How Will the Metaverse Affect Tourism?

THE IMPACT OF THE METAVERSE ON TOURISM

  As stakeholders in what is perhaps the world’s most contact-driven industry, are we ready for the Metaverse? We are sure that dozens of thoughts are running through the minds of the many industry partners and employees reading this article. And why wouldn’t they? Many earlier technologies that were said to be about to revolutionise the industry, such as 360° tours, failed to attract the expected interest, and the investments made in them never turned into profit. So, is the Metaverse powerful enough to make an impact on the tourism industry? To understand this, we first need to learn properly what the Metaverse is and what it aims to do.

WHAT IS THE METAVERSE?

  The word Metaverse entered our vocabulary amid the growing need for, and dependence on, the internet that followed the Covid-19 pandemic, which shook our country and the world in the early 2020s. The investment opportunities that came with it, together with the investments and commercial transactions made possible by Bitcoin and other virtual currencies, which also surged in the 2020s, began to spark our curiosity. 

  How could we not be curious? The world’s richest and most technologically advanced companies, big brands such as Facebook, Microsoft, Roblox and Epic, began promoting the Metaverse across all their products. In fact, many of the companies we have just listed have set aside billion-dollar budgets and begun making almost unbelievable investments in technology and human resources in this area.

  The word Metaverse is a combination of "meta" (meaning beyond) and "universe". However, the companies choosing to invest in this field, such as Facebook, Google and Microsoft, prefer to use the term “Virtual Reality” so that it is easier to understand and easier to market.

THE HISTORY OF THE METAVERSE

  In fact, the term for the world of virtual reality, the “Metaverse”, first appeared in science-fiction author Neal Stephenson’s 1992 cyberpunk novel, Snow Crash. Over the past decades, the concept has been part of novels, science-fiction series and films, and the gaming industry. Although this concept, which inspired record-breaking films watched all over the world such as The Matrix, Avatar and Minority Report, became etched in people’s minds as a virtual world, the films released at the time never went beyond being science-fiction scenarios.

  The 360° panoramic tours that appeared in the early 2000s made no real impact until Google’s Street View technology came along, and because the software this technology depended on was not backed by major companies, these projects gradually took their place in the dusty pages of history. Another drawback of such projects was that the wearable technology of the time lacked the power and design to run this kind of software. Virtual reality headsets had not yet been invented, and even PCs equipped with powerful processors suffered from problems such as limited battery life.

  For all these reasons, everything we have told you about the Metaverse up to this point was part of the world of entertainment. That is, until the Covid-19 pandemic and the restrictions that came with it showed us how fragile the balance of the real world is and what people’s indifference can lead to. During this period, which lasted only around two years yet changed many of our habits as a society, investors all over the world rediscovered the power of the e-commerce sector. We could say that people cutting themselves off from the real world also gave birth to the virtual world.

  Many business owners, managers and employees who had to run their work from home were caught unprepared during this period and came to see what they really needed. In looking for solutions to all these needs, many industry players whose work is driven by brainpower and requires no physical intervention until the very last moment realised that distance was no obstacle for them, and the concept of Virtual Reality returned to the agenda.

  Facebook’s announcement that it had genuinely begun building the Metaverse, and Microsoft’s efforts to gather corporate metadata, added extra spice to the story.

WHAT DO THEY AIM TO ACHIEVE BY DEVELOPING THE METAVERSE?

  In truth, the answer to this question is like an iceberg. The companies developing this technology claim that, in virtual worlds and at more affordable prices, they can offer people many experiences they cannot have in real life. It is fair to say that there is no limit to how far the Metaverse can go. If you are creating an alternative world, the possibilities in it are just as limitless as they are in real life.

 For example, while 70% of the world’s population will never own an above-average sports car in real life, in this virtual world they can own such cars within minutes and enjoy the pleasure of driving them. Of course, many senses such as touch and taste still need to be developed technologically, but we are confident that people will at least be part of this world visually and perceptually.

DOES THE METAVERSE HAVE A DOWNSIDE?

  Of course, like every technology, it is an undeniable fact that this one will have its bad sides as well as its good ones. Just as the real world has factors and groups that dominate it and powerful cartels controlling its material resources, it is a fact that in this virtual world, too, one group of people will end up serving these others. It may sound like a pop-culture take, but this world will have its own Agent Smiths and Neos.

