The Shift to Direct Bookings: What Short-Term Rentals Can Learn from the Restaurant Industry

Introduction

The short-term rental (STR) industry is undergoing a transformation. While platforms like Airbnb and Vrbo have long been the dominant booking channels, an increasing number of property owners are recognizing the benefits of direct bookings. This shift mirrors a trend we've already seen in the restaurant industry, where businesses moved away from third-party aggregators in favor of first-party solutions.

By examining the trajectory of mid-market and small restaurants, we can gain insights into how short-term rental hosts can take control of their bookings, reduce platform dependency, and strengthen their brand.

Lessons from the Restaurant Industry

For years, restaurants relied on third-party delivery aggregators like Uber Eats and DoorDash to expand their online ordering reach. While these platforms helped increase order volume, they came at a cost: high fees, limited branding opportunities, and reduced customer loyalty. However, as consumer behavior shifted towards Google Online Ordering, restaurants found an opportunity to regain control.

Key Drivers of the Restaurant Industry's Shift:

• Avoiding third-party fees: Aggregators charged commissions that cut into already thin margins.
• Maintaining brand control: Restaurants wanted direct relationships with customers instead of relying on an intermediary.
• Leveraging Google as a discovery tool: More customers began placing orders directly through Google Maps and Google Search, reducing the need for third-party platforms.
• Adopting first-party solutions: Many restaurants turned to platforms like Toast Online Ordering, which allowed them to take direct orders with zero commission fees.

As a result, restaurants that embraced direct online ordering not only preserved their margins but also built stronger relationships with their customers.