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Chapter 11
DOI: 10.4018/978-1-6684-8898-0.ch011
ABSTRACT
The chapter’s analysis of the possible advantages and disadvantages of the metaverse
is centered on studies in the tourist and food and wine industries. Open issues
include compatibility and technological problems, cost and financial issues, user
experience and accessibility issues, privacy and security issues, and cultural and
ethical issues. The metaverse offers chances to enable interaction, engagement,
and trip planning, successfully changing consumer behavior. It is anticipated that
engaging with and visiting destinations virtually would inspire actual travel, not
replace it. As the technology becomes more widely used, both the industry and the
public are beginning to recognize the potential that this technology offers for their
respective hospitality and tourist interests. VR/AR application areas for hospitality
and tourism are currently under development. In order for the tourism industry to
fully capitalize on the capabilities and opportunities presented by the metaverse as
well as identify challenges for the future, the report recommends research directions.
Application of Metaverse in
the Hospitality Industry
Sanjeev Kumar
Lovely Professional University, India
Ankit Dhiraj
Lovely Professional University, India
Mushtaq Ahmad Shah
Lovely Professional University, India
Divya Rani
Patliputra University, India
Copyright © 2023, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
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Application of Metaverse in the Hospitality Industry
INTRODUCTION
Metaverse is the prime tool of today’s marketing, which brings many changes, new
experiences and new learning in the digital World. There are different applications
of Metaverse used in marketing with an updated version to show virtual reality
to the consumer and bring change to the next generation. Metaverse and block
change work together and create a network in which different categories of people
work together and bring virtual reality in 3D animation. Different marketing-based
companies used the Metaverse platform and recently Facebook CEO Mark Zuckerberg
announced rebranding and it is now Facebook to Meta (Kim, 2021), with the help
of Metaverse digital companies get a new look and companies connect with their
customer in decentralized ways. By the end of 2030 entire market convert into a
digital market, where the entire LED screen been used for marketing along with all
the Print Media will get a new shape. The impact of the digital market was seen in
the period of COVID-19 when the entire hospitality sector, education section, and
shopping sector used digital technology and made everything possible online mode
and consumers become habitual and day-by-day demand increasing. It will encourage
marketers to introduce new norms of metaverse like avatars (Bibri & Allam, 2022),
artwork, music, property, etc., and promote their brand and visibility. The worldwide
hospitality and tourism business is going through some major changes right now,
not only as a result of COVID-19-related travel limitations but also as a result of
disruptive technological advancements like the metaverse development. For instance,
Tokyo-based First Airlines has started providing virtual flights (Martin, 2018). For
virtual trips to numerous locations, such as Hawaii, Rome, Paris, New York, etc.,
the company reports 100% occupancy. Another manifestation of the metaverse is
the National Geographic VR membership, which enables users to virtually kayak
across Antarctica’s icebergs (Gursoy et al., 2022) or discover Machu Picchu’s
undiscovered treasures using Oculus VR gear. Similar to this, “Wander” allows
users to stroll through any of the areas mapped in Google Street View throughout
the globe (Kostakos et al., 2019). Due to the potential for improving the visitor
experience, many hotels are also investigating the metaverse. Atlantis, M Social
Decentraland, the first virtual hotel in the metaverse, was unveiled by Singapore-
based Millennium Hotels (Millennium, 2022).
One of the first hotel chains to develop and market its own NFT was Marriott,
and The Palm in Dubai provides guests with a 360-degree VR movie of the area
around the property. The hotel highlights its salient attributes. The largest room in the
hotel, the Royal Bridge, unusual underwater suites, the renowned Nobu restaurant,
the pool, aquarium, and waterpark, as well as a stroll through the lovely gardens,
are all available to prospective guests. As a result, the hotel has already begun the
transfer to the metaverse. For its theme parks, Disney developed a novel metaverse
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Application of Metaverse in the Hospitality Industry
technology that allows guests to project their own 3D customized visuals. The
park is also looking into ways to introduce an environment similar to augmented
reality without headgear. A patent was granted to the business for its “virtual-world
simulator.” The TUI Group of hotels is investigating the metaverse to train staff
using this technology (Zagalo & Morgado, 2011), which can project 3D graphics
and fascinating virtual effects onto real-world environments. In the metaverse,
companies like Marriott, Atlantis, Movenpick, and Anantara are creating their digital
twins. They are supported in this endeavor by the metaverse platform RendezVerse.
