By Shruti Menon Seeboo
In the high-touch, experience-driven world of luxury hospitality, innovation is key to reaching the next generation of savvy, tech-forward travellers. Fuji Kusaka, Vice President of Web Development and Digital Transformation at The Lux Collective, is at the forefront of this evolution, expertly navigating the blend of high-tech digital assets with the exceptional service the group is known for.
In late 2022, Mr. Kusaka led The Lux Collective’s pioneering step into Web3 with the launch of the first hospitality NFT (Non-Fungible Token) campaign in Mauritius and the Maldives. Positioned as a “collectible raffle ticket,” the initiative was strategically timed for the festive season, aiming to promote “gifting moments, not things” to a global audience. The campaign not only reinforced the brand’s innovation-driven ethos but also served as a crucial learning experience, highlighting the potential of digital assets to revolutionise customer engagement and the future of loyalty.
We spoke with Fuji Kusaka about the surprising success of the campaign with local guests, the challenges of user education, and his vision for transforming NFTs into next-generation loyalty “membership cards.” His insights offer a rare look into how a major luxury brand is preparing for a “digital-first” future, all while emphasising the need for simplicity and trust in this emerging space. Excerpts:
- The campaign was launched in December 2022. What was the primary motivation for The Lux Collective to launch an NFT campaign at that specific time? Was it a response to a specific trend, or was it part of a long-term innovation strategy?
We launched Mauritius’s & Maldives’s first hospitality NFT campaign during the festive season which was a perfect moment for a gifting-themed campaign and NFTs were a hot topic during that time, with many brands experimenting in that space. The campaign’s message was about “gifting differently” – “gift moments, not things”, encouraging people to give the gift of a memorable travel experience.
In line with the launch of our new brand campaign Life Extraordinary, introducing an NFT raffle was a way to reinforce our innovation-driven ethos. In fact, innovation is in The Lux Collective’s (TLC) DNA, and we saw Web3 as a new channel to elevate our brand positioning globally. We wanted to reach a younger, tech-savvy luxury audience in the digital space and demonstrate that we can be present wherever our guests are engaging. In short, the timing coincided with both the Christmas holiday and a moment when interest in NFTs and the metaverse was high, all as part of our broader vision of a “digital-first” approach to customer engagement.
Some illustrations below:
Video of the LUX* Key, Tic Tac movement! NFT to purchase.
LUX* Grand Gaube – After the revealed
LUX* South Ari Atoll – After the revealed
LUX* Grand Baie – after the revealed.
LUX* Le Morne – after the revealed.
2. You described the process of guests buying the NFTs and the reveal on Christmas Day. Can you elaborate on the feedback you received from customers who successfully redeemed their NFTs? What did they say about the immersive, “Metaverse-like” video experience included with the collectibles?
Basically, every NFT combined a hotel stay with a surprise immersive experience at LUX* resorts in Mauritius or the Maldives. We have especially curated what we call Extraordinary Experiences for this Christmas Collectible Raffle. Buyers did not know which resort or experience they would get until Christmas Day, when the NFT revealed the prize via an immersive, metaverse inspired online experiences. Many shared with us that it felt like opening a present in a futuristic way – they loved the element of surprise combined, especially it was on Christmas day! The immersive metaverse-like reveal added a wow factor; it was not just a flat notification of what they won, but an engaging moment in itself. However, only a few of the buyers redeemed their NFTs on that same day.
3. Were you “surprised” that Mauritians purchased the NFTs. Can you tell me more about the customer profile you originally targeted for the campaign? How did the actual buyers differ from your initial expectations?
Yes, we were somewhat pleaseantly surprised by the local interest when we heard that some buyers were actually Mauritian! Our target customer profile was the savvy luxury traveler who is active only – essentially, tech-forward individuals from our key markets, but it turn out that a few of our local residents who stayed with us previously on many occasions were also excited by the chance to win a stay at pir resorts via this new medium, one guest actually purchased two NFTs. This taught us that the interest in innovative offerings can cut across demographics – it was not just the crypto-enthusiasts or typical luxury travelers, but also our own local community showing appetite for something novel.
