Updated: October 21, 2024
While listing on OTAs like Airbnb and Vrbo gives you good exposure and is a must-practice, generating direct bookings helps you save on commission fees and generate more revenue. According to VRMintel’s “The Value of Direct Bookings” report, the average booking through Airbnb is approximately $906 per reservation. Contrasting this with direct bookings, valued at $1,935 on average, reveals a significant difference of $1,029. These figures indicate that a direct booking holds more than double the value of a booking made through Airbnb. So the question is, how do we generate direct bookings?
This comprehensive guide will walk you through the essential steps to build a compelling direct booking website, optimize your online presence, and implement strategic marketing practices to maximize direct reservations. Whether new to the vacation rental market or looking to improve your existing operations, these tips will help you attract more direct bookings and elevate your business.
What are Direct Bookings?
Direct bookings are reservations made by customers directly with a business without using intermediaries like online travel agencies (OTAs) or third-party booking platforms. Guests can do so by leveraging their direct booking website or contacting the property manager directly if it is a repeat booking.
According to a survey, 29% of travelers show a preference for making direct travel reservations, citing various reasons, including:
- The opportunity to request additional amenities (28%)
- Ensuring the best available price (21%)
- Access to loyalty programs (21%)
- Ability to negotiate for better prices (18%)
- Perceived advantages linked with direct booking (11%)
Direct bookings are particularly valuable for businesses because they avoid the commission fees charged by OTAs. Additionally, direct bookings allow short-term rental businesses to have a closer relationship with their customers. They can offer personalized service and have better customer data collection opportunities. This can enhance their vacation rental marketing efforts and customer loyalty programs to generate more direct bookings.
How to Generate Direct Bookings?
Utilizing OTAs, social media, and various marketing channels is essential to reach potential guests and drive traffic to your website. Here are some strategies to generate direct bookings for your vacation rentals:
Leverage Visibility on OTAs
Online Travel Agencies (OTAs) such as Airbnb, Vrbo, and Booking.com are excellent platforms to attract potential guests. They already have a huge customer base looking for what you are offering. However, you can strategically use these platforms to direct traffic to your own website. Consistently use your business name across all listings to make it easy for guests to find you with just a Google search. For example, if your vacation rental is named “The Sage House,” ensure that this name is prominently displayed in your titles and photos on OTAs. Savvy travelers often search online for more information about a vacation rental before booking to see what additional benefits they can get. They can easily find your direct booking site this way.
Be Active on Social Media
Social Media platforms are a great way to reach a wider audience. These days, every business leverages social media platforms to showcase their offerings to their target audience. As a short-term rental property manager, you should ensure you get the most out of these platforms by putting in a little effort.
Engage with potential guests on platforms like Facebook, Instagram, and Twitter. Share photos, videos, and information about your property and the local area on your social media accounts.
These days, influencer marketing is helping many businesses reach influencers’ followers with credibility and standing in their niche. You should also leverage influencer marketing for your vacation rental by listing out travel influencers, offering them a stay, and showing why someone should book your rental. People want to book rentals that are already tried and tested and this is a great way to generate direct bookings with word-of-(influencer) mouth.
You should also run targeted ads to attract guests during slow seasons or promote special offers. Ensure your social media profiles link directly to your booking website to facilitate easy access. It is also a good practice to regularly post images of guests enjoying various activities at the property and interacting with followers to build relationships and excitement about your rental.
Reward Loyalty
Implement a loyalty program to encourage repeat bookings. Offer discounts to guests who book directly through your website or join your loyalty program.
You can also offer additional perks, such as early check-in, late check-out, or a complimentary bottle of wine, making guests feel valued and more likely to return. Promote your loyalty program via your website, social media, and email marketing campaigns to generate direct bookings.
Bonus Read: How to Promote Rates to Get More Direct Bookings?
Optimize for Local SEO
Optimizing your website for Search Engine Optimization is a very important practice if you want to show up to the right audience when they search for a vacation rental. You don’t just want to optimize your website but also your Airbnb listing page and your social media profiles to show up when someone searches for a vacation rental with your offerings and in your area.
Identify keywords relevant to your business like “Luxury vacation rental in Ohia” or “A-Frame in the woods”. You can also identify keywords based on your Unique Selling Proposition and the amenities you offer. Then, optimize your website for these keywords. You should also ensure your business information is consistent across all platforms to maintain credibilty and update your Google My Business (GMB) entry. Use high-quality images with appropriate meta tags and optimize your presence on directories like Apple, Yelp, Bing, Google, and TripAdvisor.
