What is the true value of your own STR website?

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What is the true value of your own STR website?

Michael Greenberg
Investor · Denver, CO · Member since 2016 · 533 posts · 433 votes

Sorry this is long winded, but I hope it's of interest to many of us and can start a thread of suggestions and input.  

A recent post by @Mike Neubauer got me thinking about the value of my own STR website. I've had a "shell" of a website up for quite a while now and I hem and haw about completing the project so it is fully operational, mostly because I'm questioning its true value. I believe it does validate to certain guests that I am serious about what I do and I have referred repeat guests & friends to the site, but really nothing more than that so far. If you all haven't noticed yet, there is a TON of noise about breaking away from the OTA's, that they are a threat to our businesses and we are all eroding our own markets by selling on price. They advise us to sell on experience (driven by AirBnb's focus) and that will help us maintain a higher rate. There are companies pounding my inbox that I should build out my brand, spend a bunch of money on videos, photos, design, Google marketing, affiliate sales, etc.... for a higher return and control of my own destiny. I do think the OTA's are a threat to our businesses and I also like controlling my own destiny, but is it worth the time, effort, maintenance and cost to drive my own brand on the web? They tell us that they can get us >$150k in bookings, but I'm exceeding that now, managing my own bookings with the OTA's and my overall expense is 1.7% - less than what it's going to cost me to drive my own marketing engine.

So what do you all think and what are you all doing? Are there any STR operators that are seeing dramatic improvements in their business by driving direct bookings? If so, what do you believe is the value of booking direct?

Thanks in advance for reading and your input.

Mike

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Kathy Hansen
Kettle Falls, WA · Member since 2017 · 77 posts · 40 votes
8y

I think one's own STR website takes time to build effectiveness. I've had mine for more than a year, and I am just now starting to get direct bookings on it. I used a very simple PayPal "pay now" button structure to take bookings. I also don't put an enormous amount of time into maintaining the site.

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  • Kathy Hansen
    Kettle Falls, WA · Member since 2017 · 77 posts · 40 votes
    8y

    I think one's own STR website takes time to build effectiveness. I've had mine for more than a year, and I am just now starting to get direct bookings on it. I used a very simple PayPal "pay now" button structure to take bookings. I also don't put an enormous amount of time into maintaining the site.

    3Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    8y

    I don't have any web presence other than an ad on Craigslist every day.  24 furnished STRs, 84 beds.

    0Reply
  • Myka Artis
    Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
    8y

    @Michael Greenberg I definitely do see the advantages of having your own website and I actually stress doing this. I diversify my rentals between the "Short short" (30 days or less) business model and "long short/corporate rental" (30 days or more) business model so I don't like to take all my bookings through Airbnb & VRBO. I truthfully now only use those two platforms to cover vacancies. What I have actually done with my Airbnb account is I use it to advertise my own personal business by using the business profile page and driving those that are looking to book a corporate stay to my personal website while giving those that want a shorter stay the option of booking through Airbnb/VRBO or coming to me directly. The value in having someone book directly through you is that you can actually manipulate the price in your favor and the guests favor. Ex: If I have someone that wants to book long term I'll find out what their total is from VRBO/Airbnb and I can cut a deal with them where their price comes down and my payout goes up. 

    2Reply
  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    At the current time, I think the "OTAs are a threat" idea is overblown.  I do think there's a danger in becoming overly dependent on them (and I certainly am, at this point) but I find their value to me to be enormous.  As you point out, the amount of money I'd need to invest to drive the sort of traffic the OTAs provide far exceeds their 3% cut.  Heck, payment processors alone charge 2.5%!  I think I'm getting a ton of value out of the OTAs, especially AirBNB.

    That said, I do want to move into my own site, mostly so repeat guests can book directly through me - I think there's a definite value to THEM in avoiding the OTAs, and as @Myka Artis pointed out, there's a price point that's beneficial to the renter and the owner once you cut out the OTA fees (that are mostly guest-oriented).  

    However, when I'm sitting at around 90-95% occupancy via AirBNB and VRBO, I'm not particularly motivated to use my scant spare time to build the sort of robust website I'd need to easily process online bookings.  I'll get around to it at some point, but right now I don't feel a need and my time is being better deployed elsewhere.

    2Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    8y
    I nearly always agree with Julie McCoy who has become a close friend thanks to BP but I have no interest in a “website” I do have a url that links directly to my AirBnB profile but that’s as far as I’ll go for now. If I were interested in scaling to more than the 5 STRs I have I’d go for it. But I’m over it. 5 is enough for me I’m back to LTRs.
    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    1Reply
  • Michael Greenberg
    OP
    Investor · Denver, CO · Member since 2016 · 533 posts · 433 votes
    8y

    @Myka Artis Great ideas and feedback, thank you!  I really like the idea of using your business profile to drive guests to your site.  That is of great value.  I do work to drive long term guests to book directly, as the fees for both HA and AirBnb become excessive.  If you're willing to share here, or privately more of your approach, I would really like to learn more as you seem to have a wonderful approach.

