Why 64% of Our Bookings Are Direct – The Power of Non-OTA Distribution
In the competitive landscape of short-term rentals, understanding the distribution model is crucial for landlords aiming to maximise their profit margins. At Keapr, we’ve found that 64% of our bookings come from direct channels rather than traditional online travel agencies (OTAs) like Airbnb and Booking.com. This statistic not only highlights a significant trend but also showcases the importance of diversifying your booking strategies.
H2: Non-OTA Distribution: A Smart Move for Landlords
Many landlords still rely heavily on OTAs for their bookings. While these platforms can certainly generate exposure, they also come with substantial commission fees, often cutting into landlords’ profits. Non-OTA distribution channels, including direct bookings, contractor and insurance databases, and corporate partnerships, offer an attractive alternative.
H3: Benefits of Direct Bookings
1. **Higher Profit Margins**: Direct bookings bypass the commission fees associated with OTAs. Landlords can retain a larger portion of the rental income.
2. **Simplified Invoicing**: Through direct corporate relationships, we can provide invoicing options to corporations and contractors. This means payment processing is faster and more reliable, allowing for improved cash flow.
3. **Stability in Occupancy**: Direct bookings typically involve longer stays, averaging between 30 to 90+ nights. This stability can significantly reduce void periods, particularly compared to the often short stays associated with leisure guests.
4. **Quality Tenants**: With a focus on corporate stays and contractor accommodation, landlords benefit from responsible tenants. These guests are less likely to engage in disruptive behaviour, which decreases wear and tear on the property.
H2: The Role of Distribution Channels
Utilising a variety of distribution channels is key to maximising reach and occupancy. At Keapr, we have developed relationships with over 92 channels to ensure our clients’ properties receive the attention they deserve.
H3: Contractor and Insurance Database Distribution
One of our unique strengths lies in our contractor and insurance database distribution. These platforms connect displaced tenants—such as those affected by insurance claims—with landlords offering suitable accommodation. This type of booking often lasts longer than typical holiday rentals, providing landlords with a steady income source.
H3: Corporate Relationships
By building direct relationships with corporations, we open up opportunities for longer stays. Companies frequently seek accommodation for employees on assignments or relocations, making corporate stays a lucrative option. Direct bookings with corporates eliminate the hassle of intermediary platforms while ensuring reliable payment.
H2: How to Tap Into Non-OTA Distribution
If you’re considering diversifying your booking methods, here are some steps you can take:
1. **Develop Relationships**: Start fostering connections with local businesses, insurance companies, and organisations that often relocate employees. Networking can lead to direct booking opportunities.
2. **Market Your Property**: Ensure your property is marketed across several channels, both digital and offline. A well-optimised property listing is key to attracting both corporate and contractor tenants.
3. **Offer Flexibility**: Providing appealing pricing structures and flexible rental agreements can make your property more attractive to businesses looking for a stable accommodation solution.
4. **Join Professional Networks**: Participate in local landlords’ associations or industry forums to stay informed about best practices and opportunities in the short-term rental market.
H2: The Bottom Line
The move towards non-OTA distribution is not just a trend; it’s a strategic shift that can lead to increased profitability for landlords. With 64% of our bookings arising from direct channels, Keapr is testament to the potential that this model holds. By effectively utilising a mix of contractor and insurance databases alongside corporate relationships, landlords can find themselves with higher-quality bookings, reduced void periods, and ultimately, greater financial security.
If you are a landlord looking for higher-quality, longer stays, speak to Keapr today. [Link to: Keapr Services Page]