Blockchain Startup hopes to disrupt short-term rental market

Blockchain startup Dtravel, looking to inject smart contracts into the short-term rental ecosystem, has just processed its first hospitality order

The concept behind Dtravel is to enable property owners to deal directly with guests and tenants without intermediaries, as is the case with Web2 booking platforms.

Property managers on Dtravel can manage bookings – including price, duration, cleaning and cancellation period, within an Ethereum smart contract unique to the listing.

Once a guest has made the reservation, an agreement is cryptographically signed and a transaction is sent to the listing’s smart contract. Funds will be released to the host once the cancellation period is over.

The protocol is currently running a beta pilot program, Cynthia Huang, Dtravel’s chief growth officer, told Blockworks. It generates revenue through a 5% booking fee which is covered by the host – but this money is currently returned to the hosts through the TRVL tool in the beta testing phase.

“On other platforms, the total booking fees range anywhere from 15 to 20%,” Huang said. “And it’s usually shared between the host and the guests.”

TRVL, which currently only exists on Ethereum, has faltered since its launch in November, currently down 96% from its all-time high and more than 90% below its original list price.

Dtravel wants to succeed where other blockchain startups have failed

Dtravel is not the first protocol that has wanted to revolutionize the short-term rental industry. Beenest, a blockchain-based, open-source housing platform had a similar vision until it eventually had to shut down operations.

“The technology back then just wasn’t what it is today,” Huang said. “The [Beenest] had to start on the Ethereum network because there were no layer 2s, but now we have many more options.”

Transaction costs are much cheaper now, and there is a greater appetite for cryptocurrencies in the mainstream market than there was in the past, Huang said.

On the short-term rental side, Huang believes that last-minute cancellations and a lack of transparency after COVID shook the rental market left hosts with no confidence in intermediaries.

“There is a general desire and awareness that hosts need to move away from platforms and have more direct control over their property listings,” Huang said.

This sentiment is shared by Amir Sadjady, one of the first UK hosts to list his properties using Dtravel. “There have been cases where I have been overcharged by a centralized platform, or not paid at all, and getting this money back is a real nightmare, and even impossible on a couple of occasions,” he said.

“The blockchain allows renters and hosts to transact directly, in a secure and transparent way, without the need for a third party. Hosts can make more money, renters can save money, it’s a win-win.”

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