Web3: is Hospitality Lagging Behind other industries?
9 experts shared their view
Among the pioneers of Web3 adoption, luxury brands have taken the lead. A recent study by CoinGecko reveals that an impressive 37% of apparel and luxury goods brands have already initiated Web3 strategies. As decentralized platforms, blockchain technology, and NFTs come to the forefront, a pertinent question arises: Are we on the brink of a seismic transformation in established branding paradigms? How can industries, particularly the traditional industries of travel and hospitality, harness this shift to their benefit? What inspiring success stories of Web3 are shaping the current landscape?
Davids and Goliaths in Web3: Success Stories From Leading Brands
As famed sci-fi writer, William Gibson, said, "The future is already here; it's just not evenly distributed." Applying this quote to hospitality's current inroads with web3, generalizing the entire industry as behind discounts the many brands that are quite active, either publicly or privately, in figuring out how to monetize next-gen internet technologies.
This all said, the best way for a hotel company to not be a late adoptor is to embrace technology as a core facet of its culture. Lest we forget that behind every hotel is an IT Director, CIO or CTO who loves tech and yearns for their business to be at the forefront. Empower these people; give them a voice at strategic planning meetings; trust them to make bold changes; give them space and budget for R&D: make innovation the central part of all operational processes. If you figure out the people part of this, then all the benefits will fall into place.
As travel and hospitality brands assess the opportunities Web3 provides, they are focusing on business-tangible use cases that will help propel their businesses forward. And as they do, they are finding benefits in three areas:
- Attracting new customers
- Engaging more deeply with current customers, and
- Enabling direct customer relationships without intermediaries.
Travel-related use cases that drive these business benefits include:
- Rewards and loyalty programs. Travel providers can associate rewards with a Web3 token, giving them to both current customers and external token communities to acquire new audiences. Best of all, these lightweight programs can run alongside current loyalty initiatives to attract new customer segments.
- Social impact marketing. Hospitality companies can drive impact marketing for local social and environmental causes by including culturally relevant art that resonates with customers and enabling blockchain-based monetary donations.
- Sustainability programs. Environmental sustainability is key for travel companies, and Web3 allows organizations to demonstrate the actions they are taking, while showing tangible progress to customers in carbon credit purchases, conservation initiatives, and more.
Web3 offers opportunities for companies to drive direct relationships with travel customers – the kind that last, and provide value to the business.
The rapid adoption of Web3 technologies, particularly by luxury brands, is reshaping various industries. A recent CoinGecko study reports that 37% of high-end apparel and luxury goods brands have already initiated Web3 strategies, highlighting their enthusiasm for blockchain, NFTs, and decentralized platforms.
However, the traditional travel and hospitality sector appears to be lagging behind in Web3 adoption, posing both a challenge and an opportunity. This industry can leverage Web3 to enhance customer experiences, with blockchain ensuring secure and transparent bookings, NFTs offering unique digital travel assets, and decentralized platforms reducing costs and intermediaries.
An inspiring Web3 success story is the rise of virtual tourism experiences through NFTs and virtual reality, enabling remote exploration of destinations. Additionally, loyalty programs and incentives can be gamified through blockchain and NFTs, fostering customer engagement.
In conclusion, while the hospitality and tourism industry trails behind luxury brands in Web3 adoption, it holds substantial potential for transformation. Embracing Web3 can lead to personalized travel experiences and operational efficiencies. Collaboration with Web3 experts is essential to navigate this evolving landscape successfully.
Related article by Marco Antonio Lueg
The travel and hospitality industry is undergoing a transformative shift, driven by the adoption of Web3 technologies like Non-Fungible Tokens (NFTs) and Decentralized Autonomous Organizations (DAOs).
NFTs, when integrated with Internet of Things (IoT) devices, offer a robust system for verifying customer reviews. This not only enhances the credibility of reviews but also provides actionable insights for service providers.
On the other hand, DAOs empower local communities by facilitating decentralized governance. This allows for community-driven initiatives that benefit local economies, preserve cultural heritage, and promote sustainable tourism.
The agile decision-making enabled by DAOs ensures that communities can quickly adapt to changing circumstances. Overall, the incorporation of these technologies promises a more transparent, equitable, and sustainable ecosystem in the travel and hospitality sector.
See my last article to delve into deeper.
Related article by Roberto Garavaglia
Web3 significantly transforms the business landscape, particularly in the relationship between brands and their clientele. Brands are evolving from simply "narrating" stories to "experiencing" them alongside their customers. A noteworthy example in the hospitality sector is the recent introduction of TravelZoo Meta (www.meta.travelzoo.com). They've long vision and invested significant resources to elevate their customer experience toward Web3.
