Seems like Guests don’t read anything, not the instructions and information in the emails, not the signs at the front desk, virtually nothing at all I might think. Even though they actively have to add the keys to their wallet and confirm it, they seem not to understand that they can use their phone as a key and don’t have to go to the check in kiosk or front desk.

What they do is: 
Upon arrival look around confused
Find the check-in kiosk tablet (probably because it’s a bright screen attracting their attention - good - that works :-) 
Try to check in on the tablet and get even more confused because they cannot check-in (as they are already check in with their wallet key)
However, they figure out that they can use the „get keys“ option, only to get even more confused because they have to find their confirmation number (just which of those many numbers they received in the many messages from booking/expedia/hotel/travel agent/etc. is the right one?!?
If they manage to find the right confirmation number, they create new physical keys and ignore their wallet keys… ☹️

I tried to add some wording to the mailings to more clearly explain that once wallet keys are created no physical keys are required (but optional) - but I doubt that people will read and understand it - it’s just a concept very new to everyone, I guess.

I think the one and only place where a clear communication is actually received, read and understood is on the check-in tablet! That’s the point in their check-in journey where the naturally think about getting keys, as they are used to expect it at the hotel. Let’s help them and catch them right there.

Therefore, let me suggest the following change to the kiosk user flow to guide them better through the process. 

Check-In Button -> Guests retrieve their reservation with Name or however the kiosk is set up.
If the reservation is already checked in, check if a digital key has been issued.
if yes:
display an explanation and directions to the room as setup in the space setup.
On the same screen give an option to create additional physical keys, transfer over to the „get keys“ function (ask for the reservation number to verify guest access rights, etc.)
If no: display message that reservation has already been checked in, refer to the After-CheckIn email for more information
"Get keys“ button: after retrieving reservation information (before entering reservation number for verification), check if digital keys have been issued,
If yes:
explain wallet keys and directions to the room as setup in the spaces setup
Give option to create additonal physical keys (after entering confirmation number for verification)
If no: continue regular get key process as it is

The idea is to use the kiosk as the final and most important touch point with the guest during the check-in journey to convey the wallet key information more intuitively, help guests get oriented more quickly, and safe them time and effort.

I think the planned option to create wallet keys at the check-in tablet is less important than getting the guests who actually already got them to understand them better, in a intuitive way and delivering the information they require right at the time and place where they expect and require it.

This functionality is now live, but we still miss the option to let the guest choose between Digital of Physical. Right now, the choice between Digital and Physical Key has to be made in the configuration of the Kiosk.