Well Known Hospitality Brands Are Implementing NFT Hotel Marketing Strategy
Tourism is on continuous growth as more and more travelers resume their vacations. Some regions are even reporting that travel spending has returned to pre-pandemic levels. Having said that, the last two years have been very tough for the tourism industry. But as things begin to restart and things are changing, the biggest question for any business owner in the tourism sector now is how can we position ourselves to benefit from this improving economy? Can we use this new technology as part of our NFT hotel marketing strategy to generate further revenue?
During the dormant periods of the economy in 2020 – 2021 another business boomed. Where several technology opportunities were born, such as the digital asset, NFTs. Where a trading worth of $17 billion was generated in 2021 for NFTs alone. With the Internet playing a profound impact on our work and all aspects of society, it’s safe to say that a new TECHNOLOGY era is just beginning. The World Of Web 3.0 is here to stay. So how does a hospitality brand incorporate NFTs into their travel marketing plan?
Six Brands Who Have Already Incorporated NFTs in Their Hospitality and Tourism Marketing Strategies and How They Did It
NFTs provide a new way for brands to build engagement with their potential customers, generating a new revenue stream and opening up business opportunities.
Gen Z and Millennial travelers are particularly drawn to NFTs as they tend to be early adopters for a variety of reasons. Not only do NFTs improve their travel experiences, but they also enable interaction with brands and its communities. With efforts to tap into these travelers, hotels and resorts have incorporated NFTs into their hotel marketing strategies in order to provide these travelers with cutting edge benefits and travel experiences. For instance, hotels and resorts can offer the NFTs as proof-of-travel as these NFTs will soon be displayed on various social media platforms, including Facebook and Instagram. For the hospitality industry NFTs are transforming customer engagement in three key ways while opening up new revenue opportunities.
- Enhancing customer experience
- Redefining and improving brand loyalty
- Increasing share of wallet
These advantages, which include getting paid upfront and avoiding seasonality, can help ensure the long-term success of tourism and travel businesses that have recently struggled a lot. How then can hotels and resorts incorporate NFTs into their hotel marketing and advertising strategies?
Let’s look at some concrete examples of how big hotels and travel brands are incorporating NFT into hospitality and tourism marketing plan:
1. Marriott International
Partnered With Several Digital Artists to Launch three NFT Collections at the Art Basel Miami Festival in 2021
Marriott International incorporated NFTs into their one-off marketing events. Marriott Bonvoy’s three NFTs collection “The Power Of Travel” was launched during Art Basel Miami Beach 2021. The winners were chosen randomly and received 200,000 Marriott Bonvoy points in addition to an NFT.
By associating themselves with an industry-leading cultural event and providing value on top of artistic creations, Marriott International was able to build positive word-of-mouth while introducing themselves to a niche audience, in this case, those visiting Miami for a well-known art festival through this NFT marketing strategy. Enhancing their customer experience and increasing their share of wallet.
The World’s Largest and Most Well Known Travel Booking Platform, Builds the World’s Largest NFT-based Travel Rewards Program
Travala, one of the world’s leading travel booking platforms, is blockchain-based. Their online travel site offers more than 2.2 million accommodations in more than 90,000 locations across 230 countries. An NFT-based travel rewards program was developed by Travala.
Providing their customers exclusive access to Travala’s Smart Diamond membership. By incorporating this, Travala was able to not only drive more traffic to their site but generated even more bookings due to this creative and cutting-edge reward program. Redefining and improving brand loyalty.
3. Unchained Elephants
The Gateway for Hoteliers in Thailand to Incorporate NFTs in Their Hotel Marketing Strategies While Creating a Positive Impact.
NFTs and new technologies are disrupting the markets and the way to make business with the chance to make a long-term environmental and social positive impact. Unchained Elephants, Thailand’s NFT Art project, understands patterns of the demand and customer expectations are undoubtedly evolving and upgrading the travel expectations and experience in the hospitality industry.
