Before delving deeper, it’s crucial to understand their primary goal. It’s not about renting out your place; it’s about increasing their conversion rates! Which property gets booked does not matter to them at all! These platforms thrive on providing travelers with a one-stop shop for their travel needs, and since they invest heavily in advertising. The faster the guest books something the better it is for them.
As a short-term rental host, your success on these platforms depends on a few key factors: You must ensure your property has a competitive price, an enticing description, captivating images, the highest reviews, and, most importantly, a conversion rate that outshines your competitors.
When you have these ingredients you will be automatically pushed on the first page of searches. If you do not, then you will be buried somewhere on the last page where nobody looks.
When you decide to list your property on OTAs, you open the door to a global audience. These platforms have established themselves as search engine giants, consistently appearing at the top of search results for any location.
For those starting in the short-term rental business, they become a crucial element in receiving guests.
Global websites like Airbnb, Booking.com, TripAdvisor, Vrbo, and Google Vacation Rentals draw in a high volume of inquiries. The catch, however, lies in your ability to convert these inquiries into bookings through effective listing optimization.
Exploring Different OTA Avenues
Diving deeper into the world of OTAs, you’ll find a spectrum of choices beyond the global heavyweights. Regional OTAs, such as Autentical, cater to travelers with specific destinations in mind. These platforms allow you to target a local audience effectively when supply outstrips demand on global OTAs.
Niche OTAs, on the other hand, cater to specialized markets. Whether you offer luxury stays, pet-friendly accommodations, or ski retreats, there are OTAs tailored to your unique niche. They provide a focused platform to showcase your property to precisely the right audience.
The Pitfalls of OTA Dependency
While OTAs offer unparalleled visibility and access to potential guests, overreliance can lead to a host of challenges. Managing listings, calendars, and bookings across multiple platforms can quickly become overwhelming.
Moreover, despite the illusion of partnership, OTAs often treat hosts as mere numbers in their vast network. There are several contractual obligations that can drain your bank account if something happens. Procedures like overbookings, incorrectly loaded or complaint handling are less than favorable for the property owners. I have seen more than just a few properties go bankrupt because of large fines issued by the OTA.
The Hidden Costs of Dependency
It’s easy to be lured into the OTA ecosystem, especially when they invest massive sums in advertising. The promise of “you don’t pay unless it works” may seem appealing. However, this dependency comes at a price — one that’s not always apparent.
In an ideal world, every host would secure 100% of their bookings through their direct marketing efforts. Building your online brand presence through your website, social media, and email marketing takes time and dedication. However, in the short to mid-term, OTAs remain invaluable allies to maximize bookings.
The key is balance. Recognize the importance of OTAs in expanding your reach while simultaneously working on strengthening your direct booking channels. It’s crucial not to build your entire business on someone else’s land, especially when you have no ownership or control over the platform.
The events of March 2020 serve as a stark reminder of the perils of OTA dependence. Airbnb’s and booking.com’s decision to allow guests to cancel bookings without penalties, irrespective of cancellation policies, sent shockwaves through the industry. Hosts were left powerless, facing financial uncertainty.
Not even mentioning the situations when your account suddenly gets suspended and your bookings fall to 0.
Below we will explore some of the best OTA’s in the business.
Booking.com
Booking.com stands tall as one of the world’s largest and most renowned platforms. With a staggering 1.5 million nights booked daily, it’s a go-to destination for travelers worldwide. Accessible in 43 languages, it opens doors to options in over 200 countries.
It is also part of Booking Holdings. This parent company encompasses a constellation of OTA brands and metasearch engines, each with its own unique strengths. From Priceline.com and KAYAK to Agoda, Rentalcars.com, and OpenTable.
One great thing I like about this platform is Payments by Booking. This feature automates your payment process while allowing you to maintain your preferred prepayment policies. What’s more, Booking.com sweetens the deal by adding their own discounts without affecting your set rates — a win-win known as the “Booking Sponsored Benefit, ” enhancing your conversion rates at zero additional cost.
They also share access to invaluable data that allows you to benchmark your property against others in the area. (activates after several verifications) You can discover your ranking, analyze your conversion rates, and more. It’s quick, easy to understand, and equips you with the knowledge to stay ahead.
Expedia
Expedia.com is the flagship brand of Expedia Group, a travel powerhouse with 200 travel booking websites like Hotwire, Orbitz, Trivago, and Travelocity. It serves 75 countries in 35 languages, with over 600 million monthly visitors.
At Expedia.com, you can find accommodations, book flights, rent cars, go on cruises, etc. When you connect with Expedia, your property gets exposure on channels like Hotels.com and Wotif, expanding your reach.
