Tuesday, 25 June 2019
Direct Bookings: Everything vacation rental managers need to know
Vacation rentals used to function almost exclusively through Direct Bookings. Guests would make their reservation directly with the property owner or manager, having discovered them through local advertising or word of mouth. When the industry moved online around the start of the millenium, Direct Bookings by owners grew a lot because it was easier to reach more people. 바카라 총판 In the early days it functioned on a listing model – owners would pay a price per year to have their property listed on websites like HomeAway. All bookings were managed between the owner and guest, with no commission to the channel. Then Airbnb came along and changed the game by introducing a commission based model. This has been adopted by all major players in recent years, bringing with it a significant reduction in the prevalence of Direct Booking vacation rentals.
Nowadays more than half of all vacation rental bookings are made through an OTA or sales channel like Airbnb, Booking.com, 바카라 총판모집 HomeAway and others. Opinion is divided on whether or not that’s a good thing. Guests like the convenience and security that these platforms provide, meaning more bookings are made and the vacation rentals industry grows larger and more lucrative every year. Additionally, many property managers now find it easier to secure bookings because they can make their property easily visible to a huge marketplace of guests. This is especially true for managers using channel managers and services such as Your.Rentals who publish their property listings on dozens of different websites to maximise exposure.
But with sales channel commissions increasing all the time, and a larger percentage of bookings being charged OTA commissions, 바카라 출목표 many vacation rental managers are finding that their profit margins are becoming squeezed. And with companies like Airbnb making inroads into direct property management, owners and managers are understandably hesitant to put all of their property management eggs into the proverbial sales channel basket, lest their listings suddenly fall out of favour and start slipping down the search results. Additionally, Google’s increasing interest in the vacation rentals market has certainly caught the attention of many in the business, all of whom are asking:
“What exactly does this mean for property managers today?”
Whilst OTAs aren’t going anywhere anytime soon, 바카라 카지노 those with one eye on the future are reconsidering the importance of Direct Bookings in their vacation rental property management strategy. Direct Bookings as the name suggests are those made directly between a guest and the owner or manager of the property. In the truest definition, there are no middlemen or services between the two parties, but essentially Direct Bookings refers to those made without the help of OTAs or sales channels.
So why are Direct Bookings worth spending your time on? Well for starters, you can immediately cut out the costs and commissions associated with sales channel bookings. This leaves a greater share of revenue for the host. In many cases this can also justify a lower price being charged to the guest, who will undoubtedly be happy to cut out the booking fees charged by sales channels (a happy guest is your most valuable sales tool! More on that in a moment).