  The Metaverse has not yet announced the currency it will use. Even though all kinds of virtual currencies are currently used to buy and sell the virtual land offered for sale within the existing system, the industry’s leading figures agree that the Metaverse will enter the market with a currency of its own as soon as it launches. Facebook has already announced that it has started work on a meta-coin, but kept the announcement brief in order to head off speculation and protect a currency it has not even started using yet. Even so, you can be sure that the virtual currencies used here will send a significant economic wave across the world’s population.

  The Metaverse will also have negative psychological effects. Take Generation Z today, for example: the heavy use of social media channels such as Instagram, TikTok and YouTube is drawing young people away from the natural sciences, so that instead of saying “I’m going to be a doctor”, they say “I’m going to be a blogger”. One of the Metaverse’s biggest handicaps will undoubtedly be the kind of people this world makes famous. We believe this will deeply shake Generation Z, who want to make easy money and strive to do so, as well as the generation they will raise, and that in developed countries this issue will become the subject of lengthy academic theses and debates.

  We can close this section by saying that technology is a weapon and, as with every weapon, the outcome is determined by who uses it, how and for what purpose.

HOW WILL THE METAVERSE MAKE AN IMPACT ON THE TOURISM INDUSTRY?

  The Metaverse has the power to earn you money in both the real and the virtual world. Let’s take a closer look at these two channels through which you can grow your business.

The Effects of Being a Tourism Stakeholder in the Metaverse (Virtual Universe)

  In this alternative world, we have a plot of empty land. We can think of it as an exact copy of land we own in the real world. Let’s also imagine that we have a brand, such as X HOTEL, that has successfully served tens of thousands of people in the real world for many years. Now, let’s not forget that people living in this virtual world will need holidays too. In this world, people will also work, get married and want to travel and see places. Yes, they will be able to do this much faster than in the normal world, and the costs will be far lower than in the normal world, but a need is still a need. Let’s list the likely causes and effects point by point:

1. In this virtual world, people’s biggest investment will be in how others perceive them. So within the Metaverse, too, people will want to be pictured somewhere impressive wherever they stay, spend time or travel, and in any situation where they want to prove themselves to others. To meet these needs in this alternative world, all the hospitality experience you have gained in the real world will come in handy, and you can bring together the places where people want to be seen under your own brand’s roof.
2. Of course, the promotional opportunities will be far more powerful. Imagine you have recreated your hotel in the alternative universe with exactly the same architecture, the same facilities, equally capable staff and the same location as in reality. When you consider that no technology available today can compete with virtual reality, you will realise there is no more effective way to promote yourself. Picture inviting someone who has come to your website in the real world, ready to buy, on a tour of your hotel in the virtual world: you could close the sale in the blink of an eye.
3. If you also carry out in the virtual world the renovations you make at your hotel every year, guests who visit you regularly every year can see these changes instantly and stay informed about you more effectively.
4. Booking times will produce realistic results, allowing you to keep your guests’ information in an analytical way.
5. Since getting from one place to another in this world can happen in seconds, you can introduce your brand to people in faraway countries who have never heard of it before and get them to contact you.
6. You can help your existing guests get back in touch with the guests who stayed during the same period, increasing brand loyalty.

  Many Turkish companies that foresee the future of the Metaverse, with features like the ones we have listed here, have already started making such investments. For example, the company “Bugün Nereye Gidelim” created a Metaverse concept for its “Try Before You Buy” campaign and showed domestic and international tourists its bungalows in Sapanca through a virtual tour, reporting that it exceeded its usual sales figures.

SO, ARE YOU READY FOR THIS UNIVERSE?

  As you can see, many domestic and international companies have embraced this new world and have begun to take their place in this digital universe. While researching this article, we too noticed something: just as we have accepted the power of social media such as Instagram and Facebook and act accordingly by building in-house or external teams for these channels, we must also accept the Metaverse and act accordingly. We need to discover this power while it is still at the concept stage, make our investments and firmly secure our place in this world; to increase brand awareness and broaden our target audiences, we need to build our investments in this field on solid ground as well.