4. The story about the guest who bought NFTs with different credit cards and email addresses was insightful. Beyond that single case, what were the most common issues you encountered with non-tech-savvy guests? What did you learn about the importance of user education in this new space?
The concept of an NFT (even though we positioned it as a “collectible raffle ticket”) was new to many, so there was a learning curve. We realised that many of them needed help to redeem their NFTs. Once the reveal was done and the NFT was available on their Crossmint Wallet, many of them were not sure how to proceed although we had a step-by-step manual as a guide to follow.
5. The concept of the “reveal” on Christmas Day is a key part of the campaign’s gamification. How did this feature impact customer engagement and excitement? Do you think this kind of “surprise” element is crucial for future digital asset campaigns in hospitality?
The Christmas Day reveal was absolutely crucial to the engagement. It turned the campaign into a two-stage experience: first the thrill of purchase, then the excitement of the reveal. Havin a timed surprise on December 25th, we managed to build up anticipation much like children waiting to open gifts under the tree!
The gamification aspect – the idea that “your prize will be a surprise” – definitely heightened customer excitement. In hospitality, where we trade on experience, at LUX* Extraordinary Experiences, adding an element of surprise can make the difference between a one-off transaction and a memorable story that guests tell their friend – some kind of free marketing. Yes, I do think having a surprise element or some form of reveal/ gamification can be very powerful. That said, the surprise should be well-designed – it has to add genuine value and enjoyment (and not be too frustrating or random). In our case, tying the reveal to the magic of Christmas and ensuring every NFT had a valuable stay attached made the surprise feel positive.
6. You mentioned partnering with a French company because there were no local partners at the time. How did this international collaboration work, and what were the key advantages and disadvantages?
Indeed, when we embarked on this NFT project in 2022, we partnered with a French company specialising in interactive digital experiences to deliver a full package of NFT minting, a custom website, and an immersive reveal experience. They were the ones who helped create the metaverse-style video reveal.
The collaboration was primarily remote; we kick off the project in Mid-October, meaning that everything needed to be ready the earliest possible so that we can start marketing it through the channels. Therefore, since the collaboration was primarily remote: lots of teams/WhatsApp calls, between our team and theirs, sharing design ideas, and aligning on the tech implementation.
As for the advantages of partnering with this French company, I think the main ones are tapping in their expertise in Web3 and interactive media which we don’t have in-house. Having done similar activations in the past, the French company brought technical know-how and creative ideas to the table. That said, since they already had frameworks in place (for instance, a system for minting NFTs and handling credit card payments), we could launch relatively quickly. Partnering with an established studio meant we met our December timeline in sync with the holiday season, which was critical.
The main advantages were the expertise and quality delivered, and the main drawbacks were the inherent challenges of distance and reliance on an external party.
7. Tracing crypto is difficult and you had to assign an ID to each NFT. How did this system work technically, and did you encounter any issues with it? How did you manage the risk of someone selling an NFT after it had been redeemed?
This was an interesting challenge! Because blockchain transactions are pseudonymous and our NFTs could theoretically be resold, we implemented a simple yet effective system to keep track of redemptions. When we minted the NFTs, each token had a unique identifier (as all NFTs do) and was linked to a specific package (one of the four resort extraordinary experiences, including the number of nights) in our database. As an example, the unique code for one experience 8NKREKYKX5, we can think of this like assigning a unique serial number to each “digital raffle ticket”. We maintained an internal ledger mapping each NFT’s ID to its corresponding resort stay reward and its redemption status.
When a guest decided to redeem their NFT (i.e., the hotel stay that the NFT entitled them to), our central reservation team would ask them for proof of ownership of that NFT. Once hotel reservation was confirmed, our team would mark that NFT ID as “redeemed” in our system.
