Direct Bookings vs. Airbnb/VRBO: Change My Mind

Direct Bookings vs. Airbnb/VRBO: Change My Mind

Miami · Member since 2013 · 42 posts · 24 votes

I've been contemplating the potential benefits of focusing on direct bookings for my vacation rental properties, as opposed to relying primarily on platforms like Airbnb and VRBO. Historically, 95% of my business has come through Airbnb, where I've found their process for handling guest issues and damage claims to be quite effective. I’m reaching out to those who have experience with direct bookings to help me understand the true value of this approach.

My Perspective:

  • -While direct bookings could save on platform fees, my concern is whether this saving is offset by the potential challenges in managing damages and guest issues without the support structure provided by Airbnb or VRBO.

I'm Looking For Insights On:

  • -Your experience with the volume of direct bookings versus platform bookings.
  • -Strategies you’ve employed to mitigate issues that arise from direct bookings, especially in terms of damage claims and guest management.
  • -Whether the financial benefits of avoiding platform fees outweigh the potential hassles and risks involved in direct bookings.
  • -Any systems or processes you’ve developed to streamline direct bookings and maintain profitability.

I'm open to having my mind changed! If you've found success with direct bookings and have navigated these challenges effectively, I’d love to hear your story. Your insights could be incredibly valuable in helping me to evaluate the potential shift towards more direct bookings.

Please share your experiences, insights, and any advice you have on this topic.

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Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
2y

We started doing direct bookings about a year ago.  I would say at this point I am up to 10% of my bookings being direct now.  I anticipate this to continue to rise.  

I felt the same way as you for awhile. I will never be able to market as good as AirBnb and VRBO, I will never be able to compete in SEO with those guys.  Plus they handle all that stuff plus insurance and all that good stuff.. Why would I want to go direct for the guest to save  little bit of money?

Realize going direct is not going to benefit you on a per booking basis as far as how much you make unless you adjust your nightly rate higher than what you do on the platforms.  You still have to pay a 3% payment processing fee either way, whether to the platform or to something like stripe when you go direct.  

So why am I pushing direct?  Because I have experienced algorithm changes over the years that were completely unexplainable, where properties that have been high in the rankings all of the sudden stop booking with no viable explanation.  I have seen this a few times now.

I have also seen properties with 3 to 3.5 star ratings, rank ahead of my properties which have years worth of 5 star reviews.  That is not how it should work, but it is something I can't control.

I have also been told ludicrous things by the platforms, where they side with a guest who is clearly in the wrong and manipulating the system, yet the platform sides with them.  

I have also seen a platform shut hosts down over things that it shouldn't be shut down for.

Basically, when you solely rely on the big platforms you are at their mercy. period.  I don't like all my eggs in one basket.  

A large portion of direct bookings are repeat guests, but not all.  So most of these are guests that have already been vetted if you will. So typically no problems with those guest, and those that are not repeat, if something happens I don't like, I put them on the do not rent list and move on.

I have been doing this for about 6 years now, and we have had some issues with guests, but the reality is those big problems are few and far between, and the big problems are generally not all that big, but just seem so at the time because you are so ticked off about it.

Direct booking does create additional work as now I have to collect and remit taxes, and handle payment processing.  But mainly to me, direct booking is an insulator.  The more I don't have to rely on the big platforms the better.  That is the real driver for me.




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  • Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
    2y

    We started doing direct bookings about a year ago.  I would say at this point I am up to 10% of my bookings being direct now.  I anticipate this to continue to rise.  

    I felt the same way as you for awhile. I will never be able to market as good as AirBnb and VRBO, I will never be able to compete in SEO with those guys.  Plus they handle all that stuff plus insurance and all that good stuff.. Why would I want to go direct for the guest to save  little bit of money?

    Realize going direct is not going to benefit you on a per booking basis as far as how much you make unless you adjust your nightly rate higher than what you do on the platforms.  You still have to pay a 3% payment processing fee either way, whether to the platform or to something like stripe when you go direct.  

    So why am I pushing direct?  Because I have experienced algorithm changes over the years that were completely unexplainable, where properties that have been high in the rankings all of the sudden stop booking with no viable explanation.  I have seen this a few times now.

    I have also seen properties with 3 to 3.5 star ratings, rank ahead of my properties which have years worth of 5 star reviews.  That is not how it should work, but it is something I can't control.

    I have also been told ludicrous things by the platforms, where they side with a guest who is clearly in the wrong and manipulating the system, yet the platform sides with them.  

    I have also seen a platform shut hosts down over things that it shouldn't be shut down for.

    Basically, when you solely rely on the big platforms you are at their mercy. period.  I don't like all my eggs in one basket.  

    A large portion of direct bookings are repeat guests, but not all.  So most of these are guests that have already been vetted if you will. So typically no problems with those guest, and those that are not repeat, if something happens I don't like, I put them on the do not rent list and move on.

    I have been doing this for about 6 years now, and we have had some issues with guests, but the reality is those big problems are few and far between, and the big problems are generally not all that big, but just seem so at the time because you are so ticked off about it.

    Direct booking does create additional work as now I have to collect and remit taxes, and handle payment processing.  But mainly to me, direct booking is an insulator.  The more I don't have to rely on the big platforms the better.  That is the real driver for me.




  • Miami · Member since 2013 · 42 posts · 24 votes
    2y
    Quote from @Ken Boone:

    We started doing direct bookings about a year ago.  I would say at this point I am up to 10% of my bookings being direct now.  I anticipate this to continue to rise.  

