Are direct bookings worth it? The truth every STR host needs to hear
- Apr 3
- 8 min read
Every short-term rental host has heard the pitch: ditch the OTAs, get a direct booking website, and stop losing 15-20% to Airbnb. It sounds compelling. But is it actually true?
In this episode of the Host Planet Podcast, James Varley sits down with David Anthony Scott – direct booking strategist, boutique hospitality consultant, and Founder of STR Booster – to cut through the hype and ask the question that most hosts are afraid to answer: are direct bookings really worth it?
The answer, as David explains, is more nuanced than the influencers on Instagram would have you believe.
"Direct bookings are not a magic bullet. They are a channel – and like any channel, you have to manage the costs and the risks." – David Anthony Scott
The real cost of direct bookings (that nobody talks about)
The most common reason hosts pursue direct bookings is to escape OTA commissions.
Airbnb charges most hosts 15.5% on every transaction. So direct bookings must be far cheaper, right?
Not necessarily. David breaks down the true cost of a direct booking:
Card processing fees: approximately 3% on every transaction.
Risk premium: 4% to account for the fact that you no longer have OTA protection – no dispute resolution, no payment guarantees, no guest vetting.
Advertising spend: a minimum of 5% of revenue to drive traffic to your direct booking website.
Add those together and you're looking at 12–14% – which is comparable to, or in some cases more expensive than, listing on Airbnb.
This doesn't mean direct bookings aren't worth pursuing. It means you need to go in with clear eyes about what they actually cost, and build a strategy around that reality.
"People say OTA fees are too high, but when you factor in card fees, risk, and advertising, direct bookings cost about the same – or more." – David Anthony Scott
Why OTAs are not the enemy
It has become fashionable in the STR community to vilify platforms like Airbnb and Vrbo.
David takes a different view: OTAs aren't the enemy. They built the market.
Before Airbnb existed, running a short-term rental as a mainstream option was virtually non-existent. The platforms invested billions in marketing, trust infrastructure, guest education, and payment processing. They created the demand that now fills your calendar.
Criticising OTAs for charging fees is a bit like criticising a supermarket for taking a margin – they're providing distribution, traffic, and trust that would cost you far more to replicate independently.
The smarter question isn't 'how do I escape OTAs?' It's: 'how do I use OTAs strategically while building a direct booking capability alongside them?'
When direct bookings actually make sense
David is not against direct bookings. He's against pursuing them blindly without a strategy. There are specific scenarios where direct bookings deliver clear, measurable value:
1. Repeat guests
The single highest-value opportunity for direct bookings is your existing guest base. Someone who has already stayed with you has already gone through the trust-building process. They know your property. They like it enough to come back. Offering them a direct booking option – saving them the guest service fee – is a win for both sides.
2. Email relationships
You don't need a £5,000 website to start building direct bookings. You need an email address. Collect guest emails (where permitted), stay in touch after their stay, and invite them to book direct next time. A simple email or phone call is a valid booking channel – especially early on.
3. Guests you want to target
Not every guest is worth pursuing as a direct booker. David's framework involves understanding your ideal guest avatar – who they are, when they travel, what motivates them to book. Once you know that, you can run intent-based campaigns that target the right people at the right time, on the right channels.
"Who is worth being promoted to as a direct booker, and who is not? That's the question you need to answer before you spend a penny on advertising." – David Anthony Scott
The framework: OTAs for demand, direct for loyalty
If there's one concept from this episode that every host should write on a sticky note and put on their laptop, it's this:"OTAs for Demand. Direct for Loyalty."
For hosts who are just starting out – or who don't yet have consistent traffic from social media, SEO, or a blog – this framework is the safest and most efficient path:
Use OTAs to generate demand and fill your calendar. They have the traffic. Use it.
Use direct channels to capture repeat guests and build loyalty. These are the bookings that cost you the least to acquire.
As your direct traffic grows – through social media, content marketing, SEO, and email – gradually increase your investment in direct booking infrastructure.
Layer complexity over time. Don't try to build everything at once.
This approach means your direct booking efforts pay for themselves from day one, rather than draining cash into advertising that doesn't convert.
Your website is a marketing tool – not a booking engine
One of the most important distinctions David makes in this conversation is the difference between a marketing website and a booking engine. Most hosts conflate the two – and it costs them.
A marketing website tells your story. It speaks to your ideal guest avatar, builds trust, communicates your property's personality, and answers the question: 'why should I stay here rather than somewhere else?' It is a branding and content tool.
A booking engine handles the transaction. It presents availability, takes payment, and confirms reservations. It is a conversion tool.
These are different jobs. And you don't need an expensive custom website to have a booking engine – your property management system (PMS) almost certainly includes one as part of the subscription fee.
"Don't build a website first and then try to get the data. Get the data first, then build the website around the data that you have." – David Anthony Scott
David's advice for hosts considering spending £5,000–£7,000 on a custom direct booking website is clear: don't. Start with the booking engine in your PMS. Collect data on your guests. Understand who books, when they book, and what they respond to. Then, once you have real data, build a website that speaks directly to that audience.
