What Are Direct Bookings And Why They Matter?
Intro
Direct bookings are all reservations made by guests through your website, by phone, or by email, without any intermediaries such as OTA channels.
Unlike OTAs, where you pay commissions on every booking, direct bookings let you keep the full value.This means higher revenue per booking, as well as the chance to communicate with your guests before arrival, giving you time to prepare and personalize their experience.Keep reading to learn what direct bookings are, why they matter, and how to increase them.
What Are Direct Bookings?
Direct bookings are reservations made by guests directly via your website, phone, or email, without any involvement from third-party OTA channels.
Unlike OTAs, where you pay commission on each booking, direct bookings let you retain the full amount. This translates to more income per reservation, but also an opportunity to connect with guests before they arrive, better prepare for their stay, and personalize your services. All of this helps build stronger, long-term relationships with guests who are more likely to return.
In addition, direct bookings give you full flexibility over pricing, cancellation policies, and special promotions.
A Real-Life Example
Picture this: a guest books a stay worth €1,000 via an OTA. That channel charges you a 15% commission, meaning you only earn €850. With just 10 such bookings, you’ve “lost” €1,500. Now imagine those numbers across an entire season.
Why Direct Bookings Matter
Direct bookings are the most valuable type of reservation your property can receive. Here’s why:
Financial Impact
For every apartment, room, or villa booked directly, you keep the full amount, which can add up to thousands of euros over the course of a year.
More Control
With OTA bookings, not only do you pay a commission and lose part of your revenue, but you also miss out on valuable guest data, and you don’t get to set your own cancellation terms or restrictions, such as minimum stay requirements.
Data Collection & Guest Loyalty
Guest information goes straight into your system and into eVisitor, making record-keeping easier and allowing you to send targeted offers and reminders. This helps you build a loyal guest base and reduces dependency on intermediaries.
This doesn’t mean you should stop advertising on platforms like Booking.com or Airbnb altogether. As mentioned earlier, OTAs are great for increasing visibility and filling up your calendar. But more and more property owners and hoteliers are recognizing the importance of direct bookings and offering guests that option.
To ensure your direct bookings run smoothly and don’t overlap with other channels, you’ll need a Booking Engine.
How to Increase Direct Bookings
To grow direct bookings, you need a reliable Booking Engine, a high-quality website, and compelling promotions.
The Role of a Booking Engine
A Booking Engine is an online tool integrated with your website, Google Business profile, or social media accounts. It allows guests to view available units, check prices, and make real-time direct bookings, without needing to email or call.
In simple terms, a Booking Engine is your 24/7 online storefront that allows you to:
- Show real-time prices and availability
- Accept secure bookings with no middlemen or commission fees
- Create and apply promo codes and special offers
- Automate confirmations, enable self check-in, and streamline guest communication
Make sure to add your Booking Engine link to all key platforms like your Facebook page, Instagram bio, or Google Business profile to increase visibility and maximize direct bookings and revenue.
The Importance of a Quality Website
Your website should be mobile-optimized, fast-loading, and easy to navigate. Professional photos, clear pricing, a calendar view, and accessible contact info all help increase the chances of conversion.
Even if you don’t have a full website, as mentioned above, you can still use a Booking Engine on your social media profiles, it can act as a mini-website for your business.
Active Communication & Promotions
Respond to inquiries within a few hours, offer promo codes through social media and newsletters, and keep your content up to date.
Croatian Market: Current Landscape and Challenges
According to the Croatian National Tourist Board (HTZ), over 60% of bookings in Croatia are made through OTAs, thanks to the convenience and perceived safety. However, direct bookings offer flexibility in pricing and make it easier to comply with local regulations, such as eVisitor.
Seasonality: Tips for Pre- and Post-Season
In July and August, properties are often fully booked even without much effort. But during the shoulder seasons, direct channels become key to maintaining occupancy.
Pro Tip: Prepare promotional packages for May and September, advertise them on social media and via newsletters, and reach out to past guests with personalized offers.
Common Mistakes to Avoid
Here’s what to steer clear of:
Outdated Website
If your site isn’t mobile-friendly or takes too long to load, guests will book elsewhere.
Slow Response Time
If you take too long to reply, the guest may have already booked with a competitor.
Complicated Booking Process
If your Booking Engine is confusing or has too many steps, guests may abandon the reservation.
Non-compliance with eVisitor
Penalties can be expensive, and missing data will complicate your operations and give you false insights.
FAQ
What’s the main difference between an OTA and a direct booking?
With OTAs, you lose part of your revenue to commission. With direct bookings, you keep 100% of the income.
How can I encourage guests to book directly?
Offer promotional packages, better prices, personalized deals, and a simple website with a user-friendly Booking Engine.
Are direct bookings enough to fill an entire season?
During peak season, your property may fill up regardless. But in the off-season, direct bookings can be crucial to staying competitive.
Conclusion
Direct bookings bring in more revenue, foster stronger relationships with guests, and give you full control over your business. The Croatian market still has plenty of room for growth in direct channels so your next step should be optimizing your website and implementing a Booking Engine.
The Rentlio Booking Engine isn’t just easy for you, it’s also intuitive and straightforward for your guests. That means there’s no risk of them abandoning the booking process due to confusion or poor user experience.
The interface is clear, mobile-friendly, and responsive, allowing guests to book in just a few clicks from any device. The process is fast and secure for both sides, and your guest will instantly receive a booking confirmation via email.
Daniel Herman is a growth marketing enthusiast with 10 years of marketing experience who enjoys thinking strategically and seeing the bigger picture. He writes about everything related to developing marketing activities and KPIs, branding, and taking a long-term approach to success, always with the goal of sharing useful ideas and inspiring action.
