Excerpt from PhocusWire
The most successful metaverse and NFT projects will be those that build, engage and appeal to communities. Initiatives that tap into the growing experience economy are key for any business venturing into Web3. Wyndham Hotels partnered with a crypto startup to create a Bitcoin rewards program for their guests which allows them to claim bitcoin rewards for cash or loyalty perks.
However, even with the emerging rise of technology, the basic business model of the hotel industry requires an in-person experience. At the end of the day, hotels need guests to physically visit their locations and stay in "real" rooms.
Some hotels are considering selling reservations as NFTs. The idea is basically that a customer books a room and receives an NFT. If they can't use the reservation, they can resell it to someone else. It will enable them to make their money back, and the hotel doesn't have to deal with an empty room. It sounds good in theory, but ultimately this will lead to chaos.
This model will likely encourage a secondary market for popular tourist destinations. Scalpers will buy up nights in advance, then resell them for a profit when tourists run out of alternatives.
The biggest problem, however, will be the impact this has on the local economy. If a business buys up nights to sell at a hugely inflated price, they may stop selling once they've made enough profit. This would leave many rooms empty, which would lead to staff losing their jobs. This will trickle down to local businesses, bars and restaurants that will lose thousands from non-existent guests. The solution could be that other industries, such as airlines, move in to buy up the NFTs; however, this would affect the smaller players that don't have the resources to do this.
Metaverse technology, if utilized correctly, should enhance and complement the "in real life" hospitality and travel experience, not try to replace it. The potential of this technology is limitless; however, before we get carried away with the possibilities, it needs careful monitoring and agreed rules and systems from the outset.
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