    I felt the same way as you for awhile. I will never be able to market as good as AirBnb and VRBO, I will never be able to compete in SEO with those guys.  Plus they handle all that stuff plus insurance and all that good stuff.. Why would I want to go direct for the guest to save  little bit of money?

    Realize going direct is not going to benefit you on a per booking basis as far as how much you make unless you adjust your nightly rate higher than what you do on the platforms.  You still have to pay a 3% payment processing fee either way, whether to the platform or to something like stripe when you go direct.  

    So why am I pushing direct?  Because I have experienced algorithm changes over the years that were completely unexplainable, where properties that have been high in the rankings all of the sudden stop booking with no viable explanation.  I have seen this a few times now.

    I have also seen properties with 3 to 3.5 star ratings, rank ahead of my properties which have years worth of 5 star reviews.  That is not how it should work, but it is something I can't control.

    I have also been told ludicrous things by the platforms, where they side with a guest who is clearly in the wrong and manipulating the system, yet the platform sides with them.  

    I have also seen a platform shut hosts down over things that it shouldn't be shut down for.

    Basically, when you solely rely on the big platforms you are at their mercy. period.  I don't like all my eggs in one basket.  

    A large portion of direct bookings are repeat guests, but not all.  So most of these are guests that have already been vetted if you will. So typically no problems with those guest, and those that are not repeat, if something happens I don't like, I put them on the do not rent list and move on.

    I have been doing this for about 6 years now, and we have had some issues with guests, but the reality is those big problems are few and far between, and the big problems are generally not all that big, but just seem so at the time because you are so ticked off about it.

    Direct booking does create additional work as now I have to collect and remit taxes, and handle payment processing.  But mainly to me, direct booking is an insulator.  The more I don't have to rely on the big platforms the better.  That is the real driver for me.





     Cool, and a resounding yes to all the headaches the big platforms now place on hosts. Just gets tougher and tougher with them.

    You collecting a security deposit with these direct bookings? If repeats, probably not a big deal. but new guys, maybe?

    Basically, the funnel for a guest to do a direct booking seems to be "Find listing on Airbnb/VRBO etc. Check if listing shows some kind of branding. Google brand, contact direct, get discounted stay" 

    Is there another marketing play to get deal flow, i.e. SEO, Google Ads, Social Media, etc or not worth it as the expense this creates just strips whatever premium you'd get with higher rates?

    Seems like logical thing to build out, and I've certainly done direct deals in the past without issue.

    Guess in the end, it's just a long term play. Build some long term client relationships that continue to visit year after year. This happens regardless as previous guests just call or text me routinely. 

    The platforms just seem like a necessary evil and dealing with their nonsense will always be a requirement. 

  • Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
    2y

    @Neal Z. I do not collect security deposits.  Is it going to bite me one day, maybe, but so far it hasn't been an issue.  I might change down the road but as of right now I do not.

    Yes guests find it on the platforms and google the brand. 

    We also have a mailing list, were I send out emails about once every other month, or in between if something special is happening, we post to instagram, facebook and sometimes YT

    I also have two free iPhone Apps I have developed called the Pigeon Forge Pocket Guide and the Gatlinburg Pocket Guide.  I market my cabins through those apps as well.

    My focus this year is to really focus more on social media growth and marketing via google and facebook ads.

  • Miami · Member since 2013 · 42 posts · 24 votes
    2y

    Awesome, thanks @Ken Boone

    Hired VA this year to build out social media presence, post daily, interact with people, etc. We'll see where it leads.

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y

    I agree that Vrbo and Airbnb will likely be the bulk of your business. They spend millions on advertising. 

    Can you pick up some percentage? Absolutely. 

    Can you market to people to get them to come back and book direct. Absolutely. 

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    A few key points...

    First, serious hosts MUST have a direct booking site. If one is not in the foreseeable future, expect to be left in the dust, so to speak, when it comes to STR hosting/business.

    You'll always get the majority of bookings from VRBO/Airbnb because people trust those sites, and book faster on there then a direct site. But a direct site is great to get guests to return and tell family and friends. 

    If you have a direct site, you'll want to check into Autohost for guest screening, and Waivo or Safely for damage protection. And of course, your homeowners should already be through a company like Proper Insurance.

    You cannot advertise a direct booking site in any way, shape, or form on Airbnb/VRBO unless you want to get banned from the OTA. So, it's best to go hard on the google my business, social media, some have done Facebook ads, and email/text marketing.

    Due to fees the OTA's add on for the guests, you can actually raise your ADR a bit on a direct site and still come in cheaper. This tactic helps to offset processing fees and website costs.

    When it comes to STR market you must be strong in marketing, especially for a direct booking site. If you can find someone to help you market properties or if it's something your good at, then lean into marketing strongly, no matter where your STR is listed! I can promise you won't regret it!

  • Miami · Member since 2013 · 42 posts · 24 votes
    2y

    c'mon can't I just go back to the days when IKEA furniture and iPhone photos made money?

  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    2y

    As a self manager, there is no feasible way to gain direct bookings that are even somewhat proportionate to your efforts.  It just won’t happen.

    As a PM We spend two to three $ thousand a month on socials, yet still a bulk of our bookings come from the VRBO channels. 

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I find Airbnb to be arbitrary and very guest sided with any guest issues, unfortunately.  VRBO and the other 14 platforms I find to be much better.  I like to control the refunds, not someone offshored with no prior knowledge of my business, etc.

    Also there have been horror stories about people being taken off of Airbnb for a variety of reasons.  Many may be legitimate, but I have heard about mistaken identity leading to being off Airbnb for weeks/months.  I do not feel I have a real business if I depending on 1 other business to have a business and without my business would fail entirely.

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