The tokenization of real estate has made it to the hotel sector. After the hospitality industry was gutted by the COVID-19 pandemic and its subsequent lockdowns, some hotel owners have gotten creative with filling their empty rooms by appealing to crypto fans when hotel guests cancel at the last minute.
Available hotel rooms are getting converted into non-fungible tokens (NFTs), allowing customers to buy and sell bookings in the same way that concert tickets are traded on third-party platforms such as Stubhub. The change is meant to assist hoteliers in reducing excess inventory generated by last-minute cancellations while also providing flexibility to visitors.
Pinktada, a technology company that integrates NFTs with the travel market, recently established a booking system that includes hotels in Hawaii, Mexico, San Francisco, and across the Caribbean. By purchasing NFTs from Pinktada, hotel visitors can reserve their rooms and get a discount on accommodations at such properties. The tokens can be used at other Pinktada hotels or sold inside the Pinktada network. From the perspective of hotel owners, the sale is final, therefore their money is guaranteed whether or not the room is used. If passengers’ plans change, they can exchange their tokens for stays at other Pinktada hotels or sell them to another Pinktada tourist.
Though these NFT options are emerging onto the marketplace as travel is starting up again, they’re also appearing during a time of extreme volatility in the cryptocurrency market and falling NFT sales. So only time will tell if NFT hotel bookings are here to stay or a flash in the pan.