Brands should look to the current metaverse players and consumer behavior trends for inspiration on how to tackle the top metaverse use cases in 2023.

How the hospitality industry is approaching the metaverse

The metaverse is one of the fastest growing technology trends across industries, along with other web 3.0 technologies like Blockchain, NFTs and artificial intelligence that are predicted to become mainstream.

Generation Alpha (born 2010 to 2024) is currently the largest age demographic engaging in metaverse platforms. Two-thirds of Roblox users are under age 16, meaning that as this generation grows up, metaverse users will have spending power to use in this online economy.

Here's how some of the top players across sectors are already activating their brands in the metaverse:

Hotels and resorts

Some major hotel chains are making big bets in the metaverse through gamification, augmented reality and NFTs for guests to explore. One AR-based hotel campaign encouraged users to design virtual avatars before their hotel stays, and upon arrival, use their mobile devices to scan codes throughout the hotel to activate virtual AR experiences. A code at the hotel bar would provide guests with a free welcome drink.

On a smaller scale, an international hotel group activated a new “NFT rate” for one hotel location in Italy. Guests who purchased a hotel stay NFT through OpenSea, an NFT marketplace, would get access to a special rate with innovative perks and the option to re-sell the rate until the night before the stay.

Casinos

The world’s largest casino brands are still in the testing phase when it comes to metaverse activations. One global resort company has started filed trademark applications for NFTs and other virtual assets. Meanwhile, Decentraland is already home to a virtual casino game that accounts for 60% of the platform’s traffic, yet the game doesn’t actually allow users to use or lose money.

Airlines

Several EMEA airlines are leading the way when it comes to airline activations of metaverse technology. One airline is currently training future cabin crew members using virtual models of a new cabin craft and simulating real-life scenarios in 3-D.

Another airline created an external experience that tours users through a virtual boarding experience onto a plane. Visitors can interact with a talking flight attendant that guides them through check-in, boarding and the flight experience in economy and business class.

Cities

The UAE is leading metaverse activation when it comes to city and regionwide tourism with the first metaverse city “Sharjahverse,” a virtual version of the second-most populated city in the UAE. What’s unique about the venture is the photo-realism; to truly mimic the experience of visiting the city, the 3-D environment is built from real photos of locations and users can create their avatars from photos. Sharjahverse visitors will be able to transact, play games, walk around and interact with each other.

What consumers want from hospitality metaverse activations

While metaverse activations and technology are in various early stages, consumer behavior can give the travel and hospitality industry a direction for future investment.

In a recent Publicis Sapient survey, less than 5% of respondents had entered the most popular metaverse platforms worldwide: Sandbox, Roblox and Decentraland. However, 65% of respondents use Facebook, 44% use Instagram and 21% currently use TikTok. Similarly, VR technology adoption is still low – only 8% of respondents reported owning a virtual reality device or headset.

Until Generation Alpha ages into their peak purchasing power, consumers are looking for travel and hospitality brands to meet them where they are. Whether that’s within a brand.com or through marketing on popular social media platforms, brands shouldn’t expect consumers over the age of 18 to jump ship to Roblox anytime soon.

Over two thirds of consumers have privacy concerns about the metaverse, and that’s something travel brands should take seriously. 68% worry that their data will be collected if they use the metaverse, and 61% are worried about potential virtual harassment. Most consumers agree that metaverse experiences need to verify consumer identity.

And while the issue of trust is potent across all industries in the metaverse, it’s a recurring customer experience issue within travel and hospitality specifically.

In Publicis Sapient’s 2022 Return to Travel Report, 44% of travelers say their biggest frustration with online booking is worrying that they won’t get what they pay for. Metaverse technology like AR, VR and NFTs are potential solutions for brands, as more than half of travelers said they would be interested in using AR/VR to experience a destination before going. More immersive customer journeys can help build trust and ease worries by providing upfront transparency on experiences, accommodations and their detailed terms.

