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Speaking of “Staying ahead of the curve” let’s dive into an industry that is constantly looking for ways to “reinvent itself” due to competition, changes in customer behavior, and the general environment.

But as usual, before entering the room…

Check-in desk:
A quick look at the current state of the traditional Travel and Hospitality Industry

In a world that's constantly “shrinking” thanks to advancements in technology and transportation, Travel & Hospitality is certainly one of the most challenging industries to dive into: a GIANT sector that goes from booking a taxi that will pick you up at the airport to loyalty programs that may give you some “free” snacks during your next flight - and there are MANY things in between.

It’s important to highlight this before we move forward: we are talking about an industry that's MUCH more than just the journey from A to B, but rather one that encompasses every conceivable service in and around this “move”.

And when we take a look at the numbers… There are A LOT of zeroes 😆.

According to the Travel & Tourism – Worldwide Report by Statista, we're cruising towards a market volume of $1,063 billion by 2028 - Yes, over a TRILLION F*CKING USD.

The revenues in the different segments are also HUGE and help us see the amount of money circulating in this industry:

Challenges at the front desk

Despite all the cash flow, market muscle, and the “cool aura” around this industry, there are a few areas where it could do better. But hey, understanding these challenges is the first step toward mastering them, right? RIGHT?

Let’s see what’s going on:

Operational costs: A critical concern for many in the hospitality sector is the significant expense associated with maintaining a high level of guest service. These costs can erode profitability - so a clever budget management is mandatory to maintain competitive edges.

Demand dynamics: Or just “seasonality”, presents a planning challenge for staffing and operational efficiency. Ensuring guest satisfaction and financial health during off-peak times is a strategic imperative.

Regulatory landscape: Keeping in line with all the regulations across different regions can be daunting. From safety standards to environmental compliance, the complexity of legal requirements necessitates a vigilant and proactive approach.

Eco-conscious operations: The push towards sustainability is reshaping industry practices. Balancing environmental responsibilities with guest expectations and operational viability is a challenge that calls for innovative solutions and sustainable practices.

Technology: Adapting to rapid technological changes while preserving the essence of hospitality is a delicate balance.
The pressure to modernize without losing the “personal touch” defines today’s tech challenge.

No, I’m not going to say “Hey guys, Web3 solves it all!”, but it can definitely help both professionals and businesses craft solutions to these (and other) challenges.
And that’s what we’ll explore today.

LFG!

Unlocking new destinations:
Web3's impact on Travel and Hospitality

This is our 34th edition - so by now we have seen many different ways on how Web3' marks a turning point for different industries, offering solutions that go beyond the “just a new tech”.

From slashing operational costs with streamlined blockchain processes to reimagining loyalty programs with NFTs that carry real value and personal significance, the possibilities are limitless.

One of the best things about Web3 is that it’s not about making life easier just for the big players. It's about empowering each traveler, each guest, and small(er) businesses. It's about breaking free from the one-size-fits-all approach and embracing a future where every journey is unique.

“I don’t think Web3 can really change this industry”

Well, it can - and in some cases it’s already happening. But before we see some examples, let’s take a step back.

In edition #31 we had a quick summary on the differences between Web1, Web2, and Web3, and I think it’s worth sharing it again:

Web1 → Read only → Helped democratize access to information, serving as a digital printing press. Users could basically read and consume whatever was displayed.

Web2 (the one we are used to) → Read+Write → Facilitated the content creation. Any person with access to it can publish, share, and interact with texts, images, and all sorts of media formats.

Web3 → Read+Write+Own → Tools like Blockchain offer ways to actually own digital assets, and monetize them without being controlled by powerful platforms. Not to mention better, safer ways to handle people’s personal data.

With this in mind, it’s time to see some of the ways that Web3 can help this giant industry navigate this new era, both for businesses and customers:

🧳✈️ Digital wallets and lightning-fast payments: Blockchain technology revolutionizes payments not by merely mimicking the speed of transactions but by expanding the scope and security of these transactions across borders without the hefty fees.