Problem of Research
Our lives have been significantly improved by technology, which almost eliminates
obstacles related to the volume and processing of information. Tourism has vast
potential, all of which must be utilised while keeping up with technological
advancements in marketing and tourism promotion. Through the virtual environment,
which enhances the visitor’s perception of a tourist destination and affects his
decision to make a purchase?
Figure 1. Millennium hotel
Source: Millennium (2022)
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Importance of Research
It is now unavoidable for the tourism industry to leverage the virtual world. Due to
the bridging of geographical gaps and the provision of novel experiences, metaverse
tourism is altering the connection between companies and their clients. Tourists
can find inspiration from the metaverse. Interactive virtual reality experiences, for
instance, can replicate real-world settings and give visitors a clear picture of what
to anticipate when they arrive at a particular location.
Purpose
The paper’s objective is:
• Introducing metaverse tourism.
• Introducing digital marketing.
• Introducing the hospitality industry.
• Application of Metaverse in the Hospitality Industry
• Challenges of Metaverse in the Hospitality Industry
• Future of the Metaverse in the Hospitality Industry
Figure 2. Creating metaverse experiences
Source: Gursoy et al. (2022)
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Application of Metaverse in the Hospitality Industry
WHAT IS METAVERSE?
The metaverse is a collection of interconnected, virtual worlds where individuals can
interact with one another, work, play games, and shop (Fernando et al., 2021). The
metaverse can be compared to cyberspace or an advanced, three-dimensional internet
where logging in is not required. Additionally, it might include components of virtual
and augmented reality (Pantelic & Plantak Vukovac, 2017). The term “metaverse”
refers to a shared, persistent, immersive, three-dimensional virtual environment that
combines the physical and digital world and allows users to interact in real-time
while shopping, working, playing, and hanging out (Dwivedi et al., 2022). Metaverse
is a permanent and persistent multiuser environment that combines physical reality
and digital virtuality (Moro Visconti, 2022; Pramono, 2020).
It is built on the convergence of technologies, such as virtual reality (VR) and
augmented reality (AR), that allow for multimodal interactions with digital objects,
virtual surroundings, and people (Mystakidis, 2022). Similar to the early days of the
Internet, the metaverse represents a new beginning to create something new. It is a
simulated digital environment that incorporates augmented reality (AR), virtual reality
(VR), blockchain, and social media ideas to create spaces for rich user interaction
that resemble the actual world (Laeeq & Sciences, 2022). A massively scalable
and interoperable network of real-time rendered 3D virtual worlds with a sense of
personal presence and continuity of data, such as identity, history, entitlements,
objects, communications, and payments, that can be encountered synchronously and
persistently by an almost infinite number of users (Ball, 2022). Computer software
developed a virtual environment called the Metaverse. Users can enter this shared
Figure 3. Metaverse world
Source: Guerra (2022)
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Application of Metaverse in the Hospitality Industry
environment from anywhere in the world and interact with real and virtual objects
there as well as each other. The Metaverse, to put it simply, is a fusion of the real
and virtual worlds that enables a seamless and immersive experience. Virtual reality
(VR) and augmented reality (AR) headsets, laptops, cellphones, and other technology
can all be used to enter the Metaverse.
WHAT IS DIGITAL MARKETING?
Digital marketing refers to the promotion of products or services through digital
channels (Gawade, 2019; Yasmin et al., 2015; Key, 2017), including social media,
search engines, email, websites, and mobile apps. The objective of digital marketing
is to reach target audiences and influence their behaviour through engaging and
personalized content and experiences. In today’s world, where technology is constantly
evolving, digital marketing has become an essential component of business strategy
and has drastically transformed the way companies interact with their customers.
