In the vacation rental industry, booking channels like Airbnb, Vrbo, and Booking.com play a major role in attracting guests and generating revenue. To keep calendars, pricing, availability, rules, and property content synchronized across these platforms, most professional vacation rental owners and managers use a property management system (PMS).
Some PMS providers connect to channels directly through official APIs. Others use third-party or “middle” channel managers to power those connections. Understanding the differences between these approaches is important because they can influence cost, reliability, support, and operational complexity.
This guide explains what third-party channel managers are, how they work, and the pros and cons to consider when deciding whether they are the right fit for your business.
Why Channel Connections Matter
Your channel connections determine how accurately and efficiently your listings stay in sync across multiple platforms. Good connections reduce the risk of:
- Double bookings
- Pricing errors
- Missed reservations
- Delayed calendar updates
- Lost guest messages
Weak or slow syncing can affect guest experience and revenue, so the underlying technology matters. Across the industry, channel connections generally fall into three categories:
Direct API Connections
These are official connections between the PMS and a channel like Airbnb or Vrbo. Data flows directly between the PMS and channel with no middle step. This typically offers the fastest and most reliable syncing, supporting detailed data such as pricing, policies, rules, and messaging.
iCal Connections
This older technology primarily syncs availability calendars. It usually does not support messaging, pricing, or full-feature functionality. Sync delays are common, and there is a higher risk of double bookings compared to API connections.
Third-Party Channel Managers
In this approach, the PMS does not connect directly to the channel. Instead, a separate company manages the connection. Your data flows from your PMS into the third-party platform and then from that platform into the booking channels.
Companies that provide these middle-layer connections include firms like NextPax, SiteMinder, BookingPal, RentalsUnited, and others.
How Third-Party Channel Managers Work
Third-party channel managers sit between your PMS and the booking channels. They act as the central hub where your property data is stored and then distributed to multiple listing sites.
When you update:
- Pricing
- Availability
- Rules
- Photos
- Descriptions
Those updates first pass through the third-party manager, then out to the channels.
Likewise, when a booking or message comes in, it flows through the channel manager before reaching your PMS.
This architecture introduces an extra platform into your operational workflow.
Potential Advantages of Third-Party Channel Managers
There are valid reasons why some PMS providers choose to rely on third-party channel managers, and why some vacation rental businesses prefer to use them.
1. Access to More Channels
Because third-party managers specialize in channel connectivity, they often integrate with a wider list of booking platforms, including smaller or niche sites. This may allow immediate access to more channels without waiting for your PMS to build direct integrations.
2. Faster Time to Market for PMS Platforms
A PMS provider might be able to offer channel distribution much sooner by partnering with a middle-layer provider rather than taking on the extensive certification and development work required to build direct connections themselves.
3. Centralized Channel Setup
Some users appreciate having a single hub where channels are configured and managed, especially if they operate across many listing sites.
Potential Drawbacks of Third-Party Channel Managers
While third-party channel managers offer wider reach, there are also many trade-offs to consider.
1. Accountability and Visibility
When a syncing issue occurs, it can be harder to determine where the problem originated. A delay, data mismatch, or undelivered message may be traced back to the PMS, the channel manager, or the channel itself. This layering sometimes complicates support resolution.
Whose fault is it if you get a double booking or if your rates aren't updated quickly? The PMS will point at the channel manager, and the channel manager will point at the PMS, and the channel itself will not be able to help because they are too far downstream.
2. Added Complexity
Each additional system introduces another:
- Workflow
- Interface
- Support team
- Failure point
This can mean more time spent diagnosing issues or navigating multiple dashboards.
3. Speed and Reliability Risks
Because data passes through more than one system, updates may take longer to reach the channel. In some cases, this increases the risk of outdated availability, inaccurate pricing, or messaging lags.
4. Extra Cost
Many third-party channel managers charge either:
- A percentage of booking revenue, or
- A flat fee per property
These fees are often in addition to PMS charges, and over time they can materially reduce margins, especially for high-volume operators.
5. “Hundreds of Channels” Marketing Versus Reality
Some third-party channel managers promote access to hundreds of channels. In practice, most vacation rental revenue typically comes from a handful of major platforms, along with direct bookings. Additional niche channels may generate little volume while still requiring extra management effort.
Choosing the Right Approach for Your Business
There is no universal answer to whether third-party channel managers are “good” or “bad.” The right decision depends on your goals, business model, and priorities.
They may be a good fit if you:
- Want the broadest possible channel reach and are willing to deal with extra headaches
- Use a PMS that does not already have direct API integrations
- Prefer an intermediary managing channel relationships
- Are willing to trade higher cost for convenience
They may be less ideal if you:
- Prioritize maximum reliability and speed
- Want fewer systems in your tech stack
- Prefer direct vendor accountability
- Want to minimize fees on each booking
How This Relates to OwnerRez
From day one, OwnerRez chose the direct API integration path. From the beginning, the founders invested in building and maintaining direct API connections in-house with major channels. This provides speed, reliability, and visibility without requiring a third-party middle layer. This strategy has helped OwnerRez achieve top-tier partner status with major OTAs year after year.
If you’d like to see how those direct connections work in practice, you can explore OwnerRez through a free 14-day trial or join one of our weekly live demo webinars.
FAQs About Why OwnerRez Doesn't Use Third-Party Channel Managers
Q: Why are channel connections important for a vacation rental owner and manager?
A: Channel connections keep calendars, pricing, rules, and property content synced across listing sites. Slow or unreliable connections increase the risk of double bookings, pricing errors, missed reservations, and missed guest messages, which can directly impact revenue.
Q: Why are direct API connections the best option?
A: Direct API connections are the fastest and most reliable way to sync with listing sites like Airbnb and Vrbo.
Q: What issues do third-party channel managers create?
A: Third-party channel managers add an extra layer between your PMS and booking channels. This can result in slower updates, weaker support, less visibility when problems occur, and additional fees.
Q: How do direct API connections improve speed and reliability?
A: Direct API connections eliminate unnecessary steps in the syncing process. This enables lightning-fast, reliable updates between OwnerRez and all the major booking channels, such as Airbnb and Vrbo.
Q: How do third-party channel managers affect a vacation rental operator's revenue?
A: Many third-party channel managers charge a percentage of booking revenue or a monthly fee per listing. Over time, these costs add up. OwnerRez offers simple per-property pricing with no channel-based commissions because it owns and maintains its industry-leading connections in-house
Q: Why does OwnerRez invest in direct API connections instead of third-party channel managers?
A: Direct API connections give OwnerRez full control over performance, reliability, and visibility. By building and maintaining these connections in-house, OwnerRez avoids the delays, added costs, and accountability issues that often come with third-party channel managers.
Q: How do I get started with OwnerRez?
A: You can get started by signing up for a 14-day free trial or by signing up to join one of our weekly live demo webinars.