Updated: August 6, 2024
Whether you manage one or many vacation rentals, multi-channel distribution will benefit your business drastically. As per the Statista study, travelers prefer digital platforms for their booking needs, with 13.84 million Airbnb, 1.29 million Vrbo, and 10.35 million Booking.com app downloads.
This data indicates that property managers should create an online presence on various OTA channels.
What is Multi-channel Distribution for Vacation Rentals?
Multi-channel distribution means listing vacation rentals on various booking channels to increase your listing’s visibility. This strategy enables property managers to market their STR properties through multiple online travel agencies (OTAs), like Airbnb, Vrbo, Booking.com, Houfy, WeChalet, and Evolve, to a broader audience and increase their chances of getting booked. Host Lynell Gordon asked Simon Lehmann (Co-Founder and CEO of AJL Atelier) about the significance of a multi-channel distribution strategy. Lehmann said on her podcast:
“I would urge people to have as many channels available to them as possible.” He further added that “depending on a single channel is a commercial suicide.”
Why You Should Go Multi-Channel?
Your biggest market competitors are likely using multiple OTAs to improve occupancy for their vacation rentals. Here’s why it should also be part of your marketing strategies for vacation rentals.
Increased Visibility
Adding your rental properties to multiple platforms will increase your chances of reaching more guests. You’ll no longer rely on a single channel to make profits.
More Bookings
Multi-channel distribution helps you gain more visibility. Increasing the number of eyes on your portfolio means you’ll often receive bookings for your STR home. Further, increased demand allows property managers to hike nightly, weekly, or monthly rates.
Diversification of Portfolio
As each booking channel has its loyal customer base, you’ll present your vacation home to a diverse range of travelers. The tailored pricing and marketing for specific guests on each channel will maximize revenue.
How Do You List Vacation Homes on Different Channels?
Follow these three principles before listing your vacation rentals on multiple channels.
Know Your Target Audience
Recognize the specific preferences and demographics of your target guests. Consider the type of rental space you have and who you want to attract. Are they families, luxury travelers, business professionals, or budget backpackers?
Knowing your audiences will help you list your vacation rentals on suitable booking platforms to boost the occupancy rate and make multi-channel distribution work for you.
Research to Find the Right Channel Mix
The next step is finding ideal channels to list your STR properties. Knowing the features of each booking channel is critical to optimizing your listings accordingly.
Begin with the market players to understand their offerings and rules, including Airbnb, Vrbo, and Booking.com.
Further, niche down to market to a specific group of travelers. This strategy will help you put your vacation home where it’ll get noticed by the right guests.
For example, Homes & Villas by Marriott International is the right fit if you manage luxury short-term rentals. However, choose Houfy to promote a cottage in the woods that attracts adventurous travelers.
Ensure to review the service fee on each OTA site, whether it’s upfront or a percentage of each booking.
Leverage Channel Manager
Double booking is a real issue when you list your properties on multiple channels. It happens when you receive more than one booking for a specific rental space on the same date. Depending on the channel, it can lead to costly cancellation fees.
Vacation rental channel managers are ideal solutions for unifying all your bookings and preventing overbookings. These platforms help you manage the calendar of all your listings from one central dashboard so you can see what’s booked and when.
Syncing calendars will ensure accurate availability for your rental properties on all OTA channel accounts. The channel manager serves as a parent calendar to help you avoid double bookings.
A Quora user suggests syncing OTA accounts with Channel Manager is a time-savvy and efficient way to eliminate overbooking issues.
Managing Multiple Channels to Improve Profits: Best Practices
Let’s check out the best approach to better market your STR portfolio on various online booking platforms.
Optimize Your Listings According to Each Channel
Your presence on OTAs is an opportunity to showcase your vacation homes. A well-maintained portfolio profile will lead to more future bookings.
That said, create detailed listing descriptions and add high-quality, captivating photos to get the most out of your vacation rentals on different channels. Plus, update your listings regularly with promotions and discounts based on vacation rental seasonality to attract more guests.
Monitor Performance Regularly
Track OTA accounts regularly to understand how your listings are performing. You’ll identify where you get the least and most bookings to tune up your multi-channel pricing strategy accordingly.
To scale your STR portfolio, you must track occupancy rates, average daily rates (ADR), revenue per available room (RevPAR), and other key KPIs.
Tools like PriceLabs Portfolio Analytics will allow you to review your low- and high-performing listings. This software provides real-time insights into monthly revenue and length of stay (LOS) trends through easy-to-analyze charts and graphs.
Adapt Pricing to Market Trends
Once you analyze the key metrics, tweak your listing and adjust nightly costs on booking platforms based on your local market demands. For example, give your property an extra push during upcoming special events in your region.
Airbnb reported that Europe’s total vacation rental demand increased by 70% during Taylor Swift’s Eras Tour. Vacation rentals took advantage of this market trend by attracting the niche of travelers in London, Edinburgh, and Paris. Similarly, the Swiftie influence led to a staggering1,300% surge in searches on Airbnb in the North American market.
Data-driven insights help property managers tailor their multi-channel pricing strategy based on market forecasts and trends.
Using PriceLabs Dynamic Pricing Tool will allow property managers to make informed pricing decisions for their listings on multiple channels. The software suggests competitive nightly rates by analyzing various factors, including market trends, number of bookings, comp rates, and seasonality.
Moreover, this tool integrates seamlessly with over 100 channel managers and PMS, such as Airbnb, Hostfully, BookingPro, HostAway, RentalWise, Smoobu, and many more.
Get Guest Reviews
Adding positive and authentic guest experience reviews will build trust among target customers when they search for properties on OTAs. Good reviews lead to more bookings and higher search engine rankings.
Bottom Line
So, boost your STR management business by listing your rental homes on various platforms. Increased exposure to vacation rental properties will significantly improve your occupancy rate and profit margins.
However, consider your market and target guests before adding any OTA to your multi-channel distribution plan.
Frequently Asked Questions
1. Can I list on both Airbnb and Vrbo?
Yes, listing your STR properties on both Airbnb and Vrbo platforms is a great idea to reach a larger pool of potential guests.
2. How not to double book with Vrbo and Airbnb?
Use Channel Manager to sync your Vrbo and Airbnb calendars. Suppose you receive a booking on one online platform. This software will instantly update the vacation rental’s availability on another channel. Thus saving you from the risk of double bookings.
3. What are the disadvantages of double booking?
Double booking will impact the vacation rental owner’s reputation and revenue. When you cancel a reservation on one channel, an upset guest will leave a negative review due to inconveniences.
