Bill's Beneficial Blog

Does anyone really read the millions of blogs out there? Or are they really just a ploy to entice Google for a bit more ranking or space? Every other ad agency blog is going to be all about how great they are, why they are the smartest and other clearly self promoting stuff.

So we decided to just write about what interests us. Our only hope is that - every now and then - you find a nugget that is a slight value for you. We hope. If you want to get these rantings in your inbox every so often, Signup to get emails. Here goes.

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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.

================

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

2020 Hindsight of 2020 - Lodging Newsletter December 31, 2020

By Wm, May
Published: 12/31/20 Topics: Covid-19 Virus, Do It Yourself Rentals, Lodging Newsletter, Vacation Rental Management, Vacation Rentals, Venture Capital, Yield Management Comments: 0

Did you think 2020 would never end? Did it feel like it would last more than the usual 12 months? Or was it so wonderful for you, that you really wanted to extend the year longer?

Nah, let's admit surely no one can feel that way. But we can all agree that 2021 will be the first year in history that looking back will truly allow for 2020 hindsight.

For two decades, everything in Vacation Rentals and specialty lodging has grown and changed constantly and at an ever-increasing pace. Then Covid sped up changes even faster. Even owner income went up almost everywhere.

I am proud as punch to give credit to all our wonderful team members who rose to the occasion last year and are charging forward in this one. There are more people here than meet the eye.

Many work onsite cleaning and maintaining houses, providing guest and owner services. The onsite management partners and others all outpaced the competition.

Behind the scenes, accountants, software engineers, the reservation team, graphic artists and photographers, client representatives and even our board members - every person has pulled double duty this year. So, hugs and kisses.

And now, attached are our predictions for the new year.

===========================================================

They say that predictions are a fool's errand. But, for our lodging industry at least, we are going to foolishly take a stab at what to expect.

Vacation Rentals - We predict that the industry, which has grown steadily for decades, will continue to generate healthy returns for second home owners, especially for those who use our services. Nothing has slowed it down, including 9-11, the 2008 recession and not even Covid.

Covid - We predict that even more families will discover that vacation rentals offer a great respite to work-at-home, study-at-home and be-together-at-home. They can socially distance at the beach, in the mountains, at the lake, and on the ski slopes.

Drive To - We predict that even more guests will realize they can easily to drive to our locations, without jumping on a tiny narrow aluminum tube - also called an airplane. This year, folks may start flying more, but drive-to destinations will continue to prosper.

Rent By Owner - We predict that even more do-it-yourself rental owners will hire us when their amateur cleaners mess up or fail to show up, and when piddling maintenance needs require long drives, or when they realize they are making half as much money at twice as much work compared to what we can do for them.

Complexes - We predict that Condo Associations, Inns and Resorts will join us as they see how our marketing and sales services can make running their properties easier and more profitable.

Dynamic Rates - We predict that the science of Yield Management will continue to become so intricate that property owners will continue flock us, as they realize how much their technology-challenged managers are losing for them.

Venture Capital - We predict that investors in those over-leveraged, corporate vacation rental management companies will stop dumping money into their unprofitable business. Wise property owners will jump ship and into our program for stability and income.

Corporate Downfall - We predict that the corporate, out-of-town vacation rental companies will stop their come-on practice of promising profits to owners that they have failed to deliver.

Regulations - We predict that xenophobic governments officials, who were determined to kill the Golden Goose of tourism, will admit that vacation rentals are the cleanest, safest, quietest industry their cities and counties could ever hope for and can offset the devastating effects that Covid has wrought.

Partnerships - We predict that only service companies made up of partners, like ours, will continue to the kind of commitment to quality that every home needs and deserves

Rock Stars - We predict that Penny, Jackie, Salman, Trina, Evelyn, Brandon, Ozair, Kate, Barbara, Kylee, Fahim, Samael, Stephen, Jerry, Hisham, Simon, Jan, Chris, Nichole, Nichole and Nichol and all our team members will continue the commitment, dedication and expertise that make us so proud.

