What are NFTs?
Before exploring the ways in which hotels can make use of NFTs, it is important to understand what these Non-Fungible Tokens (NFTs) are and how they work.
NFTs are unique digital assets created using blockchain technology. Unlike cryptocurrencies, which are exchangeable and have the same value, NFTs are unique and cannot be exchanged or divided in any way. Each NFT contains unique information that distinguishes it from other tokens, such as an image, video, audio file, or animation.
The ownership of an NFT is stored on the blockchain, which means that it is possible to verify who owns that unique digital asset in a secure and transparent manner. This allows NFT owners to prove that they own a piece of digital artwork, a virtual collector's card, an exclusive hotel reservation, or any other particular type of digital asset.
What are the benefits of this technology?
NFT technology offers a wide range of benefits in several areas and has the potential to transform the way we create, sell, and own digital assets.
Some of the major benefits of using this technology are:
Security and transparency of transactions
NFTs are based on blockchain technology, which ensures the security and transparency of transactions, reducing the possibility of fraud or disputes. Buyers can be confident that they are purchasing a genuine asset and that their transactions are secure.
Authentic and exclusive ownership
NFTs allow owners of digital assets to prove that they are the sole authentic owners of those assets. Registering ownership on the blockchain creates irrefutable proof of the authenticity of that ownership.
Creation and sale of unique digital assets
NFT technology enables digital content creators, in this case hotels, to create and sell unique digital assets. These may include personalised virtual experiences commemorating their stay, digital artwork, and other types of exclusive content for guests.
Valuation of digital assets
Like physical goods, digital assets have a value that can fluctuate according to supply and demand. NFTs allow owners of digital assets to establish their value and sell them on the market, which can generate substantial earnings.
7 potential uses of NFTs in a hotel
NFT technology offers several uses and benefits to the hotel industry, especially in terms of improving the guest experience and increasing operational efficiency.
Here are the top 7 uses of NFTs in a hotel:
1. Hotel bookings with NFTs
Nowadays, there are already accommodations that offer their guests the option to book their hotel nights via NFT. Each booking is recorded on a blockchain and the owner of the reservation has the possibility to use it or resell it at the price they see fit.
NFT bookings provide two very visible benefits to the hotel. The first is that these bookings do not include a cancellation policy, i.e. in no case will the hotel lose that booking. The second benefit is that the hotel earns a commission if the customer decides to resell the booking.
2. Personalising the guest experience
NFTs allow hotels to create unique rooms and experiences for their guests.
For example, a hotel could create a themed room based on a popular movie or book that is only accessible through NFTs. It could also offer exclusive access to related events or activities to those who purchase these NFTs.
3. Customer loyalty programs
Issuing unique guest NFTs can boost guest loyalty and retention. By creating NFTs that offer discounts on future stays, access to exclusive experiences or additional rewards, hotels can encourage guest loyalty.
4. Cost reduction and increased efficiency
Issuing NFTs allows hotels to simplify their booking and payment processes. Guests can purchase NFTs through an online platform, which reduces operational costs and increases efficiency in booking and payment management.
In addition, NFTs and smart contracts can be useful for automating operations and reducing the workload of the hotel's staff.
5. Strategic partnerships
Hotels can create strategic partnerships and collaborations with artists to create and sell artwork through NFT. The goal would be for these artworks to be associated with the hotel's brand so that both the artist and the hotel gain exposure and profit from the sale.
6. Marketing in the Metaverse
As physical advertising slowly becomes obsolete, hotels can harness the power of blockchain and start advertising in virtual shopping malls and metaverse highways to draw attention to their properties.
Although for many people the market in the metaverse is still a long way off, the truth is that it is getting closer every day. To benefit from this, hotels can use NFT advertising to attract new customers from people browsing virtual spaces.
7. Virtual hotels
As the metaverse and virtual travel continue to grow, hotels can use virtual avatars to facilitate guests' first interaction with their different offerings.
This way, guests have their first opportunity to tour the hotel, view and choose their rooms virtually, and make booking receipts as NFTs.
The power of NFTs in hotels
NFTs are creating a lot of buzz, and it is becoming clear that they have the potential to shake up a variety of industries, from music and art to the ownership of goods and services, and of course, the hospitality industry.
As we have discussed throughout this article, NFTs are unlocking new possibilities for innovation and value creation for hotels, which means that they may very well soon earn a place among the market trends.
NFT technology offers an exciting opportunity for the hospitality industry to deliver unique and personalised guest experiences, and increase guest loyalty and retention, while improving marketing and operational efficiency.
Now that you have a better understanding of the hype around NFTs and hotels, can you imagine using them in your property?
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