Phone Calls Are ‘The Last Mile’ of STR Distribution

Douglas Kennedy
8/24/2026

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 accommodations industry, “the last mile” is often a direct inquiry phone call from someone who is searching online but who is confused by reviews, overwhelmed by the choices they see, or wanting to ensure they are getting the best value. Sometimes the reservations inquiry is disguised as a simple “quick question” about amenities, services, or fees.

Where the Breakdown Happens

Now, how well is the last mile managed these days? It starts even before the phone rings. Too often web designers hide phone numbers, making it difficult to call. And what happens when the phone does ring? Too often callers endure excessive interactive voice response (IVR) selection options. Worst of all, too often those who answer are politely indifferent, simply answering questions and letting a sale slip away.

The Cost of Getting the Phone to Ring

Think of the marketing costs spent to get website visitors to make those calls:

• Website design and maintenance, photo images, copy writing, updates such as posts, blogs, and events
• Pay-per-click budget
• Channel managers
• Design and execution of email campaigns
• Social media ads and posts, retargeting website visitors

Perhaps the biggest cost of all is online travel agency (OTA) commissions, which may not seem like a marketing cost. However, consider that many of those who call first found you on an OTA, also known as the billboard effect, then looked up your phone number to call with quick questions about parking, fees, amenities, views, or simply to double-check for deals.

If your staff does not offer to check rates and book them directly, there goes 10%–25% or more in commission. Worse yet, if the caller goes back to an OTA, they may pick another option.

The Hidden Cost of Direct Bookings

Here’s another thought: Think about all the hidden costs of an individual website booking. Most leaders do not recognize these as a transactional booking cost, as the sum amounts are buried elsewhere in P&L statements and/or included in franchise fees.

• CRS direct booking engine fee (from $1 to a few dollars per reservation)
• GDS booking fee for corporate, travel agent bookings, including GDS pass-through charges and agency commissions
• OTA channel connection/pass-through fees for simply passing the booking along to your PMS
• Brand booking commission fee for soft-brand.com and soft-brand app bookings

So, when someone calls at the last mile of short-term rental distribution with a quick question or to double-check a rate, if your staff secures that booking, costs such as these are saved.

What a Call Is Really Worth

Think also about the potential value of these calls. Just calculate your company’s average daily rate (ADR) times average length of stay as a starting place, and the value of a call becomes very clear. Given the wide variety of accommodation sizes and setups, the best way to do this is to take your total rental revenue from the previous year divided by the total number of bookings for that year, showing you the potential in every inquiry.

Who’s Actually Picking Up the Phone

Yes, people still call, and contrary to popular belief, people of all ages are calling. In fact, according to a recent article from McKinsey & Company:

• 71% of Gen Z consumers listed live phone conversations as among the most preferred customer service support channels (compared with 81% of millennials, 86% of Gen Xers, and 94% of boomers).
• One company we surveyed reported that its Gen Z customers are 30%–40% more likely to call them up than millennials, using the phone as frequently as baby boomers.
• A quarter of Gen Zers say they expect live phone support tools when dealing with premium brands or services.

While urban legend has it that only the aged baby boomers call, in the travel accommodations industry, the motivation to call is actually related to how important the travel plans are. In other words, the more important the trip, the larger the party, the more emotionally connected they are to their travel plans, and—pay attention here luxury operators—the higher the rates, the more likely their research will also include a phone call.

Managing the Last Mile More Effectively

So, what should hospitality leaders in the accommodations industry be doing to better-manage the last mile of distribution?

1. Post your phone number prominently, and if you still have in-house reservations or a dedicated call center team, add web copy that says “Call In-House Reservations” or “Call Us Directly” or similar.
2. Ensure that your staff recognizes phone calls as being revenue-generating opportunities, not interruptions.
3. Train them to turn what appear to “only” be quick questions into opportunities by saying “Now that I’ve answered your questions, can I check our rates for you?”
4. Engage a telephone mystery shopping company, such as my company or any of the other providers we compete with, to identify training and coaching opportunities. Or, if you use any call recording platform, we provide remote call scoring assessments.
5. Consider a “bucks for bookings” incentive program to motivate and celebrate success. One to a few dollars will add up for your staff on payday, and the cost is far less than any online booking, even a direct one.

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