Invitation - We predict that property owners, who want maximum income with minimum fuss, will jump ship and join us soon. 2020 hindsight shows them that now is the time.

Author: Wm, May, Vortex VIP
Blog #: 0807 – 12/31/20

Sponsor: Vortex VIP – – VortexVIP.com

Price Right - Lodging Newsletter May 31, 2020

By Wm, May
Published: 05/31/20 Topics: Covid-19 Virus, Dynamic Rates, Lodging Newsletter, Yield Management Comments: 0

Do these letters always sound like we are bragging?

Sorry, we are constantly innovating and redefining how to do far better management than anyone else. So, yes, I guess we want to crow about it every now and then.

As mentioned last month, we have been working for many hundreds of hours for over a year on version 3.0 of our Yield Management Software called "Strategic, Studied, Dynamic and Distributed" (S2D2).

Some of those giant carpet bagging national companies that try to manage vacation rentals from far away like to think they have good yield management - but they have a major hole in their knowledge. They are not local and don't have wide regional data.

But we do because we have been managing on a "Local, Personal and Global" basis. That means we advertise on every possible advertising website, far more than those giant companies.

We also operate local and regional websites to glean far more information, all of which results in the perfect rates. Super high in high season, modest in shoulder seasons, and lower in slow times.

Every property owner loves the idea of high rates. But getting the highest "possible" rate in every season adds greatly to the best net income for owners.

Yield management is far more complicated than can be imagined. So this letter is going to give you a glimpse to the hundreds of factors that go into the algorithm our data scientists use.

==================================================================

Everyone has noticed how rates vary on airlines and big hotels. Plus, how the rate for a date in the future may go up and down before the date arrives.

I must admit, I liked it better when it was always $250 to fly to Hawaii on a plane where the entire back section was empty, so I could fold up the arm rests and lay down over four seats, take a nap, and wake up in paradise.

Unfortunately, the airlines were going broke until they began manipulating rates to encourage people to book early, or late and to fill every seat. Until Covid, every seat on every plane has been filled for decades.

Best of all, consumers have subconsciously accepted the idea that rates fluctuate. In fact, many seem to enjoy the game of searching for best rates. They willingly move to less desirable dates (such as midweek), which helps the property fill those dates.

Yield Management does not seem logical on its face. The algorithm does not need to know when the high season or holidays occur, because it looks forward to watch rates and occupancy to predict and set our rates when demand and occupancy is high. Likewise, it ratchets down rates when the market has too many nights available and when competitors are dropping rates.

But, of course, weekends are always more popular, more booked and consequently rates are higher. Same with holidays. The high seasons have the same kind of profile and the science pushes those rates through the roof.

National, regional, and local economic trends are considered. Comparable units ("comp sets") are continuously monitored. Inns, Resorts, and Hotel future booking statistics are computed. Amenities, resorts (if any), and neighborhoods contribute, sometimes more and sometimes less.

If there are small holes in the schedule, rates may be adjusted down to get them sold. But if there are openings when the market is tight, rates go up - sometimes dramatically. Bigger openings may be higher because they offer a wider range, or cheaper if the opening is too large.

When Covid arrived so unexpectedly, S2D2 told us rates were crashing. In areas where rentals continued, we won what bookings were to be had. Suddenly, S2D2 told us "Hey something is going on," just as we noticed guests returning. Then it said, "It's time to bump up rates." And then, "Bump them up again".

Not all markets have returned to normal, but in some markets rates have up to doubled and occupancy is higher than ever before. We noticed the corporate managers missed the trend. Their clients lost thousands of dollars, while we grabbed the market.

New vacation rental owners often ask "What will the rate be?" But today, no person sets the rate. In fact, the market sets the rate. Over millennia, in high school, middle school or earlier, we learned price has always been based solely on "Supply and Demand".

The Yield Management idea, which is so closely tied to intricate supply and demand fluctuations, is so obvious and now, with our help, it is being employed to help every vacation rental client we have make more money.