While being considered a traditional industry, Travel and Hospitality in my opinion is one of the industries that could see the most transition during the digital era.
Traditional usually means there is room for enhancements.
While some argue that the more Tech-enabled these People-Centric Environments become, the less personalised they are. That's true, but we don't necessarily need to change the way we tailor the User Experience, rather what happens backstage.
The Data Management systems can be empowered by Blockchain.
Facility Touring can go from Media and Reviews, to fully immersive Digital Twins.
NFTs can be leveraged to book Rooms.
So much can be done at the level of the Back-of-House; yet, in my opinion, not a lot is being done beyond the standard tech initiatives that already exist in the hotel world.
It's worthy to note though that Accor Group has plans to build in the Metaverse and double down on Digital Transformation strategies, Millennium is already on Decentraland, CitizenM was the first hotel group to purchase LAND on the Metaverse and NoMo is selling NFTs redeemable for three-to six-night visits and upgrades.
Nothing yet that fits a full Web3 spectrum standard but we'll get there.
Travel and hospitality companies are exploring the concept of tokenization, where experiences are converted into non-fungible tokens (NFTs) or other blockchain-based assets. These tokens can be bought, sold, and traded among users, creating a unique digital ecosystem of travel experiences.
Enhanced Transparency and Reviews: Customer trust is paramount in the travel industry. Blockchain technology can ensure the integrity of customer reviews and service quality information. This not only builds trust but also enhances the reputation of businesses.
Blockchain-Based Loyalty Programs: Airlines, hotels, and travel agencies are considering blockchain-based loyalty programs. Customers can earn tokens for every trip they take, which can be used for future discounts or to access additional services. This innovation creates a more engaging and rewarding travel experience.
A Real-Life Example: The Marriott Bonvoy Loyalty Program
To illustrate the practical application of these concepts, let's take a look at Marriott International, a global leader in the hospitality industry. Marriott has embraced Web3 principles with its "Marriott Bonvoy" loyalty program.
Marriott Bonvoy has the potential to further innovate using blockchain and NFT technology. Imagine Marriott issuing NFT tokens for exclusive stays, personalized travel experiences, or access to special events.
Related article by Francesco Brasca
The hospitality industry has traditionally lagged behind other industries when it comes to adopting new technologies. While retail, entertainment and other consumer-facing industries have embraced innovative and immersive technologies like blockchain, NFTs and VRAR, many hotels, restaurants and travel companies are still catching up.
This trend of falling behind the curve appears to be continuing into the new era of web3 technologies and the metaverse. Where large media and tech companies have announced big plans and investments into virtual worlds, NFTs and blockchain, hospitality brands overall have been notably behind the trend. This is despite the clear opportunities that exist to transform the customer experience through virtual travel, crypto payments and digital asset ownership.
If hotels, airlines and other tourism providers want to stay relevant with increasingly tech-savvy younger customers, they need to start exploring how to integrate emerging technologies like augmented and virtual reality into their offerings. By failing to experiment now with web3, the industry risks losing relevance and market share to new digital-first competitors. Moving forward it will be important for traditional hospitality players to close the gap and ensure they are leaders, not laggards, in developing innovative services delivering the true future of travel and leisure.
I would say that there is enough interest around the topic, so I am relatively confident we won't miss this boat. That being said, we probably need to contextualize what we mean with Web3 in the travel and hospitality industries and what benefits it could bring.
The whole Web3 vs. Web2 Narrative is cool on paper, but the big question -IMHO- should be decentralized vs. centralized. Travel is highly centralized, with a few major players controlling room distribution, hotel reviews, and metasearch traffic (more about it here).
To summarize:
- DeFi: Integrating cryptocurrency into business operations can increase revenue, and basically every major OTA already accepts crypto payments.
- Decentralized Marketplaces: Decentralized marketplaces are a means to enable diverse trading, generate secondary income, and enhance the travel experience.
- Fight Brand and Rate Leakage: Web3 applications are a solution to prevent unfair manipulation of ARI, and protect against brand/rate leakage.
- Reviews 3.0: Tokenizing reviews is a way to combat fake reviews, and increase transparency.
- Universally Unique Identifiers: Decentralized identity management can protect sensitive information, enhance transparency, and reduce disputes.
- Loyalty Programs: Decentralized loyalty programs are a way to help travelers navigate complex systems and redeem rewards across multiple providers.
Web3 in Hospitality
Your content on Hospitality Net?
Hospitality Net membership explained
