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Tourism is on the rise. As more and more people get back to traveling, some regions are already seeing travel spending reaching pre-pandemic levels. The US is even poised to grow beyond that level and set record highs in travel spending. 
 
Still, we’re quick to move on from just how bad it got – and it was tough. We in the tourism industry are still feeling the pressure of low margins and high debt levels. The World Tourism Organization called it the worst year in tourism history with 1 billion fewer international arrivals and a loss of $1.3 trillion in export revenues. 
 
From record lows to record highs, from bust to boom, over just a period of two years, the tourism sector has seen it all. However, times are changing, and this time the question is how do we – those of us in the tourism industry – position ourselves to benefit from the improving situation.
 
The internet has already proven to have a significant impact on all facets of society, including our daily lives and employment. 
 
Recently, we’ve seen more signs that we’re moving from the existing Web 2.0 environment – one based on user-generated content and social media – to Web 3.0, where the emergence of new technologies is changing how each of us will use the internet in the future.
 
One noteworthy technological advance is the digital asset NFTs or Non-Fungible Tokens. In 2021 alone, NFTs transacted for more than $17 billion, generating earnings of more than $5 billion. 
 
The question for those in the hospitality industry is this: could this digital asset be a new way of engaging travelers and tourists, expanding brand awareness and generating new revenue streams, leading to an even stronger economic recovery? 
 
The travel and tourism industry seems to think so. In the last months alone, a number of travel-centric projects, including those run by airlines, conservation projects, and hotels, have launched, catching the attention of tourists around the world. 
 
Before we dive into how these travel and tourism brands are capitalizing on NFTs and diving into the specific ways this digital technology can be used in travel marketing, let’s briefly summarize what an NFT is and how it works.
Yes, there is more to cryptocurrency than just digital currency, virtual and augmented reality. 
 
 
 
 
 
It is these four elements, among others, that are beginning to make NFTs attractive to international travelers. 
 
So how can hotels and resorts take advantage of this emerging technology?
New engagement. New revenue. New possibilities.
 
NFTs are appealing to international travelers, especially Gen Z & Millenials who are early adopters, for several reasons. NFTs make it possible to engage with brands and communities while also elevating the travel experience. 
 
This can range from those seeking a more border-free life (including digital nomads and those supporting decentralization) to tourists who are looking for new ways to interact with the places they visit.
 
Of particular note to hoteliers, there are compelling options being developed that both tap into the desires of those travelers and provide benefits to the businesses offering them. 
 
For instance, hotels and resorts can pre-sell exclusive room nights and offer the NFTs as proof-of-travel which will soon be able to be displayed on different social media channels like Instagram and Facebook. 
 
Their flexibility makes NFTs an emerging key for unlocking additional revenues and for transforming customer engagement across travel segments in three fundamental ways. 
 
 
Those benefits, which can include receiving payments upfront and fighting seasonality, help ensure the long-term successes of tourism and travel businesses that have recently faced a great deal of struggle. 
 
Now let’s explore some realistic examples of how NFT technology can be utilized in hotel marketing: 
 
In addition to designing membership programs or booking platforms, some hotels have used NFTs as a way of testing the water with one-off marketing events. During Art Basel Miami Beach 2021, Marriott Bonvoy debuted its collection of three NFTs, entitled ‘The Power of Travel.” 
 
The randomly drawn winners received both an NFT and 200,000 Marriott Bonvoy points. By affiliating themselves with an industry-leading cultural event and offering value on top of the artistic creations, a hotel can create positive word-of-mouth while introducing themselves to a niche audience – in this case, those traveling to Miami for a world-renowned art festival.
 
Travala is the world’s top blockchain-based travel booking platform. with thousands of clients worldwide trusting it as their favorite online travel agency. Their online travel platform offers over 2.2 million properties in over 90,000 destinations throughout 230 countries. Travala created an NFT-based travel rewards program allowing users to access their Smart Diamond membership tier, giving them benefits that go beyond a simple booking. 
 
After all, hotel marketing is more than just getting people to a hotel’s website. It also has to do with getting guests to make the booking, as well as how they’re treated after that booking is made, which can lead to positive word-of-mouth.
While digital art and decentralization work because they can be accessed from anywhere, travelers still have a desire to experience the real world.
By leveraging that travel, it’s possible to create a positive impact on wildlife conservation. That’s where a project like Unchained Elephants, a cause-based NFT art project, fills the gap. 
 
Unchained Elephants are not only promoting wildlife conservation (purchasing their NFTs goes to rescue elephants working in Phuket, Thailand), but they’re also bringing together local tourism stakeholders with a travel club. This directly connects international supporters of their cause with hotels in the area, while those hotels also get to publicly promote their affiliation for a marketing win-win.
Hotel marketing can be as much about bringing in new guests as it is about enhancing the experience for existing ones. That is what Dream Hotels have done with their Social Club, a VIP membership program purchasable through NFTs. Benefits include exclusive events, access (to pools, cabanas, lounge, gym, and co-working spaces), concierge services, and metaverse events. 
 
In addition to other benefits, holders are allowed a +1 throughout their experience. Travelers who frequently stay in the same city could be encouraged to more regularly stay at the same hotel through this kind of elevated membership experience.
The NoMo SoHo in New York City has launched a curated NFT, NoMo x NFT three- and six-night stays, making the hotel among the first in the U.S. to let guests book stays using NFTs. These NFTs also function as collectibles from a traveler’s trip, offering depictions of “a recognizable part of the hotel, from The Lovewall in NoMo Kitchen to The Tunnel of Love, the hotel’s iconic archway.” 
 
With packages designed both for less popular times (Sunday – Tuesday) and more flexible options, NoMo SoHo creates an interesting set of packages that can help to regulate demand. Another great way for hotels to engage with travelers
Pinktada is providing a solution to two of the hotel industry’s biggest problems. Through their booking platform, they are able to guarantee revenue for hotel owners regardless of whether or not the rooms are used, as the sale is final.
 
Guests, then, receive a Room-Night Token after booking their room. Should the traveler go ahead with their booking, that token becomes a digital souvenir of their trip that lives on the blockchain. If the traveler’s plans change, however, 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 on the Pinktada platform.  
NFTs are not just being used in marketing hotels. There is also a wide range of other examples of operators in the travel and hospitality space, including:
 
 
 
These are still early days for NFTs. While it’s true that the NFT market is down in terms of sales volume this year, those numbers reflect the trading of digital assets rather than the actual utility or innovation happening. 
 
Though there is a risk with any new technology, there is also a huge opportunity. 
 
For innovative hotels and tourism organizations who want to connect more closely with a savvy, international audience, this could be a trend worth getting involved in.
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