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Everything Instant - Lodging Newsletter September 30, 2024

By Wm. May
Published: 09/30/24 Topics: Education, Investment, Lodging Management, Profit, Selling, Vacation Rental Management, Yield Management Comments: 0

Long ago with some partners, we made an offer to purchase (of all things) a radio station.

The partners had experience at managing radio stations, but no experience at the process of actually closing a business purchase that included a Federal Communications Commission (FCC) license application, tangible and intangible assets sale, engineering evaluation, and how to write all the necessary contracts.

The attorney engaged to facilitate the closing, had dozens of questions, when one partner innocently said, "Well, how long will it take for you to prepare the documents so we can close the deal?"

He informed us that he could have the first-draft of the closing documents in about week, then it would take the FCC about a month to review our application.

The partners were crestfallen. What could possibly take up to a week to type up some papers? The attorney was cordial in saying that this time is shared among numerous clients and, more importantly, the work must be done carefully and it must be done completely.

Overtime, with the advent of overnight document delivery services, then email, then mobile phones, and now texting, consumers and even business people have come to believe that everything little thing can be done immediately. But smart businesses still benefit from knowing when and when not to make things instantaneous.

We like to quote John Wooden, the head basket ball coach at UCLA from 1947 to 1975, won the NCAA national championship 10 times (7 consecutively). No other coach has come close. Many experts consider him to have been the best sports coach (in any sport) of all time, famous for admonishing his players to perform:

"Be quick. Never hurry."

That is especially helpful guidance in today’s era when more communications methods have caused everyone to want everything instantaneously.

Later in life, Coach’s players admitted they not only fully understood the wisdom at the time. It helped them navigate life ever since.

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In the vacation rental and lodging management business, the list of duties, tasks, and obligations is long and varied. Of course, it is necessary to maintain and clean the physical properties, to assist guests in every way they may need, and to communicate with the property owners.

Over decades, the list of obligations continues to increase. Create and maintain websites. Continually invest in technology to synchronize rates, dates, and information with "Online Travel Agency" (OTA’s) websites (such as VRBO, AirBnB, Expedia). Produce web-optimized still photos, drone aerial photography, 3D Tours, and even floor plans. Utilize devices to monitor guest behavior, while also being available 24-7-365. And help with government permits.

Along the way, an unexpected burden has been imposed.

Communicating in new ways is a good thing. Years ago bookings came in by phone, with confirmations sent by mail, or even fax (remember faxes??). The arrival of email was helpful. Online bookings facilitate bookings. Mobile phone ordering convinced guests to book on the go, and also helps coordinate housekeeping. Texting allows guest and manager to reach out and touch at any time.

But is that all good?

More communication methods have actually decreased personal communications. OTA’s interfere between guests and managers. SMS texting makes for overly short words, requiring much back and forth. Guests demand to text at 3AM with non-essential questions. Owners install security cameras to surveil guests (who just hate that).

So to provide top service to everyone we embrace that John Wooden quote, "Be quick. Never hurry".

No one method takes preference. Bookings, phone calls, emails, texts, online chats, are parsed to determine priority. Quick - guest onsite property services. Quick - weather and utility interruptions. Quick - housekeeping and maintenance scheduling and tracking. New bookings ae processed quickly, depending on arrival date.

All the other hundreds of duties, questions, and requests come after those. Accounting is scheduled. Advertising is planned far in advance. Owner reports are periodic, but not daily. For owner questions about projections, accounting, or other inquiries, time is taken to ensure that responses are accurate and complete.

Coach Wooden also advised, "It’s the little details that are vital."

So by following prioritized communications, we can achieve the best outcome for owners, guests, and staff alike.

Author: Wm. May – Administrator, Vortex VIP
Blog #: 1000 – 09/30/24

Sponsor: Vortex VIP – – VortexVIP.com

Frozen Guests - Lodging Newsletter August 31, 2024

By Wm. May
Published: 08/31/24 Topics: Education, Investment, Lodging Management, Profit, Selling, Vacation Rental Management, Yield Management Comments: 0

For twenty years, visitorship of vacation rentals has been on a steady increase. But it has not been a straight line. Always upward, but erratic, too.

