Now that we are firmly in “crypto winter,” it is time to take a sober look at all the innovations promised for hospitality in blockchain, web3, the metaverse, and non-fungible tokens (NFTs). We are both big proponents of this space as we see a lot of lucrative opportunities in hotels around the world, but these use cases are too pretentious for all stakeholders to avoid flattening out. and should not be inconvenient.
This article is not intended as an introductory course to web3, but to all inventions throughout human history. Innovation that enhances convenience ultimately becomes kingThis convenience could be on the customer side, such as Apply Pay and Google Pay, which are currently working to eliminate the need to carry a physical wallet. It can also happen to internal stakeholders, such as all the automation tools implemented behind the scenes at the hotel to reduce the amount of repetitive work.
Being skeptical is a good thing because of the proposed applications of blockchain technology. Determining the axiom of convenience is king. Here are his three key questions we ask and answer in discussions related to the metaverse or his NFTs:
- How is this convenient for guests?
- Why can’t this be done using existing non-blockchain systems?
- Will this save money for hotel organizations and brands?
Keep your costs under control
Let’s start with the third question and work our way back. As any good investor knows, you can control costs, but top-line earnings are always a bit fuzzy. In particular, the one-two punch of the pandemic and subsequent recovery in travel does not provide verifiable recent historical occupancy and rate data for the budget. Yes, there is a lot of potential revenue from blockchain implementations and significant first-mover gains, but also the promise of top-line NFTs and the assurance that hotel construction in the metaverse will make a meaningful contribution to the bottom line. There is none.
So the cost of both the initial setup of these systems and the ongoing SaaS, plus the sinking time to retrain your team, the resources needed to evolve your corporate culture to fully embrace the potential of web3? , should be looked at with a close eye. Opportunity cost of IT professionals being able to focus on other (potentially more important at this point) labor efficiency projects and customer dissatisfaction during the onboarding process.
Most web3 pundits declare and brush off all these hidden time-based costs (probably not now). Frankly, labor issues dominate all of our thinking, making it very difficult to justify a nice-to-have web3 project, even if projections show a big uptick in five years. is.
It’s called a tech stack because it’s built one floor at a time, with each floor coexisting with the previous, deeper layers. Therefore, the basis for using a metaverse or NFT platform that operates using cryptocurrencies is knowing how these web3 applications interact with the existing ecosystem. Unless it’s a brand new property planning to develop its own software from scratch, most web3s are not yet set up as a “turnkey” hospitality platform.
Similar to current advancements to digital room keys that can be accessed via mobile wallets or branded apps, the web3 platform offers the same migration flexibility for guests (and those who don’t) who want to stick to the old-school methodology of plastic keycards. must be provided. Having enough new phones to facilitate these advances) is not forced into a methodology that they find inconvenient.
Given these interaction issues, a second question arises. Many of the proposed web3 utilities are more labor-intensive, but using non-blockchain technology he can do it three-quarters of the way. Still, these existing systems are easy to implement, don’t disrupt corporate culture, and increase convenience for the average consumer. Therefore, hotels investigating NFT projects should also consider ways to facilitate payments in US dollars and other fiat currencies. eyesight.
The future is frictionless
For our purposes, let’s consider the word frictionless synonymous with ConvenientNow, to step into the Metaverse for a moment, consider the value proposition of experiencing a hotel in one of these virtual worlds rather than actually going there.
One valuable use case for the Metaverse is allowing people to pre-experience a digital twin of a room or event venue before booking. This has great potential for both understanding and upselling properties and visualizing furniture configurations. The metaverse also has advantageous training applications. However, these technologies are not convenient enough for both stakeholders.
Let’s ignore the fact that most buildings in the metaverse now look like a glorified Minecraft simulation without any significant gamification to force daily active use. The main stumbling block is that most people don’t have a VR headset yet, which excludes them from immersive pre-experiences. No. If you are selling a room online, wouldn’t it be more convenient for your hotel team to capture and upload a short virtual tour? Wouldn’t it be easier for you to All with live Q&A.
In terms of training, be aware that part of hospitality is the family ties that are fostered among co-workers. This is an important non-wage incentive to encourage employee retention. Yes, the Metaverse helps you have more flexibility when it comes to your work-from-home model. However, onboarding typically involves a lot of quality face-to-face time between trainees and trainers. Shifting much of that to more sober, impersonal channels, such as interacting primarily within virtual worlds, can discourage some employees from staying at work.
Dream of Cryptospring
These current obstacles aside, we are still bullish. A platform that not only makes buying NFTs and token gating more convenient for the average hotel guest, but also makes the metaverse look so incredibly real that people actually want to hang out there. A lot of money (both financial and human) is spent on development. Humans are bad at predicting exponential trends, so expect them to happen much faster than you expect.
Again, from the beginning, always evaluate technology in terms of convenience: what makes your customers enjoy more time and gives your team more time to focus on other tasks. In addition to this as a basic rule, watch out for shiny new toys that don’t come with paint kits. I would retire on a yacht in the Mediterranean if I was given $100 every time I heard of . became. That being said, survivors thrive.
Beyond buzzwords, ask what drives mass adoption based on convenience and current value. Blockchain will ultimately “change everything” and should be considered and then roadmapped, but all implementations will, above all, improve the onsite experience and overall customer value. must be assembled from this point of view.
Larry and Adam Mogelonsky represent one of the world’s most published writing teams in the hospitality industry, with over a decade worth of material published online. As partners in his Hotel Mogel Consulting Limited, a Toronto-based consulting firm, Larry focuses on property management, sales and operations, while Adam specializes in hotel technology and marketing. Their experience, both branded and independent, spans establishments around the world, from luxury boutiques to select services. Their work includes six books, “Are you an ostrich or a llama?” (2012), “Llama’s Rule” (2013), “Hotel Llama” (2015), “Lama is an Inn” (2017), “The Hotel Mogel” (2018), “More Hotel Mogel” ( 2020). You can contact Larry (email@example.com) or Adam (firstname.lastname@example.org) to discuss your hotel business challenges or to book a talk.
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