This month my revenue split is 80% direct bookings. Direct bookings are awesome for so many reasons and I have talked about this before when discussing why we have our own site on Lodgify and don’t just rely on OTAs like Airbnb. Sure you can collect the total amount of the booking – more money – YAY. You don’t have to pay commissions to a booking agent or OTA like Airbnb – more money – YAY. But there is also a certain satisfaction that you are running a real business that is under your control and you are being a true entrepreneur.
Guests that come to you directly are yours. They have chosen you as your brand has resonated with them and they feel like your listing and your hosting style will meet their needs and be a great exchange of value for money. This brings a certain level of validation that you are doing a great job – who doesn’t want this? For me, I sleep well knowing that I have created a product that is appreciated and valued by my guests. Is this a little cheesy? Sure but life is too short not to pat yourself on the back from time to time.
But business and life has its ups and downs.
Recently, I have spent quite a bit of time looking at where my bookings are originating from. Hands down, 80% of my bookings are direct bookings. This is a huge shift from 2015 where I was 100% OTA. Then from 2018, I was about 50:50 and most of my direct bookings were from past guests via my mailing list, and travel agent referrals for inbound tourists. But when the borders closed, I really had to pivot and actively seek out and nurture new relationships for potential guests.
I had to get creative and most importantly, I had to be honest and vulnerable with the people in my network. The people around you – those who know you and like you – will see you as an honest and hardworking person. They are the ones who really are in your corner and are happy when you are succeeding. Just as you are happy for them if their business is going well. So if you put the word out that you are actively looking for customers, your network will often rally in support.
Most people LOVE to introduce you to people they know who can possibly be a good fit. You just need to ask or signal to the world that you are open for business.
How to Network
I looked at my network of real-life friends, friends on Facebook and LinkedIn and tried to figure out who was possibly needing short term accommodation services. Or people who knew people who needed my services. I have contacts who run schools, work in universities. I have an acquaintance who runs a film production company – they often have shoots and inbound talent like actors, production staff etc. Currently I am getting a lot of direct bookings from this company because they need to isolate before starting work.
So it also turns out I have contacts who have contacts with relocation companies. I have called these relocation companies who specialize in my area and made direct relationships with them. I think originally I contacted 5 or 6 companies and many were not interested. That is to be expected. But I now have 2 solid relationships in play that are bringing me guests and more direct bookings.
I also have contacts within large multinational companies who have been able to post on internal bulletin boards about my direct booking site.
It is all in your approach. Rather than come in with a begging attitude or a hard sell, come in with a “Hey friend, who do you know that I can help out with short term accommodation?” Or as my friend Mark Simpson from Boostly is always saying, ”Do you know anybody…”. (*See below for more on this)
So where am I going with this? Oh right, the actionable steps!
Actionable steps to get more direct bookings
1. Look at your own community and for opportunities to spread brand awareness for your STR. Remember your friends like and support you- they want you to succeed- and asking for introductions is the best way to expand your network. To be honest, many of your friends may not know what you actually do and you may just be the solution for a problem they have. Get creative!
2. Reach out to local businesses that might be looking for what you offer- it could be relocation companies as I have done, or it could be hospitals that need to have places for their doctors or nurses. Get out a pen and brainstorm. This can go both ways- perhaps you want to feature local businesses in your STR and in turn, that will encourage them to share to their own networks about you and what you are doing.
3. Have a mailing list? Nurture it! Don’t have a mailing list yet? Get one!
What did you come up with?
Comment below with some of the options you have based on your brainstorming of who to contact/where to promote your STR. Need some help brainstorming? Let’s schedule a 15 minute free call to see what we can come up with together.
This is a shout-out to my friend Mark Simpson of Boostly. Recently he ran a 5 day challenge for hosts to increase direct bookings. I joined in as I seem to take more action in my hosting business when I play in a group of other hosts. This 5 day challenge was just the gentle push I needed for me to revisit some of my past relationships and ask the question “Do you know anybody…?”. You know what? Asking the question put me the top of mind with some folks in my network and resulting in around $3000 of new direct bookings this month!
My business solved a problem for their businesses – WIN-WIN. My fave style of business.
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