VRM Intel Magazine Spring 2017 by Amy Hinote

SPRING 2017

Mother-Daughter Teams Leading the Industry

$2.38B Raised

Vacation Rental Funding since 2016

Challenging Market Assumptions

Managing

An Inside Look

LiveRez Founder Tracy Lotz Email,PPC and Social Marketing

Employee Performance Experts Weigh In

VRM Intel Magazine | Spring 2017

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VRM Intel Magazine | Spring 2017

Contents On the Cover

35 Managing Employee Performance 52 A look inside LiveRez with Founder Tracy Lotz 56 Mother-Daughter Teams Leading the Industry 73 Email,PPC and Social Marketing Experts Weigh In 79 $2.38B Raised Funding and Acquisitions

Technology 22 What's in Your Tech Toolbox? 24 Smart Home Automation Technology 52 Tracy Lotz: An Inside Look at LiveRez and Its Founder 84 Using Technology to Knock It Out of the Park for Organic Growth

Cover photography courtesy of Key West Vacation Rentals powered by Vacasa. The vacation home is called "Aqua Pearl Crest" and is located in Key West, Florida. Photographer: Mike Freas

Business 27 VRMs Give Back: The Sonder Project 38 2017 Vacation Rental Management Company Acquisitions 56 Mother-Daughter Teams Who Are Leading The Way 57 Seaside Vacation Rentals estd. 1983 61 Sand 'N Sea estd. 1974 64 Meyer Vacation Rentals estd. 1967

VRM Intel Magazine | Spring 2017

56 52

VRM Intel Magazine | Spring 2017

Contents Customer Service

Marketing

30 Back to the Future: 70 5 Pro Tips To Maximize Working for the Marriott Family Your Email Marketing 32 Coaching for Success 41 7 Habits of Highly Successful Salespeople 44 Is Profitablity One Question Away? 50 Building a Reservation Agent Team that Excels at Customer Service

Distribution 47 The Importance of Transparency in the Vacation Rental Industry 79 Over $2.38 Raised in the Vacation Rental Industry in 2016-2017 82 Challenging Market Assumptions: What if OTAs are wrong?

73 Is PPC right for your business? 76 Capture, Connect, and Convert with digital and social advertising

Human Resources 35 Managing Employee Performance 94 Job Opportunities in the Vacation Rental Industry

Housekeeping 86 Great Expectations Require Efficient Operations 88 Housekeeping Basics: Common Questions and Concerns

Education and CommunityÂ 48 VRM Intel Live! Oregon and Colorado

90 Calendar of Events

79 12

VRM Intel Magazine | Spring 2017

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VRM Intel Magazine | Spring 2017

VACATION RENTAL SOFTWARE

directly connected

VRM Intel Magazine | Spring 2017

VRM intel magazine

Dear Readers,

Summer is fast approaching, and changes in the vacation rental industry are escalating to a level that is hard to manage. Every day, we read about new sets of regulations, the latest business model shifts in distribution, and new must-have technology and marketing products. However, even with—or maybe in spite of—the ongoing shifts in policies, vacation rental managers (VRMs) are reporting positive gains in early booking activity, especially in destinations not reliant on international visitors.

Editor-in-Chief Amy Hinote

Director of Design and Production

Donato Berbelja

So far in 2017, much of the feedback we have received at VRM Intel has been related to changes at HomeAway, including its recent decisions about legacy software systems, its mandate that all properties be bookable online, the removal of phone numbers, newly created barriers between VRMs and guests, and much of the testing HomeAway is doing on service fees, property names, ranking, mapping, cancelation policies, and two-way reviews. HomeAway, its OTA competitors, and the investment community are developing a consensus, based on a set of market assumptions, on how vacation rental businesses should be run in 2017 and beyond.

David Angotti

Vince Perez

Ali Cammelletti

Joe Refosco

Bert Feinman

Maureen Regan

Jeremiah Gall

Anne Reiswerg

But what if they’re wrong?

Joshua Guerra

Claire Reiswerg

Regan Hann

Matt Renner

Michelle Hodges

Bill Schlosser

Sheila Hodges

John Suzuki

Sue Jones

Jennifer Thibodeau

Doug Kennedy

Mike Todd

Tracy Lotz

Susan Tormollen

Ian McHenry

Tina Upson

Maria Nedelcheva

Heather Weiermann

In this issue, we take an introductory peek into the idea of challenging the market assumptions that online distribution channels are making. From minimum stay requirements to guest interaction and cancelation policies, we believe it is worth a second look into whether these channels’ assumptions are accurate. In honor of Mother’s Day, we are also featuring in this issue three standout mother–daughter teams who are leading their markets with an emphasis on family, guests, and community. We also had the chance to sit down with LiveRez founder Tracy Lotz and get a candid look at his company, hear about changes at LiveRez, and learn about his perspective on the industry. We dove deeper into the funding pouring into the vacation rental industry. We are seeing many more international companies begin to receive more proportional shares of capital, and we are starting to get a broader look at and more insight into the companies that received funding in the past several years yet were not able to sustain business models in our sector. There have been a few changes at VRM Intel. We are in the beta process in the Outer Banks for our subscription-based market-reporting tool, VI Reports, which will be available to VRMs this summer. And we are hosting two VRM Intel Live! events in Portland ( June 7) and Denver ( July 26) this summer, with a heavy educational focus on creating manageable plans for organizational structure, marketing, and operations that address recent changes in the industry. I hope you enjoy the spring issue of VRM Intel Magazine, and as always, I look forward to hearing your feedback.

Contributors

Claiborne Yarbrough

Advertising Amy Hinote, amy.hinote@vrmintel.com

Address VRM Intel Magazine LLC

1222 Chicago Avenue, Suite 604, Evanston, IL 60202 To subscribe to VRM Intel Magazine to request additional copies, contact info@vrmintel.com or go to www.vrmintel.com

Sincerely,

Amy Hinote Editor-in-Chief

VRM Intel Magazine | Spring 2017

© Copyright 2017 VRM Intel Magazine LLC. All rights reserved. We cannot accept responsibility for any mistakes or misprints. Reproduction in part or whole is strictly prohibited without written permission from the publisher. We cannot accept responsibility for unsolicited manuscripts or photographs damaged in the post. Material sent on speculation, unless enclosed with a stamped addressed envelope, will not be returned to sender. VRM Intel Magazine LLC reserve rights of ownership.

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complex accounting. The more integrated these solutions are, the more efficiently your business will run.

Can you imagine running your business without property management software? It would be like trying to hang a picture without a hammer and nail or drill and screws; you could probably find a way to hang it, but it would most likely fall down. And if the picture is heavy enough—or your property management business is large enough—it may crash to the floor as soon as you turn your back.

Specialized Tools

What’s In Your Tech

Toolbox? C

By Susan Tormollen Director of Marketing, HomeAway Software

hances are, you have a toolbox at home. It’s full of tools, some loose screws, and maybe even safety glasses for when things get a little crazy. At first glance, your trusty toolbox may not appear to be a cohesive assembly of items, but you know it has everything you need for quick DIY projects or larger, more urgent fixes. Your vacation property management business also has a box of tools you need to keep on hand. This toolbox includes all the technology you use in your day-to-day operations, some of which you use regularly (like a hammer or screwdriver) and some that are a little more specialized (like a stud finder or putty knife). Both regular and specialized tools contribute to the success of your business, and, if you have the right tools for the job, they help you keep things running smoothly.

What Tools Go In Your Toolbox? Everyday Tools The must-have, everyday tools you use to run your business are the ones you couldn't get by without. As a vacation rental manager, your basic tech toolbox includes a robust property management system that integrates with your website and distribution partners to take online bookings. Your toolbox also needs solutions for managing leads, planning and adjusting rates in bulk, and handling 24

VRM Intel Magazine | Spring 2017

The specialized technology tools you use to run your business are ones that perform very specific functions but are still invaluable to smooth operations. These solutions help you differentiate your company and rise above your competition. In your tech toolbox, specialized tools could include smart-home technology, website platforms, blogging tools, email marketing software, electronic contract solutions, reporting tools and dashboards, and inventory management.

Building Your Toolbox A complete toolbox should include both everyday and specialized technologies that work together efficiently, saving you time and money.

But what’s the best way to curate and select the right solutions that will work together efficiently and effectively? A bare-bones software with a hodgepodge of different systems may save on costs but will likely cause headaches in the long term as you try to scale your business.

It’s best to look first for core functionality when building your toolbox. Does this technology solution already include the most critical features for your business? Will it continue to perform as your company grows? Does the company have a highly rated support team in case you don’t know all the answers? Then, think about how your core technology will integrate with reliable companies you may want to work with in the future, such as smart-home technology providers, website platforms and blogging tools, and mobile guest management apps. Even if you don’t think these integrations are immediate needs, they’ll become increasingly critical as your business grows and you need tools to do some of the heavy lifting for you.

Replacing Old Tools If your technology isn’t working to help you smooth your operations, make a change. It’s possible that you need to replace an old tool or even add in a new one. It could be that your business has outgrown a current technology solution, and you may need one that offers more functionality, or you may need a solution that will scale as you expand your business. The goal of strategically planning your technology toolbox is to simplify processes and make sure you’re spending money on tools that actually contribute to your success while making it easier for your team to deliver great guest experiences.

When you use the right tools and everything is running smoothly, all the hard work looks easy. Your guests don’t see all the moving parts behind the scenes; they just see their great vacations. Your owners don’t see all the work that goes into renting out their properties; they just see their statements, checks, and glowing property reviews. When was the last time you reorganized your toolbox?

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Smart Home Automation Technology The Business Case for Vacation Rental Managers

t’s just about everywhere. You can’t turn on your TV, open Facebook, or read your favorite news source without seeing some sort of ad or story about Smart Home technology. Consumers in the US are being bombarded daily with thousands of messages as more and more companies jump on the Smart Home train. Amazon, Apple, Google, Microsoft, Samsung, Staples—the list of Smart Home technology providers is long and growing. Even the big box stores like Home Depot, Lowes, and more are pushing Smart Home devices. This wave of Smart Home technology is having a definite impact on the vacation rental industry as research by Wakefield and Schlage from December 2016 revealed that:  86 percent of millennial renters are willing to pay more for a unit outfitted with automated or remote-controlled devices.  65 percent of baby boomer renters are willing to pay more for a unit outfitted with automated or remote-controlled devices.

Guests Love the Convenience and Security of Smart Homes First and foremost, there is the obvious advantage that comes from not having to deal with keys. When guests are on vacation, they want as few things to worry about as possible. By eliminating keys, guests don’t have to stop at the front office to pick up and drop off keys. That means their vacation starts sooner and you get happier guests. And they don’t have to worry about who else might have a key to their vacation property. When asked what would reduce their stress during a stay, August 2016 research from Edelman Intelligence revealed:

 53 percent of guests said not needing to worry about being locked out.

 48 percent of guests said not having to coordinate with hosts when arriving or departing.

Homeowners Want Smart Home Just like other consumers, homeowners want the added convenience and security of keyless locks and smart thermostats. They want to be able to give maintenance people their own code and track when they enter and leave their property. They want sensors on their doors and windows that alert them when something is opened. They want to be able to control all the thermostats in their home and enjoy the monthly energy savings. And they want to do all of this from their smart phone. PointCentral research indicates owners save an average of 10 percent to 15 percent on their monthly energy cost when they use 26

VRM Intel Magazine | Spring 2017

Smart Home technology to automatically regulate temperature and alert them to any open doors and windows that waste energy.

The Battle for Control I asked Laik Le Pera, director of operations at Village Realty on the Outer Banks of North Carolina, about homeowner adoption of Smart Home.

“Homeowners were starting to install smart thermostats, and we could see lots of potential for complications with 600 individuals controlling the locks and temperatures. We were aware of keyless locks, but saw that they were just the tip of the spear leading to an enterprise Smart Home solution.” When the homeowner is controlling access and temperature, the vacation rental manager is not in control of the property.

Smart Home Operational Benefits Scott Fasano shared a story involving the operations at Vantage Resort Realty:

“From our dashboard, we can see when the property was cleaned and inspected. We can even use one of the codes to know when we changed the air filters, which again, pushes value back to the owner. But the biggest value comes when we transition between seasons. When it started getting warmer in Ocean City, what we found was that the air conditioning systems were either set on Auto or Heat. In turn, we were getting inundated with calls saying the AC wasn’t coming on. With our Smart Home Automation system, our team could get into the system for the property at hand, click on the thermostat and change it over to cool, easily and efficiently solving the problem. The guest feedback when we handle something on the first call has proved to be positive, which is our ultimate goal from a customer-service standpoint.”

The Bottom Line The Smart Home Automation wave is fast approaching and quickly being adopted by guests and homeowners. Vacation Rental Managers who are slow to pull the trigger risk losing control of properties to their owners. Forward-thinking VRMs are impressing their guests, saving energy costs for their owners, protecting their properties, and enjoying significant operational efficiencies. Bill Schlosser is the “Brand Master” at Dr. Brando, a full-service marketing agency specializing in helping technology providers build their brand in the vacation rental market. Bill served as the vice president of marketing at both NAVIS and Escapia and has been actively involved in the vacation rental market since 2003. Bill is a tech geek with an engineering degree and 30+ years of marketing experience. Bill@DrBrando.com

VRM Intel Magazine | Spring 2017

Save Time and Money on Pool and Spa Operation Energy Control Solutions from Intermatic/BeHome247

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VRM Intel Magazine | Spring 2017

VRMs Give Back

Founded by 360 Blue, The Sonder Project Works to Fight Hunger Around the World

the world.

he Sonder Project was founded by 360 Blue in Santa Rosa Beach, Florida. It is a global nonprofit organization focused on high-impact, sustainable projects aimed at ending extreme poverty and fighting hunger around

The Sonder Project evolved from a strong call to give back from 360 Blue CEO Ashley Hamm and 360 Blue owners Jason and Jeremy Sprenkle. Heeding that call, a small group of vacation rental employees led by Sarah Hockett, then marketing director at 360 Blue, began working together to identify and solve problems. Today, that effort has grown into a full-fledged international nonprofit that is taking on some of the most significant issues in the world. When the 360 Blue team members first decided they wanted to take their ideas from something small to something bigger, they identified areas of the world that had the greatest need and conducted substantial research on the types of projects that would have the greatest impact.

“After a lot of reading and interviewing potential partners, in 2015 we committed to building two schools in Burkina Faso,” said Hockett. “We found that, as important as it is to help solve problems, spreading awareness is also vital. For our first project, we trav-

eled with a group of thirteen people to break ground on the school and work alongside the community while providing sweat equity and fully immersing in the local culture. It was on this first trip that we experienced some of the other difficulties faced by this area firsthand, such as access to clean drinking water. It’s shocking how many things that we take for granted, like going to the tap for water whenever we want, can be such a game changer in other places in the world.” The team established The Sonder Project and reached out to area partners. By the end of 2015, the 360 Blue Team and its partners built the first water well next to a school block, ensuring that kids could spend their time learning, not gathering water.

Fast forward to 2017 when, by the end of the year, the Sonder Project will have built nine primary schools, dewormed over two million children, collected over 10,000 pounds of food through vacation rental managers (VRMs) for distribution, built three water wells, installed thirty honey bee hives, provided eyeglasses to nearly one hundred children, and changed the lives of so many people. “Last year we put on our first large-scale fundraiser, the 30A Half Marathon & 5K, which kicks off with the 30A BBQ Festival (www.30AHalf.com),” said Hockett. “We’ve met a lot of like-minded VRM Intel Magazine | Spring 2017

people, gained some outstanding supporters, and met some of the most beautiful, ambitious, and deserving kids who just need a little more opportunity in their life to succeed.” “While we run the nonprofit as an entirely separate entity from 360 Blue, giving back has become a huge part of our company culture,” explained Hockett. “We have the most amazing team in place that any company could ever hope for, and some of this is largely thanks to The Sonder Project. People want to work for a socially responsible company. They want to know that what they do every day matters. When we need volunteers, we have so many 360 Blue staff that are always there to help us achieve their goals on their own time.”

Hockett added, “360 Blue also donates a portion of its sales to The Sonder Project every year, so our employees know that when they are helping the company, they are helping kids in need. Many of our employees donate a percentage of their personal paycheck as well because that’s simply the kind of people who are employed by 360 Blue.

“In addition to awesome employees, we find that owners and guests are excited to work with a company that gives back as well. So truly, it’s a win-win,” said Hockett. “Later this year we will be beta testing a reservation donation of 0.5 percent. This will be optional for guests booking with 360 Blue, and if all goes well, we hope to roll this out with other VRM partners. “I just want to mention what awesome VRM partners we have as well. One of our partners, Seaside Vacations Outer Banks, located in North Carolina, is actually sending an employee on a school-building trip in just a couple of weeks,” said Hockett. “Their staff and owners have been helping her fundraise, and we are excited for Michelle Copeland to join us on this life-changing experience.”

In addition, Southern Rentals and Real Estate, 850 Properties, Beach Group Properties, The 30A Company, Newman Dailey, Homes on 30A, The Tamarind Group, Summer House Lifestyle, The Hospitality Depot, RentGearHere, Murphy's Home Services, and Northwestern Mutual have all joined in The Sonder Project’s efforts. “At present, we’ve been discussing at the board level every week to decide what The Sonder Project will be doing in the next year, eighteen months, three years, and five years,” said Hockett. “We’ve learned a lot over the past two years of working with partners, and all I can say at this time is we have some really big ideas in the works!” Hockett added, “Stay tuned as we work toward making the world a better place, one village at a time, with the help of our incredible supporters.” If you would like to join or learn more about The Sonder Project, please visit www.thesonderproject.org.

