We met in Austin, TX, for a day and a half of panel discussions, round tables, and networking in the sweltering heat of summer 2024. Many of the attendees were growing their short-term inventory in a tough season of competition and “return to normal seasons.” They came looking for insights and answers to their most burning questions — including those around OTAs and direct bookings. 

This panel of experts offered their experience and advice based on their business model and market conditions. What really made this panel session valuable was that each panelist was from a very different type of destination, and each had a unique business model. Interestingly, they all came to the same conclusions about getting more bookings.

Here are the questions the panel was asked:

• What is your usage of the OTAs? Do you leverage them to try and get repeat bookings/increase brand awareness?  Do you mark up your prices on these platforms?
  

• Do you prefer guests book directly on your website? How much money do you spend getting them to do that? I think the mistaken assumption is that this a “free” effort
  

• What is your usage of Social Media? Do you leverage influencers to try and increase brand awareness? (show slides here)
  

• How do you determine the ROI of these efforts?
  

• Once the guest is in property/on site, how do you market to them? How do you get them to come back? Do you have a loyalty program? 

To hear their answers, watch the video recording on YouTube: https://youtu.be/XaOIPg7wZt4

Q&A Discussion

Here are questions from the audience that we didn’t have time to answer:  

Question: What incentive has worked best in persuading guests to book direct? Are there other avenues besides discounts?

Answer: “Discounts are popular, but here are other incentives that work well for direct bookings:

1. Exclusive Benefits:

• Late Check-Out/Early Check-In: Offer flexible check-in/out times just for direct bookers.

• Free Upgrades: Provide room or amenity upgrades for those who book directly.

2. Personal Touch:

• Personalized Experiences: Customize experiences based on guest preferences, like custom itineraries or welcome gifts.

• Loyalty Programs: Create a program with points or perks for repeat direct bookings.

3. Added Value:

• Complimentary Services: Offer free airport transfers, breakfast, or local tours.

• Special Packages: Bundle services like spa treatments, dining experiences, or local excursions.

These perks can make direct booking more attractive without just lowering the price.” — Marianne Heder, PMI Travel

Q: Can you elaborate more on the fees and how you add them on OTA’s to offset fees? How does that affect your sale funnels?

A: “Adding fees to cover OTA commissions can be a bit of a balancing act. Here’s how it generally works:

1. Understanding OTA Fees: OTAs charge a commission, usually between 10% and 20%. To offset this, you can either bump up your nightly rates or add a service fee.

2. Adding Fees:

• Rate Increase: You can raise the base price of your listing to cover the commission. This keeps things simple but might make your property look pricier compared to others.

• Service Fees: Alternatively, you can add a separate service fee, which is more transparent but could surprise guests when they see the final price.

3. Impact on Sales Funnel:

• Awareness Stage: Higher prices might reduce click-through rates if your place seems expensive.

• Consideration Stage: Emphasize your property’s unique perks to justify the higher cost.

• Decision Stage: Be clear about what’s included in the price to help guests feel they’re getting good value.

Finding the right balance is key so you don’t scare away potential guests while covering your costs.” — Marianne Heder, PMI Travel

Q: How does an urban/suburban market vs a true vacation rental marketing strategy differ?

A: “The big difference is the type of renters in each market. Urban markets tend to be more business travelers which means you are typically competing with hotels as well and need to get your costs down as much as possible. Some urban markets do bring in a lot of vacationers and if you can find ways to stick out with amenities and design that other homes in the area don’t offer, you will be more successful. Traditional vacation hotspots you HAVE to have amazing amenities and design to stand out, you typically can partner with local influencers in these markets and succeed with social media, branding and PR.”  - Bryce Cano, Hygge Home Rentals  

A: “Marketing for urban/suburban rentals versus vacation rentals is pretty different because guests are looking for different things.

1. Urban/Suburban Market:

• Target Audience: Mostly business travelers, short-term visitors, or people attending events.

• Marketing Channels: Use platforms like LinkedIn, Google Ads for business travelers, and partner with local events.

• Content Strategy: Focus on how close you are to business hubs, transportation, and local events. Highlight fast Wi-Fi, workspaces, and convenience.

2. True Vacation Rentals:

• Target Audience: Families, couples, groups looking for a getaway.

• Marketing Channels: Use Instagram, Facebook for visual appeal, travel blogs, and influencers.

• Content Strategy: Showcase scenic views, activities, local attractions, and a relaxing vibe. Highlight features like pools, outdoor spaces, and pet-friendly policies.

The key is to tailor your marketing to what your audience is looking for in each type of market.” — Marianne Heder, PMI Travel

Q: How do you find magazines or blogs that are open to writing about your properties? 

