Startups

Directo turns a TikTok travel hack into a deal-finding Chrome extension

Comment

Directo team photo
Image Credits: Directo

A travel hack that went viral on TikTok teaches users how to save money on hotels and Airbnbs by booking directly with the properties themselves. Now, a new startup, Directo, will help travelers find those same deals with the help of a Chrome extension that points you to the property’s website, where you’ll often find discounted rates as the property doesn’t have to pay commission on those sales.

Across social media, creators and influencers post variations of a money-saving hack that teaches users how to find a cheaper way to book a room or a home stay. This often involves using reverse image search on photos of the listing to find the property’s website — something that can be particularly useful when booking longer stays where the savings can really add up.

@humphreytalks

Money Hacks 💰 (1st Hack Credit: All the Hacks Podcast) #lifehack #learnontiktok #tiktokpartner

♬ SUNNY DAY – Matteo Rossanese

Of course, booking directly may have its risks. You may not have the same travel assurances and protections compared with bigger websites, like Booking.com, Expedia or Airbnb. But when travelers are looking at savings in the hundreds of dollars or more, they often opt to take their chances.

The idea for Directo came about from watching this emerging behavior among Gen Z users and realizing that it could be better automated, while also adding in some safety protections of its own, says co-founder and co-CEO Pierre Becerril.

Image Credits: Directo

“What we’re doing is we’re trying to work with professional inventory that uses great software — so at least you know that this part is secured,” said Becerril, whose background is in the travel industry, after participating in a TechCrunch hackathon inspired him to join the tech industry. Most recently, the Madrid-based, third-time founder sold his startup Transparent, a software company focused on the vacation rental market, to Lighthouse, where he worked before starting Directo.

Becerril explains that many hotel sites today run what he calls “very good tech” and feature powerful booking engines, but they aren’t the first place users go to book. Instead, consumers tend to go to online aggregators and larger websites where they can search across a wider inventory of listings.

“The big websites like Expedia, Booking.com and Airbnb have the monopoly for search and distribution,” Becerril said. “It’s a pity because they charge commission and you can go book direct on these great websites where there’s no commission — and maybe some perks.”

Some savvy travelers already figured this out, finding they could avoid the extra fees and cleaning charges on Airbnbs by booking from the property’s website itself, which they found using a reverse image search.

Directo aims to make it easier to book directly by identifying those properties that it knows to use a modern tech stack that promises a safe checkout process. That can, at least, alleviate users’ concerns that the sites will work correctly and their credit card transactions will be secure. It also relies on its community to submit other websites for consideration and to flag those where they successfully found great deals.

The Chrome extension works on a variety of top travel sites, like Airbnb, Booking.com, VRBO, Expedia and Abritel, with more being added in the future. It identifies the properties where you can book directly with a yellow-and-black “D” icon. Those where users reported getting a good deal will also feature a cheers emoji of hands clapping. If users report the deals aren’t great, Directo can take that information to the hotels and use that to try to negotiate for a voucher or discount for its customers.

“It’s a little bit like Honey,” says Becerril, referring to the deal-finding browser add-on PayPal acquired for $4 billion in 2019.

Also like Honey, the extension is free to use by consumers, who can download it from the Chrome Web Store. The startup generates revenue by selling a subscription to hotels that can improve their connectivity with Directo by pushing special deals to its users and members. These funds are currently being reinvested in marketing to grow its consumer install base.

In testing, Directo reached 115,000 users and now includes nearly 200,000 hospitality brands that each has at least one property in its database of inventory. Combined, that represents millions of properties and rooms around the world.

The startup itself was co-founded by digital nomad and co-CEO Marina Guastavino, CTO Julian Toledo and Sofia Canepa (Growth and Product Development). Becerril wasn’t able to join full-time until a couple of months ago due to obligations following the sale of his prior company.

Directo has $1 million in pre-seed funding from French VC firm Kima Ventures; Calafia, an angel group of Global Female Tech Leaders; travel specialist fund Derive Ventures; and 26 travel industry veterans.

More TechCrunch

It sounds like the latest dispute between Apple and Fortnite-maker Epic Games isn’t over. Epic has been fighting Apple for years over the company’s revenue-sharing requirements in the App Store.…

Epic Games CEO promises to ‘fight’ Apple over ‘absurd’ changes

As deep-pocketed companies like Amazon, Google and Walmart invest in and experiment with drone delivery, a phenomenon reflective of this modern era has emerged. Drones, carrying snacks and other sundries,…

What happens if you shoot down a delivery drone?

A police officer pulled over a self-driving Waymo vehicle in Phoenix after it ran a red light and pulled into a lane of oncoming traffic, according to dispatch records. The…

Waymo robotaxi pulled over by Phoenix police after driving into the wrong lane

Welcome back to TechCrunch’s Week in Review — TechCrunch’s newsletter recapping the week’s biggest news. Want it in your inbox every Saturday? Sign up here. This week, Figma CEO Dylan…

Figma pauses its new AI feature after Apple controversy

We’ve created this guide to help parents navigate the controls offered by popular social media companies.

How to set up parental controls on Facebook, Snapchat, TikTok and more popular sites

Featured Article

You could learn a lot from a CIO with a $17B IT budget

Lori Beer’s work is a case study for every CIO out there, most of whom will never come close to JP Morgan Chase’s scale, but who can still learn from how it goes about its business.