Expedia excels in hotels and aparthotels, but if you have vacation homes, you’ll be directed to Vrbo.
Airbnb
Airbnb has earned its reputation as a global gateway to one-of-a-kind accommodations. Most notably, these unique stays often are located outside the typical hotel districts. While Airbnb has ventured into hotel room inventory following its acquisition of HotelTonight, it’s important to understand that the Airbnb community has specific expectations. To stay competitive, your level of service and the quality of your accommodations must meet these high standards.
However, it’s essential to recognize that Airbnb’s strength in some segments is balanced by its weakness in others.
When it comes to marketing on Airbnb, the power of reviews cannot be underestimated. Airbnb’s Superhost program primarily hinges on the feedback and reviews of guests.
Furthermore, Airbnb offers various visibility-enhancing opportunities in exchange for exclusivity or other considerations. For example, Airbnb Luxe shines in the luxury accommodation segment, providing a platform tailored to the discerning traveler.
VRBO
Vrbo, boasting an impressive portfolio of over 2 million bookable vacation rentals, connects homeowners with families and travelers seeking more than just a typical hotel experience.
The story of Vrbo is one of mergers and acquisitions, culminating in its acquisition by Expedia, combining the strengths of Vrbo and HomeAway. Vrbo shines particularly brightly in the realm of vacation and rural destinations, with a special focus on catering to families seeking the perfect getaway.
When it comes to marketing on Vrbo, it’s a performance-driven game. Those willing to invest more often enjoy enhanced visibility and reach.
Interestingly, Vrbo’s top performers often surpass even the best performers on Airbnb, making it a noteworthy platform for hosts.
Google Travel
Google Travel is more than a marketing tool; it’s a game-changer in travel. Unlike traditional OTAs, it doesn’t handle bookings directly but acts as a bridge to your booking engine. This means more control and customization, tailoring the booking process to your needs.
What sets Google Travel apart is its data-driven approach. It leverages Google’s extensive user data to target the right audience effectively. Think of it as a compass pointing you toward travelers actively seeking what you offer.
Integrating Google Travel with a robust booking engine is where the magic happens. It’s a dynamic duo that can elevate your property’s presence in the competitive travel landscape.
Exploring Niche Platforms
When it comes to short-term rentals, the alternatives to the more well-known platforms offer unique experiences worth considering:
Housing Anywhere: This platform prides itself as the world’s largest medium-term property rental hub. It caters to advertisers, property managers, and tenants. The listings predominantly feature rooms and apartments available for several months, making it a go-to for university students and off-site workers. It was born out of a student initiative in Rotterdam, aiming to address the accommodation challenges students face when studying abroad.
Oasis: Oasis caters to a high-end clientele, emphasizing maximum comfort. Their listings are exclusive, offering luxurious homes in cosmopolitan cities like New York, Barcelona, Milan, and Mexico City. Founded in 2009 in Portland, Oregon, Oasis handles reservations and provides top-notch services. Guests enjoy 5-star amenities while relishing the freedom of a private accommodation.
Strategic Listing: Quality Over Quantity on OTAs
Listing your properties on Online Travel Agencies is a smart move, but don’t scatter your efforts across every platform. Here’s why:
1. Targeted Marketing Matters
Every OTA caters to a slightly different audience, even within the same area. A one-size-fits-all marketing approach won’t cut it. Instead, tackle one OTA at a time. Craft a specific marketing message tailored to each platform, collect reviews diligently, and ensure your property images outshine the competition.
2. Quality Trumps Quantity
Resist the urge to list your properties on every OTA in the hopes of securing more bookings. Quality trumps quantity in this game. Focus your efforts and become exceptional on a select few major OTAs before considering expansion. Mastery of a few platforms often yields better results than spreading yourself too thin.
Understanding your OTAs:
Listing on OTAs comes with various rules and costs:
- Commissions: Most platforms charge a guest fee and a host fee as a set commission on the reservation amount, typically ranging from 15-20%. Booking.com, however, places the entire commission burden on the host.
- Instant Booking: Many platforms offer an instant booking feature, allowing travelers to book without initial contact.
- Cancellation Policies: Each OTA has its own cancellation policy, so carefully review and agree with their conditions.
As we wrap up our tour of various OTAs, it’s clear that each has its own perks for hosts. From global giants to niche players, the options are diverse. Choose wisely, adapt your strategy, and remember that success in short-term rentals is about making the most of each OTA’s strengths. So, pick your platforms smartly, apply the tips we’ve shared, and set sail on your path to hosting success.
Happy hosting, and may your properties stay booked!