Key Takeaways:
- Look into the problems the modern-day holiday hospitality industry faces in terms of vacation rentals.
- Discover how blockchain-powered vacation ownership can help the industry redefine itself in the digital-first era.
- Find out how you can build a vacation rental business based on blockchain technology to increase overall efficiency.
The tourism and hospitality industry has recorded a resurgence following the reopening of international borders after the COVID-19 pandemic. Technology (especially Web3) has grown immensely during the 2020s, but this space has yet to tap into the possibilities out there. Now, blockchain-powered vacation ownership has become a reality, with projects exploring the potential of renting stays over a blockchain, a concept that gained some momentum in the late 2010s. Currently, the concept has attracted several entrepreneurs who aspire to take things away from the Airbnbs and Booking.coms. This blog details various aspects of on-chain vacation rentals and how one can use them for business.
Vacation Rentals: A Hot Yet Complicated Industry
Ever since the world woke up from the confinement of the COVID-19 viral pandemic, tourism has been one of the top industries to record incredible growth, both in domestic and international sectors. The proportion of people opting for budget and luxury travel, which includes vacation rentals, has also increased.
- While vacation rentals experience immensely busy schedules throughout the year, centralized service providers like Airbnb and Booking.com reap the most profits, just like other centralization-driven companies. Although they give sublime user experiences, remember that it takes only an instant for them to take a rental or user down, causing them to lose all the reputation they had gained over the years.
- Adding to the possibility of losing an account, users need to pay for using the platform, which often takes up a considerable chunk of their booking payments, which tends to be especially painful for budget backpackers. Renters also need to pay out monthly/yearly fees for these platforms, irrespective of whether or not the platform helps them rent their accommodations.
- The vacation rental industry is expected to cross $125 billion in 2029, although the actual figure could be far higher. Most revenue goes to intermediaries who manage property listings and connect tourists with renters. These portals also bring the risk of data breach, as all information is stored in centralized facilities that could be prone to hacking attempts.
Planning to Take Your Holiday Rental Accommodation On-chain to Enhance User Satisfaction?
What Does Blockchain-Powered Vacation Ownership Bring to the Table?
With blockchain technology revolutionizing many industries, holiday hospitality has been one of those that did not realize its early potential. While market researchers indicate the impact of the viral pandemic to be a reason, blockchains have not yet come into the picture even after the industry’s resurgence.
- Basically, blockchain-powered vacation ownership enables people to rent out accommodations in holiday destinations through tokenized ownership, where entries are recorded on-chain. Projects based on this use case decentralize rental booking and online management by connecting renters with tourists directly. Notably, fractional NFT ownership and crypto payments can make the process as smooth as possible.
- Using smart contracts with predefined conditions, booking vacation rentals can become automated since processes executed by intermediaries are replaced by automated computer programs. Doing so reduces the time taken to book accommodations and fees incurred by intermediaries. Providing a medium for direct communication with on-chain records and proper verification measures also reduces the likelihood of scams.
- Blockchain-based vacation ownership also makes it easier for people to change the ownership of their vacation rentals in case they decide not to go. It even works for accommodation owners by reducing hassles around selling the property to others. With blockchain records in action, the vacation rental industry has the potential to function more freely than before.
Considerations for Vacation Rental Projects Opting for Blockchain Usage
While opting to use blockchain technology could sound enticing for vacation rental projects, it is necessary to consider a few factors that could impact their business operations. With a lot of technical, operational, and regulatory intricacies, some points of concern still exist for rental owners, although they can be addressed more easily when planned correctly.
- Firstly, one should note how comfortable people are using a Web3 portal to rent accommodation for their holidays. While Web3 provides some huge benefits, less concern about user-friendliness often leads to platforms that are not as useful as they could be. Enough emphasis should be placed on ensuring people are not confused with crypto jargon.
- Also, projects should keep tabs on changing regulations applicable to their local jurisdictions regarding cryptocurrencies and NFTs in real-world use cases. As governments understand the fine line that divides the speculative and practical aspects of Web3, legalities could change faster with each passing day. Implementing the necessary changes can help businesses stay on the field without legal battles for a longer period.
- Alongside these, projects should be able to foster trust among the audience with their products for blockchain-powered vacation rental ownership. Developing user-friendly interfaces, strong user interaction components, governance structures, and solid revenue models for tourists, renters, and platform owners are some facets that cannot be overlooked.
Conclusion
Therefore, we explored how blockchain-powered vacation ownership for rental accommodation could redefine the existing industry and cover several unaddressed concerns. With the tourism industry expected to grow manifold in the coming years, tapping into blockchain technology’s potential can make it more centered toward tourists while fetching ample profits for renters. By decentralizing data storage and leveraging crypto payments and fractional NFTs, it is possible to make the most of what Web3 has to offer to foster genuine connections between property owners and tourists. If you are looking to develop your own system for on-chain vacation rentals, choose our experts to unleash the best version of your ideas!