Short, medium, and sometimes long-term trends have slowed the industry. The dot com boom, 9-1-1, of course, and the 2008 real-estate depression. These large scale events squeezed bookings, rates and sales.

But there is good news. Every time, eventually, the vacation rental industry rebounded and the upward creep continued. All because vacation rentals are a better "product" for certain travelers, at certain times, who have certain goals.

Then an upward event further revealed good volatility, when there was a revenue surge never seen before. To escape "cabin fever", consumers flocked to private vacation rentals to get some enjoyment, while avoiding other people. (Hotels suffered.)

Even long-time lodging advertising experts were astonished. Never had there been a splurge of buyer (guests) frenzy as big and as fast. Beginning in late 2022, 2023, and now in 2024, as vacation rental demand returned to what might be called "normal seasonal" levels.

In 2024, the softening nationally has continued for many reasons. But most pundits fail to voice a trend which has returned every four years, since our first office opened in 1964 and, of course, that would be the presidential elections.

The downturn affects many industries, not just travel, as each candidate and each party screams at consumers that the end of the world is near unless they vote for one candidate over the other.

And when people feel fear they "freeze", stop making decisions, put off purchases, travel less and become enamored with the battle. It may be sacrilegious to say, but the sky is never falling as fast or as much as presidential candidates want to make consumers believe.

In this month’s newsletter, let’s explore why humans are so easily manipulated.

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Even with a degree in advertising, a first career in an advertising agency, and decades of ad management, the study of advertising still confounds me because it is directly tied to consumer psychology.

First my excuse - In business, we are only trying to get guests to buy our products instead of something else. We are only asking them rent our houses instead of the other houses.

We aren’t hurting anybody but the same cannot be said for politicians, who have always used proven advertising techniques to scare the hell out of people.

Exaggeration - It is not enough to say "my opponent is wrong", but instead "Voting for that other clown will be the end of the world." But a biologist once said. "Humans are so self-centered. After an atomic war the cockroaches will be celebrating the feast they find." Humans are laughably self-centered.

Superlatives - It is not enough to be a good person, smart, well meaning, and hoping to represent voters well. Instead, the words are "Very motivated because (fill in the blank)", "Extremely intelligent" and "First in the class, the professional, the community."

Tribalism - People all want to be part of something bigger - a country, a state, a town, a club. They feel, "the other people are fools if they do not look like them, talk like them, dress like them.

Personality - Strange to say, but no one likes everyone else. Mostly we appreciate people like ourselves. Or the opposite - the beautiful people, athletes, celebrities and people who have what we do not. We are fan boys and fan girls and seldom understand why.

Contemptibility - Contrary to feigned sincerity, politicians have always found their opponents foolish, knavish, and devoid of intelligence. Some say it softly, but they all say it.

Voters fall into this trap because, as the comedian George Carlin said, "Think of how stupid the average person is, and realize half of them are stupider than that."

Loyalty - In wars, every soldiers wants their fellow soldiers to be loyal to their cause. In politics, it is the rare voter who can separate their intellect from their loyalty. Once you join the team, you seldom switch teams out of loyalty.

Scarcity - Every party says, without us you won’t do as well. Then they paint a picture of utter doom should you be stupid enough to vote for the other person. There will be no jobs, no money, no stability, and even your friends will desert you. It’s not true, but it sells well to voters.

You Too - If you believe it is only the "Other party" using manipulation to woo voters, sorry to say you have been wooed and manipulated. From the modest to the momentous, getting elected has always required despicable adverting techniques. Students of advertising recognize it. Should you?

Prediction - If politicians and parties would stop using despicable methods, then consumers would thaw out and get traveling again. I predict they will never drop the methods.

But the good news is - it will be over in a few weeks and then consumers can get back to life as usual. For lodging there will be an upturn. No one knows when but there always is. Let’s call that optimism.

Author: Wm. May – Administrator, Vortex VIP
Blog #: 0999 – 08/31/24

Sponsor: Vortex VIP – – VortexVIP.com

Wallowa Valley - Lodging Newsletter July 31, 2024

By Wm. May
Published: 07/31/24 Topics: Education, Investment, Lodging Management, Profit, Selling, Vacation Rental Management, Yield Management Comments: 0

After decades in lodging management we have learned a few things. Actually many things. More accurately, hundreds of things. Maybe even thousands. All are valuable to clients.

