Rezzy

Hotels experiment with NFTs, trying to do for room reservations what StubHub did for concert tickets

Snacks / Tuesday, May 24, 2022

Checking in at the meta-lobby… don’t forget your crypto wallet. The hospitality industry is warming up to NFTs as a way to turn vacay cancellations into tradable tokens. Reservation “no-shows” and last-minute cancellations account for up to $100M in lost sales for US hotels every year. Now hotels are turning to the blockchain to make up for it:

  • For hotels: Pinktada, a new booking platform, teams up with local resorts to take room reservations in hotspots like the Caribbean and Hawaii and turn them into NFTs.
  • For guests: They can reserve rooms by buying those NFTs from Pinktada at a lower rate than if they booked a refundable room from the hotel. If they need to cancel, there’s an option to gift or resell the rezzy on Pinktada's NFT marketplace (think: StubHub for hotels).

Welcome to CaaE… or Crypto-as-an-Experience. NFT sales have plummeted as speculative investments get crushed by higher interest rates. But a growing variety of industries — from cattle farming to fine dining — are turning to the blockchain for real-world applications. The hotel biz is just the latest:

  • Crypt-el: Last month NYC’s NoMo SoHo became one of the first US hotels to offer NFT-based packages with IRL perks like late checkout and free breakfast.

Sounds like a travel dream… at least for hotels. While they get to offload extra inventory and keep the sales from last-minute cancellations, travelers take on the burden of reselling their room — or being stuck with it if they can’t. Plus bot-operated ticket resellers could lock up blocks of rooms during popular travel periods, hoping to flip them at a profit. It's TBD how or if the trend will catch on as major hotel players like Hilton or Marriott sit on the sidelines.

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