Phone Calls Are ‘The Last Mile’ of STR Distribution
In the field of logistics, “the last mile” is the crucial final leg of the supply chain, where goods are moved to the buyer’s doorstep. In the...
Source: Phone Calls Are ‘The Last Mile’ of STR Distribution (VRMA Arrival)
What It Says
Douglas Kennedy of Kennedy Training Network argues that phone calls represent the "last mile" of the short-term rental (STR) supply chain. While digital marketing drives initial awareness, many travelers—including 71% of Gen Z—seek live conversations to resolve confusion or verify value before committing to high-stakes or luxury stays. Kennedy notes that property managers often undermine these revenue opportunities by hiding phone numbers on websites, utilizing frustrating IVR systems, or employing staff who treat inquiries as interruptions rather than sales leads.
Why It Matters
Direct phone bookings are a high-margin channel that avoids OTA commissions (often 10%–25%) and bypasses various "hidden" tech fees associated with online booking engines, CRS, and GDS connections. By failing to convert callers who find a property via the "billboard effect" on OTAs, operators lose significant revenue and risk the guest returning to a third-party platform where they might choose a competitor.
Useful Signals
- Demographic Shift: Contrary to digital-only stereotypes, McKinsey & Company data shows Gen Z is 30%–40% more likely to call certain companies than millennials.
- Complexity Correlation: The likelihood of a phone call increases with the stay's total cost, party size, and emotional importance of the trip.
- Cost Efficiency: Implementing "bucks for bookings" incentives for staff is often significantly cheaper than paying OTA commissions or PPC acquisition costs.
- Operational Gap: Many web designs intentionally obscure contact info, creating friction for the highest-intent customers.
STR Tech Report Take
As the industry leans heavily into AI and automated guest messaging, the human element of the voice channel remains an undervalued conversion tool for high-ADR properties. For tech vendors, there is a clear opportunity to better integrate "click-to-call" attribution into marketing dashboards and develop more sophisticated call-scoring AI to help operators coach staff. For operators, the "last mile" shouldn't be an afterthought; it is the final gate where marketing spend either yields a high-margin direct booking or a high-cost OTA commission.
Original Source
Phone Calls Are ‘The Last Mile’ of STR Distribution published by VRMA Arrival.
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