There’s a lot that goes into managing a successful vacation rental, and when you make such an important investment, you want to be sure you prioritize the right aspects of your business. While there is a long list of essentials to consider when it comes to keeping occupancy rates high year-round, how you choose to list your property and reach your prospective audience of guests can inevitably have a huge impact on your year-over-year revenue. Third-party platforms like Airbnb and VRBO are typically built into a property owner’s listing approach in order to reach as many guests as possible. However, you don’t want to overlook the value and effectiveness of direct booking, which is completely independent of these platforms and is gaining a lot of traction as the vacation rental market continues to grow and thrive.
Consider the Absence of Added Fees
For many vacation rental owners, there’s a notable difference between earnings related to their property listings on Airbnb and VRBO versus their direct listings. Oftentimes, direct listings are outperforming their third-party platform listings significantly. A big part of this can be attributed to the lack of platform fees associated with direct listings. When property owners decide to list their rentals on VRBO and Airbnb, they may successfully increase their overall visibility on the market, but they’re also increasing their costs. That’s because these platforms charge not only rental hosting fees but guest service fees as well. Depending on the platform in question, this total can range from 3% to upward of 15%. When you put that in relationship to earnings, it’s a significant bite out of overall profits. A direct listing is self-managed and never has any fees attached. This means you’re both getting your rental out in front of potential guests on a successful platform, while never sacrificing revenue along the way.
You Always Have the Final Say in Pricing and Promotions
Another reason direct listings are typically better for your investment over listings on platforms like Airbnb and VRBO is that property owners ultimately have the final say in both pricing standards and special promotions. These are linked directly to their rentals’ location and traveler trends in the area. Vacation rental owners who choose to work exclusively with listing options on Airbnb and VRBO effectively lock themselves into those third-party platform algorithms that are firmly in place. While these pricing algorithms might benefit the platform financially over time, they aren’t designed with customized details in place to benefit homeowners overall. This isn’t the case when you invest in direct listings instead. You can pick and choose when and how to adjust your rental rates in real-time so you’re aligned with local competition and stay competitive even when the market fluctuates rapidly. You can also consider your insight into the area, which is something a standardized algorithm from a third-party platform can’t do. A direct listing can include specialized seasonal discounts related to traveler trends right in your area, and you have options to offer repeat guests, or loyalty reward discounts on booking stays as well! Over time, this typically leads to better guest relationships and experiences. When your guests understand that each stay booked at your home through a direct listing is fully customized, you’re more likely to earn repeat business, great reviews, and terrific referrals in the long run. That’s a win-win no matter how you look at it.
Leaning into Creativity is Always an Option with Direct Listings
Many entrepreneurs step into the world of vacation rentals because they’re excited about the idea of taking on a profession that lets them be their own boss, set their professional path, and lets them be creative within the realm of an inviting work and life-balance. When you choose to invest in direct listings for your rental instead of focusing exclusively on third-party platform listings, you lean into that creative and independent spirit. Where platforms like Airbnb and VRBO prioritize a standardized approach to business, a direct listing is crafted by the homeowner or property manager. This provides an excellent opportunity to design a one-of-a-kind aesthetic online, open up helpful lines of communication with your guests through your direct listing, and maintain a unique rental identity within a competitive marketplace. With direct listings, you’re never locked into strict rental policies. You never have to worry about being unexpectedly removed from a platform due to an algorithm error. You’re free to try new approaches without worrying about algorithm biases used by third-party platforms. This type of freedom is truly priceless, and a wonderful way to take agency of the business opportunity you’ve invested in every step of the way.
Reach Out to Pocono Mountain Rentals Today to Learn More
When you’re excited to grow your vacation rental business, the team of property management professionals at Pocono Mountain Rentals is thrilled to take that journey alongside you. Reach out today to learn more about our comprehensive management services and how we can help you take your investment to the next level of success.
