Why is Direct Booking better for the traveler?

If you love traveling you likely know what a bargain private vacation rentals have been in the past.  The cost for rentals has risen dramatically over the past decade for several reasons.  Occupancy or "bed" taxes have become a standard and lucrative source of revenue for governments, often 15% or  higher.  However the biggest single factor for the elevated cost of vacation rentals today has been the advent of the Online Travel Agency (OTA).  Small internet listing sites became popular in the late 90s and early 2000s and vacation rentals increased in availability.  Shortly, these small companies were bought out by larger companies who in turn purchased space on search engines driving competing OTAs to sell or fold.  

​By 2011 Airbnb was quickly becoming one of the most popular OTAs and its business model had the traveler paying instead of the host. This model was wildly profitable but required the platform to prevent the traveler and host from directly contacting each other to circumvent the fee system.  Communication only occurred on the platform and all identifying and contact information was redacted until the booking was made.  In 2015, travel giant Expedia purchased VRBO and in 2016 the company adopted a similar model.  Today, OTAs add 20% or more to the cost of booking a property and they generate billions of dollars in ​revenue.

In short, an OTA booking will never be able to provide you the best price.  You may save hundreds or thousands of dollars by booking direct and you will transact with an owner or host intimately familiar with both the property and the area.   ​

Why do owners and hosts prefer Direct Booking?

There are several very valid reasons for owners to promote direct bookings over OTA Bookings.  One of the biggest reasons is cost.  Owners are keenly aware of how expensive platform bookings have become.  OTA's are primarily software-driven, have dismal customer service, and generate huge amounts of revenue.  In the end very little benefit is derived from these high costs.   Most owners seek direct bookings when they travel! 

Another reason is the quality of the guest.  When direct booking, the traveler and owner or host communicate directly.  There is no software limiting communication or redacting information from messages.  The parties interact directly by phone, email, text or even in person.  The end result is the traveler rents the owner's vacation home and not an "Airbnb".  There are only two parties in the transaction and the expensive third party has been eliminated.  Additionally, many platforms do not support documentation such as rental agreements, collection of identification, or security deposits.  Direct booking allows hosts to incorporate these elements and cuts out the middle-man.

Last, it allows owners to diversify their marketing.  Why send a trusted guest who has already stayed and wishes to return through an expensive booking platform?  By booking guests directly, guests and hosts potentially save hundreds of dollars and cannot be cancelled by an OTA.  OTAs "own" the travelers.  Direct booking allows a relationship to develop between the host and guest which often results in guests returning year after year.  Reducing dependency on OTAs puts hosts in a very good position.