Abstract
In the world of luxury spa tourism, brands offer unique value propositions that make a spa different from all the others. Luxury spas should use technology to attract guests, such as integrating blockchain technology to enhance brand trust and authenticity. Blockchain technology can influence branding by enhancing trust, improving loyalty programs, and addressing trust issues in the digital space. It can make the luxury spa tourism industry more efficient, transparent, and trustworthy. It can also help spas better meet their customers’ needs and attract new customers worldwide. A systematic review of the pertinent academic literature was undertaken to delineate the constituent components arising from the integration of blockchain technology and their prospective impact on branding within the luxury spa tourism domain. This comprehensive analysis encompassed scrutiny of 50 scholarly articles focused on the application of blockchain technology in tourism. Through a rigorous examination of this corpus, 24 recurrent facets were identified, having the potential to mold the landscape of branding in the luxury spa hospitality industry.
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1 Introduction
The luxury spa tourism industry is a growing and competitive market. To thrive in this industry, luxury spas must build strong brands that are meaningful to their target audience. Blockchain technology is among the technologies that have the potential to revolutionize and improve the way luxury spas brand themselves.
Blockchain, or so-called distributed ledger technology, can be used to store and share information in a secure and transparent manner. This usage makes it ideal for various applications in the luxury spa tourism industry, including enhanced security, traceability, transparency, and accountability. Blockchain can track the authenticity of spa products and services, ensuring customers get what they pay, and it can be used to provide customers with real-time information about their spa treatments and experiences. Moreover, it can improve customer service, create personalized customer experiences, and provide better customer support.
These applications can improve the overall branding experience for luxury spas. Using blockchain technology, luxury spas can create a more authentic, transparent, and secure brand that resonates with their target audience.
This study explores blockchain technology’s potential impact on branding in the luxury spa tourism industry. Based on a systematic literature review, it identified the key ways blockchain technology can be used to improve branding in this industry. The study will also discuss the limitations of blockchain technology and the challenges that luxury spas may face in adopting this technology.
The research aims to contribute to understanding blockchain technology’s potential impact on the concept of branding in the luxury spa tourism industry. Luxury spas could use the study’s findings to develop strategies for using blockchain technology to improve their branding.
2 Methodological Considerations
This research study used a systematic review of the relevant academic literature to identify the constituent components arising from the integration of blockchain technology and their prospective impact on branding within the luxury spa tourism domain. The authors scrutinized 107 scholarly articles focused on the application of blockchain technology in tourism in the last five years (from 2018 to 2023). After carefully reviewing the literature, they identified 50 articles that discussed how blockchain technology can be used in the luxury spa tourism industry. Within these articles, they identified 24 recurring elements that have the potential to change how luxury spas brand themselves. The search terms used were “blockchain,” “tourism,” “luxury spa,” and “branding.” The authors analyzed the titles and abstracts of all articles in the search to identify those relevant to the study. The full text of all relevant articles was then reviewed to determine whether they met the inclusion criteria. The criteria were as follows: (1) The article must be a peer-reviewed journal article; (2) The article must focus on the application of blockchain technology; (3) The article must discuss the impact of blockchain technology on tourism and branding. Fifty articles met the criteria and were included in the final analysis of the facets. The authors used a thematic analysis to identify the recurrent facets of blockchain technology that have the potential to impact branding in the luxury spa tourism industry.
3 Branding in Luxury Spa Hospitality
A luxury hotel is “a lodging establishment that offers premium services, and that places importance not only on the physical aspect of the hotel but also on the non-physical aspects, including consumer emotional attachment with the hotel and its employees” [1, p 2]. But luxury hospitality is no longer about “grand dames,” reminiscent of a time when opulent hotels were synonymous with luxury and sophistication. As basic needs are met, people expect increasingly sophisticated experiences that represent the combination of products, services, ambient spaces, and provided information. Luxury hospitality aims to deliver delight and establish prestige through innovation, constantly pushing the boundaries of creativity and technological advancement. The goal is to increase its authenticity perceptions and to attract the younger group of would-be spenders. In restaurants and spas, well-being extends beyond the spa to daily touchpoints during a guest’s stay, including noise reduction, sleep quality, access to quality water, light, scent, better use of outdoor space, and a shift away from traditional public fitness facilities [2].
In luxury spa tourism, spas need to develop a strong brand identity. Brands offer unique value propositions that make a spa different from all the others, promise an experience that guests cannot find anywhere else, and value every detail of the guest experience. The components of a hospitality luxury brand include brand loyalty, perceived quality, brand image, brand attitude, purchase intention, brand satisfaction, brand love, consumer-brand value congruity, and service quality [3,4,5,6].
As the new generation of luxury consumer preferences evolves, a luxury spa hotel should use technology to attract guests. To deliver exceptional experiences, brands must creatively merge products and services, such as integrating blockchain technology to enhance brand trust and authenticity. Hoteliers have traditionally focused on human interaction to provide a luxurious hospitality experience. However, we will examine how they can adapt their digital strategies to maintain a customer-centric approach in the face of this challenge.
For most operators, shifting to a digital environment primarily involves transferring analog processes without achieving true digital transformation in operational procedures. Besides blockchain, there are mentioned smart mobile technologies, mobile connectedness, and real-time synchronization [7], high-touch guest experiences, technology as a platform for co-creation [8], e-service scopes as a tool for innovation and improvement in delivering omni channel experiences for luxury customers [9].