A:  “I would start by googling “Best places to stay in (your area)” and reaching out to the authors or blogs that have already written about other homes in your area. Typically, you’d be paying for this. The more you get in, the more organically you will start to be included in others. I find that online blogs are much better than print magazines. Print magazines are cool for the Ego, but no one is going to see your home in a magazine and book it. A good blog lives on forever online and you will continually get bookings from it.”  - Bryce Cano, Hygge Home Rentals 

A: “Getting magazines or blogs to write about your properties takes some research and reaching out:

1. Research:

• Identify Relevant Publications: Look for travel magazines, local tourism blogs, and lifestyle websites that match your property’s vibe.

• Use Online Tools: Platforms like HARO (Help A Reporter Out) can connect you with journalists looking for stories.

• Social Media and Networks: Follow and engage with travel writers and bloggers on Twitter and LinkedIn.

2. Outreach:

• Craft a Compelling Pitch: Highlight what makes your property special and why their readers would be interested.

• Personalize Your Approach: Tailor your message to each publication or blogger, showing you’ve done your homework.

• Provide High-Quality Content: Offer professional photos, engaging stories, and easy access to your property for reviews or stays.

Building these relationships can lead to great exposure for your properties.” — Marianne Heder, PMI Travel

Q: Charge backs can literally kill a business. How do you handle this and protect your direct booking cashflow?

A: “Chargebacks can be a real pain, but here’s how you can manage them:

1. Prevention:

• Clear Policies: Make sure your cancellation, refund, and damage policies are easy to find and understand.

• Confirmation and Communication: Send booking confirmations right away and keep in touch with guests to address any issues early.

2. Fraud Detection:

• Verification Systems: Use secure payment gateways with fraud detection.

• Identity Checks: Verify IDs for bookings, especially for high-value properties or longer stays.

3. Handling Disputes:

• Documentation: Keep detailed records of all transactions and communications. This helps when you need to dispute a chargeback.

• Responsive Customer Service: Address disputes quickly and professionally. Sometimes a friendly chat can resolve issues before they turn into formal chargebacks.

4. Chargeback Management Services: Consider third-party services that specialize in managing and disputing chargebacks.

These steps can help you protect your cash flow from direct bookings.” — Marianne Heder, PMI Travel

Q: Can you name & rank 1-5 the best marketing channels based on ROI? 

A: “Here’s a list of marketing channels ranked by ROI, though it can vary depending on your specific situation:

1. Email Marketing:

• Pros: High ROI because it’s cheap and directly reaches interested people.

• Cons: Needs a good mailing list and engaging content.

2. Search Engine Optimization (SEO):

• Pros: Organic search traffic brings consistent, high-quality leads.

• Cons: Takes time and ongoing effort.

3. Pay-Per-Click (PPC) Advertising (Google Ads):

• Pros: Instant visibility and targeted reach.

• Cons: Can get expensive if not managed well.

4. Social Media Advertising:

• Pros: Great for targeting specific groups and visually engaging.

• Cons: ROI can be harder to measure, needs compelling content.

5. Affiliate Marketing:

• Pros: Pay only for actual conversions, expands reach through partners.

• Cons: Requires finding and managing reliable affiliates.”

  — Marianne Heder, PMI Travel

A: “The top channels that show up in Google Analytics across all my clients as having sent converted traffic to the website include (and these change in order/rank based on the company): Paid Search (Google Ads), Email Marketing, Paid Social, and Referral. The easiest ROI to prove is Google Ads, but that is a bottom-of-the-funnel measurement, meaning the last thing a guest does before they book is click on an ad that matches what they are trying to book. There is a tracking code in place to follow that user from that click to the point of purchase on the website. The hardest ROI to track is word of mouth, especially social media because we can’t track that the guest saw your brand mentioned in a private Facebook group then did a Google search or decided to follow you on social media because of that. I also think Instagram is actually a lot better at sending traffic that converts but most brands don’t have the user flow optimized. And lastly, some would say OTAs are the highest ROI because they snag guests from those platforms to book direct.” — Rebecca Lombardo, VendorVibes

Q: Knowing that social is a long-term play, can you share any booking conversions from the campaigns you shared earlier?

A: “Currently we drive traffic to Airbnb for The Drive In, so we don’t have conversion numbers. We do see a large increase in bookings whenever a video goes viral though. Once we finish the website, we will have better data of who is booking and from where.” - Bryce Cano, Hygge Home Rentals

A: “Social media definitely takes time to build up, but it can lead to bookings if done right. Here’s an example from recent campaigns:

1. Instagram Campaign: We ran a targeted campaign showing off a property’s unique features and local attractions.

• Content: High-quality images, videos, and stories, plus influencer partnerships.

• Results: Engagement went up 40%, with a 15% increase in direct bookings within three months.