They could be called "Best Practices" or "Proven Policies" or "Operating Procedures." But we like to call them "Fingers in the Dike" because, if you know where the holes, are you can prevent a flood.

That is why we approach every new question, issue, idea, compliment or even complaints in this way:

First - Solve the problem, issue, or new (never been seen before) situation. ASAP.

Second - Formalize solutions into training, documentation, and actions, so if an issue comes up again, everyone here knows exactly what to do well before they need to do it.

That second point takes us extra effort, time, and sometimes money, but it saves that amount over and over again.

As a young man, I did not stay in Boy Scouting long, but I did memorize their motto. And over the years I have come to realize it is exactly what is needed to run a business, take on life, and even manage vacation rentals:

Be Prepared

Our competitors range from small local companies, to giant corporations, to newbie free-lance title "Co-hosts". So, it is surprising how ill prepared all of them are.

It is enjoyable to explain how our advertising, marketing, reservations, rate setting, photography and other skills will generate more income and profit for owners than the other managers can hope to do.

But most of all, owners need us because we have been-there, done-that, and are fully prepared with what may come.

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Many variables are at the owners discretion, but we will always chime in with which finger should go where in the dike. Here are just a few:

Instructions - It is not enough to just provide the address. Emailed, mailed, or online instructions assist guests in flying, driving and finding the property. Even so, staff must answer phones 24-7-365.

Arrival - Whether using elocks or keysafes for entrance a toll-free phone number must be posted for guests who forget their code, can’t turn a key, or are lost in the dark.

Guest Books - It is fun to read that visitors love the house as much as you do. But not so fun when they complain about the weather, or draw in nasty photos. (It does happen.) Instead a professional handy "Welcome Book" that thanks guests, gives them home details, and mentions area attractions is better.

Signage - The old slogan goes, "Tell them and then tell them you told them." A few professional strategic signs inside houses called "Notices" pleasantly remind guests of the rules.

Pet Friendly - Allowing dogs (no other pet type) will increase income. Accidents are rare, and visitors willingly pay a pet cleaning fee. If you reject dogs, but bring your own, people will presume the property is dander-free when it’s not.

Support Animals - Federal law prohibits refusing service to people with support animals. A few qualifying questions are allowed, but intimidating questions result in large penalties. Don’t question those people. (Currently, emotional support animals are NOT required to be allowed.)

Wine Basket - A bottle of wine sounds hospitable. But that is not legal, and eventually a wine snob will give you a bad review no matter quality. The solution? How about a bottle of Martinelli’s non-alcoholic cider? Everyone loves it. Kids can drink it. And it’s far cheaper.

Water Craft - While providing kayaks, paddle boards, or even boats sounds like a surefire way to attract guests, that presents a huge liability risk. And surprisingly, it won’t increase occupancy, rates or net income. Don’t include photos of anything that will not actually be provided, or the guest will demand a credit.

Games - Jig-saw puzzles are a joy for families, but soon pieces go missing, prompting a guest to leave a snarky review about that. Puzzles without pieces are best.

Door Web Cameras - Surveillance must be disclosed in writing to guests. But they won’t get approval from their invitees. So some will scream murder when they feel spied upon. If you must, limit cameras to those mounted high and facing the driveway only.

Guest Monitoring - Incidents of misbehavior are very rare, but newly developed noise and Wi-Fi monitors help managers monitor occupancy and keep neighbors happy.

Telephone - Yes, everyone has a mobile phone, but they may not be reachable or may turn them off while on holiday. Installing a "land line" can be done inexpensively and your manager can always reach guests.

Author: Wm. May – Administrator, Vortex VIP
Blog #: 0998 – 07/31/24

Sponsor: Vortex VIP – – VortexVIP.com

Vacation Rental Greed - Lodging Newsletter June 30, 2024

By Wm. May
Published: 06/30/24 Topics: Education, Investment, Lodging Management, Profit, Selling, Vacation Rental Management, Yield Management Comments: 0

In the movie "Wall Street", actor Michael Douglas’ character Gordon Gekko proclaims:

"The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit."