This cause-based NFT project promotes wildlife conservation and attempts to make a ripple in the elephant tourism industry, while bringing together an innovative business model to engage with customers through the travel club. Unchained Elephants provides additional value/benefits to the NFT holders through their partnership with hotels and resorts. Provide a gateway for hoteliers in Thailand to presell their hotel rooms as membership while incorporating NFTs in their hotel marketing strategies easily.
4. Dream Hotels
An NFT marketing campaign with a focus on both attracting new customers and enhancing their guests’ stay experiences.
The Dream hotels launched an NFT marketing campaign with a focus on both attracting new customers and enhancing their guests’ stay experiences. They achieved this with their VIP membership program, the Social Club, which is exclusively available through their NFT collection. Benefits include access to exclusive events, concierge services, metaverse events, and amenities like pools, cabanas, lounges, gyms, and co-working spaces. Throughout their experience, NFT holders are permitted a +1 in addition to other advantages. Through this kind of enhanced membership experience, frequent domestic travelers were persuaded to stay at the same hotel more frequently.
4. NoMo SoHo Hotel in New York
Is The First Hotel Brand to Launch an NFT Collection in Order to Pre-Sell Curated Hotel Stay Packages
The NoMo SoHo in New York City has introduced a curated NFT collection, NoMo x NFT three- and six-night stays, making their hotel brand one of the first hotels in the U.S.A to allow guests to book stays using NFTs. As souvenirs from a traveler’s trip, these NFTs serve as representations of “a recognizable part of the hotel, from The Lovewall in NoMo Kitchen to The Tunnel of Love, the hotel’s iconic archway.” NoMo SoHo creates an intriguing set of packages that can help to control demand with plans created for less busy days (Sunday through Tuesday) as well as more flexible options. Another fantastic means by which hotels can interact with tourists.
Providing a Guaranteed Revenue for Hotels Regardless of Whether or Not the Room Is Used.
Pinktada is providing a solution to two of the hotel industry’s biggest problems. Guaranteeing revenue for hotel owners regardless of whether or not the rooms are used, as the sale is final. While guests can book a room through Pinktada and receive a Room-Night Token.
Which would allow travelers the flexibility to either go ahead with their booking and stay at the hotel, that token becomes a digital souvenir that lives on the blockchain. If the traveler’s plans change, they can either sell their token back for a credit they can use later or exchange it on the platform for equal value at a different hotel.
A major issue for hotels is how to receive an income from their rooms even if they are not used. Pinktada has managed it to a certain extent by incorporating NFTs into their business strategy. Customers who book a room through Pinktada receive a Room-Night Token, if they use the room, they get to keep the NFT as a souvenir of their stay. If however, they wish to change their booking, they can sell their token for credit which can be used at a later date or exchange it for use at a different hotel of the same value.
Other Brands in the Travel and Hospitality Industry Who Have Incorporated NFTs to Their Marketing Strategies.
NFTs are used for more than just hotel marketing. There are many other examples at work, some of which are shown here:
- Several airlines are selling NFT art as a digital collectible some of the major airlines include Etihad Airways, Emirates, Qantas airBaltic Airlines, Air Europa.
- In collaboration with Rubem Robierb, Celebrity Cruises developed an NFT collection to go with a real sculpture on their brand-new ship.
- Portorož and Piran have shown in Slovenia that travel and tourism-based NFTs don’t have to be stand-alone efforts; they can be just as powerful and worked into a larger campaign.
- EthJEt, The first NFT project to make flying on a private jet affordable. EthJet connects token holders with discounted charters, awards, free annual jet time, and more.
- Nature Seychelles, in partnership with the International Union for Conservation of Nature (IUCN) and Porini Foundation, launched the world’s first Digital Nature Collectibles in support of the endangered Seychelles Magpie Robin. For an area like these islands where conservation is often dependent on tourism, this provides a new opportunity to interact with the region.
NFTs are still in their infancy. Even though this year’s NFT market sales volume has decreased, this is more a result of the trading of digital assets than any actual utility or innovation.
With any new technology, there is a risk, but there is also a huge opportunity. This might be a trend worth getting involved in for forward-thinking hotels and tourism organizations that want to connect more deeply with a savvy, global audience and grab a foothold in the years to come for their businesses.