Even if the NFT was later sold or transferred to someone else, our records would show that the associated hotel stay had already been claimed. In other words, the NFT itself was non-fungible and could change hands, but the benefit (the hotel stays including the EE) was one-time use. We communicated this in the terms & conditions so buyers understood that after one redemption the NFT would hold only collectible. If someone tried to present the same NFT again, we could see it was already used.
8. The campaign was a “learning experience.” What is the top two or three lessons you would take from this campaign if you were to launch another one today? What would you do differently?
We have to acknowledge some challenges in bringing digital assets into the hospitality world. A primary challenge is guest education and adoption – many hotel guests are unfamiliar with NFTs or Crypto, so based on our experience, priortising user experience and education is key. Make the journey as simple as possible for the customer. We learned that even a mildly complex process can become a barrier. For example, we could be integrating the purchase into our brand.com or mobile app in a more seamless way, so it feels like a normal booking or gift card purchase, or by recognising your loyalty status and giving you the perks of an NFT holder.
The goal would be that anyone, even a non-tech-savvy guest, can participate without confusion. We want the innovation to feel exciting, not intimidating, the high-tech, high touch.
9. Given the challenges you faced with local banks and the need for a FinTech partner, what specific regulatory changes or developments would you need to see in Mauritius to feel comfortable launching a more extensive digital asset program?
One of the reasons we had to use overseas partners for payments and NFT infrastructure was the cautious approach in Mauritius around digital assets. To confidently expand any program in that space, we would like to see a few key developments in the regulatory and banking landscape. I would help with the legal framework for things like NFTs, Crypto Transactions, and digital collectibles.
We would also need local bank’s support, to feel comfortable with digital asset-related transactions. Another aspect is ensuring that there are consumer protection guidelines for digital assets. For instance, guidelines on advertising NFTs or Crypto to ensure transparency and prevent scams, it would actually help reputable companies like us because it builds public trust.
The more normalised and accepted NFTs and Cryoto become in the eyes of the lay and public, the easier it will be to integrate them in our industry.
10. Your vision of an NFT as a “membership card” is a powerful one. Can you elaborate on how you see this model evolving? How would it differ from a traditional points-based loyalty program, and what unique benefits could it offer?
I’m very excited about the idea of NFTs functioning as next-gen loyalty membership cards. In essence, an NFT membership car could turn the traditional loyalty model on its head by offering immediate status and long-term value, rather than just accumulating points.
For Instance, in a conventional loyalty program, you have to stay multiple times to earn enough points or nights to reach an elite tier and unlock benefits. Imagine earning special edition NFT for being a gold-tier member that not only acts as a digital badge but maybe carries perks. Marriott’s early experiment giving out NFTs with bonus points to Bonvoy members hints at this potential. We could see a limited number of “LUX* Gold Membership NFTs.” If you hold one, you’re entitled to VIP treatments from day one – think automatic room upgrades, late check-outs, spa credits, or even free nights. No more waiting to accumulate status; instant recognition; the NFT itself is your status.
Another unique benefit of an NFT-based program is the strong community element it can foster. We could have a private online forum or Discord for NFT members, special events where only NFT holders are invited, or co-creation opportunities where members get to vote on a new cocktail or a playlist for our resort, or to some extent attend Metaverse and Immersive digital tour of a new resort opening – possibilities are endless. This type of community aspect I believe is hard to achieve with traditional loyalty programs because those are usually just transactional.
11. The Christmas NFT campaign as a successful learning experience, but also one that highlighted a need for more support and a clearer regulatory environment in Mauritius. Since then, what has The Lux Collective been doing with digital assets? Are there any new NFT campaigns, crypto payment options, or metaverse projects in the pipeline for this year or next?
Since the 2022 Christmas Raffle campaign, we haven’t launched another NFT campaign, but we certainly have not been idle either. We’re exploring and laying groundwork for future digital initiatives, taking into account all the lessons discussed earlier. On the “metaverse” front, we haven’t built a LUX* virtual hotel in Decentraland or anything like that, and to be frank, the hype around full-fledged metaverse worlds has cooled a bit industry-wide. Keep an eye out, because TLC is definitely not done with digital assets and the metaverse !