In the series VRMs Give Back, we are sharing stories of programs that vacation rental managers have created to help others. The Sonder Project serves as an inspiration to other VRM companies looking for new ways to give back. Is your VRM giving back? We would love to hear about it at amy.hinote@vrmintel.com. 30

VRM Intel Magazine | Spring 2017

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VRM Intel Magazine | Spring 2017

Back to the Future What I Learned from Starting My Career Working for the Marriott Family in the ’80s

hether it’s a result of attending my reservations, sales, and hospitality training workshops or from seeing me speak at industry conferences and events, I am known as the hospitality sales training guy to most VRM Intel readers. However, before I got into the business, I worked from age 9 to 20 for my parents’ family business, Kennedy Craft Shop, and had always planned to take it over one day. But my parents had a different plan: retire early with their modest savings, buy a pop-up camper, and fulfill their dream of touring all fifty states (which they achieved just before we unexpectedly lost my mom to cancer). My plan changed, and at 20 years old, for the first time ever, I applied for a job. I often wish 32

VRM Intel Magazine | Spring 2017

I had a better story about why I landed in the hotel industry, but the actual reason I chose this industry was because the soon-toopen Marriott Griffin Gate Resort (which was the 125th hotel in the Marriott chain) had the biggest ad in the help wanted section of the newspaper. They needed help in the banquet department where I started, but soon I found my niche working as a bellman. Little did I know that this part-time college job would—eight years later—lead me back to my entrepreneurial dreams when I started my first training company in 1989. Although I have learned so much from having training contracts with a majority of the major hotel chains and a good number of vacation rental companies, I learned the most from Mom’s craft shop and one other family business: Marriott Hotels.

In 1981, Marriott was still very much a family business. J. W. Marriott, Sr., still ran the company at that time, although his son Bill was steadily taking over the reins. We often saw Bill Marriott at our resort, as did every employee of

every hotel in his chain. He personally inspected almost every hotel at least once per year. New hotels, like ours, saw him much more often. When he inspected the hotels, he did not just make a quick walk through the lobby. This man looked in the back hallways, under the beds, in the linen closets, and behind the dishwasher.

can still hear their jingle in my head: “When Marriott does it, we do it right!”

As much as I admired Bill Marriott’s hands-on approach and strong work ethic then, I can see now that the shared values on which the entire corporation was built were the pillars of its success.

B Take Care of Your Employees, and They Will Take Care

One memorable example is when Marriott hotels stopped using the “No Vacancy” signs that were so prevalent elsewhere (in fact, they were the first hotel chain to do so). Most hotels saw it as an interruption when a road-weary traveler entered the lobby desperate for a place to stay (as there were no cell phones, Online Travel Agencies, mobile websites, etc. in the ‘80s). Only a few hotels would—at the most—offer to make change and direct the traveler to a payphone. Not our Marriotts! We had a standard to call around for the guest and find a room for them.

of Your Guests.

G Invert the Organizational Chart

This was the motto of the Marriott Corporation when I first worked for them, and it is still true to this day. If you are on LinkedIn, you can follow Bill Marriott’s blog. His most recent post was in celebration of Marriott Corporation’s 20th year in a row of being on Fortune’s list of “100 Best Companies to Work For.” In the blog, Bill Marriott talked about how “Putting People First” was the motto of the company ever since his father founded the first “Hot Shop” in 1927. Marriott provided (and mostly funded) health care for every employee who worked at least 32 hours per week, and they had profit sharing even back in 1981. They were also one of the first companies I had ever heard of to allow domestic partners and step-children to obtain health insurance.

In the 1980s, most hotels had traditional organizational charts, with the general manager at the top of the pyramid, but Marriott turned this upside down. And it was more than a memo on the bulletin board. I remember our general manager and assistant general manager often helped us bellmen carry bags during heavy arrival days. One of my most vivid memories was when the vice president of catering for the entire Marriott chain came into the back hallway behind the Grand Ballroom and helped break down trays of dishes because our inexperienced team had fallen behind after the grand opening gala.

During the years that I worked for him, and long thereafter, Bill read through all guest comment cards and personally responded to guests’ letters.

Here are six of the lessons I learned from working for the Marriott family:

C Keep an Open Door Policy . On day one, we were informed that any employee could talk to any manager—even the general manager. I remember testing this rule one day when my girlfriend had a traffic accident because the exit led to a major four-lane highway and had no traffic light. I walked into the office of our general manager and suggested that he lobby the local government to install a traffic light. Sure enough, he did, and a traffic light was installed soon thereafter. Also, during that time, all Marriott Hotels had old-school “suggestion boxes” and conducted employee opinion surveys. D Embrace Diversity. It was working for Marriott that I first really got to know people of other cultures because our Marriott employed many immigrant refugees. I became close with one Vietnamese gentleman who had come over after the war ended just a few years prior with his wife and children. We had many expatriated Iranians running from the Shah working there, right alongside folks in the LBGT community. Marriott was an oasis of diversity, and our guests seemed to really enjoy this aspect. I also remember these were some of our most hardworking associates. E Obsess about Quality. At Marriott, we learned from employee orientation that doing what is right always takes precedent over doing what is easy. I

F Own the Guest Request We were all trained that no matter your title, when a guest hands you a complaint or a special request, it was yours to address. If it was not possible for you to fulfill the guest’s request, then you were to personally walk them to the coworker who could.

For many years now, Marriott has been a publicly traded company run by its shareholders. I’m pretty sure Bill Marriott could have sailed off into the sunset long ago with a comfortable nest egg, yet he can still be found working in his office as the executive chairman. At its core, the vacation rental management industry is still mostly made up of privately owned, locally operated businesses, most of which are family-run enterprises where both Mom and Pop work. Many times, when you see a name on the sign out front, you can walk in to the reception center and meet an owner of the same name, but even if you don’t meet someone with that family name, the family “brand” will be present and is the foundation of success for these companies. Oftentimes, there are second and third generations of the same family working for the companies. More recently, the hospitality industry in general has started taking notice of our rapid growth, especially now that OTAs and national brands are entering the vacation rental market. There are numerous start-ups with trendy names—and lots of venture capital backing them—striving to create national presence in the vacation rental space. It is easy for these start-ups to have some initial success when backed by risk-taking investors willing to suffer the huge losses that are required in order to offer homeowners guaranteed rental revenue (on top of discounted commission structures).

Yet, history shows that, whether large or small, companies like Marriott which are structured around strongly held belief systems and core values of principle-centered leadership are the ones that have the most long-term success. By Douglas Kennedy, President Kennedy Training Network KennedyTrainingNetwork.com VRM Intel Magazine | Spring 2017

Coaching for Success L

eadership and coaching go hand in hand. Often, I hear managers telling employees what they need to do instead of coaching them. This reminds me of the old management style of “Do as I say, not as I do.” I was definitely raised with this style of management. Then, about every ten years or so, I would come across a real leader and coach. These are the people that I visit in my head when I am looking for leadership and coaching guidance. It starts with having the right mind-set and looking at the potential in someone instead of what he or she can offer you now. You then build trust with your team through communicating consistently; showing warmth; telling the truth; and being open, confident, and most importantly, vulnerable.

When you coach employees, start by asking what they are looking for in their professional growth. Then, listen to them to understand, not just to respond. Once you have a good understanding of what they want to focus on, you can support them continually. I had the great benefit of working with a leader who is just like I described. His name is Kevin Cronin, and at the time, he was a regional manager for a restaurant group in San Francisco. When 34

VRM Intel Magazine | Spring 2017

he hired me, he said he didn’t expect me to know everything, such as the importance of ordering the kids’ food first when a family sat down to eat together. Instead, he would teach me the details that would help me grow my skills.

Cronin then asked me on what area of the industry I wanted to focus for my own growth. At the time, it was my wine knowledge, and my being a restaurant manager in San Francisco at the age of 26 made it a little intimidating, to say the least. He gave me a simple wine book to support me on my journey. He also sent me to the Sterling School of Hospitality and Wine in Napa Valley so I could learn from professionals. Later, Cronin gave me a beautiful bone-handled wine opener that I still have and cherish. He knew that as a leader, if he invested in me, I would in turn be dedicated to my team and the company. When we put people first and support them, they will organically become committed to you and the company. If they don’t become committed, then you might want to reference Adam Grant’s TED Talk on givers and takers. Once you have built this trust in employees and feel confident with your coaching skills, it is time to look at your level of empathy

and compassion. Brene Brown has multiple videos on these concepts and their importance. Empathy is being able to put yourself in someone else’s shoes so you can understand what he or she is experiencing; it also refers to being compassionate. Showing people that you have heard what they said and acknowledging how challenging their situation might be takes effort. This also includes removing the silver lining. Trying to point out the positive aspects of the situation takes away from your ability to be empathetic. Instead, simply respond with “I am so sorry you are going through this right now. It must be really hard.” I am always a fan of a big hug and letting people know I am here for them.

I coached an agent who struggled with empathy. I would listen to her recorded sales calls, hear her snarky tones, and then listen when the clients would share that they just had a family member pass away. She wouldn’t acknowledge this information at all. She shared with me that it made her feel uncomfortable to hear such news and she didn’t know how to react. So we talked about what she could have said. I then shared with her Myra Golden’s 7 Phrases That Convey Empathy:  I can understand how frustrating it is when . . .  I realize how complicated it is to . . .  I cannot imagine how upsetting it is to . . .

After showing empathy, the next step is to ensure that you are properly motivating your team. Yusuf Tokdemir wrote an article titled Discover What Motivates People More Than Money, and his tips include the following:  Recruit proper staff whose values align.  Apply a solid onboarding program.

 Give enough autonomy and task identity.

 Develop and implement right and clear service standards.

 Install proper technology that supports and improves their productivity.  Be clear, honest, authentic, and generous with praise.

 Effectively delegate authority and create responsibility.

 Effectively communicate and show staff the core purpose and values. Make your business strategy theirs.

 Identify and handle conflicts sensibly, fairly, and efficiently and seek the “win-win.”  Never criticize or correct in front of others.

 Apply a good recognition and reward system.

 Celebrate the success and share the disappointment. Be honest and transparent.  Create systems and norms that lead to a culture of candor within the organization.  Provide challenging assignments and offer opportunities for advancement.

Leadership is the foundation for being a good coach, but leadership is not something that everyone is born with. It takes continual effort to self-educate and think through how you choose to respond to all situations. My favorite leadership quote is from Winston Churchill: “You make a living by what you get. You make a life by what you give.”

 I know how confusing it must be when . . .

 We want to get to the bottom of this just as much as you do . . .  If I were in your position I would feel just as you do . . .  This is no more acceptable to us than it is to you . . .

These phrases helped her extend empathy to all callers and guests. She also shared that she previously came from a work environment that was very businesslike and where empathy was never discussed. So we delved into the concept of vacation rental sales being emotional sales, not transactional sales. Her growth and understanding of empathy took months. Her father was then diagnosed with cancer, and I believe that played a part, as well. Eventually, this agent coined the saying that I now use: “Empathize before educating.” This can be used in personal and professional settings and especially with people who seem frustrated with their jobs. A good amount of research that I have read states that empathy cannot be taught as an adult; you were either born with it or you learn it at a young age. Either way, I knew that wasn’t true because I didn’t have any empathy in my twenties. It wasn’t until my thirties and after two years of huge losses that I became empathetic.

Ali Cammelletti of Cammelletti Consulting has over 28 years of experience in the hospitality industry, having served in many capacities within the industry, from being a frontline restaurant and lodging employee, to building and owning a successful event-planning business, to now running a consulting company. She currently coaches and trains frontline staff and managers in how to grow their leadership skills. Visit www.cammelletticonsulting.com for more details.

VRM Intel Magazine | Spring 2017

Managing Employee Performance

Is a Competitive Advantage for Your Business

hough many things have changed over the years regarding how you manage your employeesâ&#x20AC;&#x2122; pay and performance, the most significant changes focus on providing ongoing feedback. Employees today want and expect regular feedback. They are no longer willing to wait for an annual review to determine whether their performance is on track. Having open and honest ongoing dialogues with your employees goes a long way toward improving the performance of both the employee and the company. It is no secret that companies with high-trust cultures outperform businesses with low-trust cultures. Studies of employee engagement find a direct correlation between high-trust cultures and higher productivity, increased innovation, and improved employee engagement and retention.

By Sue Jones

What does it take to develop a high-trust culture? It starts with you. It requires you to meet more frequently with employees, assessing their performance and giving feedback. If you are meeting regularly with your employees, setting clear expectations and addressing things in an open and trusting manner will put you ahead of the curve.

When I talk about performance management, I am referring to the activities or processes you have put in place to develop a culture that enables your employees to perform at their best. If you already have a performance management philosophy in place, now is a good time to review it to make sure that it aligns with your companyâ&#x20AC;&#x2122;s goals and objectives. If you do not have one, now is a great time to put one in place.

VRM Intel Magazine | Spring 2017

Performance review processes Your role as a manager is to manage your employees’ performance every day. Managers own the performance management system and use it as a resource to guide to lead, coach, and do whatever it takes to ensure that their employees perform well. Think about your current performance review processes. Are they rigid or more flexible? What opportunities do you have to incorporate more frequent communication and dialogue with employees?

If you are still conducting annual performance reviews, you might want to take another look at the value of that process. Fast-moving companies today are focusing on providing real-time feedback to employees so that they always know where they stand and where they are headed. This approach centers on the successful completion of goals and objectives in the future. If you are still conducting annual performance reviews, I challenge you to ask yourself why. Why do you want to spend your time and energy, as well as your team’s time and energy, focusing on past results? Wouldn’t you rather invest your time and energy, as well as your team’s time and energy, on achieving results based on future goals and objectives?

Setting Clear Expectations Employees want clarity about your expectations. They want goals, and they want recognition when they achieve those goals. Start finding time to communicate regularly with your employees. Make it a priority, and watch your company’s performance improve. Making performance management a priority is key to building a high-trust culture. Why is it that we can set clear expectations and goals regarding performance but we fall short when it comes to providing regular ongoing feedback to our employees? Managing performance as a daily activity is a relatively simple concept, but it requires dedication to change our behaviors.

Daily Performance Management The list below highlights several tools that you can use to shift the focus from structured annual reviews to more flexible forms of performance management. These tools are great resources that will assist you with managing performance on a daily basis.  Coaching Journals: Create a one-page sheet on which you can make notes, or “journal entries,” about employee behaviors that you recently noticed or observed. Your entry can be as simple as making a brief notation about an error lack of attention to detail on an assignment or a note regarding the extra effort an employee put forth when completing a project. The value of this tool comes from keeping the coaching journal front and center. Reviewing it daily is important so that you can start to identify patterns of behavior that you want to address with an employee.  One-on-One Meetings: Conducting regular one-on-one meetings with your employees is key to establishing a trusting relationship. A trusting relationship is an important part of both giving and accepting feedback. As managers, it is important for us to build trust with our employees so that they feel secure enough to accept our help and offer us their feedback in return. The following is an example of a one-on-one preparation form that an employee would complete and bring to the meeting. It is a simple worksheet that employees can spend as much or as little time as they want on in order to complete. The value of the one-on-

VRM Intel Magazine | Spring 2017

One-on-One Preparation Form Please make a copy for your manager to refer to during your meeting

LOOKING BACK: 1.What I have accomplished since our last one-on-one?

2.Concerns or difficulties since our last one-on-one

one preparation form is that it prompts dialogue and communication during the meeting by focusing on current problems and top priorities moving forward.

 Keep Start Stop (KSS): This is a simple but effective coachMOVING FORWARD: ing tool to use My top three priorities for the next two weeks are: during either a formal coach1 ing session or a 2 flyby. The KSS model helps us 3 assess what we should keep doing, what we should start doing, and what we should stop doing by thinking about the following three questions: TODAY:

The areas I need your assistance right now are:

Keep: What is working well that we should keep doing? Start: What might give us better results? What should we start doing? Stop: What is not working? The KSS model is an effective coaching tool that makes it easy to convey your message. The following is an example of how to use the KSS model to provide feedback to a manager about providing less direction and delegating to the team. Keep on holding your one-on-one meetings with your staff. I am seeing positive changes in your team’s engagement because of this process. Start asking more questions during the one-on-ones that allow your team members to develop more ideas and solutions. Stop providing detailed step-by-step instructions. Let your team learn to problem-solve more.  Competency (Behavior) Anchoring: This is a valuable tool to use when you need to address behaviors that span a particular time period. The intent of the model is to “anchor” your feedback to the behavior or competency that you want to address by providing key specifics about time, cost, and outcomes. You should provide three specific examples to create a solid anchor. Research tells us that employees are more likely to believe and embrace feedback when they can trust and verify the information. Managing performance as a daily activity takes practice. No matter what tools or resources you use to communicate and provide feedback, don’t forget the importance of recognizing and rewarding your employees for behavior that goes above and beyond regularly throughout the year. A Bamboo HR study found that 40 percent of employees only receive recognition a few times per year—or less. Reward and recognition are never wasted efforts. Make sure you don’t pass up opportunities to recognize and praise employees throughout the year.