Author: Wm, May, Vortex VIP
Blog #: 0771 – 05/31/20

Sponsor: Vortex VIP – – VortexVIP.com

Hope is Not a Plan - Lodging Newsletter April 30, 2020

By Wm, May
Published: 04/30/20 Topics: Covid-19 Virus, Housekeeping, Lodging Newsletter, Yield Management Comments: 0

Several years ago the musical group Grateful Dead wrote "What a Long Strange Trip it Has Been." Little did anyone know how strange it might be.

Lodging suffered the effect of the 9/11 tragedy and the 2008 real estate depression. Now the Covid-19 pandemic is another new labyrinth to navigate.

For years, lodging management has kept getting more intricate, demanding time for previously unnecessary tasks like text messages from guests wanting early check-ins who don't have the courtesy to telephone. Emails 24/7 expecting instant response. Time to review every guest online.

Now every guests wants assurances, before booking that homes are fully sanitized and disinfected.

Of course we have been doing "Happy Hospitality Housekeeping" since our first office opened in 1964. It's nothing new. We spend hundreds of hours talking with people who are scared, rightfully so. Add counselor to our list of titles.

A wise man once said, "Hope is not a plan, but without a plan, there is little hope." Luckily our long standing contingencies and experience has allowed us to run far ahead of the competition during Covid-19.

We can not expect property owners to understand the hours and stress that the Covid pandemic has inflicted on lodging, but we can hope they appreciate our staff who have worked double time to take care of their properties and the plan to make them money as the craziness lessens.

===============================================================

Bad News - In March guests started cancelling everything, online travel agencies were over-riding cancellation policies, and governments were telling people not to go on vacation. The time to speak with every guest, to cancel bookings, and to do bookkeeping doubled the work.

Optimistic - We did not dare hope for a rebound but chose to accelerate spending on advertising, staffing, software services, website hosting, and many other costs. The phrase "All In" applies.

Good News - Plans can't predict the future, but they can predict readiness. As the onslaught of new bookings has arrived, we are again working double time to get back all the bookings that were lost.

New Rules - Advertising on hundreds of websites with differing rules required our software engineers to labor long, often overnight, to adapt functions, and to avoid guest confusion. For example, we can now put in bumper dates between bookings to allow for extra cleaning time.

In the Trenches - Every staff member is overwhelmed with related work. Housekeepers and maintenance pros are working their tails off. If homeowners have not tipped before, now is the time.

S2D2 - Our pricing algorithms (and the scientists who ride herd) received confusing signals in predicting future rates and occupancy. Competitors were plummeting prices trying to sell to guests who were not going to visit under any circumstance.

Version 3.0 - Coincidentally the latest version of our "Studied, Strategic, Dynamic, and Distribute" (S2D2) rate tools came on line in April, allowing us to react quickly to the market. Rates are moving up and down even faster than ever. No one knows what the future will yield, but our science can get owners more than their "fair share."

Late Bookings - The national trend for "Drive-To" destinations does have a downside and that is guests are not booking far ahead. Decades ago as visitors departed from their rental, they booked the following year to return. The 2008 recession shortened pre-booking, but Covid has made it skyrocket. Most guests want to go next week or the week after.

Competition - Online Travel Agents are laying off thousands of employees; 3,000 alone at Airbnb! Major management companies have fired up to 90% of their staff. One company with 2,500 homes shut down completely. Too bad for their clients they did not have a plan.

Negotiators - Now that business is picking up, every guest asks more questions and then almost everyone tries to get a discount. Americans have become like other societies where every purchase is negotiable.

Predictions - Summer is starting to fill in, but no one can predict income for the entire year and not even for the summer. We have a plan and are working on it every day. So far so good.

Amateurs - People who think about being a self-managed "Rent by Owner" never know the insane amount of labor, hours, and expertise necessary to succeed. HomeAway says it only takes 541 hours per year per house to "Do it Yourself".. Jeez.

Many RBO's have thrown in the towel or are selling their homes. We get calls for help everyday and all because we planned ahead. That is what good managers do.

Author: Wm, May, Vortex VIP
Blog #: 0750 – 04/30/20

Sponsor: Vortex VIP – – VortexVIP.com

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