Why 64% of Our Bookings Are Direct – The Power of Non-OTA Distribution
The landscape of short-term rentals has evolved significantly in recent years, with landlords increasingly exploring alternative avenues for rental bookings. At Keapr, we have found that a remarkable 64% of our bookings come directly—bypassing traditional online travel agencies (OTAs) like Airbnb and Booking.com. This trend signifies not just a shift in booking behaviour, but also highlights the power of non-OTA distribution for landlords looking to maximise profitability while reducing associated risks and expenses.
H2: Understanding the Value of Direct Bookings
Direct bookings offer numerous benefits that appeal to landlords managing short-term rental properties. Here are several key advantages of moving away from conventional OTA reliance.
H3: Higher Profit Margins
When you book through an OTA, you often incur commission fees that can range from 15% to 20% per booking. By facilitating direct bookings, landlords keep that revenue in-house instead of handing a significant slice to third-party platforms. This is particularly beneficial for those offering corporate stays or longer-term workforce accommodation, where margins can be tighter due to additional services and amenities provided.
H3: Stable Cash Flow
Direct bookings often lead to longer stays, averaging anywhere from 30 to 90+ nights. This extended duration helps stabilise your cash flow, as filling a property for just a weekend can be more challenging and inconsistent compared to securing longer commitments from contractors or corporate clients. Regular, consistent bookings provide landlords with predictable income, easing financial pressures.
H3: Reduced Wear and Tear
With direct bookings, particularly those from corporate clients and insurance relocations, you can expect a more respectful tenant demographic. Unlike typical weekend guests, who may treat your property more casually, contractors and corporate tenants are generally more mindful of the properties they inhabit. This not only reduces wear and tear but also lowers maintenance costs for landlords.
H2: Strategies for Driving Direct Bookings
So how does a landlord effectively drive direct bookings? Keapr employs several proven strategies to enhance visibility and attract high-quality tenants directly.
H3: Leverage of a Varied Distribution Network
One of the key aspects of our approach is utilising a vast distribution network. With access to over 92 distribution channels, Keapr connects with a diverse audience—from contractors seeking temporary accommodation to insurance companies needing immediate housing solutions for their clients. By leveraging this network, landlords can effectively direct tenants towards their properties without relying solely on OTAs.
H3: Forge Corporate Relationships
Establishing direct relationships with corporations can yield stable, longer-term bookings. These organisations often prefer to work with landlords directly for contractor accommodation. It’s beneficial not only for the predictable cash flow but also for establishing a reputation among corporate clients who require reliability and quality in their rental experiences.
H3: Offering Flexible Invoicing Options
Many corporate clients prefer invoicing arrangements, which can streamline the payment process. Offering flexible invoicing options can make a property more attractive to this demographic, as it simplifies the transaction process and aligns with their financial management practices.
H2: The Role of Client Relationships
Building strong relationships with tenants is essential for encouraging direct bookings. Good communication and attentive service often lead to repeat visits and referrals. Here are some aspects to consider:
H3: Excellent Customer Service
Prompt responses to inquiries and a willingness to accommodate special requests can set you apart from others in a crowded market. By providing a great experience, tenants are more likely to recommend your property to colleagues and businesses.
H3: Encourage Repeat Business
If a corporate tenant has a good experience in your property, they are likely to return for future projects. Building a rapport with clients—offering discounts for repeat stays or personalised touches—ensures that your property remains top-of-mind for their future needs.
H2: Conclusion
The growing dominance of direct bookings in the short-term rental market is a trend that UK landlords can’t afford to ignore. By utilising non-OTA distribution methods, you can enhance profitability, ensure a more stable cash flow, and reduce property wear and tear. The strategic approaches put forward by Keapr—combined with our expansive distribution channels and direct client relationships—create a win-win solution for landlords and tenants alike.
If you are a landlord looking for higher-quality, longer stays, speak to Keapr today.