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KIGO.NET | 855-977-0483 © 2016 RealPage, Inc. All rights reserved. Kigo and RealPage and associated logos are registered trademarks of RealPage, Inc. or its affiliates. VRM Intel Magazine | Spring 2017

2017 Vacation Rental Management

Company Acquisitions TowneBank Purchases Railey Mountain Lake Vacations Virginia-based TowneBank has acquired Railey Mountain Lake Vacations in McHenry, Maryland. Railey Mountain Lake Vacations manages 280 vacation homes and two hotels in Maryland’s Deep Creek Lake area.

According to Lakefront Magazine, “After graduating from Garrett College, Nancy Railey planted roots and began a family in Garrett County, Maryland in the 1980s. Nancy took $300 and an idea for renting family cabins and turned it into a family business that later became Railey Mountain Lake Vacations, one of the largest vacation rental home companies in Garrett County.” Nancy became sole owner of Railey Mountain Lake Vacations in 2007.

This is not TowneBank’s first venture into the vacation rental industry. In 2008, TowneBank acquired Corolla Classic’s property management and real estate businesses, and in 2014, the company purchased Beach Properties of Hilton Head. In 2015, TowneBank sold its Corolla vacation rental business to Wyndham, and in 2016 TowneBank acquired Oak Island Accommodations. Railey Mountain Lake Vacations joins Beach Properties of Hilton Head and Oak Island Accommodations as a subsidiary of TowneBank.

Vacasa Acquires Key West Vacation Rentals Vacasa has acquired the Key West Vacation Rentals (KWVR) and will integrate the vacation rental management into its marketing and technology platform. The technology suite includes Vacasa’s proprietary yield management algorithm along with its full-service marketing engine and centralized administrative support system.

“KWVR has been wildly successful in Key West, and the team there has always moved quickly to adopt new technology that ultimately benefits the customer,” said Eric Breon, Vacasa founder and CEO. “At Vacasa, we take the same approach and are constantly striving to improve the technology we offer to support effective, scalable vacation rental management. Our aligned synergies in this respect have proven mutually beneficial, and we look forward to working together with KWVR to improve the vacation rental experience in Key West and beyond.” KWVR owner and area native Rick Haskins purchased KWVR in 2012, and in five years grew what was then a 60-home portfolio to more than 200 homes. Now, with the integration of Vacasa’s marketing technology, KWVR forecasts more lucrative returns for homeowners due to booking process efficiencies. “Vacasa’s marketing technology is the best in the industry, hands down,” said Haskins, a multigeneration Conch. “Vacasa was the first to incorporate dynamic, demand-driven pricing technology and, to date, no other technology has come close in terms of delivering results. We are also thrilled to be able to offer our owners an improved suite of marketing tools, boosting profitability for each home we manage.” 40

VRM Intel Magazine | Spring 2017

Tom Lane, KWVR’s general manager, will oversee the integration of Vacasa’s technology, which will take place over a four-month rollout. Rick Haskins will continue to serve KWVR owners as the company’s community manager.

Aspen Skiing and KSL Capital Partner to Acquire Intrawest and Mammoth Resorts In April, ski resorts operator Aspen Skiing and private equity firm KSL Capital Partners announced agreements to purchase Intrawest Resorts Holdings for approximately $1.5 billion, including debt, and Mammoth Resorts, the owner of Mammoth Mountain Ski Area, Snow Summit, Bear Mountain, and June Mountain. Terms of the Mammoth transaction were not immediately disclosed.

“This transaction creates significant opportunity for Intrawest and delivers tremendous value to our current shareholders,” said Thomas Marano, Intrawest’s CEO. “We are excited to work with Aspen and KSL. Our new partners bring additional financial resources and a shared passion for the mountains and our mountain communities. Both Aspen and KSL are committed to helping Intrawest accelerate our plans to bring more value to our guests, more opportunities for our employees, and more investment into our local communities.” “Mammoth has been Southern California’s mountain home since 1948,” said Rusty Gregory, chairman and CEO of Mammoth Resorts, in a release published by KSL Capital. “After doubling down on our offerings to Southern California with the purchase of Snow Summit and Bear Mountain in 2014, joining this new venture led by Aspen and KSL is the next logical chapter in the story of Mammoth Resorts. This new platform, built around a collective passion for the mountains and our commitment to the people who visit, work, and live there, is exactly what the ski resort business needs. I am excited about the future prospects for Mammoth Resorts, our people, and this new enterprise.”

Intrawest wholly owns and/or operates mountain resorts, including Stratton Mountain in Vermont, Mont Tremblant in Quebec, Steamboat and Winter Park in Colorado, Snowshoe in West Virginia, and Blue Mountain in Ontario. It also owns adventure retreats and real estate across the United States and Canada.

Mammoth Resorts owns and operates a variety of recreation, hospitality, real estate development, food and beverage, and retail enterprises including Mammoth Mountain Ski Area, Snow Summit, Bear Mountain, and June Mountain. Aspen Skiing Company owns and operates the four mountains of Aspen Snowmass—Snowmass, Aspen Mountain, Aspen Highlands, and Buttermilk—and hospitality properties The Little Nell, Residences at The Little Nell, Limelight Aspen, and Limelight Ketchum in Ketchum, Idaho. In addition, Aspen Skiing Company owns and operates numerous retail and rental locations through the resort and the Roaring Fork Valley.

Both deals are expected to close by the end of the third quarter 2017.

VRM Intel Magazine | Spring 2017

Internation International Network network ofOf 4545 sites sites receiving receiving tens tens ofof millions millions ofof visits visits per per month month

Flexible Flexiblepricing pricingoptions options Including Including subscription subscription and and pay-per-booking pay-per-booking options options

Dedicated Dedicatedaccount account management management ToTo help help you you maximize maximize your your ROI ROI

Seamless SeamlessIntegration integration With With the the leading leading software software providers providers around around the the world world

Instant Instantbooking booking For For higher higher aa conversion conversion rate rate and and more more bookings bookings

To get started with HomeAwayÂŽ today, contact a To get started with HomeAway today, contact a HomeAwayÂŽ account manager at 1-888-581-1849. VRM Intel Magazine | Spring 2017 HomeAway account manager at 1-888-581-1849

The Seven Habits of Super

Successful

Salespeople By John J. Suzuki, Evangelist HomeAway, Inc.

love vacation rentals. I love that we deliver twice the living space for half the price of hotels. I love being part of something that makes people happy. I love being involved in a growing market with expanding opportunities for everyone. I love sharing it with, well, just about everyone. Sales is simply about convincing others of your point of view, right? So by that definition, we’re all in sales. For more than four decades of selling everything from butter toffee peanuts and Christmas trees for the YMCA to mainframe computers for IBM and selling my wife on marrying me thirty-one years ago—the greatest sale of my life—I’ve known many successes and failures. I’ve seen dreams achieved and nightmares unleashed. I’ve explored what works and what doesn’t and participated in thousands of sales calls. I’ve met folks who could sell ice to Eskimos, and others who couldn’t sell water to a fish. And through it all, the differences always came down to one thing: the great salespeople have great habits. I call them the Seven Habits of Super Successful Salespeople.

VRM Intel Magazine | Spring 2017

SUPER SALES HABIT #1 Study Sales Remarkably few businesspeople actually study sales. Most believe they already know everything about it. After all, it’s simply about making people like you because people buy from people they like, right? Perhaps that attitude is why most businesspeople don’t study sales, even though it’s one of the most critical parts of their business. The best property managers (PMs) I know are insatiable students of sales, constantly seeking new ways to generate more sales. They are experts at networking with other smart and successful PMs and applying what they learn to their own businesses. They understand that the art of sales is as dynamic as changes in technology and the human condition. Be curious. Have fun. Learn sales.

SUPER SALES HABIT #2 Be a Hero Being a hero is something that happens millions of times a day, usually with simple acts of kindness that make you a hero to those you serve and with whom you come into contact. In sales, I call it the Golden Rule Plus: treat others better than you wish to be treated. In my humble opinion, this is especially easy to do in our business. Why? Because we’re all in the business of vacations and making people happy! The best PMs are constantly trying to figure out how to delight every guest. Beachfront Only asks its guests to paint a picture of their perfect vacation. They then document the answers in their lead management systems and get busy being a hero to their guests throughout the entire guest experience that, in many ways, can last a lifetime. The good news is that being a hero doesn’t have to be hard—you just have to care enough to be one.

SUPER SALES HABIT #3 Leverage New Tools and Technology Moore’s Law suggests that technology doubles every year. Over the last twelve years, I’ve personally been involved with introducing “new” technologies to the vacation rental industry, including web-based software, online bookings, yield management, guest reviews, and integrated third-party bookings. Every step was met with varying degrees of resistance, but today almost every PM I know uses those tools or is thinking about using them. Because our industry is now online and technology driven, it is important to stay current with your own company’s technology for your direct business. Companies like HomeAway and Expedia continue to develop tools that are unprecedented in our industry. I believe PMs who embrace the tools of the future will experience unprecedented success. At minimum, I would suggest staying current with the kinds of things we’re doing on our web sites. After all, we spend millions of research dollars on behalf of our clients to help everyone make more money. So if something makes sense to you, use it. But remember that technology is like a fast-moving train: you can get on and ride it, or it can run you over.

SUPER SALES HABIT #4 Deserve Every Penny Amazingly, the best PMs I know never focus on the money. They know that as long as they focus on delivering fantastic experiences 44

VRM Intel Magazine | Spring 2017

and value to their guests, the rewards will follow. They constantly look for ways to reinvest their success to improve value to their clients. Conversely, when you focus on the money—and not on earning it—it evades you. Why? Because most people are smart enough to run away when they smell a skunk. The really cool part of all this is that when done right, we all have the opportunity to receive tremendous rewards by adding value and creating lifetime memories one vacation at a time. Don’t chase the money. Focus on value, and the money will find you.

SUPER SALES HABIT #5 If It Ain’t Broke, Improve It Albert Einstein once said, “The definition of insanity is doing the same thing over and over again and expecting a different result.” My personal update is “doing the same thing over and over again and expecting the same result.” Why? Because it’s not only about changing ourselves anymore; it’s about the world changing around us. Remember printed catalogs? Even though they never “broke,” I bet you wouldn’t get the same results today that you did ten years ago. Our industry has changed more over the last ten years than during any prior ten-year period. It’s Moore’s Law again; with technology doubling every year, change happens all the time. PMs with the best sales not only understand that, they embrace it. For example, it used to be that the way to grow revenue was to increase inventory. Today, companies are using revenue management tools to manage rates better and increase the revenue per home, and that enables them to grow revenue even if their inventory shrinks. Companies like HomeAway continue to drive change in our industry by bringing vacation rentals into the travel mainstream. So today, change is constant. Stay current and updated and get used to the idea of updating something all the time.

GREAT SALES HABIT #6 Lose Sleep Remember this: they don’t care how much you know until they know how much you care. Ever notice how nice people are when they want to sell you something and how quickly they forget you once you’ve bought it? Don’t be one of them! Consider this: the only communication guests often receive from the time they book to the time they check in is about when a payment is due. Worse, with the wide acceptance of keyless locks, some PMs prefer to avoid contact with their guests altogether. PMs who feel that way clearly do not understand a client’s lifetime value. Otherwise, they’d lose sleep realizing that every client could represent ten or more bookings over a lifetime, not to mention the social networking multiplier. The best PMs I know bend over backward to serve and delight their guests from the day they book to the day they come back as a returning guest. That’s why the top companies in our industry are the top companies: they constantly think about how to do better and improve their clients’ experiences, even when they sleep.

SUPER SALES HABIT #7 Love Your Guests One of the lines in an old favorite song of mine says, “When you’re smiling, when you’re smiling, the whole world smiles with you.” It’s so true. I’ve also learned that when you truly love those you serve, they will love you back. The best salespeople truly believe in

the goodness of people, and they work hard to delight each and every one of them. So check this out: When I was seven, I saw a bumper sticker that I remember to this day: “SMILE! It’s not going to break your face!” Over the years I’ve realized that smiling is much more fun than all other options combined, so I smile all the time. And you know what? I’ve also learned that smiling can be contagious. Try it sometime on someone who seems like they can use some love—even on the phone. (You do know that your smile can be heard over the phone, right?) You may be pleasantly surprised when they smile back. And that’s when the love connection can happen! You know the best part? We’re in an industry that pays us for loving people. John J. Suzuki

As HomeAway's evangelist, John shares the big picture on industry trends, addresses what HomeAway is doing to benefit property managers, and provides feedback to enhance HomeAway’s products and services. John is known for his broad understanding of technology in the vacation rental industry and his strong moral compass. He has been a trusted advocate for vacation rental property managers for over a decade.

BECAUSE YOUR GUEST’S INTERNET SHOULD NEVER TAKE A VACATION!

connect . brand . collect VRM Intel Magazine | Spring 2017 SiliconTravel.com | 800.459.2256 | VacationAttendant.com

What if Profitability is Just One Question Away? I

n the vacation rental industry, we ask ourselves many what-if questions in an attempt to perfectly align the many moving pieces. What if we rethought our distribution channels? What if we handled linens in-house? What if our property management software were cloud-based? What if guests could check in via mobile phone?

There are many “what ifs,” but they generally all boil down to one thing: the need to increase profitability. And when it comes to increasing profitability, vacation rental managers (VRMs) may be missing a few of the most important “what ifs.”

What if we answered the phones 24/7? What if, after the phones are answered, our agents used some simple techniques to increase the number of bookings they take, such as simply asking for the reservation, taking the time to build a relationship with the guest, or personalizing their recommendations?

Perhaps you are saying to yourself, “We’ve got this covered,” however, a recent NAVIS call center study showed that these are still important “what ifs” for most properties. Our team called 84 vacation rental companies for a total of 409 calls, keeping track of the top ten essential reservations sales techniques guaranteed to increase conversions. (Bonus: they make for excellent guest service!) We found that 70 percent of calls placed after hours and 45 percent of calls placed during the weekend went directly to voicemail. If the phones aren’t being answered, the guest’s questions aren’t being answered and bookings aren’t being made. Plain and simple. Some of these calls were placed during the time period when many people on the East Coast were dealing with Hurricane Matthew, which highlights the need for properties to have emergency plans in place for reservations during unanticipated events. When the calls were answered, our study found agents to be profoundly courteous. Setting the tone for the guest’s stay really does begin with a welcoming agent. However, 32 percent of agents asked the guest questions beyond the dates and location they were looking for, and only 31 percent asked enough about the guest’s needs to offer a personalized recommendation about which home the guest should rent rather than simply offering a list of options for the guest to consider. Finally, our biggest takeaway: agents are not asking for the reservation. It is as simple as saying, “Do you want to go ahead and book that now?” Only nine percent of agents asked. We know that merely asking for the reservation quadruples the rate of bookings. The fact that this essential step is being overlooked points to a critical need for call tracking and coaching your agents. What if you talk to your agents about this right now?

We anticipate that your conversions and sales will increase today. By Heather Weiermann, NAVIS

VRM Intel Magazine | Spring 2017

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VRM Intel Magazine | Spring 2017

FINDRENTALS.COM

The Importance of Transparency

in the Vacation Rental Industry Travelers expect transparency, but is that what they are getting?

t the heart of the relationship between a vacation rental management company and its customer is transparency. As experienced property managers have discovered, taking every opportunity to properly educate travelers about their vacation homes and the company’s unique offerings and value proposition pays enormous dividends.

Creating transparency is the foundation of the vacation rental industry, and the building blocks of transparency are trust, credibility, and open and honest communications. Let these building blocks be the foundation of your daily business decisions. As members of this great vacation rental community, we should remember that it took all of us working together to build this foundation of transparency. Now, more than ever, our future success depends on these same values, and travelers are counting on us. The need for transparency in the vacation rental industry seems obvious to travelers, homeowners and vacation rental managers. As travelers ourselves, we know that transparency is the minimum expectation when planning for our family’s travel. So why do so many business models that claim to serve the vacation rental traveler depend on a lack of transparency?

As visibility in our industry continues to grow, it is the responsibility of every owner or manager to be transparent with the traveler. Many of you have experienced outrage from travelers when they have discovered they have been “had” by fees that were added to bookings by listing sites. That is like the weary traveler checking into a hotel, only to find out the guy next to him is paying much less for the same type of room. However, travelers are getting wise and are finding our brands in spite of the obstacles put in place by third parties. The greatest concern for every vacation rental manager is the damage this deceit is doing to our industry. Below is a clear example of how the lack of transparency negatively affects our industry.

Traveler phone Inquiry from

xxxxxxxx xxxxxx

Does a lack of transparency guarantee success? No. As we have seen over the past few months, new companies that enter the vacation rental market with no experience and no commitment to transparency are failing. More important, they do damage to the marketplace by leaving the vacation rental manager and the traveler picking up the pieces.

When is a lack of transparency acceptable? Never. Think about that for a moment. You pay to list your properties on these major listing sites and what do you get in return? They promote their brands (with your money), using your data, and then they separate you from your potential guests. The traveler is clearly not being served in a manner that reflects positively on our industry. These stories will only increase as our market continues to rely on third party channels.

Transparency is a competitive advantage. Change is inevitable, and change also creates new opportunities.