It is advisable to regularly perform local SEO audits to maintain and improve your rankings and generate direct bookings.
Make it Easy for Guests to Book on Your Site
Make sure your website is user-friendly. The first step is to ensure the user interface is easy to navigate and all the information a guest needs is easily discoverable. You also need to simplify the booking process on your website. Use clear calls to action (CTAs) on every page and minimize the steps required to complete a booking.
Lastly, offer multiple payment options, such as credit card, PayPal, or bank transfer, to cater to different guest preferences and increase the likelihood of booking completion.
Don’t Confuse Guests
If your website serves multiple purposes, such as offering property management services and vacation rentals, ensure clear navigation for guests. Create separate sections for guests and property owners to avoid confusion and make it easier for potential guests to find the necessary information.
Use Email Marketing Automation
Stay in touch with past and potential guests through automated email marketing. Automation saves time and ensures consistency. Include content such as special offers, loyalty program promotions, newsletters, local event tips, vacation planning advice, and behind-the-scenes looks at your property. Decide on a sending schedule that aligns with your business goals, whether weekly, monthly, or quarterly.
Bonus Read: 12 Budget-Friendly Vacation Rental Marketing Strategies
Do You Need a Direct Booking Website?
Establishing a direct booking website for your vacation rental business is important despite the initial time and effort required. While setting up a great website may not be instant, its benefits far outweigh the costs and effort involved. It is also the first suggestion given when asked how to generate direct bookings.
Here are the top advantages:
Savings on Commissions
The first point is the commission fee for the OTA vs. direct booking discussion. Listing on OTAs comes with fees that reduce your overall earnings. For example, if your average daily rate is $100, OTA commissions might leave you with just $74 per night. By managing direct bookings through your website, you eliminate these fees and can reinvest the savings into enhancing guest experiences, such as offering welcome packs or complimentary breakfasts. These touches can foster guest loyalty, generate positive reviews and in turn generate direct bookings.
Longer Stays
Direct bookings often result in longer guest stays. In 2021, the average length of stay (ALOS) for direct bookings was about 5.9 days, compared to around 4.5 days for Airbnb and Vrbo. This extended duration reduces guest turnover and the associated workload while increasing monthly revenue. For instance, if you typically have four bookings per month at $100 per night, direct bookings could boost your monthly income by $560 simply by hosting guests for an extra day each stay.
Better Customer Data
Direct bookings give you access to valuable customer information, such as email addresses, preferences, and booking history. This data can be used to tailor marketing efforts and improve guest experiences. For example, a vacation rental owner in the Catskills might use guest data to send personalized offers for repeat stays during the fall foliage season. This will, in turn, boost off-peak occupancy rates.
Better Guest Relationships
Direct interactions with your guests enable you to build stronger relationships. Immediate contact when they visit your website allows for better communication and personalized service. This can lead to repeat bookings, glowing reviews, and word-of-mouth referrals, all of which are invaluable for growing your business.
Additionally, direct bookings enable you to offer exclusive deals and capitalize on special events, ensuring high occupancy even during low seasons. Personal touches, like asking guests about dietary requirements or special requests, can significantly enhance their experience and your reputation.
Bonus Read: 15 Airbnb Hosting Tips to Make Your Listing Successful
Brand Building
A direct booking website allows you to establish and reinforce your brand. Consistent branding across your site builds trust and professionalism, making your business more memorable. Research by BlueCorona shows that 30% of consumers wouldn’t consider a business without a website, highlighting the importance of a strong online presence.
Your website is also a platform to showcase local knowledge and insider tips, helping to position your business as an authority in your area. This not only aids in converting visitors into bookings but also builds a lasting relationship with potential guests.
Personalization
A direct booking website offers the opportunity to personalize your business. Sharing your story, background, and passion for hosting can create a connection with potential guests. Personal details about the hosts can also make your business more relatable and trustworthy.
Flexibility and Customization
Direct bookings offer the flexibility to create and promote special deals, packages, and unique experiences. For instance, a vacation rental in the Hamptons might offer a “Summer Family Fun Package” that includes discounts on local attractions and dining, which might not be feasible through a third-party platform.
Clearer Communication
Direct communication reduces the risk of miscommunication and errors. For instance, you can ensure that special requests, such as early check-ins or service animal requests, are clearly understood and arranged, leading to a smoother and more enjoyable guest experience.