One of the major benefits of digital marketing is the ability to reach a large and
diverse audience cost-effectively and measurably (Yurovskiy, 2014; Gondane &
ManpreetKaur, 2021). This is possible through the use of various digital channels,
including search engines, social media, and email, which allow companies to reach
their customers where they are most active online. For instance, businesses can use
search engine optimization (SEO) to increase the visibility of their website in search
engine results pages, making it easier for potential customers to find them online.
Social media platforms like Facebook, Twitter, and Instagram provide businesses
with an opportunity to connect with their customers and build relationships through
content marketing and advertising. Meanwhile, email marketing allows businesses to
reach their customers directly (Al-Weshah, 2018) in their inboxes, providing a more
personalized and targeted experience. Another advantage of digital marketing is the
ability to gather data and insights about customer behaviour and preferences (Khatri,
2021). This information can be used to optimize and refine marketing strategies,
ensuring that the right message is being delivered to the right audience at the right
time. Companies can use analytics tools to measure the success of their digital
marketing campaigns, allowing them to identify which strategies are working and
which ones need improvement. This information can also help companies identify
which channels are most effective in reaching their target audience, enabling them
to allocate resources more effectively. The rise of mobile devices and the growing
popularity of mobile apps have also had a significant impact on digital marketing
(Tsang et al., 2004). As more people rely on their Smartphones for information
and entertainment, businesses are shifting their focus to mobile, creating apps and
mobile-friendly websites that make it easy for customers to engage with them on the
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Application of Metaverse in the Hospitality Industry
go. Mobile apps can provide businesses with new and innovative ways to connect
with their customers, such as push notifications, in-app advertising, and location-
based services. Social media has also become an important part of digital marketing
(Ibrahim & Ganeshbabu, 2018), as it provides businesses with a platform to interact
with their customers and build relationships. Social media platforms like Facebook,
Twitter, and Instagram allow businesses to engage with their customers through
content marketing, customer service, and advertising. For example, companies can
use social media to share industry news and trends, post images and videos, and
respond to customer questions and feedback. This allows companies to create a more
personal and human connection with their customers, building brand loyalty and
trust. Digital marketing has revolutionized the way businesses interact with their
customers, providing new and innovative ways to reach, engage, and influence target
audiences. With its ability to reach a large and diverse audience, gather valuable data
and insights, and connect with customers on a personal level, digital marketing has
become an essential component of business strategy in today’s digital age (Ibrahim
& Ganeshbabu, 2018). Whether through search engines, social media email, or
mobile, digital marketing provides businesses with the tools they need to succeed
in an increasingly competitive and rapidly evolving digital landscape.
HOSPITALITY INDUSTRY
The hospitality industry is a broad category of fields within the service sector that
includes lodging, food and beverage, event planning, theme parks, and transportation,
among others. The primary goal of the hospitality industry is to provide customers
with exceptional service and experiences. The lodging sector of the hospitality
industry includes hotels, motels, resorts, and vacation rentals. The food and beverage
sector includes restaurants, cafes, and bars. The event planning sector includes
event venues and wedding planners. The theme park sector includes amusement
and theme parks, as well as water parks. The transportation sector includes airlines,
trains, buses, and cruise lines. The hospitality industry is a significant contributor
to the global economy (Chaudhary, 2020), employing millions of people around
the world (Vasquez, 2014). The industry is also constantly evolving and adapting
to changing customer demands and preferences. For example, the rise of alternative
lodging options like Airbnb and the growing popularity of eco-tourism are having a
significant impact on the hospitality industry. Overall, the hospitality industry plays
a crucial role in promoting tourism and supporting local economies.
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Application of Metaverse in the Hospitality Industry
APPLICATION OF THE METAVERSE IN
THE HOSPITALITY INDUSTRY
The Metaverse has the potential to greatly impact the hospitality industry in several
ways. In this section, we will discuss some of the key ways in which the Metaverse
is likely to impact the hospitality industry.
Virtual Tours and Experiences
One of the most significant ways in which the Metaverse is likely to impact the
hospitality industry is through virtual tours and experiences (Nayyar et al., 2018).