With a growing number of vacation rental websites emerging and the commoditization of rentals taking place, the market is in danger of damaging its reputation. Additionally, because of a growing and lucrative market, both direct and indirect competition is intensifying. Travelers are looking for your brand—a credible brand they can trust with their vacation. They are looking for the properties and associated services you offer that will ensure a successful vacation rental experience. By Vince Perez

Message from xxxxx Hi, I am trying to book your property from April6—April 10th and the publish rate is $ xxx but xxxx is trying to charge $ xxx. I tried calling but they said they could not help. I asked to speak to a xxxx Manager and the person I spoke with put me into a telephone loop. We would like to book this property but xxxx is trying to charge almost double the published rate. Can we book directly from you? Thank you,

Vince Perez's expertise spans across multiple disciplines in the hospitality and technology fields. Prior to his technology ventures, Vince served in executive leadership roles in operations, sales and marketing for Japan Airlines, Nikko Hotels and Hyatt Corporation. Vince is a partner in California-based Beach House Rentals. Perez founded Fetch My Guest, an Intelligent Marketing Automation Platform that increases direct bookings through higher conversions while dramatically reducing marketing costs. Perez will be presenting “Establishing Your Brand in a Competitive Landscape” at VRM Intel Live! in Wilmington on October 26 and in Destin on November 30.

VRM Intel Magazine | Spring 2017

ADVANCED LEVEL EDUCATION FOR VACATION RENTAL MANAGERS LEVERAGING MARKET CHANGES TO CREATE A SUSTAINABLE COMPETITIVE ADVANTAGE

WE ARE PACKING AN ENTIRE CONFERENCE INTO A FULL DAY OF EDUCATION, NETWORKING AND INDUSTRY UPDATES THAT HELP YOUR COMPANY LEVERAGE CHANGES IN THE MARKETPLACE TO GAIN A COMPETITIVE EDGE AND INCREASE LONG TERM PROFITABILITY

EARLY REGISTRATION $100 PER PERSON INCLUDES BREAKFAST AND LUNCH

VRM Intel Magazine | Spring 2017

OM W . VR C . E V MINTELLI

JUNE 7 OREGON

+ VRHP REGIONAL HOUSEKEEPING SEMINAR, JUNE 8

HISTORIC EDGEFIELD 8:00 AM TO 5:00 PM

GENERAL SESSIONS WHERE WE'VE COME FROM, WHERE WE ARE, AND WHAT THE FUTURE HOLDS Mason, CEO, SpaceAgent

GAINING A COMPETITIVE ADVANTAGE IN TODAY'S VACATION RENTAL INDUSTRY Amy Hinote, Founder, VRM Intel

VACATION RENTAL MANAGER PANEL AND GUIDED ROUND TABLES VRM Panel

MANAGEMENT SESSIONS REVENUE MANAGEMENT FOR VACATION RENTAL MANAGERS Ian McHenry, CEO, Beyond Pricing

SUSTAINABLE ORGANIZATIONAL PLANNING FOR SHORT TERM AND LONG TERM GROWTH Sue Jones, Founder and Managing Director, KLS Group

MANAGING HOUSEKEEPING PERFORMANCE WITH CHANGING GUEST EXPECTATIONS Durk Johnson, Executive Director, VRHP and Meredith Lodging

CREATING AND SUSTAINING CONSISTENT PERFORMANCE Dore Jean, President, Kaizen

WHAT'S NEW IN TRAVEL INSURANCE, CREDIT CARD PROCESSING AND TECHNOLOGY Panel

MARKETING SESSIONS BUILDING A WEBSITE THAT OPTIMIZES YOUR GUESTSâ&#x20AC;&#x2122; BOOKING EXPERIENCE Brandon Sauls, CEO, ICND

TAKING CONTROL OF NATIONAL AND LOCAL SEO Amber Mayer, VP Product Solutions, NAVIS

THE UNIVERSE OF PROPERTY DISPLAY: MATTERPORT, FLOOR PLANS, DRONES, PHOTO RESOLUTION, IMAGE STORAGE AND MORE Suzi Cusack, Founder, TruPlace

UTILIZING TRANSPARENCY, TRUST AND CREDIBILITY TO MANAGE THE GUEST EXPERIENCE, INCREASE REPEAT STAYS, AND OBTAIN LISTING SITE INDEPENDENCE Vince Perez, Founder, Fetch My Guest

CREATING AND COACHING A SALES CULTURE IN YOUR VACATION RENTAL MANAGEMENT COMPANY

Ali Cammelletti, Founder, Cammelletti Consulting

BOOK YOUR ROOM USING THE FOLLOWING RATE CODE: VRMIN JOIN US AS WE STRIVE TO TAKE THE PROFESSIONALLY MANAGED VACATION RENTAL INDUSTRY TO THE NEXT LEVEL.

AND COMING SOON: VRM INTEL LIVE! DENVER JULY 25-26 2017 OTA UPDATE - AN UNFILTERED LOOK AT MANAGING THIRD PARTY DISTRIBUTION, Steve Milo, Founder, Vacation Rental Pros

MULTI-DESTINATION BRANDS: Q&A WITH VACATION RENTAL MANAGEMENT EXECUTIVES BUILDING A NATIONAL BRAND NEW SOFTWARE: AN ANSWER TO PRAYERS OR YOUR WORST NIGHTMARE? Doug Macnaught, Founding Member, VRM Consultants and Former Co-founder, Instant Software

EXECUTIVE THINK TANK VACATION RENTAL INDUSTRY VENDOR TRAINING VRM Intel Magazine | Spring 2017

How to Build a Reservation Agent Team that Excels at Customer Service By Matt Renner

n the hospitality industry, amazing customer service is the key to establishing a strong reputation, driving word of mouth, attracting new guests, and boosting revenue year-over-year. To increase the bookings you make each month, you’ll need to make customer service a priority at your property. To make guests feel welcomed and excited to tell their friends about you, you can’t just focus on controlling what they see and experience as soon as they walk through your doors. To make a lasting impression on them, you have to start much earlier. It should all begin with the first interaction they have with a human about your property. For many travelers, that first human interaction happens when they talk to a reservation agent for the first time. As a property manager, you control how that initial interaction plays out. Your agents are the ones having these conversations with potential guests, but it’s your job to ensure that each of them has the training and skills needed to make the right first impression with travelers who choose to reach out.

Tips to Help New Reservation Agents Excel at Customer Service

Tip #1: Know What You’re Looking for When You Hire To build an effective team of reservation agents who can provide an amazing experience for your leads and guests, start by hiring the right people. There are many qualities that you can look for when interviewing someone for your open agent roles, but at a minimum, the right candidate should possess some or all of the following characteristics and traits:  Natural Problem Solver: They approach problems with curiosity, enthusiasm, and determination.

 Helpful and Patient: Above all they try to be helpful and don’t rush to conclusions until they have all the answers.  Good Communicator: They are skilled at both verbal and written communication.

 Resourceful: They don’t wait for other people to give them the answers or solve their problems for them. They are creative when it comes to finding solutions.  Empathetic: They understand and can relate to most human beings on a personal level.

 Good Listener: They take the time to listen and give people their attention.  Hungry to Learn: They are interested in learning more and improving their skills.  Calm and Cool Under Pressure: They don’t get stressed out or lose focus in tough situations. 52

VRM Intel Magazine | Spring 2017

Be selective with the people you hire and choose to add to your team. Spend time during your interviews asking questions that help you identify the specific characteristics and traits you’re looking for.

Tip #2: Work One-on-One with Each New Team Member Take the time to train and mentor each of your agents during oneon-one meetings. In one-on-one meetings with each of your employees, you should set clear expectations about what it means to create an amazing experience for customers.

Your goal in these meetings should be to help each person on your team understand why customer service is so important, how to interact with leads and customers on a daily basis (using specific examples whenever possible), and what they can do (actionable tips) to improve their skills over time.

When you care about improving customer service, your employees care too. Your one-on-ones will not only provide you with opportunities to regularly inform everyone on your team about your expectations, but they’ll also give you chances to personally mentor and develop stronger working relationships with each of your agents.

Tip #3: Streamline Communication with the Right Tools Give your agents the tools they need to streamline communication. Remember that the key to excelling at customer service is consistency.

If your reservation agents have to recreate the wheel every time they need to write an email response or follow up over the phone, they’re never going to have the time to think about how to present guests with the right experience. Instead they’re going to be stuck in the weeds, managing tedious tasks and deciding how to best communicate with and respond to each and every lead they encounter. By taking the time to hire the right people, offer powerful communication tools, and help set customer interaction expectations through one-on-one mentoring and training, you’re able to not only set your employees up for long-term success but also create a better experience for your guests and a stronger reputation for your property. About TRACK Pulse Implementing the right communication tools at your property helps agents focus on what matters: developing meaningful relationships with potential customers and moving them down the funnel. TRACK Pulse is a tool used to boost productivity and help reservation agents become more consistent communicators. With TRACK Pulse, you can give your reservation team the tools to have authentic and consistent interactions with leads, prospects, and guests. TRACK Pulse allows agents to set up canned email responses, automated email follow-up drips, and compelling outreach templates that can be quickly customized for different leads. TRACK Pulse also features powerful call center tools that ensure your agents are consistently providing the same level of engagement and service to each lead when communicating over the phone.

VRM Intel Magazine | Spring 2017

Tracy Lotz Passion, Partnership and Independence Founder and CEO Tracy Lotz Discusses LiveRezâ&#x20AC;&#x2122;s Growth, Outlook and New Initiatives 54

VRM Intel Magazine | Spring 2017

ounded in 2008, LiveRez has grown to be one of the most widely used technology platforms in the vacation rental industry. With over 900 systems sold and over 40,000 properties currently on the software, LiveRez continues to grow and add new functionality for its users.

Known for his energy, passion, and fierce independence, LiveRez founder and CEO Tracy Lotz has helped shape the face of the modern vacation rental industry. As one of the vacation rental industry’s most talked-about figures, Lotz is never afraid to speak his mind or take on the largest companies while he champions his company’s ideals and partnerships in an authentic and demonstrative way. We had the opportunity to sit down with Tracy Lotz and LiveRez’s vice president of operations, Tina Upson, in a candid interview to find out more about LiveRez’s growth and trajectory for the future. Amy Hinote (AH): What are you most proud of in the growth and development of LiveRez?

Tracy Lotz (TL): Overall, it’s the relationships we have helped develop that I’m the most proud of—not only the relationships that we at LiveRez have with our partners but also the relationships that our partners have with one another. It’s been pretty incredible to see our partners leverage the collective LiveRez network as they face industry issues and build business best practices. We actually see them travelling the country to visit one another’s operations so they can learn and grow together. AH: You refer to your clients as “partners.” How does that difference influence how users are treated at LiveRez?

TL: I think the real difference is that we deeply care about the same things our partners care about—and we don’t just say that, we live it. We care about the industry as a whole and particularly about all the obstacles professional managers face on a daily basis, from changes in the regulatory environment to changes in the advertising landscape to changing expectations from guests and owners. We feel that as their partner, it’s our job to help them navigate these challenges and make informed decisions that benefit them long term.

When you really care about people, you build strong relationships. We know all of our partners by name. We even have screens in our offices highlighting a different set of partners each month with facts about the people that work in their organization. We work nonstop—from our partner success teams through to our development teams—to make sure that our partners set the definition of success and that they feel supported. This requires a big investment, both in keeping our technology ahead of the curve and in hiring quality people and training them not only on our software

but also on our partners and the industry as a whole. We don’t take shortcuts when it comes to our partners because we’re part of the same team and win together. AH: Looking back, what has been the biggest challenge or obstacle to LiveRez’s growth?

TL: I am not sure if it is truly the biggest challenge, but I can tell you that it is NOT easy to start a business and focus first on building it. There is so much temptation and push for you to “raise money” to quickly get funds from any source you can and then worry about how to pay it back later. When you have a new business and are personally leveraging your own treasure on a month-to-month and then year-to-year basis to grow a company from the ground up, it’s no joke. Having done this with a few other companies prior to starting LiveRez, I have always felt like it has been part of the glue that has bonded me to our LiveRez partners. They are truly entrepreneurs, and they work so hard to make sure they have more money coming in the front door than they have going out the back door. Knowing exactly what that feels like and how much of a grind it can be has fueled some of the decisions I have made regarding LiveRez and our business plans. Some of the decisions I’ve made for LiveRez may seem “personal” to outsiders, and I guess they could be portrayed that way because I do feel personally connected to our partners and the obstacles that they face in the vacation rental space. AH: Historically, you have had a skeptical view of working with distribution channels, but last year we saw LiveRez integrate with Airbnb. Why was Airbnb a better choice than the other channels for LiveRez?

TL: This is actually a simple one to answer. Airbnb wasn’t a “better choice.” We sat down with them, as we have with other channels, and laid out the barriers to entry for the LiveRez partners. What made Airbnb different is they were open to conversations about what professional property managers needed, and where Airbnb needed to make changes. Airbnb followed through with a number of changes, including adding stricter cancellation policies, allowing hosts/managers to be paid out earlier, letting management companies showcase their branding in their profiles, adding account managers, and so on. AH: We’ve heard that LiveRez is taking a more open approach to allowing its partners to work with outside vendors. What motivated this change in strategy, and how do you think the development of your API will impact your partners? TL: Overall, we are just evaluating what is best for our current partners. In the spirit of partnership and partner-driven development, we are simply working alongside LiveRez partners to address the needs that they have. AH: What do you think most people in the industry don’t know about Tracy Lotz and about LiveRez Software?

Tina Upson (TU): Tracy has such a big heart, and I don’t think people see that because he comes off as such a tough guy. He takes on a lot of personal responsibility for the success of our partners and the success of our team members at LiveRez. He also makes it a priority to give back. Tracy has LiveRez involved in many charitable organizations, but you won’t hear about many of them because he rarely lets us brag about these efforts. VRM Intel Magazine | Spring 2017

Another defining characteristic of Tracy is loyalty. I have always said that Tracy is loyal to a fault. I’ve watched him turn down opportunities that other people could only dream of, all because he knew in his heart he was doing the right thing for our partners and our team. Maybe this is what makes him such a great father to his kids. When push comes to shove, Tracy looks out for his family (and that includes his LiveRez family). There’s no one else I’d rather have on my side. One thing people find surprising about LiveRez is how hard we work and how much we truly care. When you purchase software, of course a salesperson sells “great customer support,” and at LiveRez I’m sure that our salespeople sell “partnership.” But when the rubber meets the road and someone becomes a LiveRez partner, they

find that whether it is in implementations, support, sales, design, or even engineers—yes, that’s right, they meet our engineers—we really do want to help them be a success. AH: Looking at the software, what are the most important developments you’ve rolled out in the last year? What will we see new from LiveRez in 2017–2018?

TU: This is where I get really excited about LiveRez, with our incredible partner-driven development. We’ve released multiple significant updates to our platform in the past year, but the ones that really shine are LiveStay and LiveTrust.

TL: LiveStay is really something special that we are so excited about. Our vision is that LiveStay will be a completely unique marketplace for booking vacation rentals for a number of reasons. 56

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The first thing that sets it apart is that it is 100 percent accurate at all times when it comes to availability, bookings options, and so on. There’s no “integration” factor here because the marketplace is populated only by properties managed by our partners; it’s totally exclusive to LiveRez partners. This will allow us to do things that other listing sites simply can’t accomplish because they’re relying on integrations from multiple software vendors.

The second thing that sets LiveStay apart is that it is designed by our property manager partners, for our property manager partners. We’re really allowing professional managers to design their own exclusive marketplace from the ground up. This will give them a level of control over an exclusive marketing channel. Right now, managers are often forced to play by someone else’s rules and are robbed

of their identity in doing so. LiveStay will be different.

The third and final thing that sets LiveStay apart is that it will be a brand focused on the guest experience, which is really where our partners shine. The above-and-beyond effort they put into their own personal brands and the guest experience is incredible, and it deserves a lot of respect. This is a site that isn’t just about generating bookings but about setting an expectation about the stay that guests can grow to trust.

We feel like LiveStay is the answer professional managers have been looking for. As managers continue to struggle with channels that care little about the hard work they invest into their brands, LiveStay will highlight this hard work and showcase it to guests worldwide. It’s our way to stand beside and truly support our

LiveRez partners.

TU: LiveTrust is our new trust accounting system. What makes LiveTrust different is that it uses accounting automation and real-time event handling to not only take a lot of work out of the trust accounting process but also give managers up-to-the-second information about how much money they are holding for any given stakeholder. It’s also 100 percent cloud-based and mobile responsive. To our knowledge, there’s nothing like it in the industry.

These updates are in addition to a dozen or more other features and upgrades, including the “LiveScore” update that adds NPSstyle questions to surveys and gives managers the ability to create completely custom surveys. As we look ahead to the rest of 2017 and 2018, we are truly focused

they’ll be working on together is designing and developing the best cleaning and maintenance app available in the industry. We’re also working toward adding a complete reservations mobile app, more channel integrations, and dynamic pricing capabilities.

As part of our new channel manager, we are building in ways for partners to leverage our growing network of managers by listing one another’s properties, banding together to create regional co-op websites, and referring bookings to one another. This is something we’ve been discussing for a while. We started forming advisory committees on this topic after our inaugural partner conference and have been working hand-in-hand with these partner groups for some time to explore what this would look like. We’ve invested the time doing the groundwork, and we’re excited to see it come to life this year.

