Problems

The short-term rental industry faces challenges related to cost, control, and trust, primarily due to overreliance on OTAs.

For travelers, rising OTA platform fees have made short-term rentals significantly more expensive while offering little added value. Despite there being hundreds of thousands, if not millions, of direct booking websites, travelers have limited options for finding these websites. Most of the time, they’re forced to rely on OTA options, which dominate search engines, AI apps, and platforms like Google Travel, leaving little room for discovering more affordable, direct options.

As a result, many travelers resort to combing through WhatsApp and Facebook groups in a time-consuming and often frustrating effort to find better deals. However, these fragmented methods lead to a low rate of direct bookings, driving travelers back to OTAs, where they face higher prices and less control over their stay experience.

Short-term rental operators also suffer from a lack of control. OTAs enforce policies that can override operators' own terms and conditions, as seen during the COVID-19 pandemic. This dependency leaves both operators and travelers vulnerable, with operators feeling disempowered and travelers often left at the mercy of rigid platform policies.

Trust, once a foundational element of vacation rentals, has weakened. OTAs initially fostered trust by serving as intermediaries, but increasingly one-sided policies have created mistrust between guests and short-term rental operators. Both parties feel unsupported, as OTAs often seem to side with the other party in disputes. The presence of bad actors further erodes confidence, making the experience less personal and more transactional.

On top of this, operators lack the sophisticated tools needed to scale direct booking businesses. Without diverse payment options, rewards programs, or reliable trust-building features, direct booking sites struggle to compete. Additionally, the vast marketing budgets and global reach of OTAs further stifle the visibility of independent operators, making it nearly impossible for travelers to find and book directly, even if they want to.

To address these challenges, the industry must provide both travelers and operators with better alternatives to OTAs. Empowering operators with the right tools will not only improve the booking experience but also offer travelers the opportunity to find affordable, direct booking options with the trust and convenience they deserve.