Unlock value in Hospitality industry via Tokenization

With blockchain and tokenization, the hospitality industry can finally monetize its assets and services. This digital representation of hotel room bookings can be used to buy, sell, trade, and transfer rooms between intermediaries. Hotels can now collateralize unsold inventory to generate working capital. Plus, hotels can create innovative fundraising campaigns by selling transferable digital hotel room bookings for a future date. These are just a few examples of how blockchain is changing the hospitality industry for the better.

Asset Tokenization

Tokenization is the process of converting rights to an asset into a digital token. This process makes it possible to represent a physical entity in the form of cryptocurrency. By tokenizing an asset, it becomes possible to fractionalize ownership, create new markets, and unlock liquidity. Tokenization essentially makes it possible to bring any real-world asset onto the blockchain.?For example, tokenizing a hotel room booking would enable all stakeholders in the hospitality industry to buy, sell, trade, and transfer rooms effortlessly. Not to mention, this would allow hotels to raise funds by selling tokens for future bookings.

Increased Liquidity

The hospitality industry is ripe for tokenization because it contains many illiquid assets. For example, a hotel room can only be used for one purpose – lodging – and it can only accommodate one customer at a time. This lack of liquidity means that hotels often have difficulty monetizing their unoccupied rooms. Tokenization would allow hotels to unlock the value of these unoccupied rooms by selling them as tokens on the blockchain. This would create a new market for hotel rooms and enable hotels to raise capital by selling tokens representing future bookings.?

Increased Efficiency

There are numerous middlemen in the hospitality industry that can make booking a room a hassle. But with blockchain technology, every stakeholder—from hoteliers and tour operators to OTAs and GDSs—can have access to the same information. This will ultimately lead to increased efficiency and transparency throughout the entire process.

Newer User Journeys & Secondary markets

In addition, tokenized hotel rooms would be more liquid than traditional hotel rooms because they could be traded or sold on secondary markets. This would give customers more flexibility in how they use their tokens and could potentially lead to lower prices for hotel rooms. For example, if a customer wanted to cancel their trip they could sell their tokenized hotel room booking to another customer for a lower price rather than forfeit the entire value of their booking. Finally, tokenization would allow hotels to own customer relationship directly, removing the intermediaries who manipulate customer purchase decisions today.?

Improved Security

Blockchain is known for its security features, which is why it's being adopted by various industries. In the hospitality industry specifically, blockchain can help protect against fraud by verifying identities and tracking data throughout the entire booking process. With improved security comes peace of mind—for both hoteliers and guests. Also improving distribution and pricing, visibility and control much beyond the primary sale.

The hospitality industry is ripe for disruption… but in a good way! With blockchain technology, this trillion dollar industry has the opportunity to increase efficiency, improve security, and boost profitability. It's an exciting time for the hospitality industry, and we can't wait to see what's in store next.

About Buk

At Buk, we are helping hotels tokenize their room inventory making them tradable and transferable on blockchain, minimising distribution costs and eliminating price parity challenges once and for all! While travelers realize they no longer need to cancel their unused booking, but can resell, possibly at a profit.