Unlike traditional digital payments that have caps and can be prone to security concerns, blockchain offers a decentralized solution that’s both expansive and secure.

On top of that, you become less dependant on third-party platforms and all the costs associated with them.

🧳✈️ Reservations and Bookings: securing your stay: The blockchain ensures that once a booking is made, it's immutable and transparent, significantly reducing overbookings and fraudulent listings.

There are already solutions building on this, allowing real-time monitoring and reducing costly booking anomalies, directly impacting operational efficiency and customer satisfaction.

🧳✈️ Metaverse and NFTs: A new dimension of travel: The metaverse and NFTs introduce novel ways to explore destinations virtually before visiting, offering digital assets like room keys or exclusive access tokens that can be owned or traded.

This not only enhances the planning phase of travel but also adds a layer of personalization and ownership over the travel experience.

🧳✈️ Identity Management: Streamlining airport hassles: Web3 can help simplify airport check-ins and security checks through a decentralized identity verification system.

This approach not only enhances security but also speeds up the verification process, making airport transits smoother for travelers (take a look at the “Known Traveller Digital Identity" project).

🧳✈️ Loyalty Programs: Tangible Value for Travelers: Blockchain reimagines loyalty programs by creating a system where points and rewards are tokenized, providing real value that can be traded or redeemed across a wide network of services.

This openness and flexibility offer travelers personalized rewards, making loyalty programs more appealing and valuable.

(By the way, this is one of my favorite topics in Web3. I recommend you take a look at our editions #10 and #23, which are focused on Open Loyalty).

There are many other examples, but the idea here is to show that Web3 can indeed have an impact on the Travel & Hospitality industry, from reducing operational costs to enhancing customer engagement.

Spotlight: Lufthansa Uptrip

Not too long ago, Lufthansa's Innovation Hub teamed up with Miles & More and decided to dip their toes into Web3 - and Uptrip was born.

Here's the deal: you fly with Lufthansa, scan your boarding pass, and bam, you've got yourself an NFT collectible card.

And as you can imagine, there’s more than just collecting cards: you can unlock some neat perks. This setup aims to spice up the traditional loyalty program scene using Web3 tech, making those miles and more a bit more interesting.

But what's really cooking with Uptrip? It's a fresh take on engaging travelers. You collect these digital cards, stash them in your crypto wallet, and if you're savvy or lucky enough to complete a set, you're looking at rewards like lounge access or flight upgrades. Not too bad for just flying from point A to B (considering you’d take that journey anyways).

What's intriguing here is the nudge towards Web3 exploration. Uptrip leverages the Polygon blockchain, aiming for a blend of innovation and a lighter carbon footprint.

According to the Miles & More page, in the first few months following the soft launch (last Spring) over 20,000 users got registered, and over 200,000 trading cards were issued - Not bad at all if you ask me.

And the gamified experience is something that I’m always in favor of - as mentioned in many editions here.

Key aspects of this project:

→ Fly and Collect: Your Lufthansa flights now come with a side of NFTs, turning boarding passes into digital collectibles.

→ Perks on the Blockchain: These aren't just digital bragging rights. Completing NFT sets can unlock actual travel benefits.

→ Eco-conscious tech: Uptrip's choice of Polygon nods to a greener approach in the often criticized blockchain space.

→ User-friendly: Clean UX, objective communication, and clear benefits. As I often say: “Web3 doesn't have to be complicated”.

Pink Beanie + Cobalt by C-01

I am stoked about a partnership that I have recently announced - I joined forces with Cobalt by C-01, a company that’s revolutionizing the fashion and retail industries with their innovative "phygital shopping" solution.

By combining physical and digital shopping experiences, Cobalt offers an immersive and interactive customer journey that utilizes the power of blockchain technology and our state-of-the-art NFC technology.

Stay tuned for what we've got in store - it's going to be an adventure worth following.

See you soon.

#LFGrow
Diego Borgo