A pretty website built on assumptions is wasted money. A data-driven website built on real guest insights is an asset.
Know your ideal guest avatar: the foundation of every direct booking strategy
Whether you're focusing on OTAs, direct bookings, or a hybrid strategy, everything starts in the same place: knowing your ideal guest.
David describes this as building an 'ideal guest avatar' – a detailed picture of the person most likely to book your property, return to it, and recommend it to others. This includes:
Demographics: Who are they? Age, location, income, travel party size?
Motivations: Why do they travel? Why do they choose short-term rentals over hotels?
Calendar patterns: When do they book? How far in advance? What seasons?
Booking behaviour: Which channel do they use? What do they read? Where do they hang out online?
Once you understand your ideal guest, you can reverse-engineer your entire distribution strategy. You know which OTAs to prioritise, which social platforms to invest in, what kind of content to create, and which guests are worth targeting with a direct booking offer.
"Understand the calendar and reverse engineer how you're going to get booked. Apply your distribution methodology – including direct bookings – accordingly." – David Anthony Scott
How to get started with direct bookings: a step-by-step approach
Based on David's framework, here is a practical starting point for any STR host looking to build a direct booking channel without wasting money:
Step 1: Continue using OTAs to fill your calendar and generate cash flow.
Step 2: Collect guest email addresses from every stay (where your local regulations and OTA terms allow).
Step 3: After check-out, send a personal thank-you message and invite them to book directly next time.
Step 4: Use the booking engine built into your PMS – you're already paying for it.
Step 5: Track who books, when, and why. Build your ideal guest avatar from real data.
Step 6: Run intent-based promotions targeting your repeat guest segments at the right times of year.
Step 7: Once you have consistent direct traffic, invest in a marketing website that speaks to your proven ideal guest.
This approach keeps costs low, generates data before investment, and builds a sustainable direct booking channel that grows in parallel with – rather than instead of – your OTA presence.
Frequently Asked Questions
Q: What is the true cost of direct bookings for short-term rental hosts?
A: According to direct booking strategist David Anthony Scott, the true cost of a direct booking is approximately 12–14% when you factor in card processing fees (around 3%), a risk premium to cover the absence of OTA dispute protection (around 4%), and a minimum advertising spend to drive traffic to your booking page (around 5%). This is comparable to the cost of listing on Airbnb.
Q: Are direct bookings better than OTAs for STR hosts?
A: Not necessarily – it depends on where you are in your hosting journey and how much direct traffic you already have. OTAs provide qualified traffic, trust infrastructure, and guest vetting that is expensive to replicate independently. The most effective strategy for most hosts is 'OTAs for Demand, Direct for Loyalty': use OTAs to fill your calendar and generate new guests, while using direct channels to capture repeat bookings and build guest loyalty over time.
Q: Do I need an expensive website to get direct bookings?
A: No. David Anthony Scott recommends starting with the booking engine included in your property management system (PMS), which is usually covered by your existing subscription. You should collect guest data first, understand your ideal guest, and only invest in a dedicated marketing website once you have real data to inform it. Spending £5,000–£7,000 on a website before you have that data is likely to be wasted money.
Q: How do I get repeat guests to book direct?
A: The simplest approach is to collect guest email addresses after every stay and send a personal follow-up message. Thank them for their visit, remind them of their experience, and invite them to book directly next time – potentially with a small incentive such as a discount or added perk. A direct booking offer to a repeat guest who already trusts your property costs very little to acquire and delivers strong margins.
Q: What is an ideal guest avatar for a short-term rental?
A: An ideal guest avatar is a detailed profile of the type of guest most likely to book your property, return to it, and recommend it to others. It includes demographic information, travel motivations, booking behaviour, and calendar patterns. Building an accurate ideal guest avatar allows you to reverse-engineer your distribution strategy – knowing which channels to use, when to promote, and which guests are worth targeting with a direct booking offer.
Q: What is STR Booster?
A: STR Booster is an all-in-one software platform founded by David Anthony Scott, designed to help short-term rental hosts and boutique property operators simplify their marketing and grow their direct bookings. It is built around the principles of brand psychology and provides hosts with the tools and frameworks to scale their business while saving time.
About David Anthony Scott
David Anthony Scott is a short-term rental strategist, boutique hospitality consultant, and founder of STR Booster. He ran a hostel in Jamaica from 2011 to 2020, before pivoting to consultancy and developing his own methodology for running boutique properties – one built around brand psychology and data-driven direct booking strategies.
Now based in Sweden, David helps STR hosts and property managers around the world build sustainable direct booking channels that complement – rather than replace – their OTA presence.
You can learn more about STR Booster and David's work at strbooster.com.
Listen to the full episode
This post is based on David Anthony Scott's conversation with James Varley on the Host Planet Podcast. To hear the full discussion – including David's views on traffic generation, intent-based campaigns, and the role of brand psychology in STR marketing – listen to the episode on your preferred podcast platform.
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