Posted: December 4, 2023 12:32 PM Updated: December 4, 2023 12:38 PM
briefly
Explore the transformative impact that NFTs are having on the hotel industry by revolutionizing and authenticating real-world experiences.
Non-fungible tokens, also known as NFTs, have become one of the hottest buzzwords in 2021 as hype around cryptocurrencies soars. With the onset of cryptocurrency winter, NFTs aren’t making as many headlines as they used to, but the technology has nonetheless evolved from the original concept of recording ownership of digital art.
One of the ways NFTs are evolving is by playing a prominent role in the modernization of the hospitality industry, with projects like Flyfish Club and Staynex, as well as major airlines like Air Europa and Air Baltica, rapidly innovating to leverage NFTs. A unique digital token.
To briefly summarize, an NFT is a digital token recorded on a blockchain that can represent a digital asset or be linked to a physical asset in the real world. Blockchain authenticates the authenticity and ownership of the underlying assets thanks to its immutable and decentralized nature, which ensures that no one can change the digital records attached to them.
NFTs initially started out as digital art and collectibles, with the most notable projects including Bored Ape Yacht Club and CryptoPunks. Growing interest in these tokens has led big brands like Nike, Adidas, Prada, NFL, and McDonalds to explore the technology.
With the onset of the cryptocurrency winter starting in 2022, the value of most NFTs has collapsed dramatically. But even as people lose interest in older projects, more innovative use cases are emerging that could realize their full potential by offering real-world cryptocurrency. World utility to holder.
One area where NFTs are gaining traction is the hospitality industry. Early NFT travel projects were mostly simple digital art collectibles issued by the likes of InterContinental and Marriott, but more creative use cases have emerged as well.
NFT flight ticket
NFTs can depict more than just a bunch of pixels. One of the most promising features is the ability to digitize access or membership to a club or organization on the blockchain. For example, Air Europa recently announced that it would begin selling NFT-based tickets alongside its traditional booking process, leading to a very interesting experiment. Travelers paying with cryptocurrency can now purchase NFT tickets, giving them more flexibility and allowing them to freely trade on a decentralized marketplace up to 72 hours before departure time.
Air Baltic also announced a similar project, where it integrated its “Planies” NFT collection with its existing frequent flyer program to provide unrivaled loyalty benefits to its regular customers.
NFT Restaurant
Aside from travel, restaurants are also participating in the NFT scene. One of the most famous examples of this is the Flyfish Club, which offers holders memberships to high-end, high-end restaurants in New York City. Only NFT membership card holders can enter the venue operated by Gary Vaynerchuck’s VCR Group.
The company states on its website as follows: “Flyfish Club is able to create a community of loyal members who can provide unique experiences. NFTs create a new, modern financial model that will allow Flyfish Club to deliver an outstanding, sustainable product for years to come.”
Flyfish Club allows users to choose between two NFTs that offer different types of memberships. You can purchase Flyfish or Flyfish Omasake NFTs, with the former granting you entry to the restaurant’s cocktail lounge, seafood restaurant, and private events. This NFT is currently selling for 2.5 ETH, or approximately $5,100 at the time of this writing. The Flyfish Omasake NFT is even more special because it also provides access to the Omasake Room, a private dining room. The cost of these NFTs is approximately 4.25 ETH.
NFT Hotel Stay
NFTs can be used to reimagine loyalty and rewards programs and increase brand engagement through tokens that serve as digital gateways to perks and services in both the virtual and real world. Another great example of this is SEM9 eSports Hotel, which has launched a collection of NFTs exclusively for gamers. In addition to being cool collectibles, NFTs also gave holders free hotel stays, exclusive merchandise, and invitations to physical and digital events.
Timesharing is another hotel industry concept waiting to be reinvented with NFT technology. Staynex has developed an NFT-based ‘Staynex Pass’ that provides holders access to numerous luxury resorts around the world in China, Indonesia, the UK, and other destinations. In many ways, a Staynex Pass is the same as a traditional timeshare, granting the holder the privilege of staying at the resort for a specified number of days each year. The advantage is that NFTs can be redeemed at any time, so the dates are flexible. They also offer resort owners an ownership stake in the resort, which means they get a share of the profits generated by the business. In this way, it is not only a holiday coupon, but also an investment that can be freely traded on the digital marketplace.
Staynex’s first resort was Indonesia’s Kunang Kunang Tent Resort, which sold NFTs to crowdfund its development. The auction sold 365 NFTs, representing a 24-hour stay for holders.
NFT Membership
NFTs are accessible to anyone due to their decentralized nature, but they can also be difficult to obtain, especially if they are issued in limited quantities. Such is the case with the Dream Hollywood Hotel’s NFT collection, a membership program that offers perks such as free hotel stays, private events, poolside lounge chairs, a professional concierge, co-working space, and access to luxury cars. And more.
NFT for sustainability
The hotel industry has also been experimenting with using NFTs to support good causes, such as environmental and ecological projects, combining innovation and corporate social responsibility. For example, the Unchained Elephants NFT project aims to support regenerative and responsible tourism, with proceeds going towards supporting local communities and educating people about elephant welfare.
Meanwhile, Nature Seychelles has launched what it claims is the world’s first digital species in the form of a limited-edition NFT collection depicting the endangered Seychelles magpie robin. Each NFT is said to be a digital twin of a real bird, and proceeds from its sale will go towards funding initiatives that support conservation.
These types of NFTs have great potential in attracting millennials and Generation Z. They are increasingly demanding that travel and hospitality industry suppliers become more sustainable and authentic.
final thoughts
The unique characteristics of NFTs have led to some amazing innovations, and beyond the use cases explored today, there is a lot of potential for additional applications related to this technology. As the technology matures, forward-thinking hospitality and travel industry organizations are leveraging NFTs as the foundation for more creative experiences and benefits for consumers. For any organization looking to increase revenue, create new business models, and increase brand engagement and loyalty, NFTs are a very promising concept.
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About the author
Gregory, a digital nomad from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With his extensive experience in the financial industry, his insights and expertise have been recognized by numerous publications. Making effective use of his spare time, Gregory is currently devoted to writing books on cryptocurrency and blockchain.
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Gregory, a digital nomad from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With his extensive experience in the financial industry, his insights and expertise have been recognized by numerous publications. Making effective use of his spare time, Gregory is currently devoted to writing books on cryptocurrency and blockchain.