For many short-term rental hosts and property managers, the idea of relying on Direct Bookings is a constant source of frustration. We’ve all heard the advice: “Set up a website, attract direct bookings, and avoid paying hefty commissions to online travel agencies (OTAs) like Airbnb and Booking.com.” While this sounds appealing, the reality is that Direct Bookings come with their own set of challenges.

From figuring out how to get these bookings in the first place to navigating legal protections and managing security concerns, hosts like me often find ourselves falling back on OTAs for peace of mind. In this post, I’ll explain why I hate Direct Bookings and why OTAs, despite their commission fees, remain an essential part of the short-term rental business.

1. The Elusive Nature of Direct Booking

One of the biggest frustrations with Direct Booking is simply figuring out how to attract them. Many experts in the short-term rental industry make it sound easy: “Just create a website and you’ll start getting direct bookings.” In reality, though, things aren’t so straightforward.

Without a strong online presence, an understanding of SEO, and effective marketing strategies, a website alone won’t magically attract Direct Bookings. Many hosts who manage to get some Direct Bookings seem to have gotten lucky, often working with niche markets or long-term partnerships, like those with corporate housing companies or workers’ accommodations, such as Comfy Workers. But this kind of success isn’t typical for most hosts.

For hosts like me, it’s not just about creating a website; it’s about figuring out how to optimize that site for Direct Bookings. How do you compete with OTAs that have global reach and millions of customers? The struggle is real, and that’s why I often fall back on OTAs, even though I know I’m paying commission fees.

2. Legal Protection and Paperwork for Direct Booking

Another major issue with Direct Bookings is the complexity of handling legal documentation and guest agreements. When you list a property on OTAs like Airbnb or Booking.com, they provide built-in systems that handle legal terms, guest agreements, and protections. This gives both hosts and guests a level of security and peace of mind.

With Direct Bookings, however, you’re on your own. Hosts are responsible for creating their contracts, securing legal protection, and ensuring that they have all the proper documentation in place. Without the backing of an OTA, any disputes or issues can quickly turn into a nightmare.

For example, if a guest books directly and damages the property, what protections do you have in place? You’d need to make sure you have a solid contract and damage deposit arrangement, but even then, it’s a gamble. This legal headache is one of the main reasons I prefer working with OTAs, which offer a safety net. With Direct Bookings, you’re constantly walking a tightrope without the security of built-in protections.

3. Security Risks and Guest Verification

One of the main advantages of using OTAs is the security they provide. These platforms not only handle payments but also verify guest identities, track reviews, and manage cancellations. When relying on Direct Bookings, you lose this layer of security, which can lead to significant risks.

Imagine receiving a Direct Booking from someone who seems legitimate, only to find out later that they’ve provided false information or have malicious intent. How do you verify their identity? How do you ensure that they follow your house rules and treat your property with respect?

Without the security and verification systems provided by OTAs, hosts are left in a vulnerable position. This is one of the key reasons I prefer working with platforms like Airbnb and Booking.com they offer protection for both the host and the guest, reducing the stress and risk associated with Direct Booking.

4. The Myth of Saving Money with Direct Bookings

Yes, Direct Bookings can save you money by avoiding commission fees, but it’s important to understand the bigger picture. While it’s true that you don’t pay commissions on Direct Bookings, most hosts still rely heavily on OTAs for the majority of their revenue. Let’s break down the numbers:

• Let’s say your property generates £3,000 in monthly revenue, or £36,000 annually.
• If 20% of those bookings come from Direct Booking, that’s £7,200 where you’re not paying any commission.
• However, the remaining 80%, or £28,800 comes from OTAs like Airbnb and Booking.com.
• With an average commission rate of 18%, you’re paying around £5,184 in fees per year for OTA bookings, per property.

Now, if you manage five properties, you’re spending nearly £26,000 annually on commissions. While that seems like a lot, the truth is that OTAs are doing much of the heavy lifting by attracting guests and handling payments, legalities, and security. The question then becomes: Is it worth the hassle of pursuing Direct Bookings just to save on commission fees, especially when OTAs bring you most of your revenue?

5. Mentors Often Ignore Direct Booking Strategies

Another reason I’ve grown to dislike Direct Bookings is the lack of proper guidance from industry mentors. Many short-term rental mentors focus almost exclusively on OTAs like Airbnb and Booking.com, leaving their students to fend for themselves when it comes to Direct Booking.

This lack of education around Direct Booking leaves hosts in a difficult position. Instead of learning how to effectively attract and manage Direct Booking, hosts are taught to rely on OTAs. This essentially turns them into salespeople for Airbnb and Booking.com, constantly working to fill their calendars and pay commissions without learning how to diversify their revenue streams.

If more mentors took the time to teach hosts about marketing, SEO, and guest management for Direct Bookings, we might see a shift in the industry. But for now, many hosts are stuck relying on OTAs, with little knowledge about how to successfully attract Direct Bookings.

6. Lack of Tracking and Data for Direct Bookings

One of the key issues with relying on OTAs is that many hosts don’t track their data closely enough. Ask yourself:

• How much are you spending on commissions to OTAs each year?
• What percentage of your bookings are coming from Direct Booking versus OTAs?
• Are you tracking your Direct Booking conversion rate?

Most hosts don’t have a clear picture of these numbers, which means they miss out on valuable insights that could help them make smarter business decisions. By tracking this data, hosts could better understand the balance between Direct Booking and OTA bookings, allowing them to optimize their marketing strategies and reduce their reliance on OTAs over time.

But without proper tracking, it’s easy to overlook how much you’re paying in commission fees and how many potential Direct Bookings you’re missing out on.

7. The Constant Stress of Finding Direct Booking

At the end of the day, the biggest reason I hate Direct Booking is the constant stress of figuring out how to get them. While OTAs provide a steady stream of bookings, Direct Booking require ongoing effort, from marketing and SEO to guest communication and legal documentation.

Without the infrastructure and reach of OTAs, hosts are left scrambling to attract guests, verify their legitimacy, and manage every aspect of the booking process. This level of involvement can be overwhelming, especially for hosts who manage multiple properties.

For this reason, many hosts prefer to stick with OTAs, despite the commission fees. While Direct Booking may seem appealing, the reality is that they often require far more work and provide less security than OTA bookings.

Conclusion

In theory, Direct Booking can save you money and reduce your reliance on OTAs. But in practice, they often create more problems than they solve. From the difficulty of attracting guests to the legal and security risks, Direct Bookings require a significant investment of time, effort, and resources.

For many hosts, OTAs remain the safer and more reliable option, despite the commission fees. However, that doesn’t mean hosts should ignore Direct Booking altogether. By tracking your data, optimizing your website, and learning from industry mentors, it’s possible to strike a balance between Direct Booking and OTA bookings.

Ultimately, the decision to pursue Direct Bookings or rely on OTAs comes down to what works best for your business. But for hosts like me, the hassle of Direct Booking often outweighs the benefits, and OTAs provide the peace of mind and security that make the commission fees worth it.