Article

How STR Hosts Lost Over $1 Billion in 2025 (+ How to Flip the Script in 2026)

January 22, 2026

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In 2025, Short-term rental hosts lost more than $1 billion in commissions and fees to online travel agencies like Airbnb and VRBO, according to a new report from HostAI.

And before you gasp, that's not the shocking part. That $1 billion cash bleed was just from repeat guests.

The cost of relying too heavily on OTAs, even for guests who already know and love your property, is higher than most people realize.

Let’s unpack what’s going on, why it’s a problem, and how hosts can push back and take back control.

Repeat Guests: The Hidden Revenue Leak

HostAI examined over 230,000 confirmed bookings from 115 short-term rental operators around the world. Here's what they found:

Repeat guests accounted for up to 26% of total revenue, with a median of 5%.
Of that repeat revenue, ~77% still goes through OTAs, meaning operators pay commission on guests they’ve already acquired.
That adds up to over $1 billion annually in OTA fees on repeat stays alone.

HostAI calls this problem “repeat guest leakage.”

And while not every host has the marketing reach to bring in new guests at scale, every host should be reaching repeat guests.

These are the easiest and most valuable bookings you can get, but most are giving them back to the platform.

Why This Problem Goes Beyond OTA Fees

Yes, losing 12–20% in commission hurts. But the real issue goes deeper.

1. Guests and hosts both pay more

When a guest rebooks you through an OTA, they still pay service fees — and you still pay commission. That’s money both sides could save by booking direct, especially once trust has already been established.

2. OTAs control the experience

Even if a guest wants to rebook your place, the platform can still show them competing listings, promoted stays, or “similar options” before they ever see you again.

3. You can’t reward loyalty

With a middleman in the way, you can’t offer repeat-guest perks, discounts, or VIP treatment the way you can through your own site. Without direct communication, you’re not building a brand—you’re just another listing.

4. Your business isn’t future-proof

Relying entirely on OTAs means:

One policy change can crush visibility
One dispute can shut you down
One algorithm update can kill bookings

Without direct bookings, your risk is high.

5. You lose data—and insight

OTAs keep guest data. You’re left guessing. That means weaker marketing, weaker retention, and fewer chances to improve the guest experience.

6. Lower conversion and loyalty‍

According to HostAI, guests who book directly return 28.3% of the time.

Guests who book through Airbnb return just 8.9% of the time.

That's three times the loyalty—and three times the lifetime value when guests book direct.

The Explosive Growth of Direct Bookings for Airbnb Hosts

There’s a clear shift happening. Guests and hosts are going direct. Here's the data:

Direct booking sites captured nearly 34% of all U.S. vacation rental bookings last year—second only to Airbnb’s ~46%.
According to Hospitable data, direct booking revenue rose 91% year-over-year in 2025, reaching $53.7 million. Some hosts saved $6.9M in OTA fees by steering bookings direct.

This isn’t just a trend among luxury stays or big operators anymore.

This is a fundamental shift in how sustainable STR businesses are built.

To-Do List: Your Airbnb Direct Booking Strategy

Building a direct booking strategy isn’t about slapping up a website and hoping for the best. Without traffic or a funnel or the right systems, most direct sites fail.

Here’s how you can get started:

That traffic goes directly to your website.

1. Start capturing guest contact info now

Even before you launch a site, collect guest emails through WiFi logins, post-stay follow-ups, or house manuals. This is your owned audience. And you'll need this list to start marketing your website.

2. Build an email marketing strategy

Email is still the highest-ROI marketing channel for hospitality. Use it to:

Thank guests after stays
Offer repeat-stay discounts
Promote seasonal offers
Share local tips and updates

3. Create a strong direct booking website

Your site should include:

Clear pricing and policies
Mobile-first design
Calendar sync with OTAs
Simple, secure checkout

Many PMS tools already include solid direct booking options if you don't want to start from scratch and want to create something intuitive. Remember, the key is making booking as easy as Airbnb. Keep it simple and smooth.

4. Drive traffic intentionally

A website without visitors won’t convert. Focus on:

SEO and keywords based on your town + experience
Social proof (photos, reviews, user-generated content)
Run emails campaigns
Add your business to Google Business and vacation rental sites for more visibility and traffic.

5. Incentivize repeat guests

Offer:

Loyalty discounts
VIP perks
Flash deals

Repeat guests convert cheaper, book faster, and stay longer.

6. Don’t sleep on social media

Social media builds trust at scale. Consistency matters more than perfection. Your story, space, and experience are marketing assets—use them. Create an Instagram-worthy Airbnb, and then use those visuals to sell it online.