The Metaverse allows for virtual tours of hotels, resorts, and other hospitality
facilities (Buhalis et al., 2023), allowing users to explore the facilities in a virtual
environment. This will allow users to get a feel for the facilities before booking,
Figure 4. Metaverse tourism
Source: Buhalis et al. (2023)
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Application of Metaverse in the Hospitality Industry
thereby reducing the risk of disappointment when they arrive. The virtual tours can
also be used to showcase the unique features of each facility, such as a hotel’s spa,
fitness centre, or swimming pool.
In addition to virtual tours, the Metaverse also allows for virtual experiences,
such as virtual reality games and simulations. These virtual experiences can be used
to provide customers with a unique and immersive experience that they are unlikely
to forget. For example, a hotel could create a virtual reality experience where users
can explore the facilities and participate in activities, such as a virtual cooking class
or a virtual wine tasting. This type of experience can help to differentiate the hotel
from its competitors and increase customer loyalty.
Online Booking and Check-In
The Metaverse has the potential to greatly simplify the booking and check-in process
for hospitality facilities. Online booking has become increasingly popular in recent
years (Andres-Martinez et al., 2014), but the Metaverse has the potential to take this
to the next level. With the Metaverse, users will be able to book their stay, choose
their room, and even check-in, all from within the virtual environment. This will
eliminate the need for physical check-ins and reduce the time spent waiting in line.
In addition, the Metaverse will allow hospitality facilities to create unique and
interactive booking experiences (Koohang et al., 2023). For example, a hotel could
create a virtual reality game where users must solve puzzles and complete tasks to
book their stay. This type of experience can help to increase customer engagement
and satisfaction with the booking process.
Virtual Meetings and Events
The Metaverse is also likely to have a significant impact on the meetings and events
industry. With the Metaverse, virtual meetings and events can be hosted in a virtual
environment, allowing attendees to participate from anywhere in the world. This
will greatly increase the accessibility of meetings and events, making it possible
for more people to attend.
One thing is for sure, it will not replace physical travel; it will only create
more desire to travel, and also augment and enhance our travel experiences. It will
additionally enable those that cannot travel for one reason or the other to virtually
experience visiting countries and places.
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Application of Metaverse in the Hospitality Industry
CHALLENGES OF METAVERSE IN THE
HOSPITALITY INDUSTRY
The metaverse, also known as virtual reality (Moro Visconti, 2022), is a concept
that has been around for decades and has been rapidly evolving in recent years. The
concept refers to a shared virtual space where users can interact with each other, often
in a 3D environment. It is becoming increasingly relevant in the hospitality industry
as technology advances and virtual reality becomes more accessible and affordable
for consumers (Han et al., 2022). However, the adoption of metaverse technology
in the hospitality industry faces several challenges that need to be addressed before
it can be fully embraced. These challenges include:
Technical Issues and Compatibility
One of the main challenges faced by the hospitality industry in the adoption of
metaverse technology is the technical issues and compatibility problems that
arise. Metaverse technology requires high-end hardware and software to function
properly (Ning et al., 2021), which can be expensive and time-consuming to acquire.
Additionally, different platforms may have different requirements, making it difficult
for developers to create a seamless experience for users. For example, some platforms
may require a powerful graphics card, while others may require a specific operating
system or a certain type of headset. This creates a compatibility issue for hospitality
businesses, as they need to ensure that their hardware and software are compatible
with the metaverse platform they choose to use.
Cost and Financial Considerations
The cost of implementing metaverse technology in the hospitality industry is
another significant challenge. The initial investment for setting up a virtual reality
experience can be high and ongoing maintenance and updates can also add to the
cost. In addition, the development of high-quality content for metaverse environments
can be expensive, and the lack of available content may discourage hospitality
businesses from investing in the technology. As a result, many small and medium-
sized businesses may be unable to adopt metaverse technology due to financial
constraint (Polas et al., 2022).
User Experience and Accessibility
The user experience and accessibility of metaverse technology are also important
factors (Lee & Gu, 2022) that need to be considered. The experience of using virtual
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reality technology should be intuitive and user-friendly, and not create confusion or
frustration for the user. Additionally, virtual reality technology may be inaccessible
to some users, such as those with physical disabilities or limited mobility. This may
reduce the potential audience for metaverse experiences in the hospitality industry,
and limit the overall impact of the technology.
