Every booking through Airbnb or Vrbo costs you 3-15% in fees. On a $200/night booking for a week, that’s $40-$200 going to the platform instead of you. Direct bookings eliminate those fees—but they require work to generate.
This guide covers how to build a direct booking channel that complements your platform presence.
The Case for Direct Bookings
The Math
Platform fees add up:
| Scenario | Platform Fee | Annual Cost (if 50% occupied) |
|---|---|---|
| $150/night, 3% fee | $4.50/night | $820/year |
| $150/night, 15% fee | $22.50/night | $4,100/year |
| $300/night, 3% fee | $9/night | $1,640/year |
| $300/night, 15% fee | $45/night | $8,200/year |
Direct bookings at the same rate mean that money stays with you.
Beyond Fee Savings
Direct bookings also offer:
Guest relationship:
- Direct communication (no platform filtering)
- Access to contact information
- Ability to market to past guests
- Stronger relationship building
Operational flexibility:
- Set your own policies
- Create custom offers
- Flexible cancellation terms
- No platform rule changes affecting you
Business stability:
- Not dependent on single platform
- Protection from algorithm changes
- Reduced risk from policy updates
- Multiple revenue channels
The Reality Check
Direct bookings have downsides:
- Harder to generate (no platform audience)
- Require more marketing effort
- Less guest protection (no platform mediation)
- Payment processing responsibility
- Trust-building required (guests trust platforms)
Most successful owners use a hybrid approach: platforms for discovery, direct bookings for repeat guests and referrals.
Building Your Direct Booking Foundation
Your Own Website
A website is your direct booking hub.
Essential elements:
- Property photos and description
- Availability calendar
- Booking/inquiry system
- Contact information
- About/trust-building content
- Local area information
Website options:
| Option | Cost | Complexity | Features |
|---|---|---|---|
| Lodgify | $$/month | Low | Built for vacation rentals |
| Hostaway website | Included with PMS | Low | Integrated with operations |
| Squarespace + booking widget | $$/month | Medium | Design flexibility |
| WordPress + booking plugin | $ setup | Higher | Full control |
| Custom development | $$$ | High | Complete customization |
For most single-property owners, a specialized vacation rental website builder is sufficient and easiest.
Must-haves:
- Mobile responsive
- Fast loading
- Secure (SSL certificate)
- Professional appearance
- Easy booking process
- Clear contact method
Booking System
You need a way to accept bookings:
Options:
- PMS with direct booking capability
- Booking widget integrated with your calendar
- Simple inquiry form (you handle booking manually)
- Third-party booking engine
Key features:
- Calendar sync with platforms
- Payment processing
- Automated confirmations
- Guest communication
- Contract/agreement capability
Payment Processing
For direct bookings, you handle payment:
Options:
- Stripe (most common)
- Square
- PayPal
- Your PMS’s built-in processing
Considerations:
- Processing fees (typically 2.9% + $0.30)
- Fraud protection
- Security compliance
- Deposit handling
- Refund capability
Even with processing fees, direct bookings cost less than platform fees.
Legal Agreements
Without platform terms protecting you, create your own:
- Rental agreement
- House rules acknowledgment
- Cancellation policy
- Liability waiver (where appropriate)
- Damage deposit terms
Have a lawyer review your agreements.
Generating Direct Bookings
Converting Platform Guests
Your best direct booking prospects are past guests.
During their stay:
- Provide excellent experience (they’ll want to return)
- Have business cards available
- Include website in welcome book
- Mention direct booking option for future stays
After their stay:
- Thank-you message with website mention
- Follow up before their next likely trip
- Offer returning guest discount for direct booking
- Add to email list (with permission)
What platforms allow:
- Communication about current or past stay is generally permitted
- Soliciting future direct bookings varies by platform
- Never circumvent platform for bookings originated there
- Read and follow each platform’s terms
Referral Program
Happy guests know other travelers.
