Disruption is nothing new for the hospitality industry. Over the last three decades, the industry has been disrupted and forced to transform a few times. Through the rise of mobile devices and the following change in booking-behavior, social media with its influencers and the opportunities and risks of real time reviews and photos, increasing demand for personalized hotel experiences (welcome notes, goodies, SaaS) and Cloud with software and hardware solutions within hotel processes as well as in-room experiences for guests. Blockchain technology and AI the hospitality industry is now facing the next big transformation.
Bitcoin payment adoption in luxury hotels
Over the last months, multiple hotels made the headlines by implementing crypto payment solutions for bookings and restaurants.
“The wellbeing of our guests is front and centre in everything we do. Many of the improvements in our service in recent years were made possible by advance in technology. As we believe Bitcoin is here to stay, it only seems natural to offer more choices in the payment process.”
André Meier, Director of Finance at The Dolder Grand in a recent media release.
In the case of the Zurich based “The Dolder Grand”, the decision to accept Bitcoin payments was initiated by an early adopter in the team of the luxury hotel: “At one of our regular business meetings, where we brainstormed about ways to make our guests feel more welcome, he suggested that we look into allowing Bitcoin as a form of payment. And so we did”, said Mark Jacob, Managing Director of The Dolder Grand in an interview with Crypto Heroes.
He goes on saying: “We’re very, very excited to see how Bitcoin gets used at our facilities. We’re also curious in pursuing further opportunities applying blockchain technology, as we think they will augment the guests’ experience. The digital change, which still lies ahead of us, comes with a wealth of opportunities. We look forward to embracing and making it useful to our staff and our guests. Accepting Bitcoin payment is just one small piece in a larger mosaic.”
And he’s right. While the acceptance of Bitcoin payments is a great step towards mass adoption, the potential of DLT goes far beyond just payments.
Brief overview of potential Blockchain use-cases in hospitality
Cutting commission fees: Online booking platforms such as booking.com charge a commission of up to 15–25% of the price the customer pays (based on property type and location).
Personalized Guest Experience: Blockchain technology allows new ways to create a customer identity to elevate experience through analyzing big data. Exploring customer behaviors and patterns will lead to insights that will help to personalize each guest’s experience, for example with the use of private keys. Think simplified and digitalized check-in processes through blockchain based apps, letting guests choose their room, which is then unlocked through the app and sending guests individual recommendations based on their previous bookings and interests.
Supply Chain Management: Blockchain technology can be used for payments, vendors management and inventory to track information at all stages in the process and release payments based on smart contracts. All made possible with a secured database across a distributed system with reliable and audited data.
Loyalty Programs: Retaining and reengaging existing guests and customers is one of the most impactful acquisition methods for hotels and restaurants. One big barrier for customers is having to take part in multiple different loyalty programs, resulting in multiple logins and platforms to remember and regularly check. Loyalty programs on the blockchain could help with that, as it enables multiple brands to partner up through a coalition platform with real-time view of customer behaviour and purchases, wile still protecting sensitive customer data. In a system like that, guests could accumulate and spend points at multiple providers in real-time, which would also improve rewards, which are now applicable to more partners (without losing the specific benefits of the supplier guests regularly use).
Smart Contracts In General: Automate decisions and contracts based programmed criteria, for example for order or payment cycles. (Think automated release of check-in info and room access through an app upon payment)
