360. Hosting Hotline: Should Direct Bookings Earn More Revenue Than OTAs?

Thanks For Visiting

English - May 21, 2024 10:00 - 13 minutes - 12.1 MB - ★★★★★ - 547 ratings
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Previous Episode: 359. Why Dynamic Pricing Should Be Your #1 Priority as an Airbnb Host

Next Episode: 361. We Bought Land (Part 2): How to Use ChatGPT in Your Vacation Rental Competitive Analysis

Welcome back to the Hosting Hotline! This is an Ask Me Anything where each week we’ll answer your questions on Airbnb, STRs, real estate, and everything in between.

Angela asks:

One of my properties has a 60% direct booking rate. I'm trying to figure out the best way to adjust my pricing so that my net earnings on a direct booking is slightly higher than when guests book through a third-party platform.

Right now, if I get an Airbnb booking, I pay 3% commission to Airbnb. If I get a direct booking, I pay a 3% commission to Stripe in credit card fees. So I net the same either way, it's only the guest that saves money by booking directly.

I know I can add a booking fee for direct bookings that would increase my bottom line, but I think a long list of fees is a turnoff for guests. I'm curious what's worked for you and what percentage do you add, if any, to your direct booking rate so that you're netting more?

(00:02:03) How Can I Boost Bottom-Line Revenue via Direct Bookings?

(00:03:39) Reframing the Inherent Value of Captured STR Customer Data

(00:05:26) Leveraging PriceLabs Dynamic Pricing to Boost Revenue

Thanks to everyone who submitted questions. To hear your voice on the show and send a question to Sarah and Annette, submit your burning hosting questions at: hostinghotline.com.

Resources:

• Click here for full show notes

• Check out PriceLabs: Start your 30-day free trial

• Angela's properties: lazypinesnm.com

• Video: Dynamic Pricing Software for Airbnb & Short Term Rentals

• Airbnb Essentials Checklist: hostchecklist.com

Thanks for Visiting is produced by Crate Media.

Mentioned in this episode:

Hosting Business Mastery Method | Join us for our live, free, host masterclass and learn how to OWN your digital real estate!

HBMM | Sign up today at hostmasterclass.com.

Quiz | Take our quiz to reveal your hosting personality style!

Host Checklist | Grab our Airbnb Essentials Checklist and make stocking your Airbnb a breeze – we've got all your hosting needs covered!