    @Julie McCoy I tend to agree with you at this point, it is overblown but at the same time these threats are something to watch closely, especially as both AirBnb and HA look to drive the reservation cost away from the guest and push it to the host (Booking already does).  My occupancy is very high as well, north of 75% (kudos to you at 90-95%) but I think sitting on my laurels might be a dangerous proposition, but as you stated it's hard to justify the time, and certainly the cost.

    @Luke Carl Had a little trouble following your post, are you saying you're out of STR's and moving to LTR's?

    2Reply
  • Nancy Bachety
    Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    8y

    @Michael Greenberg A fellow host in St Augustine does what is probably the most cost-effective way to get repeat guests by simply collecting contact information from guests and with their permission, sends periodic communication and specials. She has a shell website. How many of us actually take guest email addresses and put them on a spreadsheet before they disappear?  

    You’ve gotten great feedback from the best minds on BP so far. I think the best course of action for you is the one that plays out to best suite your time, and business plan. It could easily be a combination of what you’ve read here.

    1Reply
  • Michael Greenberg
    OP
    Investor · Denver, CO · Member since 2016 · 533 posts · 433 votes
    8y

    @Nancy Bachety I agree - great feedback from great minds indeed - thanks!  I do collect all of these details, email addresses and phone numbers, and have quite a database that also needs harvesting and communication as you indicated but I think this is just a small piece of a much greater marketing plan.  

    My investments are not local to Denver so unfortunately I don't know if any accommodations nearby but there are others on BP that are invested locally, e.g.

    @Tim Schroeder

    @Valerie Rogers

    1Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    8y
    Michael Greenberg sorry buddy my iPhone got me in trouble there lol. I’m saying I’m stopping at 5 long distance self managed VRs for now and I’m focused back on LTRs. If I were to focus my business only on VRs and continue to scale with a goal of let’s say 100 units, I’d most certainly build a website. But with my dinky 5 VRs (which gross over 200k per year thanks to my iPhone and Gatlinburg Pigeon Forge) I’m happy using AirBnB and VRBO and I even have past guests book through the sites. Keeps my systems easy.
    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    1Reply
  • Travis Rasmussen
    Realtor · Murrieta, CA · Member since 2016 · 373 posts · 203 votes
    8y

    @Michael Greenberg

    Now, I do believe there is value in having your own website, as a back up in case something ever goes south but let's look at the alternative.

    As @Julie McCoy pointed out, they are only charging 2.5%! That is huuge. It's by far, the hardest part of the STR market--the marketing.

    Airbnb invests more than you and I ever could to get their name out there, and they are providing us--the hosts--a service. 

    I feel like someone trying to sell you on using their service is the same argument that you could make more money buying your own taxi brand instead of just working for uber/lyft. Yeah, you could...but would you want to?

    2Reply
  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Nancy Bachety:

    @Michael Greenberg A fellow host in St Augustine does what is probably the most cost-effective way to get repeat guests by simply collecting contact information from guests and with their permission, sends periodic communication and specials. She has a shell website. How many of us actually take guest email addresses and put them on a spreadsheet before they disappear?  

     I do, actually - BUT where I fail is I haven't gotten permission to communicate with them further.  My intent is to do precisely what the host you mention does - but so far I've been too tied up in other things to really get it organized.  But I have the info!!!  

    1Reply
  • Peter Hagemann
    Rental Property Investor · Englewood, FL · Member since 2016 · 30 posts · 21 votes
    8y

    We have our own website and also use booking from HomeAway, VRBO,Trip Adviser and Flip Key

    Our high season Guest are all repeat customers and word of mouth so they come through our website.

    One of our high season guest that we inherited, this was his 11th year on property. Our rentals are already booked for 2019 season .

    Off season or the summer months, we have just passed 50% of booking coming straight to our website.

    Google business has really helped this drive to our website.

    We as well as the guest save quite a bit if they can book direct with us rather than going with the HomeAway, VRBO,Trip Adviser and Flip Key

    1Reply
  • Michael Greenberg
    OP
    Investor · Denver, CO · Member since 2016 · 533 posts · 433 votes
    8y

    @Peter Hagemann Thanks for the input and good for you!  Are you managing the Google Business yourself or did you hire an outside firm to assist with this?

    0Reply
  • Peter Hagemann
    Rental Property Investor · Englewood, FL · Member since 2016 · 30 posts · 21 votes
    8y

    Michael Greenberg, we setup Google Business our self.

    Mainly it is verifying with Google that you are a legit business and that your address of your vacation rental property matches the location of your property on Google maps.

    Google sends a letter or registration card to the address of your property and then you must send it back.

    Once registered you ask your guest to give you a review on your Google Business 

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    8y

    I don't see much of a value in having my own site just know. Homeaway keeps my calendar full for top dollar. I get repeat renters that book direct and they use Paypal or send me a check and I block these dates on Homeaway which syncs my Airbnb calendar. Service fees have not slowed down my traffic and bookings. Air might have lower fees to the end user but I just don't get many bookings from them unfortunately.