The loyalty between LiveRez’s users and the LiveRez leadership is not one sided, as evidenced by the large attendance at the annual LiveRez Partner Conference. With big name speakers, such as Shark Tank’s Daymond John and Lone Survivor Marcus Luttrell, over 500 of its enthusiastic “partners” were lavishly wined and dined by Lotz and the LiveRez team at the last event in Austin, Texas. The 2017 LiveRez Partner Conference will be held October 8–11 in Phoenix, Arizona.

on having the best core technology in the space. We are reinvesting in upgrading our back-end infrastructure—something that will enable us to develop solutions even faster and leverage some really cutting-edge technology. Although we’ve made a number of updates to our core technology over the years, we feel these updates will future-proof LiveRez and give us a long-term competitiveadvantage. I think our stability as a company enables us to make longterm investments like this that might not be as feasible for our competitors.

Another investment we’ve made is in our people. Although other companies rely heavily on outsourcing development, we have a large on-site team of developers that work alongside our partners to deliver exactly what they’re looking for. One of the projects

AH: In the past, we’ve heard you talk about not being for sale, but there are always rumors. What are your current views on a potential LiveRez acquisition?

TL: My current view is that we don’t NEED to sell. We haven’t accepted institutional funding. We have zero debt. We don’t even have a line of credit at the bank. The winds that are blowing companies over in our industry just aren’t being felt by us. What we have going on at LiveRez with our partners and our team is something special, and I can’t imagine a number high enough that would make me consider selling.

VRM Intel Magazine | Spring 2017

Mother-Daughter Teams LEADING THE WAY Insight from MarketLeading MotherDaughter Teams Who are Paving the Way by Focusing on Family, Guests and Community 58

VRM Intel Magazine | Spring 2017

n honor of Mother’s Day, we reached out to three vacation rental management companies owned and operated by mother-daughter teams. Each of these companies - Sand ‘N Sea Properties in Galveston, Texas, Seaside Vacation Rentals in York, Maine, and Meyer Vacation Rentals in Gulf Shores, Alabama are undisputed market leaders and manage a substantial share of their area’s rental inventory.

While located in very different destinations around the country, we found much in common between these companies. For example, each one of these companies was founded over 25 years ago (in fact, Meyer is celebrating their 50th anniversary this year), and each of the daughters worked their way from the ground up into leadership roles. In addition, these mother-daughter teams operate incredibly disciplined businesses, are influential in their communities, and demonstrate a remarkable level of trust and respect for each other. Working on this article was an enormous privilege, and I am grateful to these amazing, strong women for the opportunity to share their stories and insight into managing properties in the ever-changing vacation rental industry. These leaders were extremely generous with the information and industry perspectives revealed in these interviews. So read closely and take note. There are many lessons on leadership, operations, and marketing throughout the following pages.

Seaside Vacation Rentals, ESTD 1983

York, Maine Maureen Regan and Jennifer Thibodeau

Leading The Way With The High-Quality Service For Homeowners, Guests And The Community AH: How did you decide to start Seaside Vacation Rentals?

Maureen Regan (MR): I came to York, Maine, in 1981 from NYC where I sold surgical supplies. I was recovering from cancer. I fell in love with the area and felt I needed to make a lifestyle choice, so I took various part-time jobsâ&#x20AC;&#x201D;one of which was working with the York Harbor Inn and the other with a real estate company that was struggling. I saw a need for a vacation rental company and started my company after leaving the real estate company. AH: Where did the name originate?

MR: The name was originally Regan Real Estate and Rentals. We still have a separate company called Regan Real Estate (RRE). Jen Thibodeau ( JT): As the business began to grow, and we were getting inquiries about rentals for kayaks, party tents, and everything in between, we had a family meeting and decided to make Seaside Vacation Rentals a new company separate from RRE. We have kept the real estate company because it generates business through our guests and homeowners who are looking for their second home or selling. AH: What were some of the early successes and challenges?

MR: The real estate market was really crazy in the early 1980s. It was booming in our area. All the real estate companies in this area had a few rentals but much preferred doing sales. I asked them for their rentals, and they just gave them to me. Of course, they regretted it when the real estate bubble burst in the mid- to late 1980s! Also, there were two people who did rentals (one from a general store and one from a souvenir gift shop) who both retired and were happy to give me all their rentals! It seems crazy when looking at this today. The challenges were that many of the properties we took on were not well maintained, and everyone who was renting properties was doing it differently. For example, exit cleaning was asked of the guests, but it was never checked. The elderly couple who rented from the general store actually gave people their money back if it rained all week during their vacation stay. Imagine my surprise when the first family came to me expecting that! AH: Maureen, you wrote a fantastic book titled The Rental Game: Winning with a Professional Vacation Rental Team. What motivated you to write the book and what did you learn in the process? MR: It was a very impulsive decision. I went to a bookstore looking for a book on vacation rentals for a new homeowner, and all I could

find was a series of books written by someone who bad-mouthed management companies and said how easy it was to do the renting yourself. I thought this was ridiculous because I knew how hard we all worked and the value we added to the process. So I decided to write the book, The Rental Game: Winning with a Professional Vacation Rental Team. Primarily, I learned that it was a whole lot harder than I thought it would be and took a whole lot more time than originally planned. But I also interviewed and learned a lot more about vacation rental management from meetings with industry leadersâ&#x20AC;&#x201D;all of whom were incredibly generous with their time and information. VRM Intel Magazine | Spring 2017

AH: Are you looking at writing another book?

MR: Yes, I have started thinking of another book dealing with the history and key people who have changed this industry over the years. AH: When and why did Jen take the leap and join the company?

JT: When my mother started the business, I began working on projects, such as our printed catalogues, booking properties, and cleaning in the summer. When we opened up a position for a reservationist, because I was only interested in helping out from time to time, one of my best friends enthusiastically interviewed and got the job. It wasnâ&#x20AC;&#x2122;t until years later, after having worked in other industries and for other people, that I decided to return to Seaside full-time (and permanently). I chose to return after having realized that I really did enjoy all those family conversations revolving around Seaside and that the industry itself was so fun, challenging, and rewarding that I wanted to be part of the evolution of vacation rentalsâ&#x20AC;&#x201D;and work with my mother, of course!

VRM Intel Magazine | Spring 2017

AH: What differentiates Seaside from your competitors?

MR: Most of our competitors are still real estate companies with a sideline of renting.

JT: There are a few who are doing a lot of rentals but have not kept up with trends, like online booking, 24/7 maintenance, and cleaning services. Also, we are committed to providing the best service possible to our guests and homeowners, resulting in return rental rates of over 60 percent. AH: Since 1983, a lot has changed in the vacation rental industry. How do you work together to address advancements and issues while keeping your core values?

MR: Having two and now three generations working in the business helps us keep up with advancements in technology and keep those old-fashioned customer service ideals. Our multi-generation family mirrors who are guests are, so when Jenâ&#x20AC;&#x2122;s millennial children talk about the importance of social media or adventure vacationing,

we listen. Being a part of VRMA has also helped us tremendously to keep on the cutting edge of what is happening.

We saw early on that doing the right thing paid off in the long run even if it wasn’t always easy. One of the first years we were in business, we had an owner who canceled all his rentals at the beginning of the season. We hustled and found everyone a new place, except for one holdout who didn’t want to move even though our policy was to upgrade every one of those folks. Finally, we found just the right house on the water, which he accepted and cost us a bundle. It was difficult for us, but he and his family came back to rent with us for over twenty years after that. JT: One of the main reasons we developed a new position within Seaside—homeowner liaison—and beefed up our customer service was a direct result of the implementation of the Internet. As more and more communications moved online, our owners were initially flustered and scared, and guests felt neglected. Even today, we have some homeowners and guests who prefer to be called, rather than emailed, who we send holiday greeting cards to and accept cookies from in the mail. AH: You are heavily involved in the community and in the industry. What motivated you to become so involved, and how has your commitment to the community and the industry benefited your business?

MR: Since the beginning, we have always been involved. I think the motivation probably came from my mom, Annette, who helped with the business in the very beginning. She would bring big pitchers of lemonade to the volunteers at the information center and always attended every chamber event. We still are very involved. Jen is on the board of our regional group, the Maine Beaches Association, which is composed of seven seacoast chambers, and she just stepped down from the presidency of the York chamber. I served on these as well at one point, and I am currently serving as president at the Vacation Rental Management Association (VRMA). The bottom line is that these are our neighbors, colleagues, and friends, and by being involved we are all working together for the betterment of our community and industry. JT: Also, with our connections, we have more knowledge of what is going on in the area (to share with our guests through our concierge), we get a bird’s-eye view of the state’s marketing plans, we obtain information regarding statistics and trends within our state and nationally, and we make new connections that are infinitely helpful. MR: And when a potential customer of ours goes to one of those connections looking to rent his or her vacation home or find a weekly rental, we are that customer’s first source of referral. It’s a nice feeling. AH: As we approach Mother’s Day, what have you learned from

each other and about working with family?

MR: I feel immensely fortunate to be working with my daughter, Jen. We can laugh, enjoy each other’s company, and share a hug when the day is not going so well. I also look forward to Jack and Aidan, my grandchildren, working more and more in the company. JT: They’ve been coming to work after school for a few hours now that our season is beginning to rev up, and it is wonderful for both Mom and me to witness them being part of this business and the industry too. I have to say that I couldn’t have asked for a better mentor. In all the years of working together, traveling for work together, and pushing each other to be the best we can be—as well as the business—we have cultivated a relationship that we couldn’t have dreamed of. AH: What advice do you have for other companies working closely with family members?

MR: I would say don’t try to force your children into the business or into a particular management slot. Let them find their way and do what they love within the company if they choose to work with you. Don’t expect it always to be perfect. The big downside is that every family gathering is a company board meeting.

JT: It is important for me to have some clarity and comfort with the distinction between my “Seaside” mom and my regular mom. We respect each other’s ideas and knowledge, we give each other space when it’s needed, and most important, we can see each other as valuable and viable business partners. This has created a harmonious relationship at work for us—most all of the time. AH: What trends and opportunities are you seeing in vacation rentals today?

MR: Trends I see are the greater acceptance of the vacationing public to use vacation rental homes, the homogenization of the industry, the buying up of small vacation rental companies by large companies—often with no vacation rental experience—and much more.

Opportunities are also great. I think that those small companies who focus on core values while incorporating newer ideas in travel and still hang on to what makes them unique have a great potential right now to stand out in a business that is becoming increasingly more mainstream and cookie cutter. Trample that cookie cutter, and be proud of what makes your company different and cool! JT: I see the world expanding. People are traveling more and discovering neighborhoods and exploring towns. They are traveling closer to home or just venturing outside of what they never really considered before in planning a vacation. I see immense growth with the building and buying of properties, specifically catering to this industry. I see the uniqueness of this industry eroding somewhat, but I know that there are many opportunities that are bound to reveal themselves soon—looking forward to it! VRM Intel Magazine | Spring 2017

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Sand ‘N Sea, ESTD 1974

Galveston, Texas Bert Feinman and Anne and Claire Reiswerg

Built on Trust in Each Other, This Galvestonian Family’s Market-Leading Company is Focused on Exceeding Customer Expectations. AH: How did you decide to start Sand ’N Sea?

Bert Feinman (BF): My husband, David Feinman, was a builder and developer on the West End of Galveston Island. He was building houses, and one day in 1974, he was in the process of selling three houses in Sea Isle when he turned to me and said, “The only way the buyer will purchase the houses is if you rent them out for him.” I told him I would, and we started a vacation rental business that day. There was another company down here that had everything tied up, and as he kept building and selling houses, we had to rent them. We struggled along for years, but we went on to sell and rent quite a few homes.

At the time we started, our name was David R. Feinman and Associates, and when we incorporated, we decided we would change it to a name that reflected Galveston. We had an agent, Dorothy, who came up with the name Sand ’N Sea. AH: When did your daughter, Anne Reiswerg, join the company? BF: In the beginning, we had a bookkeeper and that was it. In 1982, Anne joined the company as our receptionist.

AR: In the Eighties, we started printing house lists that included the house name, bedrooms, baths, the subdivision, and amenities. Back then, the big amenity was a microwave! We didn’t even have cable TV down here—it was very rural. And having a microwave was a big thing, along with washers and dryers. We would print these lists, staple them together, and mail them. Finally, we began printing a brochure, and that came with its own hassles—taking pictures, dealing with negatives, and getting those pictures into the brochure. The good ol’ days! AH: What were some of the early challenges in running your vacation rental business?

AR: Maintenance is always a challenge, but because David owned a building company, maintenance was easy to get done on these houses, and it was done quickly. He could send someone over and get any kind of problem taken care of. Most of the men who worked for him lived on the West End so it helped. In 1983, we faced Hurricane Alicia. The storm came over the West End and knocked down a lot of houses. After that, the area experienced sig-

Anne Reiswerg (AR): To be honest, at that time, I was right out of school and probably wasn’t even thinking about having a career. When I came on board, if they asked me to do something, I did it. Back then, I had to go into town, which was half an hour away, to go to the bank and the post office, and as a result, I spent a lot of time running back and forth. I also ran items to all our houses. I did it all. BF: My first husband had worked with his father on the family business, and their relationship was so terrible that I never wanted any of my children in the business. So when Anne came to work at Sand ’N Sea, I thought it would be temporary. I didn’t know whether I wanted her to work at the company because of the problems I’d seen in a family business. But it ended up working out very well for us. AH: In the beginning, how did you market your rentals?

BF: We were doing everything back then. We tried an ad in the Houston Chronicle—it didn’t work at all, so we put signs on the houses. No one in our area had done that before. We also placed some advertising on the radio in Houston. This helped, and then word of mouth spread. To be honest, I didn’t know what I was doing. We tried many different things. VRM Intel Magazine | Spring 2017

nificant growth, and we began to grow and see more competition. When David passed away in 1996, we decided to concentrate on vacation rentals and real estate sales.

BF: For the first fifteen years, all our reservation activity was done with pencil and paper, and we were still using paper when Anne came on board. One day, I decided that there must be a better way of doing this, and in the back of a real estate magazine, there was a tiny little ad for vacation rental software. I called them, and John V. Kjellman came down to Galveston to meet with us. In our meeting, he asked us, “Have you heard about the Vacation Rental Managers Association (VRMA)?”

AR: Being a 24-7 business was another one of our biggest challenges. We didn’t have cell phones then, and taking calls and communicating with one another was difficult. However, if you think about it, we had fewer fires to put out than we do today. Back then, our calls were about water pressure, plumbing problems, or air conditioners not working. We weren’t dealing with a TV not working or the WiFi being out. Now, many of our calls are technology related. Claire Reiswerg (CR): Even today, our biggest challenge is being a 24-7 business because we have to staff, make sure the technology is running, and ensure everyone in our houses is safe and enjoying their stay.

AH: In Sand ‘N Sea’s growth path, what was one of biggest milestones along the way?

BF: Sand ’N Sea experienced a big growth spurt when we acquired another rental company on the island. There was a large developer here in Galveston who didn’t enjoy the rental part of the business. He thought it took up too much time, so he called me and asked me out to dinner. Over dinner, he asked, “We want to get rid of the rental business—would you buy it?” My answer was, “Of course!” I didn’t even have to stop and think about it. Six months after that, he sold me the sales part as well. It was difficult in the beginning, but it made all the difference in the world. AR: It was a sought-after location and company. When everyone got wind that the developer had approached us, all the other companies in the area started calling him and expressing their interest, but we had an agreement in place, so we were able to complete the purchase. As a result, we got sixty new houses in the area on the West End.

At that point, I contacted VRMA and found out it was having its national convention in Cape Cod. I went by myself and had to get there on a tiny plane. That was the year of the big San Francisco earthquake (1989), and it was early days for VRMA. I ended up receiving a lot of help through VRMA, and there we connected with First Resort, which was our first vacation rental software provider. I went to every meeting, and I was even on the VRMA board for a year. We got a lot of information and a lot of help from VRMA members all over the country. I credit VRMA for a lot of our success—business models, processes, services, consultants, everything. I was the only one to join from our area. We didn’t talk to our competitors then. 64

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CR: It was a smart move on Anne and Mom’s part, and it undoubtedly contributed a large part to our success because—even to this day—no one has a comparable location. The office is located at the entrance to the best subdivision in West Galveston Island, and it is a good, solid office. Even during Hurricane Ike, we had no damage. It’s a great location. AH: When and how did your other daughter, Claire, decide to join the company?

BF: Claire was living in California, and she had saved up her money to take three years off to travel around the world. Throughout her travels, I would often ask for her help in writing letters and writing anything we needed for the office. I kept sending her more and more to do and reeled her in.

CR: While traveling, I bought a tiny laptop in Hong Kong. Now they’re everywhere, but back then, this was cutting-edge, and I would connect to the landline in hotels. In 2002, I remember Mom sending me a homeowner newsletter to write, and while I was sitting in Istanbul in this beautiful, historic hotel across from a mosque, listening to the call for prayer, I was writing, “Remember to let us know when you are coming to your beach house because we are getting a lot of walk-ins.” I had been listening to Mom and Anne talk for so long about rentals, homeowners, and maintenance issues that writing about it came naturally! In 2003, after completing my travels, I officially joined Sand ’N Sea. AH: Claire, at Sand ’N Sea, you are very involved in your community. What motivated this passion? And how has your commitment to the community and the industry benefited your business?

