Why 64% of Our Bookings Are Direct – The Power of Non-OTA Distribution
In the ever-evolving world of short-term rentals, as UK landlords seek to maximise their revenue, one trend has emerged as particularly compelling: the shift towards direct bookings. At Keapr, we have experienced an impressive 64% of our bookings come from sources outside traditional Online Travel Agencies (OTAs) like Airbnb and Booking.com. This blog delves into why this non-OTA distribution method is becoming increasingly popular and how it can benefit landlords.
H2: Understanding Direct Bookings
Direct bookings refer to reservations made straight through the property management company or landlord, bypassing third-party platforms entirely. With Keapr’s expertise in contractor and insurance accommodation, landlords can tap into various avenues for direct bookings, resulting in a more stable and profitable rental income.
H3: The Advantages of Direct Booking
1. **Higher Profit Margins**: OTAs typically charge significant fees, often between 10% to 20% per booking. By securing direct bookings, landlords can increase their profit margins significantly, allowing them to reinvest in property improvements or reduce rental prices to attract more tenants.
2. **Longer Stays**: Most of our direct bookings result in average stays of 30 to 90+ nights. This not only improves cash flow but also reduces the constant hassle of turnover associated with short-term holiday lets.
3. **Reliable Client Base**: When landlords develop direct relationships with clients, they benefit from consistent bookings. This is particularly true for corporate clients, contractors, and those requiring relocation stays due to insurance claims, who often seek longer and more stable accommodation options.
4. **Reduced Wear and Tear**: Unlike transient holiday guests, corporate tenants and contractors usually take better care of the property. This reduces wear and tear, lowering maintenance costs over time.
H2: Leveraging Multiple Distribution Channels
One of the reasons Keapr achieves such impressive direct booking rates is our commitment to exploring more than just the major booking platforms. With access to over 92 distribution channels—from corporate clients to specialized contractor databases—our approach is diverse and effective.
H3: Building Corporate Relationships
Keapr fosters direct relationships with businesses and corporations that need accommodations for their workforce. By collaborating with these organisations, landlords can receive monthly bookings, providing regular income streams that are much less reliant on seasonal travel trends.
H3: Contractor and Insurance Database Distribution
Our strong presence in contractor and insurance housing means that we can provide leads for a category of tenants that many landlords overlook. Both contractors and displaced tenants require substantial accommodation, and with a direct booking strategy, landlords can benefit from:
– Access to a pool of repeat business
– Less reliance on weekend holiday traffic
– Fast inquiries and bookings
H2: Downsides of Using OTAs
Although OTAs can initially seem like an attractive option for generating bookings, they carry their own risks and limitations.
1. **High Fees**: As previously mentioned, the revenue loss from OTA commissions can be significant.
2. **Limited Control Over Policies**: Landlords often find themselves constrained by the rules and guidelines imposed by these third parties, limiting their flexibility on pricing, cancellation policies, and property descriptions.
3. **Brand Dilution**: Relying heavily on third-party platforms can weaken brand identity. When you offer a seamless direct booking experience, you create a recognisable brand that can lead to customer loyalty.
H2: How to Drive More Direct Booking
If you’re a landlord looking to pivot towards more direct bookings, consider these strategies:
1. **Create a Professional Website**: A well-designed website is the cornerstone of achieving direct bookings. Ensure it is user-friendly, clear about your offerings, and includes high-quality images and testimonials.
2. **Invest in SEO**: Optimising your website for search engines increases its visibility, helping tenants find you more easily. Use relevant keywords related to contractor accommodation, corporate stays, and long-term rentals.
3. **Utilise Social Media**: Platforms like LinkedIn are particularly effective for reaching corporate clients and contractors, enabling you to showcase your properties while building valuable connections.
4. **Offer Incentives**: Encourage direct bookings by offering discounts or additional services, such as complimentary cleaning, to incentivise potential guests.
5. **Maintain Open Communication**: Let clients know they can contact you directly, either through the website or social media. This adds a personal touch, making them more likely to choose direct booking.
H3: The Role of Invoicing Options
Another significant advantage of direct bookings is the flexibility in payment options, including invoicing for corporate clients. Such practices make it easier for companies to secure accommodations for their employees without the fuss of immediate payments, resulting in a smoother booking process.
H2: The Keapr Promise
At Keapr, we pride ourselves on our ability to maximise the occupancy rates of our landlords through innovative direct booking strategies. Our industry expertise means that we cater extensively to contractor accommodation, insurance relocation stays, and corporate bookings across the UK. With an impressive average stay duration and a focus on reducing turnover stress, we strive to provide landlords with peace of mind.
If you are a landlord looking for higher-quality, longer stays, speak to Keapr today.