This article is a blog version of the paper Metaverse in Hospitality and Tourism: A Critical Reflection published in the International Journal of Contemporary Hospitality Management (IJCHM) by Emerald, Australian Business Deans Council (ABDC) ranked A, Chartered Association of Business Schools' Academic Journal Guide: Level 3, SSCI.

Is the metaverse truly a world of opportunities for the hospitality and tourism industry?

While the metaverse may open new doors for hospitality and tourism, its impact may not be immediate, it is crucial to remain aware of the risks inherent in its transformative potential. The true challenge lies in creating a responsible digital space for all stakeholders. Despite the myriad aspects to consider, a lack of preparedness remains a significant obstacle. The blopg post discusses some of the metaverse's potential applications in hospitality and tourism aimed to provide diverse stakeholders with insights into the opportunities and aspects of concern associated with the metaverse.

Roblox and the Metaverse

The launching of FIFA World is only one of the many examples of virtual worlds as an additional delivery channel that integrates the physical and the digital worlds for a unique and interactive experience for its users.

The Catalytic Potential of the Metaverse

One of the catalytic potentials of the metaverse lies in revolutionizing customer experiences. Through immersive virtual environments, hotels and travel agencies can offer interactive previews of accommodations and destinations, enhancing customer engagement. Hotels, airlines, and vacation spots can leverage digital twins to enhance promotions, boost occupancy rates, and engage customers effectively.

Redefining Dining Experience in the Metaverse

In the metaverse, ambient intelligence redefines dining experiences, merging virtual reality with smart technologies. Through ambient intelligence, virtual restaurants and dining spaces become dynamic and responsive environments such as smart menus that are capable of personalisation and real-time adaptation based on avatars’ preferences and past interactions. Virtual staff, powered by artificial intelligence, ensure seamless service, adjusting to individual user behavior and choices. irtual lighting, background sounds, and even the appearance of surroundings adjust to create specific moods or themes. This adaptability enriches the immersive experience, making diners feel like they are in different culinary settings, from cozy cafes to elegant fine-dining restaurants.

Several regional governments, including Shanghai and Thailand, have also embraced the metaverse concept in public services and entertainment. Notably, Thailand’s initiative, "Amazing Thailand Metaverse: Amazing Durian," enables consumers to explore a virtual durian orchard through avatars, eliminating the need for virtual reality headsets. These instances exemplify the metaverse's potential for redefining experiences in hospitality and tourism, making it a focal point for industry innovation.

Thailand's 'Amazing Durian' Metaverse offers a virtual durian orchard experience to tourists

The emergence of hybrid events, popularized during the COVID-19 crisis, has led companies to explore metaverse technologies. This adoption bridges the gap between in-person and virtual attendees, breaking down physical barriers and enabling social interactions through 3D avatars and immersive tech. Virtual and augmented technologies allow consumers to thoroughly explore hotels, gaining insights into their standards. These tools are versatile, empowering tourism enterprises to enhance brand awareness and attract new customer segments with customized virtual experiences.

For hoteliers, this shift presents an opportunity to enhance existing services, fostering innovative connections with customers and generating new revenue streams. By mastering the art of creating immersive digital experiences that rival or surpass physical ones, hoteliers can establish a strong foothold in this evolving landscape, driving growth and customer engagement.

Metaverse redefining try-before-book hotel experience

Capitalizing on the potentials of Metaverse

Successful implementation hinges on the seamless integration of diverse technologies and efficient data management. Users engage with the metaverse through AR/VR devices, featuring sensors for interactions ranging from brain-computer connections to facial expressions. Despite the current limited accessibility of 3D devices, the adoption trajectory is expected to mirror past tech trends, driven by reduced costs, user-generated content, and enhanced usability. Elevated customer expectations are prompting companies to enhance their offerings, while privacy and security concerns necessitate creative solutions in balancing data control and personalized experiences.

