In an industry dominated by platforms like Airbnb and Vrbo, vacation rental managers are grappling with a significant shift. Skift Research’s latest report reveals that while online travel agencies (OTAs) remain the go-to for most travelers, there’s a brewing shift toward direct bookings in other travel sectors like hotels and flights. Could vacation rentals follow suit? Here’s why this trend is more than just a ripple and how managers can ride the wave to higher profits.
What’s Happening:
- Vacation Rentals Dominated by OTAs: 64% of travelers book vacation rentals through platforms like Airbnb, Vrbo, and Booking.com. Direct bookings lag behind at only 23%.
- Airbnb & Vrbo Are Leading: Airbnb continues to shine with features like Superhost status, a major trust signal for users, and flexible check-in options that cater to convenience-obsessed travelers. Vrbo, with its family-friendly focus, has captured a strong niche, appealing to multigenerational travelers and large groups.
- Booking.com’s Growing Influence: Originally focused on hotels, Booking.com is gaining ground in vacation rentals by offering a broad range of accommodations and strong comparison tools.
Why You Should Care:
- Direct Bookings Are on the Rise Elsewhere: As consumers become savvier, they’re realizing the benefits of booking direct—especially in sectors like hotels, where perks like lower prices, flexible cancellations, and direct communication with the host are increasingly in demand. It’s only a matter of time before the vacation rental market catches on.
- Demand for Flexibility: Consumers crave more than just a place to stay. They want control, flexibility, and transparency—things OTAs are struggling to offer without hefty fees or restrictions. Across hotels and flights, travelers are increasingly skipping intermediaries and going direct, drawn by perks like:
- Better pricing—with no hidden OTA fees.
- More flexible cancellation policies—which are crucial in today’s unpredictable travel climate.
- Direct communication with property owners—building trust and ensuring a smoother experience.
What You Should Do:
- Optimize Your Direct Booking Channel:
- Upgrade your website: Ensure it’s mobile-friendly, easy to navigate, and offers a seamless booking experience.
- Simplify communication: Provide quick, easy ways for travelers to reach you via chat, email, or phone.
- Offer competitive pricing and flexibility: Highlight features like free cancellation and exclusive perks that OTAs don’t offer.
- Leverage the “Billboard Effect”: Promote Your Brand on OTAs
While OTAs don’t allow direct contact information, you can still promote your brand subtly. Use a custom host profile name that includes your brand or property name. For example, “Sunset Villas by XYZ Rentals” helps guests recognize and search for your brand online.
- Craft a compelling host bio and listing description that builds trust and showcases your property’s unique features. This creates a strong brand presence even on OTA platforms.
- Retarget Visitors to Your Website: If a traveler visits your direct booking website (whether they found you via an OTA or elsewhere), you can use tools like Facebook Pixel or Google Ads to set up retargeting campaigns. These ads will follow visitors across platforms, reminding them to return and book directly with you.
- Use Social Media & Email to Engage OTA Visitors: Encourage travelers to follow your brand on social media via your OTA listing descriptions. Once they follow your social profiles, you can target them with content, promotions, and incentives to book directly in the future.
- Include calls-to-action like “Follow us for exclusive deals” on your OTA profiles to build long-term engagement.
- Focus on SEO and Organic Search: Make sure your brand and property name are easy to search for online. Many travelers will Google your property after seeing it on an OTA. Optimize your website to ensure it appears at the top of search results when travelers look for your brand directly.
- Build Trust with Travelers:
- Showcase guest reviews and testimonials: Display positive reviews from past guests prominently on your website. Trust in the supplier is key to securing direct bookings.
- Offer transparency: Be upfront about pricing, amenities, and policies. Hidden fees are a top frustration for OTA users—avoid this by clearly communicating all costs on your website.
- Highlight local expertise: Provide personalized recommendations, local guides, and experiences that set you apart from large platforms.
- Invest in security: Add trust signals like secure payment options, SSL certificates, and badges from trusted review platforms (e.g., Trustpilot, TripAdvisor) to your booking site.
- Promote Exclusive Offers:
- Direct-only deals: Offer discounts, special amenities, or perks like early check-in or free experiences for travelers who book directly.
- Loyalty programs: Encourage repeat bookings by creating a simple loyalty program that rewards direct bookings with points or discounts on future stays.
The Time to Act is Now
OTAs are powerful, but direct bookings offer the potential for higher profits, stronger relationships, and greater control. The window of opportunity is open—savvy vacation rental managers who capitalize on this shift now will set themselves up for long-term success.
As the travel landscape evolves, the question is no longer if vacation rentals will follow the direct booking trend—it’s how fast. Are you ready to ride the wave?