    0Reply
  • Garry C.
    Rental Property Investor · Littleton, CO · Member since 2015 · 252 posts · 164 votes
    8y

    My current web site is hosted by OwnerRez, and I find it to be more than valuable. I've had it up since February (about 4.5 months now) and I've already had more direct bookings than I can count on one hand (I lost count, in other words). Prior to this, I had a similar shell of a WordPress site, like you talked about above, and it was next to impossible to direct book. Now, I can't live without it. It does everything I need and a bunch of things I didn't know that I needed (Property Management invoicing, easy of setting up bookings direct for friends and family, etc.).

    Yes, there is a ton of noise about breaking away from OTAs. But I don't buy it. The OTAs are NOT my enemy. They provide a service that I want and need. However, I do agree they charge too much these days, want too much control, and want us to be overly dependent upon them, which is a danger for our business. So, my goal is to transition most of my bookings to my web site directly, with the help of Facebook, Google, and social media in general. Once I have the majority of my bookings coming direct, I can then ditch the subscription model and just go pay per booking with VRBO, and not be too dependent on them or AirBNB.

    1Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    8y

    Can someone define OTA? @Garry C.?

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    1Reply
  • Stanley Choung
    Rental Property Investor · FL · Member since 2015 · 29 posts · 9 votes
    8y

    Online Travel Agents: intermediaries that take bookings but don't have the inventory. Sorta like mortgage brokers. 

    1Reply
  • Tyler Work
    Rental Property Investor · Denver, CO · Member since 2017 · 179 posts · 208 votes
    8y

    @Travis Rasmussen @Julie McCoy

    Maybe I'm missing something but Airbnb and VRBO charge much more than 2.5%.  VRBO charges either $500 per year or ~15% per booking to list on their site and Airbnb is about 4% on the host side and about 15% on the guest side. 

    Airbnb is the cheapest on host fees and an incredibly valuable platform in Denver where we operate.  I look at website as a bonus that you build over time.

    One other thing I've had success with is creating and promoting a Facebook page for your property.  Eventually it will show up on Google search results.  Awesome to hear @Peter Hagemann has done so well with his website.  As he said, I think its more of a guest benefit.  Does it translate to more money in your pocket?  

    3Reply
  • Travis Rasmussen
    Realtor · Murrieta, CA · Member since 2016 · 373 posts · 203 votes
    8y

    @Tyler Work

    Looks like we were all off

    https://www.airbnb.com/help/article/1857/what-is-t...

    it's about 3%, I also confirmed with a random sample of my bookings that 3% was consistent. Mind you, I am only referring to the charge to hosts.

    1Reply
  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    @Tyler Work I'm referring to the host fees only (since those are the only ones I pay).  AirBNB is right about 3%, occasionally a tad less based on a sampling of my own fees.  

    I do hate the VRBO $499 fee, but if you go with the per-booking model of 15% commission, you've blown through $500 by the time you book about $3300 worth of stays.  That's less than one month's bookings for me, so it's totally worth it.  After the fee is paid, I still get billed about 2.5% payment processing, which also drives me nuts, because that's almost the same as what AirBNB charges altogether.  However, at the end of the day the subscription model of VRBO costs me roughly $500 per property per year more than AirBNB, and I get enough bookings through them to make it worth my while.  

    I do eventually want to get a Facebook page up and running for my properties, more for long-term diversity, but I've got more than enough bookings as it is so I'm not in a big rush.

    1Reply
  • Ken Breeze
    Investor · Phoenix, AZ · Member since 2015 · 485 posts · 384 votes
    8y
    Everybody’s situation varies therefore the choice of strategy and tools to use demand a different focus. Keep the main thing the main thing. In your case it sounds like “focus on maximum occupancy”. Unless you enjoy it, tinkering with building websites is an endless and painful game. Create systems. Outsource, delegate, eliminate. There’s enough fiddling with the major portals or channel managers anyhow. And one giant headache is done for you on Airbnb et all - the never ending nerve-wrecking marketing. Of course, if your profits allow, you could spend a ton on a few “qualified” VAs (good luck with that) to do all that for you. The on-boarding alone is another full time job. As Julie McCoy pointed out, the advantages (marketing, payments, time input, expertise, insurance, legal, website creation/maintenance, SEO, reach) currently far exceed the dependency disadvantages of OTRs. For all that value and time savings, I wouldn’t even bother too much circumventing their communication system to deal outside their box. It’s doable, and makes sense when talking long term vorlaute guests, but it comes with the price of uncertainty in the case when shizz hits the fan. And it happens. It’s just a matter of when. Great stuff Travis Rasmussen love the taxi/Uber/Lyft analogy. That pretty much sums it up. Hire VAs to do simple stuff like inviting all your past guests via email or inside the Airbnb com channel to sign up to your brand new MailChimp landing page (VA, Upwork, Fiverr and others) and signup form for future communications. If the sign up, you have their permission. If not, they ain’t comin’ back anyway. Use PayPal, Square or Stripe to create simple services or products for your repeat customers. Use WiFi smart locks for ease and efficiency. Try GetProperly to remotely oversee your cleaning and maintenance team. Try Guesty and Everbooked for the rest. Hope that helps.
    3Reply
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