Why 64% of Our Bookings Are Direct – The Power of Non-OTA Distribution
In the evolving landscape of short-term rentals, landlords face numerous complexities in managing their properties. While online travel agencies (OTAs) such as Airbnb and Booking.com have dominated the market, there is a growing realisation among landlords of the significant advantages of direct bookings. At Keapr, we take pride in the fact that 64% of our bookings are made directly, showcasing the power of non-OTA distribution. In this blog, we will explore the reasons behind this trend, the advantages of direct bookings, and how landlords can leverage this approach for greater profitability and efficiency.
H2: Understanding Direct Bookings
Direct bookings are reservations made directly with the property owner or management company, bypassing OTAs. This can be achieved through various channels including a property’s own website, referrals, social media, and corporate partnerships. For landlords, this strategy brings several key benefits:
– **Reduced Fees**: OTAs typically charge high service fees, often ranging from 10% to 15% of the booking value. By securing direct bookings, landlords can avoid these fees, thus increasing their overall profit margins.
– **Better Control**: Direct bookings give landlords more control over the booking process. They can set their own pricing, establish cancellation policies, and manage guest relationships directly, which can lead to improved guest experiences and repeat bookings.
– **Quality over Quantity**: Many landlords find that direct bookings often come with guests who have higher expectations and are generally seeking quality stays over short-term holiday trips. This aligns well with the types of long-stay bookings that Keapr encourages, particularly among contractors and insurance relocations.
H2: The Impact of Non-OTA Distribution Channels
Keapr boasts a portfolio of over 92 distribution channels, allowing us to cater to a diverse range of guests. The key attributes of our distribution model include:
H3: Diverse Channels
– **Corporate Relationships**: Building relationships with companies allows us to secure direct bookings for contractors and corporate stays. We have established a database of contractors and organisations requiring temporary accommodation, which keeps our landlords’ properties occupied year-round.
– **Insurance Relocation Partnerships**: Our partnerships with insurance companies help facilitate stays for displaced tenants who are often unsure of where they will be going next. This creates stability for both the tenants and landlords, reducing the likelihood of void periods.
– **Referral Networks**: Existing guests often become ambassadors for landlords. Encouraging referrals can lead to a constant stream of direct bookings that require no additional advertising spend.
H2: Financial Upsides of Direct Bookings
The financial advantages associated with direct bookings extend beyond avoiding OTA fees. Consider the following benefits:
– **Longer Stays**: Average stays facilitated through Keapr typically range from 30 to 90+ nights. Longer stays help to reduce the frequency of turnover, which often brings challenges such as deep cleaning, property maintenance, and marketing downtime.
– **Reduced Wear and Tear**: Unlike weekend party guests who may leave behind physical and environmental damage, corporate and contractor guests generally have a greater respect for the property. This results in considerably less wear and tear, ultimately saving landlords on maintenance costs.
– **Invoicing Flexibility**: For contractors and corporate clients, Keapr offers invoicing options that suit business needs. This not only simplifies payment processing but also caters to the needs of long-term professional guests.
H2: Building Your Direct Booking Strategy
As landlords begin to appreciate the benefits of direct bookings, the next question is how to effectively establish a strategy. Here are some actionable steps:
– **Utilise Your Website**: If you haven’t already, invest in a well-designed website that showcases your rental property. Include clear calls to action, high-quality images, and engaging content about the amenities and local area.
– **Network with Local Businesses**: Form partnerships with local businesses that may have employees needing housing. This not only opens the door for direct bookings but also adds to the community vibe.
– **Engage on Social Media**: Use platforms like Facebook and Instagram to promote your vacation rental. You can share case studies of prior guests, use targeted ads to capture interest, and interact with followers who may be interested in staying.
– **Highlight Availability on Multiple Platforms**: Beyond OTAs, you can curate your listings across numerous channels — from local business directories to Facebook groups — ensuring that your property is always visible.
H2: Conclusion
The shifting dynamics in the short-term rental market necessitate a fresh approach for landlords who wish to maximise their revenue while minimising risks. With 64% of our bookings through direct channels, Keapr stands at the forefront of this movement, empowering landlords to take control of their rental properties.
By diversifying distribution channels and capitalising on direct bookings, landlords can enjoy greater profitability, reduced wear and tear, and long-term tenants that contribute positively to their bottom line.
If you are a landlord looking for higher-quality, longer stays, speak to Keapr today.