Breaking the Threshold: How to Make Direct Bookings Overtake OTA Bookings

Following last month’s insightful look at the Casago acquisition of Vacasa with Richard Vaughton of Yes Consulting, we’re back with another instalment of Richard’s POV.

This month, we’re tackling a challenge faced by every short-term rental business: How can we make direct bookings the dominant force?

In honor of this month’s Book Direct Guest Education Day, we asked Richard for his POV on what it takes to shift the balance away from OTAs.

Breaking the Threshold: How to Make Direct Bookings Overtake OTA Bookings

The Scale team posed a seemingly simple question:

What do we need to do for direct bookings to surpass OTA bookings? Is it truly achievable?

Before delving into an answer, let’s establish some key facts:

• Urban destinations rely far more on OTAs than leisure markets. Reports suggest that direct bookings in some urban STR markets can be as low as 3%. In leisure destinations we see 35-45% direct bookings often quoted for Europe and substantially more in the USA.
• The STR industry is flooded with tech companies promising a direct booking revolution. But this is not a simple tech problem; it’s a psychological and community-driven challenge.
• Some companies achieve 70%+ direct bookings, while others barely hit 10%. What sets them apart?
• OTA commissions, often viewed as a parasitic 15%+ fee, are seen as unfair. Yet, direct bookings often mean trading OTA dependence for Google dependence.
• Brand recognition is critical. How many STR brands would you confidently book with directly?

The Answer? A Multi-Faceted Approach

1. Invest in Building a Direct Booking Business

At the property or management level, direct booking success boils down to investment and effort. Key factors influencing direct success:

Portfolio Size Matters:

• More properties = better search visibility
• Larger guest history = more return bookings. Loyalty!
• More capital = greater investment in direct marketing
• Stronger owner and guest referral networks
• Established quality hyperlocal brand = inventory growth and web presence, a flywheel effect

2. Web Development: Your Direct Booking Foundation

A well-optimised website is more than just a booking portal; it is a trust-building machine. Key elements include:

• Brand-Aligned Design & UX: Professional, intuitive, and visually compelling.
• SEO & Structure: No subdomain booking engines (they dilute SEO impact).
• Trust Signals: Reviews & testimonials, security assurances, visible contact details, awards.
• Optimised Booking Flow: Mobile-first, ultra-fast pages, short intuitive booking steps, multiple payment options.
• Engaging Content: High-quality property descriptions, local area guides, video content.
• Referral Capture: Guests who find you on OTAs should see a clear incentive to book directly next time.

Target: For high-performance unique visitor traffic conversion benchmarks aim for 1 direct booking per 50-150 unique visitors.

3. Execution & Continuous Effort

A website alone won’t guarantee direct bookings. Success requires ongoing execution:

• SEO & Content Strategy with E-A-T focus
• Email Marketing & CRM to nurture past guests
• Social Media & Community Building
• Paid Advertising with careful ROI tracking
• Guest experience excellence that drives word-of-mouth

4. Industry-Wide Collaboration

For direct bookings to truly overtake OTAs at an industry level, collaboration is essential:

• Shared booking standards and trust frameworks
• Industry-wide guest education campaigns
• Technology partnerships that reduce friction
• Professional associations advocating for fair commission structures

The Verdict

Can direct bookings overtake OTAs? At an individual company level, absolutely — many already have. At an industry level, it requires sustained investment, brand building, and a fundamental shift in guest behavior.

The key takeaway: Direct bookings are not a marketing tactic. They are a business strategy requiring investment, brand building, and relentless execution. Those who commit to this path will build more resilient, profitable, and independent businesses.