Privacy and Security Concerns
Privacy and security are also important considerations in the adoption of metaverse
technology in the hospitality industry (Sacchi, 2023). Virtual reality environments
can be vulnerable to hacking, fraud, and other forms of cybercrime, which can
negatively impact the reputation of the hospitality business. Additionally, user data
and personal information may be at risk in virtual reality environments (Kürtünlüoğlu
et al., 2022), and there are concerns about how this data will be collected, stored,
and used by the hospitality business. As a result, the hospitality industry must be
mindful of these privacy and security concerns when implementing metaverse
technology and take steps to protect user data and information.
Cultural and Ethical Considerations
The cultural and ethical implications of metaverse technology are also important
challenges to consider. The hospitality industry must be mindful of the cultural
and ethical implications of using virtual reality environments and must ensure that
the technology is used responsibly and respectfully. For example, virtual reality
environments must not be used to exploit or discriminate against users and must
respect the privacy and rights of users. Additionally, the use of virtual reality
environments may raise ethical questions about the authenticity of experiences, and
whether they are representative of real-life experiences.
FUTURE OF THE METAVERSE IN THE HOSPITALITY INDUSTRY
Despite the challenges faced by the hospitality industry in the adoption of metaverse
technology, there is a lot of potential for this technology to revolutionize the industry
in the future. The following are some of the key ways that metaverse technology
can shape the future of the hospitality industry:
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Application of Metaverse in the Hospitality Industry
Improved Customer Experience
One of the biggest benefits of metaverse technology in the hospitality industry is
the potential for improved customer experiences. With virtual reality technology,
customers can experience immersive and interactive environments that are designed
to create a sense of presence and engagement (Bousba & Arya, 2022). This can be
especially valuable for hospitality businesses that want to offer unique and memorable
experiences to customers. For example, hotels could use virtual reality technology
to provide guests with virtual tours of their rooms (Flavián et al., 2021; Nayyar et
al., 2018), or restaurants could use virtual reality technology to create interactive
menus that allow customers to preview dishes before ordering.
Increased Revenue and Profitability
Another benefit of metaverse technology in the hospitality industry is the potential
for increased revenue and profitability (Periyasami & Periyasamy, 2022). By offering
unique and engaging experiences to customers, hospitality businesses can attract new
customers and retain existing ones, leading to increased revenue and profitability.
Additionally, virtual reality technology can also be used to reduce costs by reducing
the need for physical spaces and reducing the time and resources required to provide
customer experiences. For example, hotels could use virtual reality technology to
provide virtual check-in experiences (Ivasciuc, 2020), reducing the need for front-
desk staff and saving costs.
Improved Marketing and Branding
Metaverse technology can also improve marketing and branding for hospitality
businesses (Gursoy et al., 2022). With virtual reality technology, hospitality businesses
can create virtual experiences that showcase their brand, products, and services,
helping to increase brand awareness and recognition. Additionally, virtual reality
technology can be used to create interactive and engaging marketing campaigns
that reach customers in new and innovative ways. For example, hotels could use
virtual reality technology to provide virtual reality experiences that showcase their
amenities and services, or restaurants could use virtual reality technology to create
virtual food experiences that showcase their menu and culinary skills.
Enhanced Accessibility and Convenience
Metaverse technology can also enhance accessibility and convenience for customers
and hospitality businesses. With virtual reality technology, customers can access
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Application of Metaverse in the Hospitality Industry
experiences from anywhere in the world, reducing the need to travel and increasing
convenience. Additionally, virtual reality technology can be used to provide
remote experiences that are accessible to customers with disabilities, increasing
accessibility and reducing barriers to entry. For example, hotels could use virtual
reality technology to provide virtual tours of their rooms for customers with mobility
issues, or restaurants could use virtual reality technology to create virtual menus
for customers with visual impairments.
CONCLUSION
In conclusion, the future of the hospitality industry is likely to be shaped by metaverse
technology, which has the potential to revolutionize the way that hospitality businesses
interact with customers and provide experiences. By offering improved customer
experiences, increased revenue and profitability, improved marketing and branding,
and enhanced accessibility and convenience, metaverse technology has the potential to
create a more engaging, accessible, and profitable future for the hospitality industry.
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