The Ultimate Guide for NFTs for Hotels

This tool is evolving, gaining huge prominence in the hotel industry for bringing new guests and keeping them hooked for longer.

In this blog, let's dive into hotel NFTs and what possible use cases it creates for hospitality businesses.

What are non-fungible tokens (NFTs)?

Nonfungible tokens are like digital assets which can be stored on a decentralized ledger called a blockchain. Unlike Cryptocurrencies like Bitcoin, these tokens are fungible, meaning they’re not interchangeable.

Each token conveys a unique value and cannot be replaced with any other object. 

NFTs are making waves across other industries, it’s no such exception for hospitality as well.

Hotel NFTs work in different ways – some hotels can count it as a digital experience, while others can provide access to exclusive suites. Some other hotels can use NFTs as a loyalty program for guests.

Guests can tokenize these unique digital assets and get access to private tours, spa memberships, or any other event.

What are the use cases of Hotel NFTs?

NFTs in hotels are a game-changing trend for hospitality brands as they don’t just meet guest expectations, rather they enhance their experience. Let's talk about a few use cases of this emerging technology in hotels -

1. Drives hotel bookings

A popular use case of NFTs in hotels is that it drives more bookings. Hoteliers realize that there is immense potential in this and so they should integrate this technology to transform the booking experience.

Through a decentralized platform, hotels can make direct bookings with no dependence on third-party booking platforms such as Expedia and Booking.com.

A decentralized platform allows them to display the availability and pricing of property. This gives them full control over the booking process.

Casa da Campa Resort and Villa located in Republican is considered a hallmark of elegant surroundings. It provides a luxury touch and feel to guests. 

It has recently announced blockchain bookings for guests allowing them to make a reservation using room night tokens (RNTs).

RNTs are a kind of NFTs that represent unique ownership for each guest. 

When a guest reserves a hotel room using RNTs, they get exclusive discounts for booking for all their properties.

These bookings are not fixed, it gives flexibility to guests to either sell the RNTs to someone else at a fair market price. And the hotelier can earn a commission for that booking. Ultimately, it’s a win-win for hotels and guests.

2. Enhances the guest experience

Hotels and resort owners use NFTs not just to entice travelers, rather they use this technology to create more immersive guest experiences. For a long time, the hospitality industry has been known for creating exceptional guest experiences.

Rapid technological advancement pushes hoteliers to provide memorable experiences to guests. That’s where hotel NFTs come into play. 

Many hoteliers urge guests to purchase NFTs and get lucrative benefits such as access to VIP events, joining VIP programs, or getting exclusive discounts.

One of the premier luxury hotel suites “Mariott International” created its own NFT collection which was a part of a marketing campaign. They launched 3 different types of NFTs where artists shared their travel experiences.

They encourage the guests to purchase NFTs if they wish to become a part of travel experiences or access exclusive awards. That’s how NFTs help this luxury chain attract more travelers and enhance revenue.

3. Customer loyalty programs 

Loyalty programs in hotels aren’t a new concept, it has been there for a few years. 

Mid and premium-sized hotels use loyalty programs to keep the guests coming back. For guests, the more points they earn on each subsequent purchase, the more levels they can go up and the more rewards they earn.  Also Read - Hotel Guest Retention Strategies

A key pillar of a hotel’s marketing strategy is digitizing these loyalty programs which becomes a continuous source of revenue for hoteliers. These digital assets have a unique representation and give exclusive access to guests as a reward such as a free bottle of champagne, a free visit to a trip or anything else.

It depends on guests whether they want to enjoy the reward, share it, or sell it and make money.

4. Reduces operational costs

NFT is a revolutionary technology in the hospitality landscape because it reduces operational costs and automates the booking and payment processes. Guests can reserve a room through a decentralized platform and get a fraction of ownership to trade the room if they don’t wish to stay in the property.

Such digital assets improve the efficiency of backend processes and save the cost of hoteliers by freeing up the human staff and letting them focus on other strategic sides of things.

5. Promote their hotels in Metaverse

Hospitality businesses saw major potential in NFTs as they can promote their offerings and generate a steady flow of revenue. They can host giveaways or offer special discounts to travelers who want to buy digital collectibles in Metaverse.

NFTs have become a marketing tool for hoteliers as they can now be replaced as virtual room keys. These digital assets provide access to guests to enter the VIP rooms or get an exclusive discount on the eatery and drinks from the hotel restaurant. 

When guests get such immersive experiences, they can share their experience on social media and generate a BUZZ about the hotel’s brand through word-of-mouth marketing (WOM). Thus, they don’t have to rely on traditional modes of advertising to create brand awareness.

For Instance – A Nomo SoHo hotel in New York released NFT bookings (via digital tokens) for its rooms. 

Guests can make a reservation through NFTs and can stay for up to 3-6 nights. In return, they get access to exclusive perks such as complimentary breakfast, a late check-out facility along with a welcome amenity. They even offer an NFT-based gift card that makes the booking experience unique. 

6. Makes your hotel more sustainable

As traveler preferences are changing and becoming environmentally conscious, hotels are duly investing in NFTs to create eco-friendly accommodations.

According to the booking.com travel report, 83% of travelers want to make sustainable choices when planning a trip, that’s important for them.

An NFT represents that your hotel is shifting towards sustainability and making efforts towards reducing carbon emissions. This way it attracts the attention of Gen Z travelers who want to make sustainable choices.

Wrapping up

Now, you understand that NFT is no longer a buzzword these days as it transforms a variety of industries and now it has shaken up the hospitality industry as well. 

Leading hospitality brands such as Wyndham Hotel created a crypto rewards program that allowed guests to convert those reward points into cash or bitcoin. Through this rewards program, they’re continually engaging with their guests. 

Moreover, NFTs have become an effective marketing tool for hotels to draw in visitors' attention by offering them exclusive perks that connect them at a closer level. This provides them with a space to connect with new people, which increases hotel bookings.