22 hours ago
You could learn a lot from a CIO with a $17B IT budget

For the first time, Chinese government workers will be able to purchase Tesla’s Model Y for official use. Specifically, officials in eastern China’s Jiangsu province included the Model Y in…

Tesla makes it onto Chinese government purchase list

Generative AI models don’t process text the same way humans do. Understanding their “token”-based internal environments may help explain some of their strange behaviors — and stubborn limitations. Most models,…

Tokens are a big reason today’s generative AI falls short

After multiple rejections, Apple has approved Fortnite maker Epic Games’ third-party app marketplace for launch in the EU. As now permitted by the EU’s Digital Markets Act (DMA), Epic announced…

Apple approves Epic Games’ marketplace app after initial rejections

There’s no need to worry that your secret ChatGPT conversations were obtained in a recently reported breach of OpenAI’s systems. The hack itself, while troubling, appears to have been superficial…

OpenAI breach is a reminder that AI companies are treasure troves for hackers

Welcome to Startups Weekly — TechCrunch’s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Most…

Space for newcomers, biotech going mainstream, and more

Elon Musk’s X is exploring more ways to integrate xAI’s Grok into the social networking app. According to a series of recent discoveries, X is developing new features like the…

X plans to more deeply integrate Grok’s AI, app researcher finds

We’re about four months away from TechCrunch Disrupt 2024, taking place October 28 to 30 in San Francisco! We could not bring you this world-class event without our world-class partners…

Meet Brex, Google Cloud, Aerospace and more at Disrupt 2024

In its latest step targeting a major marketplace, the European Commission sent Amazon another request for information (RFI) Friday in relation to its compliance under the bloc’s rulebook for digital…

Amazon faces more EU scrutiny over recommender algorithms and ads transparency

Quantum Rise, a Chicago-based startup that does AI-driven automation for companies like dunnhumby (a retail analytics platform for the grocery industry), has raised a $15 million seed round from Erie…

Quantum Rise grabs $15M seed for its AI-driven ‘Consulting 2.0’ startup

On July 4, YouTube released an updated eraser tool for creators so they can easily remove any copyrighted music from their videos without affecting any other audio such as dialog…

YouTube’s updated eraser tool removes copyrighted music without impacting other audio

Airtel, India’s second-largest telecom operator, on Friday denied any breach of its systems following reports of an alleged security lapse that has caused concern among its customers. The telecom group,…

India’s Airtel dismisses data breach reports amid customer concerns

According to a recent Dealroom report on the Spanish tech ecosystem, the combined enterprise value of Spanish startups surpassed €100 billion in 2023. In the latest confirmation of this upward trend, Madrid-based…

Spain’s exposure to climate change helps Madrid-based VC Seaya close €300M climate tech fund

Forestay, an emerging VC based out of Geneva, Switzerland, has been busy. This week it closed its second fund, Forestay Capital II, at a hard cap of $220 million. The…

Forestay, Europe’s newest $220M growth-stage VC fund, will focus on AI

Threads, Meta’s alternative to Twitter, just celebrated its first birthday. After launching on July 5 last year, the social network has reached 175 million monthly active users — that’s a…

A year later, what Threads could learn from other social networks

J2 Ventures, a firm led mostly by U.S. military veterans, announced on Thursday that it has raised a $150 million second fund. The Boston-based firm invests in startups whose products…

J2 Ventures, focused on military healthcare, grabs $150M for its second fund

HealthEquity said in an 8-K filing with the SEC that it detected “anomalous behavior by a personal use device belonging to a business partner.”

HealthEquity says data breach is an ‘isolated incident’

Roll20 said that on June 29 it had detected that a “bad actor” gained access to an account on the company’s administrative website for one hour.

Roll20, an online tabletop role-playing game platform, discloses data breach

Fisker has a willing buyer for its remaining inventory of all-electric Ocean SUVs, and has asked the Delaware Bankruptcy Court judge overseeing its Chapter 11 case to approve the sale.…

Fisker asks bankruptcy court to sell its EVs at average of $14,000 each

Teddy Solomon just moved to a new house in Palo Alto, so he turned to the Stanford community on Fizz to furnish his room. “Every time I show up to…

Fizz, the anonymous Gen Z social app, adds a marketplace for college students

With increasing competition for what is, essentially, still a small number of hard tech and deep tech deals, Sidney Scott realized it would be a challenge for smaller funds like…

Why deep tech VC Driving Forces is shutting down

A guide to turn off reactions on your iPhone and Mac so you don’t get surprised by effects during work video calls.

How to turn off those silly video call reactions on iPhone and Mac

Amazon has decided to discontinue its Astro for Business device, a security robot for small- and medium-sized businesses, just seven months after launch.  In an email sent to customers and…

Amazon retires its Astro for Business security robot after only 7 months

Hiya, folks, and welcome to TechCrunch’s regular AI newsletter. This week in AI, the U.S. Supreme Court struck down “Chevron deference,” a 40-year-old ruling on federal agencies’ power that required…

This Week in AI: With Chevron’s demise, AI regulation seems dead in the water

Noplace had already gone viral ahead of its public launch because of its feature that allows users to express themselves by customizing the colors of their profile.

noplace, a mashup of Twitter and Myspace for Gen Z, hits No. 1 on the App Store