CR: I remember my mom saying that my primary assignment is to make sure that they know that we are out here on the West End of Galveston Island doing vacation rentals, and that we do pay hotel taxes. At the time, we didn’t realize we were one of the biggest contributors in hotel taxes. Working with the community suited my background doing documentaries and civic outreach around films and social issues, and I enjoyed it. We’ve expanded the sales department as a result of our community activity, and now we have a seat at the table on local issues—tourism, the lodging industry, vacation rental regulations, beach maintenance, etc. In the early 2000s, when vacation rental restrictions were first being discussed, we heard from Rosemary and Michael Sarka at VRMA that we should be proactive in our area and start a local group of property managers. Anne and I took their advice, and in 2004, we hosted all the companies in our lobby along with eight other vacation rental companies. Together, we started GARM, the Galveston Association of Rental Managers. We took a proactive, “neighborhood friendly” approach, and to this day, we have a great relationship with our 41 West End subdivisions. When short-term rental regulations arose, we worked along with the City Council, tourism officials, and neighborhood groups on an ordinance and land use regulations—very simple, very enforceable solutions—and most important, it works well for both residents and the tourism industry. When you have a seat at the table, when you are involved with your community, you’re able to influence the decisions that are made and the policies that need to be championed. And it helps that we grew up here. We see companies that are mainly marketing platforms and are not on the ground here on the island. They just come into town and try to do business here. I think that’s the part they miss— the community connection that Sand ’N Sea has. We will always have a special, vested connection to the community because we live here, we shop here, we go to church here, we serve on boards and participate in civic groups, we support local causes, and we know our neighbors. AH: How are the roles separated among you?

BF: I’ve stepped back from the business. I still watch all the emails that go back and forth, and I come into the office each week for a Monday meeting. It was a little difficult to step away in the beginning, but Anne and Claire are doing such a good job, and we trust one another. I come back into the office when Claire or Anne is out of town.

CR: Anne handles all the operations—homeowners, houses, maintenance, housekeeping, and inspectors—and I take care of ad-

ministration, marketing, technology, the laundry and oversee the Realtors. We are very structured. My mother put together an amazing organization; we are careful about our books and our processes, and we have a quarterly meeting with our CPA. We regularly review and are highly disciplined with our financials.

We trust one another. I can’t emphasize enough how important this is. We trust one another with what we do with money and the decisions we make—for the company, for our guests, for our employees. If we didn’t trust one another, we couldn’t work together as a family. AH: As we approach Mother’s Day, what have you learned from one another and about working with family?

BF: I’ve learned that both of my daughters are very smart, and I’m surprised that I was able to raise such bright women!

CR: I’ve learned that my mother is an incredibly talented businesswoman. She created processes that Anne and I follow to this day. I’ve also learned that Anne is very good at operations and taking care of houses and homeowners. I have a lot of respect for both of them and what they’ve created here. And I’m always in awe of their institutional knowledge about the island. AH: What advice would you give to companies building their businesses today?

CR: Make decisions consciously. We have made the decision not to utilize large OTAs. Way back when distribution channels were becoming the norm, I remember Anne asking, “Why are we going to give money to somebody else when we’re the ones working the reservations, cleaning the houses, and going out in the middle of the night to fix any issues that arise?”

So instead—and I give credit to Kelly Hurley at Visual Data Systems for this—we learned that the secret was to build up our own database of leads and guests. Consequently, in 2004, we began capturing all those leads using our own website, software, and call center, and we now have a large database that is the basis of our marketing. We placed a few listings on HomeAway for a few years, but we’ve made the conscious business decision to spend our marketing dollars building our company database and mining, collecting, and nurturing information from our leads and guests. With all of these changes, George Volsky correctly said that this business is still about “cleaning the toilets and taking care of the screaming guests.” The on-the-ground touchpoints are the most important factors in staying aligned with our customers, many of whom have been repeat guests many times over. As a result, at Sand ’N Sea, we have not moved to a fully automated business model through which we never see or talk to our customers. BF: Our market is largely a drive-to market, with our guests coming in from a city an hour away. We are always conscious of the ongoing challenge of keeping up with what guests are expecting of a vacation rental in 2017 and beyond. We all travel a lot and learn about hospitality from that, too.

Our guests’ expectations are very different today: forty years ago, everything was much more basic. Now, they want everything right away. Even if we have people at their homes responding to their calls within an hour, it isn’t soon enough. People are much more impatient, and also guests are more able to shop around to get a better rate.

AR: Vacation rental management is a great way to make a living, but you have to be hands-on. You have to be on the ground, working the business every day and paying attention, and you have to care about it to sustain it. VRM Intel Magazine | Spring 2017

Meyer Vacation Rentals, ESTD 1967

Gulf Shores, Alabama Sheila and Michelle Hodges

Sheila and Michelle Hodges Have Built One of the Gulf Coastâ&#x20AC;&#x2122;s Largest and Most Respected Vacation Rental Management Companies with Determination, Professionalism and Innovation.

Meyer Office Building 66

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AH: Sheila, it looks like you became the broker in 1980 but acquired 100 percent of Meyer in 1995. How did that come to be?

Sheila Hodges (SH): The quote “From crisis comes opportunity,” truly describes what happened. In 1982, the partners at Meyer decided to split, and one bought out the other. The sole owner was what we described as the “back office” owner. In other words, he didn’t interact with sales agents but dealt in finance and the legal holdings of Mrs. Erie Meyer. Therefore, we had no idea who, how, or what in sales. I’m sure the sole owner of Meyer was also wondering who, how, and what. As it turned out, he optioned half of the company to a large firm in Mobile, Alabama to manage sales and vacation rentals here at Meyer. Although this was a large, successful brokerage firm, it had neither been in vacation rentals nor in a dominant second home market. Factoring those two learning curves in, along with not being able to be present every day, meant things did not go smoothly. I often pitched in to give my two cents’ worth to whatever situation needed it. After almost two years the Mobile firm opted not to exercise its option to purchase half of the company. So in 1984, I was offered half of the company at a cost that would empty my savings and put all I had on the line. But at the same time I was assured I would be the “driver” with assurance my new partner would support, counsel, or stand back as needed. So after much deliberation I took the plunge. AH: What were some of the early successes and challenges?

SH: Now I have to trust my memory, but the first big challenge was to take the rental department from paper to computer. From the beginning, all reservations were kept on a calendar spreadsheet in pencil. You know, reservations get changed or canceled, so all was done by pencil. So if you grow the number of properties you manage, the paper spreadsheets grow also. It was obvious we had to go computer. Today, in our computer world, we still struggle with keeping up with technology or technology keeping up with us.

I remember the first time we went from six phone lines to a switchboard. We were told repeatedly by distributors that we were overreaching ourselves on switchboard requirements; any company our size requires a much smaller system—but we insisted. As all that technical equipment was being installed, the supplier said it had no idea we had so many calls in one day. All I could do was smile and say, “Now you know why we were insistent!” That was a simple success, but there have been failures. Not once, but twice, I tried mortgage lending—both times were a dismal failure. This example could imply that I’m a bit stubborn. I would be remiss if I didn’t touch on natural crises. Those huge tropical occurrences! (Author’s Note: No one along the Gulf Coast uses H-word). After a few storms you have a good plan for prestorm preparedness and post-storm recovery. But never in history have there been two back to back, as in one each year. There were lessons learned in that, and one that sticks out is bandwidth. We had purchased dozens of cameras for staff to get out and photograph each property as soon as possible. We had so many photos on our website that we were getting as many or more views than CNN! In the middle of the day we got shut down for exceeding bandwidth. Thank goodness I was present in our off-site “warm site” to give them my American Express card to increase bandwidth. Then there was the BP oil spill. I won’t go down that horrid rabbit trail, but yeah, we survived that too. AH: When did Michelle join the company and what prompted her to make that decision?

Michelle Hodges (MH): I’m probably no different than most eighteen-year-olds who have spent their entire lives in the same city. As I took off for college, I saw my future leading me away from Coastal Alabama and into a large, vibrant city where I could start my career and pave my own path. Growing up, my mother was such a known businesswoman in our community, so the idea of escaping her shadow and building my own reputation was appealing to me as a teenager and young twenty-something. By my mid-twenties, I had completed a few internships, graduated from college with a degree in international relations and a minor in Latin American and Caribbean affairs, studied abroad, and traveled to nearly twenty different countries. It was tremendous fun, but as I seriously started considering a career, I couldn’t shake the connection I felt to the hospitality industry. In 2006, I joined the Meyer team as a guest relations representative working at the front desk. In 2007, we switched computer systems from RMS to PropertyPlus, and each department assigned a team member to represent its needs in the conversion, which I had an opportunity to do. That opportunity greatly expanded my scope of understanding of each of our departments and how our operational processes were intertwined. One thing led to another, and I ended up in a full-time training position where I conducted everything from new hire orientation to customer service training and departmental training. The 2010 BP oil spill catapulted my career in yet another direction. I focused on a role with the Coastal Resiliency Coalition (CRC)—a group representing the communities of Foley, Gulf Shores, Orange Beach; our two local chambers; The Alabama Gulf Coast Convention and Visitors Bureau; and our community college. As a community, the events of 2010 created an “all hands on deck” atmosphere where we were all united toward not only surviving the crisis but also coming out of it stronger. While the CRC still exists today, and I am a board member, I refocused my attention on Meyer in the fall of 2011, and today I serve as president. AH: What differentiates Meyer from its competitors?

MH: This is actually a topic that our team spends quite a bit of time discussing. Change in our industry is increasing at an incredible pace. It is exciting to watch awareness of the industry expand and the ensuing “disruptive innovation” that follows such expansive growth. Renters’ expectations of a vacation rental are not uniform, and depending on their objectives, owners may also have a different set of expectations. At Meyer, we make every effort to ensure our brand objectives are clear to not only those who do business with us but also our team members, who carry our core brand values. Some brands are niche oriented, and others are mass oriented; some are value driven, and others service driven. If you imagine an x and y axis with those focal points, there is a place in the industry for brands that are plotted in various places in each quadrant. Wherever your brand value proposition is plotted, the important thing is to be aware of where you stand so your marketing efforts accurately reflect your value proposition. At the end of the day, we want those who choose to do business with Meyer to be brand advocates, and the best way to build such a relationship is by clearly setting and exceeding expectations. From the renters’ perspective and the owners’ perspective, our core brand values are characterized in the following words: personal, simple, and ready. AH: A lot has changed in the vacation rental industry. What steps do you take to address advancements and obstacles while keeping your core values? MH: Much like our brand values serve as a reminder of our valVRM Intel Magazine | Spring 2017

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ue proposition, our core values ensure that no matter what initiative or opportunity presents itself for our organization, we always maintain alignment with who we are and what we represent as a company.

University Centers to help address its innovation and growth challenges through the implementation of a year-long Innovation Engineering Management System (IEMS) project. Innovation Engineering is a systems-thinking approach to innovation with a At Meyer we believe in serving with integrity; conducting our- methodology that teaches individuals and companies how to create selves and our business in an honest, ethical, and trustworthy man- and test meaningfully unique ideas using a Fail Fast, Fail Cheap ner; treating everyone with care, respect, and fairness; providing approach to reduce risk and increase speed to market and to create financial stewardship; and growing through innovation and cre- a system and culture of never-ending innovation. The system fit ativity. We believe our core values are timeless—they have served into our company culture so well that with ATN’s assistance, we us well since they were created nearly three decades ago, and they decided to bring Innovation Engineering in-house and maintain are going to continue to serve as our road map into the future. Of the system to both encourage and manage meaningfully unique course, we adapt to changes in the industry and world around us to ideas into implementation. Two years into the program, IEMS became the catalyst for shifting our entire organizational structure help us maintain relevancy with each of our core values. to remain competitive in a changing market and better serve our For example, over the past ten years, Alabama’s and Florida’s Gulf property owners. The changes enabled Meyer to manage like a Coast tourism and the vacation rental industry experienced sev- small property management company while also leveraging the treeral challenges that impacted Meyer. In 2004, Hurricane Ivan hit mendous resources and expertise of a large property management Alabama’s coast and caused damage to many beach properties, company. Throughout the concept testing, Meyer measured success resulting in lower bookings and revenues to the company. The factors, including average time to complete work orders, owner hoeconomic recession naturally tline answer rates, and employresulted in an increase of foreee satisfaction, to gauge the Meyer Vacation Rental Brand Perspective: closed rental properties and impact of the change before travelers substituting staycafully implementing. Meyer’s tions instead of their tradition“big personalization” concept al beach vacations. To make resulted in a reduction in the matters worse, the 2010 BP average length of open work Deepwater Horizon oil spill orders by 73 percent. An emreduced the number of vacaployee satisfaction survey meaTo meet a renter’s expectations, our goal is to tioners to the Gulf Coast and suring effectiveness, consistendeliver unencumbered vacation gratification. the number of Meyer bookings cy, timeliness, empowerment, • Personal: Sharing a place to stay with someone should never feel by 50 percent nearly overnight. and teamwork showed an altransactional. It should always be a warm exchange with a human While these external events most 100 percent improveat the other end. Meyer is known for doing the things—all the were occurring, competition ment over pre-test results—up things—that make a vacation experience memorable for its guests. for property management serfrom 41 percent to 80 percent. vices and vacation guests inOur core values were at work • Simple: No hoops. No handoffs. No tipping the bellman to get a secret creased on several fronts as in a big way! package. We make the process of renting, checking in, and servicing well. First, the number of every room as easy as possible. The only thing you should be worried AH: At Meyer, you are heavproperty management comabout is how much fun you’re going to have. ily involved in the communipanies competing with Meyer • Ready: When you’re on vacation, you should be on vacation, not rety. How has this commitment along the Gulf Coast increased sponsible for the imperfections that might inconvenience your stay. benefited your business? as small boutique management That’s why we’re here. From appliances and utilities to towels and companies emerged that unMH: We could talk about the troubles, the team at Meyer is here to take care of any issues that dercut the market’s traditional numerous reasons community may arise. commission and service strucinvolvement is smart business. ture. Second, with the rise of For us in Coastal Alabama, the Internet and new business workforce development is a To meet an owner’s expectations, we are models, many beach propersignificant issue, and the future personally invested in his or her return. ty owners began renting their shift in a quality profession• Personal: Opening your doors to others takes trust, and at Meyer we units themselves to deal-seekal workforce starts today with take that responsibility very seriously. We treat your investment as ing vacationers, rather than the emphasis we place on eduour home and will do everything we can to make sure renters feel contracting with professionally cation and our ability to create the same way. If they don’t, we’ll make it right. managed companies. partners in education with lo-

Personal, Simple, Ready

These changes in the industry landscape challenged Meyer’s position as an industry leader and created the need for the company to incorporate its core value of growing through innovation and creativity into its strategy map. In 2013, Meyer engaged the Alabama Technology Network’s (ATN’s) Mobile and Auburn

• Simple: When you partner with Meyer to manage your property, we eliminate the headaches that come with owning and keeping up an investment property, saving you time and complications that inevitably come from juggling various vendors. With one call we can take care of all your needs.

• Ready: Maintaining a home is not a simple task—let alone one that hosts a few hundred people per year. Consider Meyer your boots on the ground. From cleaning services to appliance support, we are always on call to help keep your property in top earning shape.

cal business leaders. We could discuss the merits of economic diversification, maintaining quality of life, driving public policy, or business advocacy all as drivers for involvement at a larger level. But, for me, it really does boil down to the fact that this is my forever home. I was beyond blessed to be raised in the same community from

VRM Intel Magazine | Spring 2017

birth to graduation. I have a passion for the community that helped develop me into the adult I am today, and I consider it a true privilege to be a part of ensuring the strength and resiliency of this community endure for the next generation. AH: As we approach Mother’s Day, what have you learned from each other and about working with family?

MH: My mom loves to share stories of me as a little girl—maybe not into kindergarten quite yet—asking her if one day she would let me be the boss. From an early age, I always admired the way her confident, professional attitude resonated when she left for the office. I often tried duplicating the feeling by dressing up in her suits and heels. But realization kicked in at some point in the teen years that the responsibilities she carried went far beyond her diverse closet. In addition to being a wife and a mother to four kids, she was paving the way for people to have a career—not just a job—in an up-and-coming industry where they could actually feel they were making a contribution. My biggest barrier to working for Meyer was the concern that my mother’s reputation was so great that I would spend my career in her shadows.

VRM Intel Magazine | Spring 2017

As I reflect on my last eleven years at Meyer, I recognize the tremendous guidance my mother provided me in those first years getting my feet in the water and, as I began to find my own contribution, how much autonomy to learn—whether through failure or success—she allowed me to have. At the end of the day, the success of our organization is an inside job and is dependent on each and every team member embracing our brand and core values and supporting each other with their own unique strengths and talents. It is truly a team effort. AH: What trends and opportunities are you seeing in vacation rentals today?

MH: There is obviously a significant amount of conversation taking place around the impact of a sharing economy in the vacation rental industry. We are in a unique position in Alabama because vacation rentals fall under the governance of the Alabama Real Estate Commission, which requires we maintain status as the merchant of record from the time of booking forward and that any guest deposits be escrowed into a state financial institution. Although this may prevent certain partnerships from forming with us, it also protects

the consumer from fraud and allows Meyer to remain in control of future charging needs or chargeback issues. In Alabama, the Real Estate Commission also requires that anyone managing a vacation rental property on behalf of the owner be a licensed real estate broker. This means that while individual owners may utilize third-party listing services and accept guest money directly, any non-owner managing a property on behalf of another individual must obtain a broker’s license to avoid breaking the law.

be a pivotal season along our stretch of coast to unite in our message. Certainly, we welcome college-aged students who abide by our rental agreements and choose to spend their Spring Break with us to enjoy all our wonderful area has to offer—from our beautiful beaches to our diverse selection of attractions. But we are also committed to protecting the experience that all our visitors have come to expect—young and old, couples traveling solo, and parents traveling with children and grandparents.

