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Maximizing Revenue and Guest Experiences: The Power of NFT's in Hospitality 

By Giuseppe Cadeddu, Associate

The hospitality industry has always been about creating unique and memorable guest experiences. From luxurious accommodation to world-class dining and entertainment, hotels and resorts strive to create experiences that guests will remember for a lifetime. With the rise of blockchain technology and NFTs, the hospitality industry has a new digital tool to create exclusive experiences and unlock new revenue streams.

NFTs, or non-fungible tokens, are unique digital assets representing ownership of a specific piece of digital content, such as artwork, music, videos, or other digital media. But NFTs can also provide access to hospitality experiences, exclusive loyalty programs, grant access to a VIP event, or exclusive discounts and rewards to loyal customers.

Marriott International, one of the largest hotel chains in the world, has already embraced and created its own NFTs as a way to offer unique travel experiences to its customers through Marriott Bonvoy, Marriott International's award-winning travel program.

In December 2021, Marriott Bonvoy launched its first NFT collection as part of its marketing campaign, "The power of travel", produced by the up-an-coming digital artists – TXREK, JVY, and Erick Nicolay. The collection included 3 unique NFTs, named "Memoried", "The Emotional Journey" and “The experiential in between”, each representing the artists' distinctive experiences of travel, highlighting the profound effect it has on the human spirit. Customers could purchase the NFTs using cryptocurrency to access exclusive experiences or receive special rewards and perks at Marriott hotels.

But Marriott is not alone in exploring the potential of NFTs. Other innovative hospitality venues use NFTs to attract international travellers and diners and create unique experiences. Hotels could create a series of NFTs collections allowing customers to purchase unique experiences, such as private rooftop parties and exclusive spa treatments, or even unlock access to dedicated areas exclusively reserved for NFT holders.

The Flyfish Club in Manhattan and the Adam Handling Restaurant Group are two examples of businesses that have already used this technology.

The Flyfish Club is the world's first members-only private dining experience that pre-sold $14 million in memberships through NFTs. Members own the digital asset represented by the NFT, which they can list and sell.

In the case of the Flyfish Club, their collection consisted of 2 groups of NFTs. One token provides access to the cocktail room, the restaurant, and an outdoor space with stunning views of New York City, the second token grants access to everything that the first token does, as well as an even more exclusive food and drink experience curated by one of the country's best sushi masters.

By introducing NFT-based hotel packages, the NoMo SoHo Hotel in New York City has elevated the guest experience to a new level. These packages provide guests with an exceptional hotel booking experience that blends the convenience of cryptocurrency with cutting-edge NFT technology.

To access special rates, guests can buy an NFT featuring a recognisable part of the hotel. This strategy enables the hotel to cater to a tech-savvy audience while simultaneously establishing the groundwork for the future of real estate.

This innovative approach turns membership into an asset for community members as NFTs can transfer royalties to both the asset's owner and the original creator. If an NFT is resold, the original creator can receive a portion of the sale price as a royalty. Hotels and resorts can pre-sell exclusive room nights and offer NFTs as proof-of-travel, which can be showcased on social media channels. NFTs' versatility and flexibility make them a vital tool in generating additional revenue streams and transforming customer engagement across travel segments by enhancing customer experience and also rethinking loyalty

Finally, NFTs also offer the potential to create fractional ownership in high-value assets, such as rare artwork or exclusive hotel suites. By dividing ownership of an asset into smaller, more affordable pieces (tokenisation) multiple investors can own a portion of the asset. This can be useful for hotels that want to sell ownership stakes of their most exclusive suites or other high-value areas.

From Marriott to the Flyfish Club, the hospitality industry is embracing the power of NFTs to create unique and exclusive experiences for their customers. As this technology continues to evolve, the possibilities are endless, offering new revenue streams, increased customer loyalty, and exciting new marketing strategies.

If you're looking to stay ahead of the competition and revolutionize your hospitality business, it's time to explore and embrace the limitless potential of NFTs. The future is here, and NFTs are just the beginning.