4 Blockchain Technology and Branding in Luxury Spa Hospitality
In a comprehensive analysis, we carefully examined 50 scholarly articles that focus on the application of blockchain technology in tourism. Through a rigorous examination of this corpus, we identified 24 recurrent facets that have the potential to mold the landscape of branding in the luxury spa hospitality industry. Concepts are identified in bold and then the potential for influencing branding in luxury spa is presented after every concept. Sustainable practices verification: blockchain can be used to verify the sustainable practices of luxury spas, enhancing their credibility and appeal to eco-conscious tourists [10,11,12]; removal of intermediaries: blockchain technology in luxury spa tourism eliminates the need for intermediaries between travelers and service providers. It can solve problems such as inefficient payment systems and extra costs [13,14,15]; power shift from suppliers to consumers: the use of blockchain technology can improve the market structure by shifting power from suppliers to consumers in luxury spa tourism [1, 10, 11, 16]; transparent booking: blockchain can make the booking process more transparent by providing a decentralized ledger of all transactions, making it easier for customers to verify their bookings [17,18,19]; enhanced security: blockchain technology can provide a secure platform for transactions, reducing the risk of fraud and enhancing the trust of luxury spa tourists[20,21,22]; smart contracts for packages: blockchain can use smart contracts for spa packages, ensuring that customers receive the services they have paid for [23,24,25,26,27]; energy consumption transparency: blockchain can provide transparency in the energy consumption of luxury spas, appealing to eco-conscious tourists [28]; supply chain transparency: blockchain can bring transparency in the supply chain of spa products, ensuring that they are ethically sourced and of high quality [29,30,31]; simplification of trading: blockchain capabilities allow organizations to develop methods that simplify trading for smaller and medium-sized industries in the luxury spa tourism businesses [10]; direct communication: blockchain can facilitate direct communication between luxury spas and tourists, enhancing customer service and satisfaction [12]; real-time availability check: blockchain can provide real-time updates on the availability of spa services, enhancing the convenience of booking processes [17, 32]; peer-to-peer payments: blockchain can facilitate peer-to-peer payments, reducing the need for intermediaries and lowering transaction costs [15, 33]; fraud prevention: blockchain’s immutable nature can help prevent fraudulent activities, enhancing the trust of luxury spa tourists [34, 35]; tokenization of services: blockchain can enable the tokenization of spa services, allowing customers to purchase tokens that can be redeemed for services [14, 15, 25]; identity verification: blockchain can provide a secure and efficient method for identity verification, enhancing the security and convenience of check-in processes [36]; traceability of service history: blockchain can provide a traceable record of a customer’s service history, enabling personalized service delivery [24, 30]; efficient cross-border payments: blockchain can facilitate efficient cross-border payments, making paying for spa services easier for international tourists [13]; seamless insurance claims: blockchain can streamline the process of insurance claims in case of cancellations or disputes, providing a hassle-free experience for tourists [24, 37]; decentralized reviews: blockchain can provide a platform for decentralized reviews, enhancing the credibility of customer feedback [25, 38]; secure storage of health records: blockchain can provide a secure platform for storing health records, enhancing the personalization and safety of spa services [39, 40]; loyalty programs: blockchain can be used to create more secure and efficient loyalty programs, encouraging repeat visits and enhancing customer loyalty [41,42,43]; personal data protection: blockchain can provide a secure platform for storing and managing personal data, enhancing the privacy of spa tourists [22, 40, 44]; enhanced trust in gift cards: blockchain can enhance the trust in gift cards by providing a secure and transparent platform for issuance and redemption [45]; prevention of mediator entry: blockchain technology prevents mediators from entering luxury spa tourism, eliminating the market’s power [46].
5 Discussion and Conclusion
The luxury spa tourism industry is evolving, and with it, so is how luxury spas brand themselves. In the past, luxury was associated with opulence and extravagance. Nevertheless, today, luxury is more about creating authentic and unique experiences that meet the needs of a new generation of consumers. Luxury spas must develop a strong brand identity that resonates with their target audience. This identity should be based on understanding what luxury means to their customers and how they can deliver the best possible experience.
Blockchain technology promises to revolutionize the way luxury spas brand themselves. Through the adoption of blockchain technology, luxury spas can enhance the authenticity, transparency, and customization of their service offerings for clientele. This technological framework affords customers an augmented level of engagement within the realm of business processes, information accessibility, and decision-making authority, thereby also facilitating the provision of incentives as a manifestation of their active participation in business relationships.
Our study has a few limitations. First, the study is limited to the articles that were identified in the search. It is possible that other relevant articles were not identified. Second, the study is limited to the English language. It is possible that other relevant articles were published in other languages. Third, the study is based on a secondary analysis of existing literature. It is possible that the findings of the study would be different if primary data were collected.
Conclusion: This study explores the impact points of blockchain technology on branding in the luxury spa tourism industry. The findings suggest that blockchain technology can revolutionize how luxury spas brand themselves. By adopting blockchain technology, luxury spas can create unique and authentic experiences for their customers, build relevant relationships with their customers, and increase customer engagement and loyalty.
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Coita, DC., Trip, D.T. (2024). Exploring the Impact of Blockchain Technology on Branding in the Luxury Spa Tourism Industry. In: Kavoura, A., Borges-Tiago, T., Tiago, F. (eds) Strategic Innovative Marketing and Tourism. ICSIMAT 2023. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-51038-0_22
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