Hype or a model for the future?, Hospitality News, ET HospitalityWorld
NFTs have made quite a buzz around many industries like gaming, healthcare, logistics, real estate, etc. With the emergence of the metaverse, the hospitality industry has finally realised its potential. NFTs can provide massive opportunities to hospitality companies to streamline their processes and many hotels are already taking advantage of it.
From better customer experience to digitising all the processes like check-ins, contactless service, online booking, and payment, blockchain technology has the potential to completely transform the sector. Now-a-days, hotels are betting big on NFT Souvenir’s in order to enrich their relationships with the customers.
As the NFT market grows, it is essential 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 hold these NFT Souvenir’s as loyalty badges for life without any risk of tampering. Moreover, through NFT based Souvenir’s hotels can sustain a long-term relationship with their customers and create a community of brand ambassadors for their brand.
Ease of operations
NFTs and smart contracts can easily automate operations and reduce employee workloads. By tokenisation-as-a-service, hotels can eliminate all the tedious work such as 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 replica of their hotels via NFTs and easily manage daily time-consuming tasks like maintenance, supplies, housekeeping, etc.
Market in the metaverse
With every industry taking a virtual leap, the era of physical advertising is slowly edging out. It is imperative for the hospitality industry to harness the power of the blockchain in order to stay relevant in the digital times and switch to virtual advertisements in the metaverse to bring attention to their properties. By doing this, hotels can draw new clients from people touring the virtual spaces.
Why hospitality brands should ride on the growing NFT trend
The above mentioned three areas are just the initial 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:
Gifting – Hotels can now harness NFTs by allowing customers to buy, sell or use tokens for gifting purposes. Hotels can allow people across the world to give special stays to their loved ones through NFTs.
Reservation management – Reservation management is another grey area in the hospitality industry where NFTs fits very well. During peak hours and seasons, through the use of NFTs guests can easily reserve premium rooms and tables and doesn’t need constant coordination.
NFTs based hotel booklets – As the concept of sustainability comes into the limelight, every traditional market is ripe for disruption. Hospitality industry can also bet big on sustainability by eliminating the issue of bulky hard-copy booklets that are harmful for the environment and are easily lost/damaged. Thus, hotels can issue NFTs based hotel booklets which are not only cost effective but are environment friendly as well.
Hotels as investment options – The most thrilling concept that NFTs can bring in the hospitality sector is ownership models of Part Ownership & Community Ownership. Hotel owners can divide their properties into NFTs, in terms of rooms, areas or particular sections and allow people to own a part it as an investment option. By doing this, property owners can increase liquidity into the business, while customers can enjoy the thrill of “owning” a hotel.
NFT technology in India is still at the nascent stage but poised to be the next big thing. With every industry riding on to the digital transformation wave, it is imperative for hospitality brands to stay up-to-date on new advancements and opportunities. NFTs open new avenues for hospitality brands to engage with their guests, improve 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 Souvenir’s to reward their customers.
NFTs and token based bookings have already proved to be a one stop solution to many challenges that occur in the hospitality industry such as revenue management, operations etc. By joining the league and capitalising on the enormous benefits presented by NFTs, hotels can transform themselves and reach a wider audience, enhance their brand image, and refine the customer experience. Indeed NFTs are the future of the hospitality industry.
The author is founder & CEO, Beyond Imagination Technologies