2. Facebook Ads:

• Targeting: Custom audiences based on past visitors and lookalikes.

• Content: Carousel ads highlighting special offers and testimonials.

• Results: Achieved a 10x return on ad spend (ROAS) and boosted off-peak season bookings.

These campaigns show that while social media builds brand awareness, it can also drive direct bookings when done right.” — Marianne Heder

Q: What incentive has worked best in persuading guests to book direct? Are there other avenues besides discounts?

A: “It depends where they are coming from. If you are trying to steal them from an OTA, the only way they are going to book is with a discount from that OTA. What’s great about Social Media, is that when someone finds you, they are literally on a High. Their dopamine levels are raised, and they decided to book because of an amazing video they saw. They aren’t comparing your prices to all the other properties they are seeing on an OTA. So if you can get most of your direct booking traffic from Social Media, you don’t have to lower your rates (which means higher margins). If you are building repeat business through Email campaigns, you can usually get away with not offering discounts because the guest is coming back to a place that they already love and know that you are offering an amazing experience.” - Bryce Cano, Hygge Home Rentals

 

Q: OTAs have done a lot to establish trust. How do you instill a similar level of trust to drive direct bookings? 

A: “At bnbfinder, we are doing it by creating a Book Direct OTA. In other words, give travelers the trust they get from the OTA’s on a platform that drives direct bookings. Bnbfinder is the first PMOTA. An OTA built specifically for professional PMs only. We vet all of our PMs, unlike the other OTAs. The fact that you have to be a vetted professional PM to be on our site is one of the things we do to protect the traveler and establish trust.” — Eric Goldreyer

A: “There are at least three ways to build trust with a potential future guest. Reviews are usually the best place to start, but they are not trustworthy enough to rely on entirely. They have to be backed up with user-generated content on social media and a history of engagement there. You can also build trust by clearly stating terms and conditions in an agreement that the guest needs to sign in order to complete the booking. It’s a legal promise the brand is willing to make with the guest. Additionally, websites will have an About Us section with a photo of the owners, managers and staff, to show they are real people who are really responsible for the experience of the stay. They also tend to put logos of their business alliances on their site as well.”  – Rebecca Lombardo, VendorVibes 

A: “Building trust for direct bookings involves several strategies:

1. Professional Website:

• User Experience: Make sure your site is user-friendly, fast, and secure (SSL certified).

• Detailed Listings: Provide detailed property descriptions, high-quality photos, and virtual tours.

2. Customer Reviews:

• Testimonials: Show off positive reviews from past guests.

• Third-Party Review Platforms: Link to reviews on trusted sites like TripAdvisor or Google Reviews.

3. Transparent Policies:

• Clear Policies: Make your cancellation, refund, and damage policies easy to find and understand.

• Guest Support: Offer excellent customer service with responsive support (live chat, phone, email).

4. Safety and Security:

• Secure Payments: Use trusted payment gateways and reassure guests their payment info is safe.

• Cleanliness Standards: Highlight your commitment to cleanliness and safety, especially post-pandemic.

These steps can help build trust and encourage direct bookings.” — Marianne Heder, PMI Travel

Question: How do you protect your properties with direct bookings without protection from OTAs (e.g., aircover from Airbnb)?

A: “Protecting your properties when accepting direct bookings requires a few strategies:

1. Security Deposits:

• Hold a Deposit: Collect a security deposit to cover potential damages.

2. Insurance:

• Property Insurance: Make sure you have adequate property insurance that covers direct bookings.

• Guest Liability Insurance: Consider offering or requiring guests to purchase liability insurance.

3. Screening Guests:

• Verification: Verify IDs and conduct background checks if needed.

• Rental Agreements: Have guests sign a rental agreement that outlines rules and responsibilities.

4. Property Management:

• Regular Inspections: Conduct regular inspections before and after guest stays.

• Emergency Contacts: Provide guests with clear instructions for emergencies and ensure they have access to support.

These measures help ensure your property is protected even without OTA protections.” — Marianne Heder, PMI Travel

Q: Can you talk about your rebooking marketing flow?

A: “Jodi Cleer spoke to her in-property marketing pieces like business cards that have a QR code on them capturing guests into her rebooking funnel. Most brands will offer a 5% to 10% discount to guests on their next stay before they’ve even checked out. Some brands will email guests on the anniversary of the date they last booked with them, inviting them to return. For annual destination markets, this usually works well even if they don’t book the same house again. It’s also common practice to to place a Facebook tracking pixel on the website to capture users for retargeting them with social media ads about promotions. Overall, it’s a constant drip over email and social media. Each brand tweaks the timing and messaging of that drip to make sure it’s enough to be a friendly reminder but not so annoying that they opt out.” – Rebecca Lombardo, VendorVibes