It is also interesting to look at vacation trends following an election year! National politics may be a surprise factor in planning a beach vacation, but local politics are proving to have a significant impact as well. For most Americans, vacation and holiday decisions are based on the security of their income and whether their outlook on their personal financial and job security is optimistic for the foreseeable future. Despite where you land on the political pendulum, with a new administration in the Oval Office, it seems nearly everyone is experiencing some level of a political honeymoon period. A significant benefit of our gorgeous Gulf Coast area is that we are predominately a drive-to destination. This makes us an incredibly attractive option for both value-driven vacationers and last-minute destination seekers.

AH: What advice do you have for other companies working closely with family members?

In local politics, the Gulf Shores City Council voted unanimously last December to renew the “no alcohol ban” during the 2017 Spring Break months. You may recall that in 2016, the city took fast and decisive action to avoid any potential transition of the Panama City Spring Break crowds that wreaked havoc on the reputation and safety of that destination through alarming media stories and an increase in criminal offenses. This has proved to

SH: If you are the parent, step out of the picture. By that I mean you have a successful business because there are some things you are really good at, and those areas you are lacking you have managed to overcome by various means. Allow your children the same luxury no matter how painful. We often inflict upon our children the dreams that belong to us, and we never hear or view their dreams. We must allow the next generation to take the business to the next level if that is their dream. If that is not their dream then you do both the business and them a grave disservice.

I have four grown children, and only one had an interest in what I was doing and saw or felt inclined to follow. Yes, they held summer jobs around this industry but I waited through four college educations for there to be any interest in my career. I am ever so grateful for all four and their endeavors, but I will admit there is comfort in the fact that one knows and loves the business. But if it had turned out that none had an interest, then I am confident the good Lord would have sent just the right person to move us forward and upward.

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VRM Intel Magazine | Spring 2017

PRO TIPS to Maximize Your Email Marketing By David Angotti

ffective email marketing is a cash machine that can help you print money at the precise moment your company most needs it. However, for many companies, the email marketing machine is broken, in need of maintenance, or doesn’t even exist.

Investing time and resources into email marketing in an effective manner is something most successful businesses do. Why? On average, a company produces $38 for every dollar invested in email marketing. If you are looking to reduce your dependency on third-party listing sites and paid ads, you owe it to yourself to start implementing these tips today!

1. Gather Emails No matter how good your offer is, you must have a list of potential customers or the offer will fall flat. The first step of successful email marketing is developing a large database of targeted leads.

If you are new to email marketing, a good starting point is to create a spreadsheet with all of your past and potential guests (recent inquiries). The sheer number of people that you have already interacted with will likely surprise you!

Although you already have enough email addresses to get started, you need to employ proven strategies to grow your list. One great strategy is to use the combination punch of an impossible-to-miss opt-in form with an ethical and attractive bribe. 72

VRM Intel Magazine | Spring 2017

Does this sound too complicated? It’s not. All you have to do is create a simple pop-up ad on your website using a service like Sumo that encourages your website visitors to provide their email addresses in exchange for something of value. Once they provide an email address, you will automatically send them an insider guide to your destination, property discount, or something else of value. Now that you have a list of emails, it’s time to turn that list into real reservations and cash.

2. Warm up Your Email List Using Facebook Ads Most businesses don’t immediately nurture each email they collect. Instead, the list of email addresses sits in a spreadsheet gathering virtual dust. Then, out of the blue, a bored marketing manager decides to send a one-off email six months later. See the problem with this approach? If you have not communicated consistently (see tip #5), your recipient may be confused as to why you are emailing them and mark this as spam. If too many people do this, you may get banned by your email provider and the majority of your emails will land in spam folders. The good news is you can leverage a cheap Facebook ad and exponentially multiply the effectiveness of your email campaign. This is especially relevant with a “cold” list that you warm up.

First, create a custom audience by uploading your email list. Now, you have an ultra-relevant Facebook ad group that you can target with the accuracy of a sniper. Next, create an ad that takes the user

to an incredible piece of noncommercial content that sells the idea of a vacation with you. Finally, after they have been exposed to your branding, ads, and content for several days, send your email. Practical Example: A potential guest opted in over six months ago, but has not received a single email from a Kauai property management company. When this potential guest is on Facebook, she begins to see the brand’s logo and various pieces of content. A few days later, she clicks on an ad that takes her to a beautiful piece of content about several hidden beaches near Kauai’s north shore. Finally, she gets an email from the management company, which now seems familiar. Even though she was initially a cold lead, Facebook targeting warmed her up, and she now recognizes the brand.

3. Use Persona-Based Email Marketing to Increase Effectiveness The majority of companies use terms like “email blast,” “hit the list,” or “spray and pray.” Instead of using the precision of a scalpel, this is the marketing equivalent of bringing a chainsaw into the operating room. Each email address represents a person with individual characteristics and needs. If you choose to treat all of your email addresses identically, you choose to have lower conversion rates and profits.

The first baby-step toward persona-based marketing is segmenting your list by major attributes. Here are a few of the major attributes that you should consider segmenting by:  Property Size  Property Value  Visit Season

 Pet Ownership

 Visit Purpose

Imagine Linda Triche is the lead-traveler for a 40-person family reunion at the beach every July. This is a high-value, large-property lead that has specific needs. Do you want to diminish the value of your emails and product by sending emails with winter specials? Probably not.

Now that you have segmented your list, your chances of converting Linda are exponentially higher than before. Through some basic list segmentation, you can present her with a guide to planning a family reunion at the beach that features several large properties that meet her needs. This takes work to set up and automate, but when fine-tuned, it will produce conversion rates 50 percent higher than the industry standard!

Don’t operate with a chainsaw. Instead, use persona-based marketing for scalpel-like precision.

4. Help Your Customers The purpose of email marketing is to sell. We all want to make money. Unfortunately, most marketers stick out their greedy hands begging for money without understanding how to effectively sell to someone. According to Google’s research, there is a precise moment that a person is researching a product AND is simultaneously ready to purchase it. Oftentimes, the individual was not even planning on purchasing a product, but the brand effectively transitions the consumer from knowledge-seeker to purchasers by educating them. To more effectively accomplish this, you must understand the consumer’s pain point and solve it. This can be achieved by combining

your intimate knowledge of your destination and properties with your understanding of the traveler’s attributes (see point #3 above). Although they may look very personal, we must create templates that solve the needs of our common personas. The templates should feature custom-crafted pieces of content that solve common problems for that demographic.

Imagine anticipating a customer's needs before they do! If John mentions bringing his pet in an inquiry or email, we can be pretty certain he is much more likely to book a pet-friendly rental than one that prohibits pets. However, merely including pet-friendly rentals in our response is not enough.

Instead of in-your-face selling tactics, we need to help John by providing hyper-relevant content based on his needs. We can provide a list of dog-friendly restaurants, give him a recommendation for a doggie day care, or tell him about a local dog park. In this manner, we have solved his problems and established our company as an area expert. To positively influence your customers’ buying decisions, you must provide selfless help. Remember, the brand that helps the consumer most effectively is likely to gain the customer.

5. Stay Consistent When a brand sends emails sporadically and infrequently, the subscribers are less likely to

convert and often have a lower lifetime value. In addition, the subscribers are more likely to unsubscribe, complain, or identify it as spam. This combination both proves and accelerates a negative trend that can stall your email marketing efforts permanently.

How often should you send email? The ideal frequency varies based on the list demographics and needs, but two to three emails per month is a great starting point for most companies. However, remember that your emails should not be self-serving; instead, they must provide value to the end-user. Consistency takes work; however, the cost of inconsistent and low-quality marketing with less-than-optimal results is something none of us can afford!

Final Thoughts Per world-renowned marketing and business development expert Jay Abraham, there are only three ways that a business can experience growth: B Increase the number of customers: Turn prospects into profit

C Increase the value of each purchase: Maximize the profits per transaction

D Increase the buying frequency: Convince customers to purchase more often

By making small gains in each of these three areas, your business will experience impressive growth! The email marketing strategies outlined above are guaranteed to maximize the business growth methods and drive results. "David Angotti is a serial entrepreneur who founded and exited an EdTech startup, consulted with Fortune 100 brands, wrote for Search Engine Journal, and recently sold one of the fastest growing property management brands in the country. He is laser-focused on developing SmokyMountains.com into the premier niche listing site in the country. David’s primary strengths include business development, branding, high-level marketing, search engine optimization, and public relations. In addition to his business background, he was a commercial pilot and is certified to fly the fastest passenger jet in the world."

VRM Intel Magazine | Spring 2017

Pay-Per-Click Marketing by Josh Guerra

How to Know If It’s Right for Your

Business

o you’re thinking about entering the world of pay-per-click (PPC) marketing. You’ve talked to friends, fellow vacation rental professionals, and maybe even some marketers, but you’re still not sold. “Do people really click on paid Internet ads?” you may ask. “Will it really be worth the time and money?” Those are typical questions to ask before you enter the vast and confusing world of paid search marketing.

What is PPC? In a nutshell, PPC marketing is exactly what its acronym stands for: pay-per-click marketing. You put ads on the Internet and pay each time an ad generates a click. The most common PPC platform is Google AdWords, consisting of both the Google Search Network, where you serve ads to people searching for your keywords on Google, and the Google Display Network, which is a network of millions of websites that allows you to serve ads to users as they navigate the rest of the Web and that is commonly used for remarketing. In addition to Google, PPC also includes Bing Ads, Facebook ads, Instagram ads, and more. There is no denying that PPC is becoming more popular. Google now devotes the top four spots in its search results to ads. With 75 percent of Google’s revenue coming from ads (and AdWords in particular), it has a huge incentive to continue to improve its platform and place the right ads in front of the right people.

Benefits PPC marketing can be your best friend or your worst enemy, depending on how you approach it. If done correctly (i.e., if it’s done by people who know what they’re doing), the list of benefits can be long: VRM Intel Magazine | Spring 2017

 Immediate Results: The beauty of PPC is that you know exactly what you’re getting for your money—and you know it immediately. You know the number of clicks, leads, bookings, and calls, and you know the average time on site, bounce rate, and more. It’s all set out in front of you.  Flexible Budget: Another benefit of PPC is that your budget can be flexible on a daily, weekly, and monthly basis. If things are working well, there’s almost always room to increase spending and increase bookings in return; and if things are slow, you can temporarily spend less and focus on your top-performing campaigns.  Increased Brand Awareness: Even if you don’t generate a click, you enjoy free branding for your company because your ads will be seen by relevant searchers.  Rewards for Being a Good Site: As I mentioned earlier, Google has a huge incentive to place the right ads in front of the right people. As a result, if you can establish yourself as a “quality” ad in Google’s eyes, then you will decrease your cost per click and make your ads more efficient.  Protecting Your Brand: If users search for your brand on Google, it is beneficial to show them an ad before your organic results. One reason is because it assures searchers that your brand is legitimate while eliminating any chance of a competitor jumping your organic result with one of its ads and potentially stealing your business.  Increasing Pressure on Competitors: In contrast, if some of your competitors aren’t bidding on their branded keywords, you can attempt to jump their organic results and “steal” their clicks. Competitor campaigns have proven to be successful in generating cost-efficient bookings.  Increasing Inventory: That’s right—PPC isn’t merely for increasing bookings. You can also target homeowners looking to add their homes to the rental pool, thus strengthening your business for the long term.  Knowing Your ROI: With all the data you collect from each click, it’s easy to determine how much money PPC has brought in. It has been said, “You have to spend money to make money.” With PPC, you know exactly how much you spend and exactly how much you make.

Who’s It for? With all those benefits, PPC must be for everyone, right? Wrong. There are many factors to consider when determining if PPC is right for you, and as noted earlier, it’s not for everyone. Here are five key points to consider:  Do you have enough inventory? Do you typically sell out without the help of PPC marketing? If so, then it may be difficult to generate a positive ROI with such limited inventory. Instead, it may make sense to begin with a property management campaign to acquire new homeowners.  Does your location receive enough traffic? PPC succeeds when people are searching for your specific product. If not enough people are searching, it becomes tough to get your ads in front of the right potential customers. But for most vacation destinations, this isn’t a problem.  Are you investing in other marketing strategies? PPC works best when paired with other digital marketing strategies. You will need 76

VRM Intel Magazine | Spring 2017

a solid SEO plan as well as an optimized website that’s set up for success.  Are you willing to spend money to make money? There’s no way around the fact that PPC requires a budget. If you’re strapped for cash, then the PPC investment may be too big of a pill to swallow.  Do you trust your PPC manager? All of the aforementioned becomes moot if the person managing the PPC account isn’t an expert. PPC is a competitive game, and if the person managing the account isn’t adept at the intricacies involved, it becomes easy to waste a lot of money—and fast.

Keys to Success Still interested? Want to know exactly what it takes to build a successful PPC campaign? When it comes down to it, there are three distinct phases of creating and maintaining a well-run PPC account: the build-out, ongoing management and optimizations, and reporting.

The build-out of the account is the first step when starting/reworking a PPC account. The process starts with using any existing data and keyword research to create a list of keywords that you think will put your ads in front of the right eyes. From there, it all comes down to one word: organization. You want to organize your keywords into appropriate ad groups and campaigns so you know exactly where to find each keyword. A best practice is to organize campaigns by locations people may search for and organize ad groups within those campaigns by key features of the properties in question. For example, if someone were to google “Mission Beach San Diego beachfront home rentals,” I’d know the ad is coming from the “Mission Beach” campaign in the “Beachfront Homes” ad group. There are many reasons proper organization is important to the initial build. For one, it allows you to tailor your ad copy specifically to what individual users are searching for. You can customize location (because you know exactly what location they are searching for), and you also can customize specific wording in the ad and what landing pages users are sent to based on the more specific details included in their searches. In addition, proper organization will make optimization of the account much easier moving forward. You will know exactly how “beachfront” searches perform in comparison to “ocean view,” and it will be easy to allocate budget based on that information. Other important parts of the initial building phase include making sure your conversions are being tracked properly, that you’re utilizing as many ad extensions as possible, that your remarketing lists and remarketing campaigns are set up correctly, and that your ads look professional and, therefore, will result in clicks.

Once the initial build is approved and running, the next step is the ongoing management and optimization of the account. The goal is to have the account running like a fine-tuned, well-oiled machine. With all the pieces in their correct places and conversion tracking working correctly, accurate data will begin to funnel in immediately. After you’ve compiled enough data you can begin to act based on those results. You can adjust bids so that you’re spending more for top-performing keywords and less on the ones that are lagging; you can add negative keywords to the account to ensure that you’re eliminating as much wasted spend as possible; you can adjust ad copy so that you’re focusing on the messaging that resonates most with searchers; you can make time-of-day and day-of-week bid adjustments so that you’re bidding most when users are most likely to book and bidding less during down times; and you can adjust bids

on devices, ensuring that mobile performance is being maximized as opposed to being grouped with desktop. There are unlimited ways to optimize an account, which is why ongoing management is so important for success.

The last step in a creating successful PPC campaign is accurate, reliable reporting. By reporting on your results on a weekly or bi-weekly basis, you can better understand how the account is performing and spot any trends. It also makes it easier to pinpoint any issues with the account. By laying out the data in a consistent, easy-to-understand way, you can see if the account is headed in the right direction. The following are the best ways to set up campaign reporting:  Dynamic Call Tracking: The phone number will pivot based on the origin of the user. This is critical for tracking inbound calls. Simply run a report and pair the phone numbers with guest reservation folios.  CallRail.com  Calltrackingmetrics.com  NAVIS  Google Analytics Ecommerce: Echoing values into Google Analytics is critical to determine true ROI via online booking. It’s best to organize values by room rent/taxes/fees—all by order IDs. Then you can take total room rent minus management fee percentage and PPC expenses for ROI.  Generic Goals: A few things you might consider creating include total reservations, property inquiries, “Contact Us” page form fills, and “Property Management” page form fills (assuming you want more inventory).

Conclusion The choice of whether to enter the PPC world is yours. For some, it’s a huge boon to their business, helping to sell out during busy periods and increase bookings during slower periods. Some of our biggest property managers spend upward of $500,000 on PPC ads yearly, bringing in thousands of bookings and millions more in revenue. Others spend as little as $1,000 per month, yet they still receive a boost in bookings and dozens of monthly property management leads. As long as you keep your expectations in check and the account is properly managed, PPC can be one of the best ways to generate additional bookings and improve your company’s bottom line. Feel free to contact me anytime at Bizcor with any questions. I’m here to help!

Joshua Guerra has been actively involved in Internet marketing since 2005 and the vacation rental management industry since 2009. Joshua’s knowledge and passion for Internet marketing has led his business, BIZCOR.com, to become an industry leader predominantly focused on helping vacation rental management companies.

VRM Intel Magazine | Spring 2017

Capture , Connect, and Convert with Digital and Social Advertising W

e often ask our clients, “What would you like to achieve most during your primary booking season?” You may be focused on creating brand awareness, generating new leads, increasing direct online reservations, filling availability for specific properties or travel dates, or connecting with past guests. Likely, you have quite a few of these goals in mind for the next few months. With that said, have you decided to stay consistent with past strategies, or are you looking for an innovative approach? For example, are you interested in new channels and creating a plan specific to your unique vacation rental brand? If you’re ready to dive in, keep in mind that a direct reservation on your website is the most cost-effective, revenue-generating channel. While we’re frequently reminded of this when looking at the expense of other channels, it’s easy to get sidetracked and lose focus. With clever digital and social advertising, you have an incredible opportunity to increase direct traffic and exposure.

