Blockchain technologies have the potential to upend the online travel agency (OTA) business model as consumers grow more comfortable with cryptocurrencies and digital wallets. Whether you’re ready or not, it’s now possible to purchase and exchange hotel reservations much like non-fungible tokens (NFTs).
Many hotels offer digital and collectible NFT-formatted hotel reservations and event tickets. Customers can sell or trade their reservations in a secondary market, similar to how StubHub serves as a digital marketplace for primary ticket buyers to sell or trade their baseball or Broadway tickets. Customers can earn rewards based on their actions, which are simple to track using blockchain technology.
What Does It Mean When Your Hotel Reservation Is an NFT?
Once a hotel is reserved, the traveller receives an NFT, which serves as a distinct reservation and may be securely and easily sold or swapped up to 24 hours before check-in. Travelers have two payment options: credit cards and cryptocurrencies. The system mints the NFT as soon as the payment is processed, and the traveller can see it in their wallet where they can use it, sell it, trade it, or just display it.
Blockchain is good at authenticating who owns something and when it was purchased, allowing two parties to swap reservation tokens easily, cheaply, and securely.
Many passengers find it appealing to have their reservations be tradable on secondary marketplaces, especially if their plans change regularly. Having a secondary market is advantageous to hotels as well.
The Benefits for Hotels
By making reservations that can be traded on secondary markets without losing value as opposed to being cancelled when travellers’ plans change, it claims to assist hotels in managing income more effectively and address the issue of high cancellation rates. It’s best if a hotel allows cancellations up to 24 hours in advance so they won’t have to worry about giving the room away to another guest.
Additionally, these platforms ought to assist hotels in reducing their customer acquisition costs. Large hotels, for instance, will be able to pre-sell their inventory a year in advance, allowing them to maintain a high occupancy rate and lower risk.
The faster they can sell out, the better. We are solving a problem for travelers and for hotels simultaneously by creating value from bookings that are currently dead assets.Partnering with OTAs and major hotel brands will ensure that the platform can compete on price and provide a wide range of hotels. Due to its customers’ membership in a closed user group, it is able to provide lower rates and pricing. “The discount is not advertised anywhere.” When hotels eventually have control over the NFT regulations, they will get a royalty payment each time a reservation token is traded.
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