A practical technology strategy involves assessing investments in creators, technical expertise, training, and other resources within budget constraints. Balancing security, privacy, and user satisfaction remains crucial. Meeting the diverse needs of users and businesses will drive innovation, ensuring the evolution of technological solutions that maintain a delicate equilibrium between benefits and limitations. Adaptable and well-thought-out technology strategies are imperative for businesses looking to thrive in the dynamic metaverse landscape.

Successful metaverse experience hinges on meaningful customer experience

The metaverse offers unparalleled personalization through immersive, real-time engagements. Despite its virtual nature, the experiences must feel authentic to create lasting memories. Successful operators focus on technologically empowered co-creation, enabling users to engage deeply and authentically. Positive interactions in the metaverse can lead to higher customer loyalty and willingness to spend more with brands.

That said, addressing the challenges of sustainability in the metaverse's supporting infrastructure is critical. The massive data flow, requiring substantial storage and processing systems, poses environmental concerns due to increased demand for resources and hardware. In the context of the tourism and hospitality industry, known for its climate impact, the metaverse offers a green opportunity. Behavioral changes, such as reducing physical commuting and consumption, can offset the metaverse's carbon footprint, aligning with Sustainable Development Goals (SDG) 13 (Climate Action) and SDG 11 (Sustainable Cities and Communities).

Any form of innovation should be designed to impact social response in a positive manner with a need to address accountability when a problem occurs.

Adopting the metaverse sustainably requires careful planning and a strategic roadmap. This approach ensures that while harnessing the metaverse's potential, the industry remains environmentally responsible and aligns with global sustainability goals. For example, leveraging the metaverse's immersive experiences can reduce the environmental impact associated with traditional travel, promoting urban tourism (SDG 11) while enhancing inclusivity (SDG 10) for individuals with disabilities.

The potential for disputes within the metaverse is a pressing concern. The ability to maintain anonymity in the metaverse must be weighed against the risks associated with digital footprints, leaving users vulnerable to malicious activities. While technologies like self-sovereign identities and blockchain offer some solutions, they also bring forth new concerns. Additionally, the proliferation of avatars raises questions about diversity and inclusion – a boon or bane for tourism and hospitality? These theoretical dilemmas underscore the need for governance standards.As this technology is still in its infancy, practical issues like double booking hotel rooms or managing parallel universes with multiple avatars raise complexities. Therefore, establishing effective governance and clear standards is essential to navigating the complexities of the metaverse. As the industry continues to grapple with these challenges, a structured approach to governance will play a pivotal role in shaping the future of tourism and hospitality within the metaverse.

In the movie Matrix, when Neo becomes enlightened to that fact that the world is but an illusion, Neo was faced with the daunting choice of sacrificing himself or Morpheus – Neo renounces both and as a result reborn into the new life as The One, with the clarity to see through illusion.

If all of humanity’s existence is in the metaverse, then it is but a self-illusory cage.

breaking the self-illusory cage

The metaverse blurs the boundaries between the reality and virtual yet, a universal definition for the metaverse remains elusive, indicating that it is still in its early developmental stage. Despite an increase in participants, they each function independently. This leads to a competitive sphere within and among the metaverse domains. Deciding to enter this landscape, establishing an entry strategy, and sustaining presence outlines numerous questions about growth, interoperability, governance, and regulatory requirements. How the metaverse will evolve, collaborate, and how players can adhere to governance structures is still questionable.

Hence, the focus should be on progressive development when pursuing the metaverse's potential. It is imperative to navigate the hurdles that undoubtedly exist. But the goal is to envision future applications that offer exceptional spatial experiences for socializing, entertaining, and conducting trades.

Finally,

The promise of the metaverse is big. The risks are formidable. (Wong et al., 2023)

To read the paper:

Wong, L.-W., Tan, G.W.-H., Ooi, K.-B. and Dwivedi, Y.K. (2023), "Metaverse in hospitality and tourism: a critical reflection", International Journal of Contemporary Hospitality Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJCHM-05-2023-0586