The term 'Web3' describes a new digital era, dominated by decentralization. This version of the web will rely on open-source software, a Zero Trust security framework, and, above all else, blockchain technology. This paradigm shift has already had a huge impact in sectors such as healthcare and finance — and now, it's about to change our perception of travel.

Web3 represents the inevitable followup to Web2, in which user-generated content reigns supreme. Its travel-based iteration has put more control into the hands of consumers, who count on review websites, online booking tools, and social media to create a more participatory take on travel.

Terms such as Web represent the current state of the digital world, but they won't be relevant for long. An even bigger paradigm shift lies in store, marked by greater openness than consumers ever thought possible. Already, a few specific iterations of Web3 have emerged in the travel sector, as highlighted below:

Cryptocurrency as Payment for Hotel Stays & Services

The first big shift of the Web3 era is already well underway: many luxury travel companies now accept cryptocurrency in lieu of traditional payments. Examples include:

• Palazzo Versace Dubai. Setting the stage for the crypto market in the United Arab Emirates (UAE), the Palazzo Versace Dubai announced a partnership with the crypto exchange Binance in 2022. The result? Customers can use bitcoin to pay not only for hotel stays, but also, for dining, spa experiences, events, and more.
• Pavilions Hotels & Resorts. As the first international hotel group to accept crypto-based bookings, The Pavilions Hotels & Resorts revealed in 2021 that it had partnered with Coindirect to accept dozens of cryptocurrencies. Founder and owner Gordon Oldham explained that this would improve bespoke services while also providing consumers greater peace of mind.
• The Kessler Collection. Representing yet another exciting partnership with a crypto exchange, The Kessler Collection works with BitPay to accept a variety of crypto payments. This shift made The Kessler Collection the first US-based luxury hotel group to provide consumers with the ability to pay exclusively via crypto. When announcing this initiative, CEO Richard Kessler referred to the hospitality crypto movement as one of the most innovative concepts in the hospitality industry right now.

NFT-Based Hotel Bookings

Non-fungible tokens (NFTs) are a big deal in many areas of the luxury industry, including fashion, real estate, and motor vehicles. Now, this concept promises to change how we book hotels and handle other aspects of the travel planning process.

This approach looks a bit like StubHub's willingness to let everyday individuals sell concert tickets. Under this approach, hotels get paid for rooms, even when hit with sudden cancellations that would otherwise prompt serious losses.

Casa de Campo Resort & Villas (left) has explored this model by partnering with the esteemed platform Pinktada. Guests can use room night tokens (RNTs) to make reservations.

On the hotel's end, this solution produces guaranteed revenue — but it's also beneficial for consumers, who enjoy a greater level of flexibility as they book rooms or adjust their plans.

Pinktada co-founder Mark Gordon explains, You give hotel owners certainty of income, but give travelers the flexibility if their plans change to sell or swap tokens.

One of the first American hotels to embrace NFT as a travel perk was New York's NoMo SoHo, which offers curated NFTs alongside stays of between three and six nights. Travelers can secure significant discounts simply by investing in NFTs that depict key parts of the contemporary hotel. NFT artwork options include the archway at the entrance (known as the Tunnel of Love), as well as the NoMo Kitchen's gorgeous Lovewall.

While many of the opportunities highlighted above aim to bring extra convenience and luxury to traditional in-person travel, we're poised to enter a new frontier in the near future. This will encompass a completely different definition of travel: instead of serving purely as a physical means of exploration, the term will also come to describe virtual escapes. We're not quite there yet, but the early signs of this metaverse transition are beginning to appear.

Travel enthusiasts are already familiar with this concept. Many use travel planning as a temporary means of escape when they need a brief distraction from everyday stresses. The success of today's travel influencers points to this; even when they have no intention of visiting specific locations themselves, followers enjoy immersing themselves in new worlds via YouTube, TikTok, or Instagram.

These virtual escapes are ready to take a step up. A recent initiative from the acclaimed hospitality brand Leven reveals that this is more than possible.

Leven's metaverse-based lifestyle hotel will be situated on a virtual plot at Decentraland's Fashion Estate. The brand promises that its virtual hotel will embrace freedom of design, with the traditional hotel spaces of elevator, lobby, guest room, spa, and gardens reimagined, often defying physics and logic. Meanwhile, guests receive numerous opportunities to boost their physical, emotional, and spiritual health.