In 2015, the "U.S. Open" Golf tournament took place near Tacoma, Washington. Promoters said it would be a massive boom for tourism. But they failed to say - only if you know what you are doing. With our first office having opened in 1964, we have watched how many events affect lodging. Our advice? If you don’t have sophisticated yield management to maximize profit, greed will cause pain.

Normally, clients are not allowed to set rates for the very reason that played out at the U.S.Open. But in this case, a large client insisted his rates be raised ten-fold. To our later chagrin, we gave in.

But by now you may have guessed what happened: It seems that the golf watchers prefer to stay in hotels where they can gossip with like-minded golfers, and maybe rub elbows with pros. The privacy of a private home is not what they come for.

Then the owners of usually non-renting homes, on and near the course, arranged to move out of their houses to offer rentals during the tournament. The market became flooded.

Although our property was very nice, it was far away from the action. Attendees wanted to avoid driving back and forth several times a day for a whole week.

As the championship week approached, our client panicked and screamed "Drop the rates! Let’s get some bookings, any bookings." We did not say, "I told you so." But we could have.

But it was too late. Event travelers plan far ahead and there were no guests to be had. While the property could have earned $10,000 that week, instead the owner made zero, zip, nada.

Setting proper rates is difficult even for skilled experienced managers who have research on rates, dates and competition. Clients do not, so they should drop their ego, ignore the greed, and let the pros make maximum profit for their homes. Sometimes the author Ron Rash, is correct:

"A small profit is better than a big loss."

Making a profit is good. Being greedy is dangerous. Here is how we pursue profit.

Authority - Let us do our jobs for you. Accept Yield Management as the powerful tool that it is - even if it seems not to work to you at times. Follow our recommendations, approve our ideas, and invest in the little things that make a difference.

Pride - Swallow it during seasons when no one is coming to town and as rates drop. Remember rates will soar during high seasons and yes, even during events. The telemetry we buy considers past, present and future events. It reacts quickly to changes such as weather, travel challenges, and everything competitors are doing - hotels, motels, inns, resorts and vacation rentals, of course.

Doll It Up - It is an old phrase my father was fond of as he "dolled up" his business, his car, his garden, and his 3 boys as he dressed us up for Church every Sunday. As a six old boy I swelled with pride as our teacher reminded students to see "Billy’s garden on the way home. His father grows the most beautiful roses." Dolling up a rental home is more than just good amenities, it is special touches that make a difference.

Buck Up - Ok, here is another phrase from my dad. Because rentals deal with consumers, accept that someday some guest will hate your town, your neighborhood, your resort, your house, your furniture, or even your manager. They are wrong of course, but the best defense is to make your place very nice and keep it that way.

Wise Up - I mean this as no disrespect, but this is the third phrase my Dad trumpeted - be wise. We pay attention, we study, we watch the competition, but we also search for new and innovative ideas. To operate properties tightly, advertise widely, and generate the best results.

Digest - Owners are subjected to the neverending hype about vacation rentals, even as the market supply grows and even if demand does not keep pace. Our team members spend countless hours mastering this seemingly simple industry and all so that our clients don’t have to do so.

Cooks - Yes there can be too many in the soup. And yes my dad told me that too. Repeatedly. It is wonderful to receive tips and ideas about the industry. Keep us posted as we spend overtime working for each and every client.

Do Your Part - Keep your home in tip-top condition, with upgrades, replacements of textiles, kitchen wares, and more. Or you can just call and authorize us to spend money where necessary. Every day, every owner competitor is improving steal your guests. If your place looks a bit worn, your income will drop. Guests won’t return. Or they’ll leave a negative review.

Passion - This last one from my Father is the most important. Tiring of how everyone tells young folks to find something to be "passionate" about, he said. "That is the wrong. He said that success is easy if you are passionate about everything. Do your best. Give a damn. Find the joy. Work your patootie off. Be good at what you do. That is the joy."

We can promise every client. That is what we do here. Thanks to all clients for allowing us to work on your homes. The best is yet to come. It always is.

Author: Wm. May – Administrator, Vortex VIP
Blog #: 0997 – 06/30/24

Sponsor: Vortex VIP – – VortexVIP.com

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