Maximizing Direct Bookings for Your Short-Term Rental

For many property managers, relying solely on platforms like Airbnb or Booking.com may seem convenient, but it also means giving up control and paying extra fees. What if you could increase your short-term rental profits while staying in control and building direct relationships with your guests without having to pay any commissions?

According to Marcus Rader, CEO of Hostaway “When you rely too much on OTAs, you’re putting the success of your business in someone else’s hands. Direct bookings allow you to control the guest experience from start to finish.”

By focusing on direct bookings, you not only maximize your revenue but also strengthen your connection with guests and enhance your business’s independence. In a recent discussion with Marcus, short-term rental industry expert Derek DeCesere, founder of Sand Stays revealed practical strategies to help rental managers increase direct bookings and take full control of their business’s future.

Why Direct Bookings Are So Important

When you rely solely on Online Travel Agencies (OTAs) like Airbnb or Booking.com, you give up a lot of control over your business. OTAs charge service fees, dictate communication with guests and manage a large part of the guest relationship. By focusing on direct bookings, you cut out these middlemen, keeping more of the profit for yourself and maintaining direct contact with your guests. 

As Derek put it, “Direct bookings are important because we control the guest — communication, information and relationship. They aren’t going through a different channel.”

Building strong guest relationships is another key benefit of direct bookings. When you connect directly with guests, you can provide a more personalized experience, which encourages loyalty and repeat bookings. Over time, this saves you money on OTA fees and creates a more sustainable business model.

4 Key Steps to Increase Direct Bookings

Let’s break down some of the practical strategies Marcus and Derek shared for growing your direct bookings.

1. Build an email list

One of the easiest and most effective ways to increase direct bookings is by building an email list of past and potential guests. Derek explained how his team uses StayFi, a Wi-Fi solution for vacation rentals, to capture guest email addresses:

“StayFi units installed in all properties helped us gain email addresses of anyone using the Wi-Fi. Then, we stayed in touch through monthly email campaigns.”

Once you’ve collected these email addresses, you can send out monthly newsletters or special promotions that include direct booking links. This keeps your property on top of their minds and makes it easy for past guests to book directly for their next stay.

2. Create a direct booking website

How to Build a Direct Booking Website for Your Vacation Rental Business | Hostaway

Having a dedicated booking website is essential if you want to grow your direct bookings. Derek said, “Our direct booking website, created through Hostaway, works perfectly for easy direct bookings.”

Your website should be simple, user-friendly and optimized for mobile devices. Make it clear why guests should book directly with you, whether it’s better prices, special offers or exclusive perks. The simpler you make the booking process, the more likely they are to choose you over an OTA.

3. Offer discounts for direct bookings

People love a good deal and offering discounts to guests who book directly can be a powerful incentive. Derek’s team encourages guests to rebook through their site by offering a small discount. 

Derek explains, “We tell guests that by booking directly through our site, they can save a percentage and be added to our loyalty list.”

This type of loyalty program not only rewards your guests but also encourages repeat bookings, helping you build a strong and loyal customer base.

4. Stay on OTAs but focus on direct bookings

While growing direct bookings should be a priority, staying on OTAs like Airbnb, Booking.com and VRBO is still important for overall visibility. Derek explained how they balance both. He  says, “We push our direct booking strategy but are also on all OTAs to maximize exposure.”

This strategy gives you the best of both worlds. You maintain the broad reach that OTAs offer while encouraging repeat guests to book directly with you. By managing both channels, you can keep your properties fully booked while steadily growing your direct booking numbers.

Best Practices for Email Marketing

“Direct bookings aren’t just about saving money, they’re about building relationships with your guests. You want them to come back and that’s much easier when you have direct communication with them,” explains Marcus. How you go about building and retaining these relationships is through email marketing.

Email marketing is one of the most cost-effective ways to stay connected with past guests and keep them coming back. Derek’s success with email campaigns highlights just how powerful it can be if done right. Here are a few simple tips for getting the most out of your email marketing:

• Send monthly emails: Regular communication keeps your guests engaged and reminds them of your property when they’re ready to book their next trip.

