What is Vacation Rental Direct Booking and Why Should You Care?

If you've been in the vacation rental industry for a while, you might have heard the term "direct bookings". While large OTAs like Airbnb and Booking.com have definitely transformed the short-term rental market, their excessive fees and limiting communication capabilities gradually encouraged a paradigm shift.

The "book direct with owners" movement aims to unite hosts against online travel agencies to reclaim control of their businesses. Owners are fed up with large profit cuts and OTAs' "punishments" for taking business outside their platforms. As a result, they embark on this community-driven revolution that's all about empowerment and independence.

In this article, we'll explain what exactly booking directly with hosts is and how your business can profit from it. Let's dive in!

What Does It Mean to Book Directly With Owners?

Put simply, direct booking means guests booking your vacation rental directly with you, the host, without third-party channels. They might visit your website, give you a phone call, or send you a direct message through social media, but the point is that arrangements are made outside of OTAs. Direct booking translates to direct transactions and instant payments between hosts and guests.

Rent by owner vacation rentals: how to avoid paying a service fee for vacation rental homes

What Are the Pros of Vacation Rental Direct Booking?

1. No-fee Vacation Rentals

Did you know an online travel agency can charge up to 15%-20% booking fees? And the worst part is that both you and your guests pay them! This quickly adds to a significant sum, often pushing away visitors with limited budgets. For your reference, here's what famous OTAs charge:

• Airbnb: Hosts pay 3% of the booking subtotal, while guests pay 14% of the total stay price.
• VRBO: Hosts pay 8% booking fees (3% payment processing and 5% commission), while guests pay 6%-15% of their total stay price, depending on the number of people in their group.
• Booking.com: Hosts pay a 15% commission per confirmed booking, with no guest fees.
• Direct booking with platforms like Houfy: Hosts are not charged commission, and travelers don't pay booking fees.

2. Enhanced Communication

Most OTAs insist on keeping all communication within their platform "for your safety". The question is, how does communicating directly with guests make you unsafe? To address the elephant in the room, companies want their money and won't tolerate you taking your business out of their platforms.

As a result, they keep hosts and guests an arm's length apart. They don't allow hosts to list their contact details publicly and only "unlock" that information after the booking confirmation (when your money is in their pockets). The problem with that policy is it leaves no room for building trusting relationships with guests and making their experience as personalized as possible.

However, the book direct movement encourages direct communication and considers it a vital aspect of a great experience. It's the only way guests will know an actual human is involved in their accommodation, and it helps build rapport with repeat buyers. Guests can call, text, or email you directly through a direct-booking website, asking questions or requiring local recommendations.

3. More Control Over Your Business

With vacation rental direct booking, you make all the decisions and actually have a say in who books with you. From how to market your short-term rental to the cancellation process, refunds, and means of communication, you set the stage for successful stays every time.

For example, you can collect upfront payments to avoid waiting for payment remittances long after visitors have left. Or you can cancel a guest's stay if you don't align with expectations without worrying about OTAs penalties. Additionally, you get to decide how to display your listings online. Say goodbye to strict third-party guidelines and tailor your offerings to appeal to potential guests.

No-fee vacation rentals, rentals by owner

4. Independence

Putting all your eggs in one basket is never the shortcut to success. Solely depending on third parties to list and market your properties can be risky. What if the platform faces technical issues? What if it radically changes its terms of service and increases booking fees? Or maybe it witnesses a drop in popularity?

Counting on a middleman to do the work for you leaves you exposed. That's why it's vital to diversify your client sources to actively get more bookings. And let's not forget that listing to OTAs means you show up among thousands of competitors; you're another drop in the ocean for prospective guests. To stand out, you need a strategy, branding, and a book-direct website.

5. Effective Data Management

The more you know your target audience, the better. With vacation rental direct booking, you get instant access to your guests' data, such as demographics, preferences, and behaviors, which you can later use for marketing purposes. So, the next time you run a Facebook ad campaign, you'll know exactly who to target and what needs to be addressed.

6. Higher Level of Trust and Security

Trusting people online is hard, especially when staying in their vacation homes. Add limited communication to the equation, and you'll have the perfect recipe for disaster. Contrary to large OTAs, vacation rental direct booking is all about building trust among hosts and guests, so both parties can decide if they're a good fit.

This builds loyalty and personal rapport, showing guests that there's a caring host ready to tend to their needs. At the same time, happy guests turn into loyal customers or referral sources. By collecting their data upon booking, you can easily re-target them with newsletters and ad campaigns to have them booking again.

No booking fee vacation rentals

7. Flexibility in Payment Options

OTAs often dictate payment methods and refund policies. However, with vacation rental direct booking, hosts can decide on the payment options that best suit their business: bank transfers, PayPal, cryptocurrency, you name it.

Another shared challenge hosts face with OTAs is holding periods. The platforms often hold funds until after the guest checks out, which delays payments and creates a cash flow issue with hosts. With direct bookings, you get instant access to your profit and process any investments or upgrades for your rental business.

8. Building Your Personal Brand

Free from OTAs' dominance, you can build your own vacation rental direct booking website, as a hub of your online brand. Use unique branding elements like a logo, a color palette, and photographs to showcase your properties in a unique style.

This is your chance to tell your story, connect with potential guests, and share your unique value proposition. Give your vacation rental brand character and personality to help you stand out and persuade visitors to book.

9. A Better Vacation Experience for Guests

You can offer guests a more personalized stay with vacation rental direct booking. From recommendations tailored to their needs to specific requests, their instant access to you will make their lives easier. Their satisfaction is your priority, and this simple platform shift can prove major.

Moreover, you can incentivize guests to book with you again. For example, you can offer special discounts to loyal customers to entice them to return. Plus, guests will save money from booking directly with you and might invest in booking more nights at your rental. Win-win!

Vacation home rentals with booking direct

Join the Vacation Rental Direct Booking Community on Houfy!

In a nutshell, if you're tired of passively waiting for business to come to you and sharing a significant profit cut with OTAs, it's time to join the vacation rental direct booking community.

Becoming a Houfy member isn't just about avoiding fees. It's about being part of a movement that values transparency, honest communication, and business growth. Instead of waiting for success, you bring success to you by actively participating in the decision-making process for your rentals.

Direct booking is more than a trend. It's a statement against OTA's dominance toward a more equitable and profitable future for vacation rentals. Join a supportive community of more than 68,000 hosts and guests and enjoy a more personal and profitable business. Get started today!