Simple referral structure:
- Referring guest gets discount on next stay
- New guest gets discount on first stay
- Win-win incentive
How to promote:
- Mention in checkout communication
- Include in follow-up emails
- Post-stay thank you with referral info
- Business cards for guests to share
Local Marketing
Drive bookings from people who know the area:
Strategies:
- Partner with local businesses
- Local event sponsorship
- Chamber of commerce involvement
- Real estate agent relationships
- Corporate housing connections
Offline presence:
- Business cards at local businesses
- Flyers at appropriate locations
- Word of mouth in community
Online Marketing
Build visibility for your property:
SEO (Search Engine Optimization):
- Optimize website for “[location] vacation rental”
- Create content about local area
- Build local business listings
- Encourage reviews on Google
Social Media:
- Instagram showcasing property and area
- Facebook page for your rental
- Pinterest for travel inspiration
- Consistent, authentic presence
Paid Advertising:
- Google Ads for location-based searches
- Facebook/Instagram ads to targeted audiences
- Retargeting past website visitors
- Test small before spending big
Email Marketing
Stay connected with past guests:
Build your list:
- Collect emails from direct bookings
- Offer newsletter signup on website
- Request permission from platform guests
What to send:
- Seasonal updates about the area
- Special offers and availability
- Property improvements and news
- Local events they might enjoy
Best practices:
- Don’t spam (quarterly or seasonal is enough)
- Provide value, not just sales pitches
- Make unsubscribing easy
- Segment by guest type if possible
Direct Booking Pricing Strategy
Price vs. Platform Rates
How should direct booking rates compare?
Options:
Same as platforms:
- Consistent pricing everywhere
- Guests pay same regardless of source
- You save the fee amount
Discounted from platforms:
- Incentivizes direct booking
- Guests save, you save
- Risk: Undercuts your own platform listings
Premium with added value:
- Same base rate
- Include extras (early check-in, welcome basket)
- Justify direct booking with enhanced experience
Most owners offer a small direct booking discount (5-10%) or added value rather than large price cuts.
Communicating Direct Booking Value
Help guests understand why direct is better:
- “Book direct and save—no booking fees”
- “Returning guests save 10% when booking directly”
- “Direct booking includes early check-in”
- “Questions? Booking direct means talking to me, not a call center”
Trust and Credibility
Why Guests Hesitate
Direct bookings require trust you must build:
Guest concerns:
- “Is this legitimate?”
- “What if something goes wrong?”
- “Who do I contact for problems?”
- “Is my payment secure?”
Building Trust
Social proof:
- Display reviews prominently
- Link to platform profiles
- Share guest testimonials
- Show real photos (including of you)
Professionalism:
- Clean, professional website
- Clear contact information
- Prompt communication
- Detailed policies
Security signals:
- SSL certificate (https)
- Recognized payment processors
- Privacy policy
- Physical address
Transparency:
- Real photos of actual property
- Honest descriptions
- Clear cancellation policy
- Responsive to questions
Guest Protection Alternatives
Platforms offer guest protection. For direct bookings:
Your responsibility:
- Clear refund policies
- Documented house condition
- Responsive problem resolution
- Honest marketing
Optional protections:
- Damage insurance options
- Guest identity verification services
- Property protection coverage
Measuring Direct Booking Success
Key Metrics
Track your direct booking performance:
| Metric | What It Tells You |
|---|---|
| Direct booking percentage | How much you’ve diversified |
| Cost per acquisition | Marketing efficiency |
| Repeat guest rate | Loyalty and experience quality |
| Referral bookings | Word-of-mouth strength |
| Website traffic | Marketing reach |
| Conversion rate | Website effectiveness |
Goals
Realistic direct booking targets:
Year 1: 10-20% of bookings direct Year 2-3: 20-40% of bookings direct Mature property: 30-50%+ direct
Some exceptional operators achieve higher, but platforms still drive significant discovery.
Balancing Platforms and Direct
The Hybrid Strategy
Most successful approach:
Use platforms for:
- Discovery and new guests
- Search visibility
- Trust establishment
- Filling gaps in calendar
Use direct for:
- Repeat guests
- Referrals
- Local marketing leads
- Long-term and extended stays
Over time:
- Reduce platform dependency
- Build direct booking channel
- Maintain platform presence for discovery
- Optimize total revenue across channels
Calendar Management
Keep availability synchronized:
- Use PMS or channel manager
- Block calendar across all channels
- Prevent double bookings
- Update in real-time
Building a direct booking channel takes time but pays dividends. Learn how our management approach maximizes revenue across all booking channels.
