All About Direct Bookings

A full overview of features, pricing, timelines, and FAQs

Andrew Schorr avatar
Written by Andrew Schorr
Updated over a week ago

Table of Contents

How Direct Premium Works

Premium is our full-featured solution, currently only available for hosts with properties in the USA (including Puerto Rico and Virgin Islands), Australia, and the UK (including Isle of Man and Jersey). We hope to expand Premium to Canada next.

  • Link any personal or business bank accounts you want to use for your payouts;

  • Process online payments from a Hospitable or self-hosted website, with

    • Hospitable serving as the Merchant of Record, and

    • Sales and lodging taxes automatically calculated and collected;

  • Accept bookings with the confidence of chargeback protection, integrated guest-vetting and US$5M worth of damage protection; and

  • Receive payouts to your bank account 24 hours after check-in, in most cases.

How Direct Basic Works

Basic is our "payment processing only" option, available everywhere Stripe is available.

  • Connect your Stripe account for payment processing

  • Process online payments from a Hospitable or self-hosted website

    • You are the liable Merchant of Record

    • You will need to calculate lodging taxes and add them to your properties, Hospitable will collect them from the guest

  • We do not have integrated guest-vetting and damage protection

  • You control your payouts, but you are also liable for cancellations, refunds and chargebacks

How Direct Lite Works

For customers with properties located in markets not supported by Stripe, but who would still like to have a Direct website, Lite allows you to have a site without payment processing. This plan will be live soon for select customers.

  • Take booking requests that sync with your Hospitable calendar

  • Your messaging rules work with Direct Lite reservations

  • Take payment off-platform

Direct Lite is $5/mo for your first property and $1/mo for each additional property.

Direct Pricing

You will need to activate Direct features for your account in order to publish and use your Direct site or booking widgets. We charge a monthly fee based on the number of unique properties published to any Hospitable site or self-hosted site. You will see them on your regular Hospitable invoice starting on the next billing date after you activate Direct.

Tiered pricing

Premium per month*

Basic per month*

Properties 1-9

$5 per property

$8 per property

Properties 10-19

$4 per property

$7 per property

Properties 20-49

$3 per property

$6 per property

Properties 50 & above

$2 per property

$5 per property

*The prices in the table above are in USD. These may vary depending on your country's currency rate.

Direct Premium also charges a transaction fee of 6% of the nightly rate and fees + $10 which includes your payment processing fees. With Direct Basic, Stripe will deduct payment processing fees from your payout.

Direct Premium

Airbnb

Vrbo

Booking.com

Guest fee

6% + $10

14%

12-14%

varies

Host fee

0%

3%

8%

17.5%

Direct feature break-down by plan

Lite

Basic

Premium

Guest service fee

N/A

0%

6% + $10

Site builder

Included

Included

Included

Booking widget

Included

Included

Included

Instant book

Included

Included

Included

Custom quotes

Included

Included

Promo codes

Included

Included

Google Vacation Rentals

Included

Included

Tax collection

Included

Included

Tax calculation

Included

Payment processing fees

N/A

Included

Chargeback protection

Included

Guest vetting

Included

$5M damage protection

Included

Direct FAQ

What’s the difference between Direct Basic and Direct Premium?

Direct Basic is the “just the payment processing” option, primarily for hosts that already have experience in taking direct bookings. With Direct Basic, you can use our Direct websites or your own self-hosted site, but you need to connect your own Stripe account, you pay your own payment processing fees, you are liable for chargebacks, you need to keep up with the various taxes for all of your properties, and we currently do not have integrated solutions for guest vetting and damage protection.

What does it mean when Hospitable is the Merchant of Record?

As the Merchant of Record, Hospitable processes the payment, accepts liability for refunds and chargebacks, covers costs associated with cancellations, provides customer support during the booking process, and in general is responsible for the quality of the marketplace experience.

Chargeback liability can be especially important for smaller-scale hosts, where a single chargeback against a small volume of transactions could trigger consequences with a payment service provider. Instead, Hospitable can spread the risk and liability of chargebacks across a large client base, so occasional chargebacks don’t restrict your ability to keep processing payments.

How does Direct Premium compare with OTAs on price?

We like to think of Direct Premium as a hybrid between an Online Travel Agent like Airbnb and the do-it-yourself direct booking options out there that require a lot of setup and leave you bearing all the risk.

Similar to OTAs, Direct Premium helps hosts manage risk by investing in things like Merchant of Record liability, guest vetting, and damage protection on every reservation.

Unlike OTAs we don’t pass on the costs of big budget advertising campaigns to you and your guests.

So how do we stack up? Let’s compare direct booking versus OTAs. Total savings are calculated by comparing the guest price and the host payout. You can use Hospitable's markup rates to adjust the balance between price and payout.

In our price comparisons, Direct Premium can save you:

  • 11-27% on a 5-day booking

  • 14-46% on a 20-day booking

Note that Direct Premium performs best on larger bookings. If you generally get < $100 bookings, you are likely a better candidate for Direct Basic.

How are taxes managed?

Hospitable collects applicable taxes from the guest and passes them through to you with the payout. For Direct Basic, you need to enter your own taxes for each property. For Premium, we will calculate them for you and update them when there are changes.

You are responsible for filing and remitting your taxes to the appropriate jurisdiction in a timely manner (many jurisdictions are monthly filings). In the future, we will start filing and remitting for Premium hosts in a limited number of jurisdictions where 1) we are legally able to do so, and 2) where it makes business sense for us to do so. For now, filing and remitting taxes are your responsibility. Premium users may be required to sign regular affidavits that you are properly remitting the taxes that have been passed through to you. More about taxes.

When do I get paid out?

For Direct Premium, we make an ACH transfer to your bank account 24 hours after check-in or when the payment settles, whichever comes later. If a guest books within four days of their check-in we may not have received the payment when the guest checks-in, in which case we will show you the settlement date, which is your payout date for that booking.

For Direct Basic, you are in charge of your payouts. Note you will need to keep funds in reserve to cover liability for cancellations, refunds, and chargebacks.

What’s included in Premium damage protection?

  • Accidental and malicious damage

  • Damage due to theft

  • Damage to belongings/contents

  • Damage to common/shared areas

What’s not covered?

  • General wear and tear/cosmetic damage

  • Damage not caused directly by a guest

  • Bodily injury suffered by a guest or host

  • Damage caused by a pet authorized on the reservation

  • Any other exclusions mentioned in their terms and conditions

What the booking flow looks like

Direct Feature Roadmap

In Progress

Next

Later

New sites - we've custom build a new Direct site builder so we can move faster on making better sites

Mid-term bookings - recurring payments, tax optimization, and other improvements

Fee visibility - decide how fees are presented to guests, or bundle them in your nightly rate

Payment terms - on bookings with sufficient lead time, allow the guest to pay in installments

Rental agreements - an e-signature integration for hosts who need signed contracts.

Guest Portal - an online guest itinerary for alterations, cancellations, and more

Tax remittance - file and pay taxes for Premium hosts where possible

Split pay - divide payouts across more than one account

More Direct Info:

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