The ‘T’ word that any influencer talks about post-2020, and that will always put a smile on your face is the main subject for today. Of course, we’re talking about tech… TRAVEL! And this industry, however old, has become easier to tap into by everyday people who love tourism, are looking for a change, or simply want some passive-income. If you’re anything like us, keep on reading!

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According to the numbers shared by Allied Market Research - kudos to them - we’re bound to see the rental market reach $315 billion by 2031. This means over 12.4% CAGR from 2022 to 2031, not something you want to oversee these days. 

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However, not everything is peaches and cream with the rental property platforms. There are still plenty of challenges to overcome, changes to be made, and code to be written until we can all sit back and relax on the beach. This is where a new concept on the blockchain comes in - the experts call it RWA.

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Let’s dive into how RWAs can provide innovative solutions to these problems, enhancing security, efficiency, and customer satisfaction by addressing some of the industry's most pressing issues.

Fraud Prevention: Securing Bookings and Verifying Owners

First and foremost, no industry, dApp, or concept can be brought to life unless it’s fully secure. Especially when we talk about money, getting rid of human error by using automations is the easiest way to implement a new system. It’s crucial for the vacation rental platforms to prevent fraudulent bookings and security payments, in the context of becoming the industry leader. This will help increase customer satisfaction, trust, and even sales at a higher level. So how to do it?

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We all know NFTs are here to stay, and you don’t need to be a guru to understand that using an immutable ledger, platforms can smoothly verify every booking, reducing the risk of fraud. Property tokenization means using blockchain technology to track transactions and verify bookings, while ensuring both renters and property owners can trust the process.

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If you ever tried renting your home using one of these online platforms, you probably feel a headache right now. And we get it, ensuring that property owners are verified and legitimate is essential to protect renters and maintain platform integrity. We just think it would be a lot easier and transparent to use the blockchain technology robust identity verification processes for verifying that property owners are who they claim to be.

Property Management: Streamlining Maintenance and Revenue Optimization

It’s no secret that managing property maintenance is vital to ensure high standards and renter satisfaction. Blockchain technology can streamline maintenance requests and track their resolution, providing a transparent and efficient process. You can create a digital twin for managing property maintenance records directly on-chain. 

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Remember the last time you booked a flight and got that sweet deal? That’s because they use dynamic pricing. Same goes for maximizing rental income and effective marketing strategies for property owners. Blockchain is a great way to take the best out of real-time market data, helping property owners to maximize their rental income. 

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While the power of RWA and tokenization is still to be uncovered, there’s no doubt about its effect on property history. This not only enhances transparency and trust, but it can also help track every detail about the property's history, from previous renters to maintenance work. Doing this from the very beginning will make your insurance company a lot happier too!)

Fractional Ownership Specifics: Managing and Distributing Benefits

Fractional ownership is quite self explanatory. However, the operational process of the back-end can be a pain. While traditional rental property platforms do not offer this, for a WEB3 product it’s a basic implementation. It enables seamless management of fractional property ownership by providing a transparent and immutable record of ownership stakes and communications. On top of this, it makes it accessible to a wider audience who either does not have the time or resources to manage it alone. And it’s all automated!

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Since its inception, blockchain is unlocking new revenue streams. But at its core, it was all about income distribution. Being able to accurately and transparently distribute rental income among fractional owners is key to maintaining trust, and customer experience alike. In fact, you can now book a call with us and ask how we can help you distribute more to your community, by spending less!

Customer Experience: Enhancing Satisfaction and Property Quality

Now that the product-specifics are in place, we can focus on the customer experience. Renter satisfaction is something that comes with time, but once your scores are high, this will maintain a good reputation, bring in new renters, and encourage repeat business. Use blockchain to record and verify authentic renter reviews, and provide transparent and reliable ratings. 

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Besides having the right marketing strategies, it’s just as important to focus on property quality. It will not only increase the overall customer experience and satisfaction, but it will also bring more passive income your way, by attracting high-end renters. Keep your property in top condition by using blockchain technology to track maintenance and improvements you craft along the way.

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And what gives you the peace of mind you deserve better than not having to leave your place to receive your money? With the right set of tools, potential renters and fractional owners can invest or book properties without physically meeting. This makes it accessible for any investor  to engage with properties from anywhere in the world.

Virtual Transactions: Facilitating Global Rentals and Ownership

In a study run by Deloitte, they found out that blockchain can reduce transaction costs by up to 30% and increase transaction speed by up to 80%, making it an ideal solution for the vacation rental industry. On top of the 6 innovative applications for NFTs, blockchain technology proves that digital assets can be transferred effortlessly, regardless of geographical location. At Venly, we provide solutions to build a secure and transparent marketplace for digital assets and enable global rentals and digital ownership transfers. 

Risk Management: Mitigating Investment Risks

Whichever side you’re on, renter or property owner, you want to be able to mitigate risks as much as possible. Having a transparent and immutable record of all transactions and property histories will help you to identify and manage potential risks of the asset. Our tech stack provides you with a secure and reliable RWA investment environment for your clients with real estate tokenization.

Conclusion

Real estate tokenization is inevitable. In fact, 45% of the travel and hospitality executives agree that blockchain will significantly impact their business operations within the next five years, according to a GBBC Survey. And how can they not? From staffing reduction, to security, efficiency, customer satisfaction, and ultimately delivering a superior experience to renters and property owners, asset tokenisation is the answer.

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As this market evolves, the RWA solutions like partial ownership of houses, property tokenization, and blockchain real estate investing will get to new heights and uncover even more possibilities than we know today.

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Explore more detailed insights and case studies on how RWA can revolutionize your vacation rental property platform.

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