With the threat of recession hitting consumers’ wallets across regions, guests are becoming more concerned with value and cost than they were immediately post-lockdown. However, many branded NFTs or virtual experiences are not connected to real-world value, thus taking lower priority in customers’ minds compared to traditional promotions and deals. The top travel concern for all ages is cost, according to report data, and older consumers are especially worried about getting the most value for what they’re paying for. NFTs or virtual experiences that offer discounts, perks and rewards will be more attractive to customers. Free wi-fi, complimentary breakfast and all-inclusive options are the most popular hotel perks across generations.

As travel brands prepare to create metaverse activations, it’s important to proactively address the accessibility issues that proliferate on Web 2.0. Consumers using Web 2.0 social media platforms often deal with cyberbullying, trolls and harassment. It’s crucial to implement support measures within metaverse spaces to ensure safety and accessibility for children, the elderly, LGBTQIA+, BIPOC and neuro-divergent consumers.

Certain security issues can become more pronounced in immersive Web 3.0 experiences. For example, hackers that gain access to VR headsets and haptic body suits could cause physical harm to wearers, potentially inducing photosensitive seizures. Other mental health issues related to excessive internet use may also be amplified with Web 3.0 experiences because the 3-D environment is more captivating. Consumers are seeking brands that have their health and safety in mind from the start.

Properties can showcase their neighborhoods and local activities. This works for both properties in city centers and in remote/natural locations.

Does your property have a casino, a meditation retreat, or a gym with instructor-led workouts? The metaverse lets users preview these activities and locations.

Guests can make more informed decisions about rooms and the amenities after first experiencing them virtually. This also provides an opportunity to suggest personalized amenities and upgrades.

2. Hosting virtual events:

The metaverse can serve as a loyalty tool for hospitality brands through virtual experiences and events.

The metaverse enables virtual private events such as weddings and birthdays for guests that can't attend physically.

Loyalty or membership-only events can function in the metaverse through the purchase of NFTs. NFTs also open the door for new types of virtual events, like networking and seminars, or even virtual cook-alongs with hotel chefs.

1.Engaging new audiences:

Generation Z is notorious for being unreachable and is far more active on social media platforms like TikTok, BeReal and Snapchat than Roblox. This demographic is also known for building niche communities, expecting highly personalized algorithms and forging a path away from “mainstream” culture.

One thing that does unite many Gen Z buyers (68%, to be exact) is gaming – something that many hospitality brands have yet to explore. However, a proliferation of gamified, metaverse experiences in other industries has shown that virtual games need to be unique to pique Gen Z interest and reach maximum ROI.

Hospitality brands that can hack personalization and gamification through Gen Z’s most trusted brands – Google and YouTube – and their favorite platforms – Snapchat and TikTok – will be able to build long-term loyalty.

2.Developing the B2B market:

With concerns about the pandemic receding, corporate events are staging a comeback. However, business travel costs are expected to rise, meaning that corporations may be deal-hunting or looking to cut costs on events and offsites. Global Business Travel Association expects fares to increase more than 8% in 2023.

The metaverse can greatly aid sales teams in showcasing offerings to corporate buyers, through 3-D previews and even virtual events.

3.Transforming employee experience:

Not only is the metaverse a key to building customer loyalty, it’s crucial for improving employee experience across travel sectors. After COVID-19-related chaos across airports and hospitality, many employees are feeling the pressure and frustration. In one case, a flight attendant union developed a public net promotor score (NPS) for employees, and shared that the first FPS score based on survey data was a -95, meaning that 97.5% of flight attendants are considered net detractors.

One factor in this score is feeling supported by management, something that can improve through continuous and responsive training. The metaverse can be a low-risk environment to train employees on various aspects of the job, leaving managers more time to give personalized support and feedback.

Important questions brands should ask themselves before metaverse activation

In order to cut through the buzz, travel and hospitality brands should return to the basics of customer engagement before investing in metaverse technology.

While the travel & hospitality industry is still exploring the metaverse possibilities, the future is bright for brands that are willing to take risks and think past the current hype.