How to Build a Direct Booking Website?
Creating a direct booking website is vital for any vacation rental business aiming to increase its direct reservations. Here’s a guide to help you build an effective and professional direct booking website.
Choose a Property Management System (PMS) with Direct Booking Capabilities
One of the simplest ways to set up a direct booking website is by using a Property Management System (PMS), which offers this feature. For example, Hostfully’s PMS provides a no-code direct booking website template, which you can easily customize to match your brand.
This approach allows you to establish a professional online presence quickly. You can upload photos, incorporate your logo, and select from various themes. Additionally, these websites typically come with built-in features such as property information, availability calendars, and payment processing integrations, streamlining the booking process for your guests.
Opt for a Custom-Designed Website
If you prefer a unique online presence explicitly tailored to your vacation rental business, a custom-designed website is the way to go. Although this option may require more time and resources than a PMS template, it offers unparalleled flexibility and customization.
Partner with a design agency specialising in vacation rental websites. These agencies can create a great website that optimises your needs. Once your custom website is ready, you can seamlessly integrate booking widgets from your PMS, allowing guests to book directly through your site. Make sure your website is mobile-friendly since most travellers use their mobile phones to plan their trips and make bookings.
Consider Essential Integrations
Regardless of whether you choose a PMS template or a custom design, integrating the right tools is crucial. As your business grows, these integrations will help you manage operations more efficiently. Essential integrations to consider include:
- Payment Processors: Integrate options like Stripe to handle direct payments, security deposits, and refunds.
- Booking Widgets: Ensure your PMS booking widget is embedded on your site to facilitate direct reservations.
- Review Aggregators: Tools like Revyoos can help manage and display guest reviews from multiple platforms, enhancing credibility.
Implement On-Site SEO
Search Engine Optimization (SEO) is critical for improving your website’s visibility on search engines like Google. Effective on-site SEO can drive more traffic to your site and increase direct bookings. Focus on the following:
- Keyword Research: Identify and use relevant keywords for vacation rentals in your area.
- Content Optimization: Use these keywords strategically throughout your website, including titles, meta descriptions, and headings.
- Mobile Optimization: Ensure your website is fully optimized for mobile devices, as many users will access your site via smartphones.
- High-Quality Media: Incorporate high-quality photos and videos to make your site visually appealing and engaging.
Remember, SEO is an ongoing process. Review your website’s performance regularly and update your content to maintain and improve your search rankings.
Key Takeaways:
- Direct Bookings Mean Higher Profit Margins: Securing reservations directly through your website allows you to avoid hefty commission fees from third-party platforms, resulting in increased profitability for your vacation rental business.
- Enhanced Guest Relationships and Personalization: Direct bookings enable direct communication with guests, fostering stronger relationships and allowing for personalized service tailored to individual preferences. This can lead to higher satisfaction levels, repeat bookings, and positive word-of-mouth referrals.
- Full Control Over Brand Image and Guest Experience: Managing direct bookings gives you complete control over your property’s management, from check-ins to guest interactions. This flexibility ensures consistency in branding, messaging, and service quality, ultimately enhancing the overall guest experience.
- Greater Value and Long-Term Revenue: Direct bookings typically yield higher average daily rates and longer guest stays than third-party platforms. By encouraging direct reservations, you can maximize revenue per booking and capitalize on ancillary services, ultimately boosting your bottom line.
- Strategic Marketing and SEO Optimization are Key: Leveraging OTAs, social media, and email marketing while optimizing for local SEO can help drive traffic to your direct booking website. Implementing these marketing strategies effectively can increase visibility, attract more guests, and ultimately drive more direct bookings for your vacation rental property.
About PriceLabs
PriceLabs is a revenue management solution for the short-term rental and hospitality industry, founded in 2014 and headquartered in Chicago, IL. Our platform helps individual hosts and hospitality professionals optimize their pricing and revenue management, adapting to changing market trends and occupancy levels.
With dynamic pricing, automation rules, and customizations, we manage pricing and minimum-stay restrictions for any portfolio size. Prices are automatically uploaded to preferred channels such as Airbnb, Vrbo, and 100+ property management systems and channel integrations.
Every day, we price over 350,000+ listings globally across 135+ countries, offering world-class tools like the Base Price Help and Minimum Stay Recommendation Engine. Choose PriceLabs to increase revenue and streamline pricing and revenue management. Sign up for a free trial at pricelabs.co today.
