Leverage Your PMS to Convert an OTA Booking Into a Direct Stay

Topics in This Section:

5.0 Leverage Your PMS to Convert an OTA Booking Into a Direct Stay

Every time a booking is made through an OTA, an automated email is sent from your PMS to the guest confirming the reservation. By customizing this email template, you can convert an OTA booking into a direct stay. This strategy works regardless if you’ve accepted a deposit or the full booking amount.

There are two major keys to unlocking the success of your direct booking business. The first is educating the guest on the money they can save. The second is educating the guest on the incentives they can receive. The way to convert an OTA booking into a direct stay is to clearly communicate the potential incentives they could receive if they were to modify their booking.

5.1 Edit the Automated Email Response in Your PMS

Each PMS should allow you to edit the automated email sent to a guest once a reservation is confirmed through an OTA by way of an email template. This is where you will educate the guest on the benefits of booking direct vs an OTA and sell them on changing their reservation from an OTA booking to a direct stay.

As a guide, consider stating the following:

Hello [First Name], Thank you for booking a stay with us at “Berry Mountainview Stays”!

Please read this confirmation email, as it contains important check-in information related to your stay with us.

If you’ve booked directly with us (”Berry Mountainview Stays”, “Phone Number”), your check-in time is “12:00pm”

If you’ve booked through a third-party (Airbnb, Vrbo, booking.com, etc), your check-in time is “4:00pm”

“Add information related to your stay (car parking, key collection, etc)”

If you would like to amend any part of your booking, please call us or contact us directly at (“Personal Contact Number”)

5.2 How to Convert an OTA Booking into a Direct Stay

Once your guest has read the email, there is a high probability that they will call you directly to inquire about check-in time details. When a customer calls, they will typically want to confirm whether or not they would have been able to take advantage of the early check-in time if they had booked a direct stay. During your conversation with the guest, you can let them know the following:

“Yes, absolutely, we offer early check-in times for all direct stays.”

“We can change that booking for you if you’d like.”

“For security reasons, all we need you to do is confirm your email”. You will need the guest’s email as OTAs do not provide the guest’s real email address.

“We offer both crypto and credit card payment options. If you’d like to pay with crypto then I can send you a direct link to do so. Paying with crypto will save you an extra 3%, since there are no credit card processing fees. If you’d like to pay with a credit card then I can take your credit card information over the phone and process your booking right away.”

“What I'm going to do is change this to a direct stay, but I just need you to do one thing for me. Could you log on to the OTA app (Airbnb, Vrbo, etc) while you are on the phone with me and cancel your booking. I can’t do this for you. Only you can do this, but if you do it now then in about five minutes I will send you a confirmation email for your direct booking.”

5.3 How to Get This Tactic to Work

To get this strategy to work, you must have a “Flexible” cancellation window (ex. A guest can cancel their booking within 72 hours without paying a penalty for forfeiting their deposit). In addition, you push your check-in time later in the day on all OTAs and keep your check-in time to whatever you are comfortable with on your Dtravel Direct Stay website. For example, if your check-in time is set to 12:00pm, then change the check-in time on all OTAs to 4:00pm.

5.4 What Does Converting an OTA Booking Into a Direct Stay Do for You

By converting an OTA booking into a direct stay, you save on the commission charged by the platform. For the guest, they receive a perceived early check-in. However, this early check-in is what you would provide normally but you are simply discouraging guests from booking through an OTA.

5.5 What Does Converting an OTA Booking Into a Direct Stay Do for You

If a guest is second-guessing canceling their booking through an OTA and booking directly through your Dtravel listing, then you can offer an additional incentive. This incentive can be a small discount on their booking total, a complimentary item or anything else that enhances the guest’s experience.

5.6 Will This Hurt My Rankings on a Third-Party Booking Platform?

No — as long as the guest cancels the booking, it will not affect your quality score with an OTA. Third-party rental platforms actually incentivize hosts that are flexible. Adding a flexible cancellation window and allowing guests to cancel is something third-party rental platforms are pushing for.

Under absolutely no circumstances should you cancel the booking yourself. Always have the guest cancel the booking within the OTA.

5.7 Adjust Booking Channel Pricing With Your PMS

With a PMS you can adjust pricing across all of your different booking channels including Dtravel. To encourage more direct stays, you may want to consider a slight markup on third-party booking platforms, so to ensure your Dtravel powered listings are the most cost-effective booking option for guests.