests staying at Wyndham hotels to claim Bitcoin rewards through Bakkt. More than that, guest could convert these rewards into cash or other loyalty benefits. This innovative use of NFTs & Hospitality brands has set a new standard for customer engagement and loyalty.
In a nutshell, NFTs in the hospitality industry are still in its early stages, but the potential benefits are clear. They provide a way to create unique and personalized experiences. NFTs offer hospitality brands a new way to stand out and provide value to their customers. It can happen through luxury hospitality activations, digital collectibles, virtual experiences, or special offers and promotions. NFTs have the potential to revolutionize the way hospitality brands do business. As the technology continues to evolve and the market for NFTs continues to grow, the opportunities for hospitality brands to leverage NFTs will only continue to expand.
To learn more on NFTs and other industries, read THE BENEFITS AND APPLICATIONS OF NFTS IN THE TRAVEL INDUSTRY
For more, download our white paper ENTERING IN THE WEB 3.0 – A GUIDE FOR LUXURY FASHION IN THE METAVERSE