• Personalize your emails: Use the guest’s name and tailor the content based on their previous stay or preferences. Personalization makes your emails feel more genuine.

• Exclusive offers: Reward your email list with special discounts, early booking offers, and perhaps even upgrades for direct bookings.

• Create a loyalty program: Let your returning guests know they’re appreciated by offering them additional perks for booking directly, like priority bookings or added amenities.

Overcoming Challenges in Building Direct Bookings

If you’re starting from scratch, it can feel like an uphill battle to get more direct bookings. Derek was in the same boat when he began his journey but found success by staying consistent. “We started with zero direct bookings and knew we had a problem. But through tools like StayFi, Hostaway and consistent marketing, we’ve been able to grow significantly,” he says.

Growing your direct bookings takes time, but it’s definitely achievable with the right tools and effort. The key is to remain patient and keep building.

Booking strategy and planning ahead

One of the smartest strategies Derek’s team uses is encouraging guests to book in advance. According to Derek, “Our reservations are about 12 months in advance. We’ve dabbled with 18 months, but 12 months seems optimal.”

By encouraging early bookings, they ensure their properties are booked during peak seasons, giving them peace of mind and better financial predictability. If you can, aim to set up your booking strategy in a way that encourages long-term planning for your guests.

Tools to help you increase direct bookings

To simplify the process of growing direct bookings, here are some tools that Derek recommends:

• StayFi: A Wi-Fi solution that captures guest emails and helps you stay connected through email marketing.

• Hostaway: A powerful property management platform that makes it easy to manage direct bookings, automate marketing and create a seamless guest experience.

Risks of Direct Bookings

According to Derek, "When you rely too much on OTAs, you lose control over who’s booking your property. With direct bookings, you can better manage the process, but you have to take on more of the risk."

One of the key concerns with direct bookings is the potential for guests to cause damage or behave irresponsibly. Unlike OTAs, which offer certain levels of guest vetting or protection, direct bookings place more responsibility on the property owner to manage and mitigate risks. 

Another risk is not having the same level of guest verification as OTAs provide, which can lead to uncertainty about the type of guests booking your property. Direct bookings can also involve handling sensitive payment information, which comes with legal and security risks if not managed properly.

How to manage the risks of allowing direct bookings

"With direct bookings, you have more freedom, but you’re also responsible for everything — from payments to guest issues. If something goes wrong, there’s no big OTA to handle it for you, so you have to be prepared," says Marcus

1. Use guest screening tools: Tools like Superhog or taking deposits for direct bookings can help ensure guests are accountable for their behavior. Derek explained: "We started using tools like Superhog for direct bookings and we even take a refundable or non-refundable deposit to protect ourselves. It gives peace of mind and ensures the guest knows we expect them to behave responsibly."

2. Clear communication and expectations: Make sure to establish clear rules with guests before their stay. Collecting a damage deposit upfront can incentivize guests to be more cautious.

3. Build trust and nurture relationships: Marcus emphasized the importance of staying in touch with past guests through email marketing, not only to encourage repeat bookings but also to foster trust. This relationship-building can make guests more respectful of your property.

4. Control payment systems: By managing payments directly through platforms like Stripe, owners can maintain control over refunds and handle guest issues immediately, without relying on OTA policies. Derek shared "We control the payments and make our own rules. This way, we can resolve issues faster, make refunds if necessary and help guests without OTA restrictions."

Direct Bookings Are the Future

If you’re looking to build a successful, sustainable short-term rental business, focusing on direct bookings is a game-changer. As Marcus and Derek shared, growing direct bookings gives you more control, cuts out unnecessary fees and strengthens your relationships with guests.

The journey to maximizing direct bookings may take time, but, by using the right strategies — like building an email list, creating a direct booking website and offering incentives — you’ll soon see more direct bookings and a stronger business. With a consistent approach and the help of tools like StayFi and Hostaway, you’ll be well on your way to a more profitable future for your short-term rental business.