The Building Blocks of Successful Direct Distribution in Short Term Rental Marketing

In the Short Term Rental industry, direct distribution is not merely a channel strategy; it is a comprehensive approach to owning the customer relationship and maximizing revenue. And so it’s a strategic imperative for STR managers looking to secure a sustainable advantage in an increasingly competitive market.

This article outlines 4 essential elements required for a successful direct distribution strategy in vacation rental marketing.

1. A Strong and Cohesive Value Proposition

The cornerstone of direct distribution in Short-Term Rental (STR) management is a compelling value proposition. It’s essential for each property in your portfolio to offer a unique reason for guests to choose it among the many options available. This concept is well-known to STR managers. But success in direct distribution requires going a step further — your portfolio must exhibit strong common threads that culminate in a cohesive brand-level value proposition.

Take Blue Maple, for instance, which manages over 70 properties. Each property is meticulously selected for its individual appeal, be it unique design or breathtaking mountain views. Collectively, these properties form a cohesive portfolio that offers a distinct brand promise: “premium cabins outside Washington DC.”

To discover the unique selling points (USPs) of your portfolio, start by listing the standout features of each property. These could range from location advantages to special amenities, pricing strategies, or the type of property itself. These USPs are not just features; they are the building blocks of your brand’s narrative in the market. They help you define who your ideal guest is and how to position your brand to appeal to them.

At hostAI, we simplify and enhance this process with our proprietary AI algorithm, which analyzes millions of data points across your properties to automatically deduce and articulate these value propositions, making your marketing efforts more targeted and effective.

These propositions are key ingredients to build a distinctive STR brand.

2. A Distinctive Short Term Rental Brand

A strong brand is more than just a logo or a color scheme; it’s the vehicle that communicates your value proposition to the world. When a brand truly resonates with guests, it fosters loyalty and encourages referrals and repeat bookings.

To develop a robust brand strategy, STR managers should introspect on three pivotal questions:

1. Who is Your Ideal Guest? Understand the specific demographics and preferences of your target audience. For instance, are you catering to luxury travelers, budget backpackers, families, or business professionals? This understanding will shape your brand’s voice and offerings.
2. Why Are You in This Business? Reflect on your motivations for being in the STR industry. Are you driven by a passion for providing unique travel experiences, a love for hospitality, or a desire to showcase unique properties? This purpose will become the heart of your brand story.
3. How Will You Deliver on Your Promises? Consider how you will meet and exceed your guests’ expectations. This could involve unique amenities, personalized services, or exceptional customer care. Your approach to service delivery should align with your brand promise.

Clarity on these strategic questions for your brand will help inform building a brand identity that clearly encapsulates what you stand for and significantly increases your brand’s appeal and recall by your ideal guests.

Take, for example, Open Air Homes. Their business is geared towards offering an elevated experience to discerning luxury travelers. They achieve this by providing beautifully designed properties with an ‘open air’ ambiance, complemented by comprehensive concierge support. Their brand communicates this promise effectively, immediately setting guest expectations for a high-end, immersive experience.

“From meditation corners to yoga mats to healthy food suggestions, we are taking a 360-degree approach to how our homes can lead to positive changes for our guests.” Brad Greiner, Open Air Homes

3. An Efficient Channel Strategy

Having established a strong value proposition and a brand that effectively communicates your unique offerings, the next crucial step for STR managers is to identify and leverage the right channels to reach your ideal guests.

Ironically, one of the most efficient initial steps is to utilize the ‘Billboard Effect’ of Online Travel Agencies (OTAs). Your presence on OTAs is more than just a listing; it’s an opportunity to showcase your brand’s promise. A professional and trustworthy brand profile on these platforms can often lead guests to seek out your brand directly for future bookings.

The next easy step is to build direct guest relationships with those who book via OTAs. Obtaining a touch point (email address or phone number) from past guests is an absolute must. A strategic communication plan with past guests, including personalized offers and updates, can significantly boost the chances of them booking directly with you in the future, bypassing OTAs.

The more sophisticated approach requires enhancing your visibility on Search Engines. Travel planning is rarely impulsive; it often involves meticulous research. And one in three travelers start their journey on search engines. A well-crafted presence, either through organic search or sponsored ads, is crucial. Given that OTAs are some of the biggest spenders in search engine marketing, standing out requires a highly targeted approach.

Utilizing hostAI’s algorithm can be a game-changer here. It helps identify the most relevant search terms that indicate the guest has a high intent to book properties like those in your portfolio. The more specific and aligned these terms are with your offerings, the more effective your strategy becomes.

Consider, for example, Sojourn, a prominent hospitality brand in Washington D.C. that is currently managing over 250 properties and rapidly expanding. By developing detailed audience profiles of their ideal guests and focusing on their unique selling propositions, Sojourn attracts new guests profitably and consistently through search engines. Their direct distribution efforts are now regularly outperforming some of the major OTAs’ production.

4. Digital Storefront Optimized to Convert

Your website is more than just an online presence; it’s your digital storefront in the STR industry, and optimizing it for conversion is crucial. From the moment a prospective guest lands on your site, the experience should be geared towards motivating them to book directly with you while minimizing any potential obstacles.

Price Display: Start by clearly communicating the benefits of direct booking. An immediate and visible incentive, such as a direct booking discount, can be very effective. This discount, ideally a part of the savings from avoiding third-party commission fees, should be prominently displayed to catch the visitor’s attention right away.

Highlights: User attention is the most scarce resource today. Use AI to summarize the most attractive features of your properties. This can include key points from past guests’ reviews or attractive amenities, enhancing their engagement and increasing the motivation to book.

Reviews: Incorporating reviews is a powerful way to build trust. Ensure that these reviews are not only positive but also authentic. If they are sourced from OTAs or other external platforms, proper attribution and links back to the source are necessary to comply with fair-use policies.

Recommendations: AI can be instrumental in recommending other properties to users based on their real-time interactions on your website. This not only personalizes the user experience but also showcases the depth of your portfolio, increasing the chances of finding a property that meets their needs.

Lead capture: It’s essential to capture contact details of visitors who are not ready to book immediately. Implement non-intrusive methods to encourage users to leave their contact information, like a newsletter sign-up with travel tips or updates about new properties. Avoid aggressive tactics like immediate discount pop-ups upon first visit, as these can negatively impact the perception of your brand.

Mobile-Friendly Experience: Ensure your website is optimized for mobile devices. A significant portion of users browse and book on smartphones and tablets. A mobile-friendly site should have responsive design, fast loading times, and an easy-to-use booking interface. This ensures a seamless experience for users on-the-go.

Leveraging AI for Enhanced Direct Distribution

At hostAI, we believe in the equalizing role AI can play to empower direct distribution for hospitality brands. Our platform analyzes millions of data points to identify unique selling points for your properties, creating dozens of tailored landing pages that highlight these features. By automating a highly targeted acquisition strategy on Search Engines for you, we ensure that your properties are seen by the right audience, at the right time.

To stay ahead in the short term rental market, it’s essential to build on these foundational elements. By working with hostAI, you gain access to cutting-edge AI tools that streamline your direct distribution efforts, enhance your digital marketing strategies, and ultimately increase your direct bookings. Join our waitlist today and take the first steps towards getting ahead of your competition.