4 Pillars of Digital and Social Advertising When creating or refining your strategy, start by considering the four pillars of all advertising campaigns: 78

VRM Intel Magazine | Spring 2017

B Goals—What would you most like to achieve? C Audience—Who is your target market, and when and where will you find them online? D Tracking—How do you plan to measure and track success? E Budget and resources—How much time and money do you have to spend?

Types of Digital Advertising Once you have identified targets for the four pillars, you will be in an excellent position to choose the types of campaigns that work best for you and your audience.

Text Ads A text ad is so much more than just a headline and some copy. It’s an opportunity for you to target potential customers and guests exactly when they are searching for a vacation in your area. This is also your chance to convey your value proposition and the unique aspects of your business. Do you know all the elements of text ads, and are you utilizing them to their full potential? For example, do

you have enabled site links, callout extensions, review extensions, or call extensions for mobile?

Display Ads Display ads are eye-catching, rectangular ads in different sizes that can be static, animated, or in video format. The Oldie but Goodie (Static Banners) vs. the New Kids on the Block (Rich Media Formats)

 Static banners are the tried-and-true ads you have likely used in the past. They are simple banners that typically include text with a visual, such as a logo, graphic, or photo. They are helpful if you want to create brand awareness or mirror the landing page experience for the end user. They also require fewer resources to create than rich media banner ads.  Rich media formats are more interactive ads that include animation or video; they are often more engaging for the user. Rich media ads are an excellent way to excite users, elicit an action, and connect with your target audience. And What about Those Strange Native Ads?

 Native ads are generated by Google, and you have very limited control over their design. You can still choose the copy and the images. Advertisers often refer to them as “very ugly,” but the “ugly duckling” is often highly effective!

Retargeting Ads It’s time to sneak up on past site visitors, follow them around while they surf the Internet, and remind them to engage with your brand. Retargeting ads are very successful and can be low cost. Types of Retargeting Ads

It’s again a battle between the “new and fancy” dynamic display retargeting and the “so 2008” retargeting with banner ads.  Dynamic display retargeting requires a product/property feed from your website. Google generates these ads based on the images and content the visitor was last viewing on your site. These ads may be perceived as ugly or outdated, but if your property feed is working for you and you have plenty of availability, they can be very effective.

Types of Social Advertising  Facebook advertising—Facebook is the king of social advertising. It has the largest audience, the broadest range of users, the most powerful targeting capabilities, and the best conversion rates. Facebook is the tool to use if you want to drive conversions, reservations, brand awareness, and email list growth. Facebook advertising is very affordable, with costs varying depending on your objective, such as clicks, impressions, or reach.

 Instagram advertising—Instagram leverages the same powerful targeting capabilities as Facebook, but its advertising is geared more toward building brand awareness and increasing exposure. And it has a slightly younger audience. Instagram advertising pricing is comparable to Facebook’s and depends on the amount of engagement with your ads.  Pinterest advertising—Pinterest is a search engine in its own right, so it is particularly well suited to drive brand awareness and help users with their travel planning. The audience on Pinterest is primarily female, but the age range is broad. Pinterest is an ideal tool for brands that want to drive new users to their sites. Pinterest advertising is relatively affordable for the number of impressions it offers.

 LinkedIn advertising—LinkedIn’s users, ad formats, and targeting capabilities are best suited for brands that have a B2B side to their business. LinkedIn advertising tends to have a higher costper-click, but you could argue that the value of each click is greater than that of other channels.

 Twitter advertising—Twitter is a platform best suited for driving brand awareness. With the real-time nature of Twitter, it is particularly useful for brands that drive business from major events, such as music festivals, sporting events, and others. It is also optimum for real-time news or content promotion. We understand that implementing a robust digital and social advertising strategy may seem daunting, which is why our team is here to help. Across the country, Bluetent’s digital marketing team helps professional vacation rental managers develop the most successful plan to drive growth. If you would like help with your strategy, please contact us at sales@bluetent.com or 970.704.3240.

By Maria Nedelcheva, digital advertising manager, and Regan Hann, social media manager

 Banner ad retargeting allows you to choose a static or rich media format based on your website, audience, and needs, or you may test different executions based on user interactions on your site.

Social Advertising One of every five page views in the United States happens on Facebook, and one of every five minutes on the mobile web is spent on Instagram. What’s more, those users aren’t just millennials sharing selfies anymore. According to a recent study conducted by the Pew Research Center, 72 percent of Americans between the ages of 50 and 64, and 62 percent of Americans ages 65+, use Facebook regularly. For many vacation rental managers, that is the clear majority of the target market. Because of this enormous reach and the wealth of user data that social platforms collect, social media are incredibly powerful advertising platforms! There are many unique options suited to achieving a broad range of business goals.

About Bluetent

Bluetent is a digital agency that provides strategic consulting, brand design, web development, mobile solutions, email, social media, and search services to the vacation rental, resort, and travel industries. Rezfusion, by Bluetent, is a powerful e-commerce platform that processes over $170 million annually in direct online reservations for more than 130 vacation rental and hospitality sites. Bluetent is dedicated to creating sustainable growth and delivering measurable results to clients through innovation and quality in the digital space. VRM Intel Magazine | Spring 2017

Changing your property management software? The consequences of a bad decision can last ten years. Let us help you make the right one.

Software Selection  Buy/Sell Transactions  Marketing Technology  Management Consulting 

VrmConsultants.com 80

VRM Intel Magazine | Spring 2017

$2.38B Raised 2016â&#x20AC;&#x201C;2017

Start-ups in the Vacation Rental Sector Raised over $5.86 Billion in Disclosed Funding since 2011

tart-ups in the vacation rental sector have raised over $5.86 billion in disclosed angel and institutional funding since 2011. Of that investment, 94.7 percent was used to build up online marketplaces including Airbnb, which has raised $4.4 billion since 2011 and is currently valued at $30 billion. With the size and opportunity of the market and the fragmentation of the industry, angel investors and venture capitalists (VCs) are finding attractive opportunities with innovative companies in the vacation rental sector. In the United States alone, the percentage of people over 18 who have stayed in a vacation rental has quadrupled from 8 percent to 32 percent since 2012. The United States is now estimated to have approximately 1.4 million vacation rental properties, whereas Europe has 4.3 million.

By Amy Hinote

Slowing Growth A Phocuswright study conducted in 2016, titled "A Market Transformed: Private Accommodation in the U.S.," found that the vacation rental market generated $29 billion in revenue in 2015, up from $23 billion in 2012. However, 9 percent (approximately $2.61 billion) of the $29 billion was revenue generated from owner-occupied rentals, a segment of the private accommodations market that was not represented in 2012, leaving only a 14.7 percent growth in revenue ($3.4 billion) from nonowner occupied rentals since 2012. Outside investment in the sector is also seeing modest declines. In 2016, the vacation rental sector raised just under $1.85 billion in funding, and, at the time of publication, had raised $536.5 million was raised in 2017 year to date. VRM Intel Magazine | Spring 2017

Capital Injected by Company Type (Excluding Airbnb) 2011–2017

$2,500 $2,000 $1,500 $1,000 $500 $-

2011

2012

2013

2014

2015

2016

2017 (YTD)

Funding excluding Airbnb: The dollars begin to look very different when Airbnb is excluded as an outlier. Without Airbnb’s sizeable funding, the industry has only raised $1.464 billion since 2011. As a result, the remainder of the data presented in this article will exclude Airbnb.

Millions

Capital Raised in the Vacation Rental Industry by Year 2011-2017 (Excluding Airbnb) $800 $700 $600

$1,152,650,000

79%

$209,960,000

55%

Service

$243,755,000

17%

$136,170,000

36%

Technology Tools

$67,911,460

$35,100,000

However, the industry is seeing a higher proportion of investment into services and technology tools in 2016 and 2017 than in the previous five years. The shift is a result of consolidation in distribution and the recognition of opportunities to service the growing marketplace.

Capital Raised By Company Type, 2011-2017 (Excluding Airbnb) 700 600 500 400 300 200

$500

100

$400

$300 $200

2011

2012

2013

Online Marketplace

$100 $-

2016–2017

Online Marketplace

Millions

Capital Raised in the Vacation Rental Industry by Year 2011-2017

2011

2012

2013

2014

2015

2016

9 Rebranded or Pivoted Model

Suspended Operations

Service

2015

2016

2017

Technology Tools

2017 (YTD)

The substantial growth in the vacation rental sector has not translated into sustainable business models for all these funding recipients. As readers have seen on the VRM Intel website over the last few months, ten companies that received funding prior to 2017 shut down operations, including LeisureLink, SmartHost, Stayzilla, Tansler, and TripRental. In addition, nine companies pivoted by rebranding or shifting their business models. Number of Companies

2014

Capital Raised by Vacation Rental Management Companies, 2016–2017 The vacation rental industry is beginning to see a notable increase in funding for property management companies. Although Wyndham remains the largest vacation rental management provider, several companies are raising funds to challenge its dominance and innovate processes to scale management services across destinations.

Total Funding

Capital Received

$94,182,500 $78,177,500

TurnKey Vacation Rentals

$41,000,000.00

Vacasa

$40,000,000.00

Vacation Rental Pros

$27,000,000.00

Stay Alfred

$15,000,000.00

Hostmaker

$7,230,000.00

Airsorted

$3,140,000.00

Funding by Type of Business

International Funding

Excluding Airbnb, investment in online marketplaces or “distribution sites” represented 55 percent of the funding between 2016 and 2017. One reason for the high levels of capital needed in this category is the expense associated with building an online marketplace that can compete with Airbnb, HomeAway, Booking.com, and TripAdvisor. In addition, differentiation is becoming increasingly challenging and expensive. With new and varied types of inventory being introduced to consumers—from someone’s futon to an Eastern European castle—aggregated marketplaces are struggling with the decision to represent all property types or to focus on the most lucrative pieces of the short-term rental accommodations pie.

In 2017, French-based home exchange platform, GuestToGuest, surprised the industry with its raise of $35 million. In addition, in Spain, Hundredrooms, a new metasearch marketplace, emerged with a focus on Spanish-speaking countries.

VRM Intel Magazine | Spring 2017

Excluding Airbnb, angel investors and venture capital firms are injecting capital into start-ups in multiple countries, with China and the United States leading the way—emerging companies in India are getting attention as well. Airbnb competitors, Xiaozhu and Tujia, are cutting into Airbnb’s market share with cosmopolitan Chinese, and they are taking big steps to educate other skeptical Chinese about using rental accommodation.

International Funding 2011–2017

2016–2017

China

$728,120,000

49.72%

$14,520,000

3.81%

USA

$337,665,000

23.06%

$191,200,000

50.15%

$169,455,000

11.57%

$14,320,000

3.76%

India

$100,000,000

6.83%

$75,500,000

19.80%

France

$45,981,460

3.14%

$44,260,000

11.61%

Germany

$35,390,000

2.42%

$25,390,000

6.66%

Canada

$23,740,000

1.62%

0.00%

Spain

$14,310,000

0.98%

$10,460,000

2.74%

Singapore

$4,880,000

0.33%

$2,880,000

0.76%

Netherlands

$2,700,000

0.18%

$2,700,000

0.71%

Israel

$1,500,000

0.10%

0.00%

Sweden

$575,000

0.04%

0.00%

Raising Funds Many advisors use an analogy about dating and getting married when describing the process of raising capital. In his Entrepreneur article, “8 Things You Need to Know About Raising Venture Capital,” Alex Iskold, managing director of Techstars in New York, said the following:

VCs want to get to know the founders, watch them execute, and make progress before committing to invest. The check is not going to come after the first meeting (unless you are a serial entrepreneur with lots of success and the VC is worried about losing the deal). Successful founders take advantage of the dating game by making it a two-way street. They aren’t just looking for money; they are looking for partners in their journeys to build businesses. They recognize that not all firms and not all partners are the same, and use the “dating” game to get to know the firm and the partner to assess if there is a mutual match.

In her INC. article, “Insider's Guide to Silicon Valley's Investors,” Illuminate Ventures founder Cindy Padnos stated the following: With a growing number of options to choose from, selecting the best type of investor is an increasingly complex and strategic decision for entrepreneurs. An uninformed choice can have unexpected outcomes. Unlike most flirtations, it would be wise to consider the long-term strategic fit early in the courtship. The type of investor you “marry” will likely affect your exit strategies and outcome, and should be chosen wisely. For the full list of companies who raised capital along with the VCs who led the funding, go to VRMIntel.com/2017-vacation-rental-funding.

VRM Intel Magazine | Spring 2017

Challenging

Market Assumptions OTAs are forming a consensus on how vacation rental managers should operate, but what if they are wrong?

he vacation rental industry is finding itself at yet another turning point in its history. Online distribution channels have consolidated, with four major players taking the lead: Airbnb, Priceline-owned Booking.com, Expedia-owned HomeAway (and VRBO.com), and TripAdvisor. Phocuswright’s 2016 study “A Market Transformed: Private Accommodation in the U.S.” reported that “while property management websites held the advantage as recently as 2013 [just under 60 percent], online intermediaries will capture 63 percent of the online market in 2016, rising to 70 percent by 2018.” These consolidated OTAs are testing and adapting policies that seek to transform the way vacation rental managers (VRMs) market and book rental properties, and they are developing a consensus on how vacation rentals will be booked in the months and years to come. Their decisions are based on market assumptions they have developed from their vast experience in the hotel industry and their need to integrate rental and hotel inventory into a comprehensive lodging marketplace. Consequently, VRMs are being told that OTAs are quickly becoming travelers’ chosen channel for booking vacation rentals and that VRMs need to adapt to the policies that these mammoth marketplaces dictate. But what if they are wrong?

At this crucial stage, it is worth challenging the assumptions that 84

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are the foundations of OTA policies. Even if these assumptions prove to be true, suppliers of the core vacation rental sector have an obligation to ask this important question: “What if these assumptions are not accurate?”

Foundational Assumptions Supporting an OTA-Driven Vacation Rental Marketplace

Assumption #1: Travelers search for and book vacation rentals in the same way they search for and book hotels. Large OTAs preach to rental home suppliers that the vacation rental industry needs to shift its booking model to more closely match that of hotels. These distribution channels have implemented changes to policies, sorting algorithms, and booking flow to mirror those of the hotel industry. However, what if they are wrong?

For example, what if the booking paths that vacation rental travelers take more closely resemble how they book long-term rentals? Or how they buy real estate? Or even how they decide on summer camps? Is there another booking path that works better for vacation rental travelers? OTAs perform an astonishing number of tests on their websites to optimize the booking path. However, they are limited by the constraints inherent in their websites and integrated platforms—constraints created on the premise that the vacation-rental-booking flow should align with that of hotels. As a result, the foundation of the OTAS’ testing is based on assumptions that have not been adequately challenged.

One practice not often seen utilized in vacation rentals is the use of focus groups. Focus groups are diverse groups of people put together in a room to participate in a guided discussion to gain understanding about products or processes or to provide ongoing feedback.

What if vacation rental and website development companies joined together to set up and observe focus groups as they navigated their way through the 1.4 million vacation rentals in the United States alone to try to book their perfect annual family vacations?

Assumption #2: Less restrictive cancellation policies lead to an increase in bookings. OTAs are in the process of evaluating cancellation policies put in place by owners and managers. The OTAs are also looking for ways to encourage owners and managers to relax cancellation policies to more closely align with hotel policies. But what if loosening cancellation policies does not generate more revenue?

Each vacation rental market has its own seasonal booking window. For many markets, bookings for the most desirable homes are made a year in advance. In an interview with U.S. News in the article “Why You Should Start Your Summer Vacation Rental Search Now,” Jon Gray, then chief revenue officer for HomeAway, said, “The booking window for vacation rentals is typically ninety days.” Copying the hotel industry’s twenty-four-hour booking policy would be a mistake. For example, in vacation rental markets where bookings are made an average of ninety days in advance, rebooking a vacant period caused by a cancellation made a week before the guest’s check-in day is nearly impossible without offering potential guests heavy discounts and paying the high marketing cost of advertising that discount. “The supply and demand of economics of hotels and vacation rentals are quite different,” said TripAdvisor Vacation Rentals Spokesperson Laurel Greatrix in the same U.S. News article.

Is getting a booking from a channel that promotes and rewards twenty-four-hour cancellation policies for dates that cannot be filled if the cancellation occurs a good thing for a VRM? As OTAs begin to shift their stance¬ toward vacation rental cancellation policies, VRMs may find it advantageous to push back.

Assumption #3: Travelers prefer to book on OTAs and will pay 6 to 15 percent more to do so. Airbnb, HomeAway, and TripAdvisor have implemented service fees for travelers looking to book on their websites. As a result, repeat vacationers are now seeing a 6 to 15 percent increase in the cost of their vacation rentals on these channels. Phocuswright and Expedia recently published a whitepaper entitled “Where Consumers Shop for Online Travel,” which features ten reasons that travelers choose to book through OTAs. The list included the following reasons: travelers trust the OTA brands, OTAs have the best prices, and websites have the most selections. What if vacation rental travelers would rather book directly with the manager or owner?

Do travelers want to pay 6 to 15 percent more to book through OTAs? Perhaps not. Consumers are smart. In the case of vacation rentals, OTAs often do not offer travelers the best prices, and in most traditional vacation rental markets (e.g., beach, mountain, lake, and attraction-based destinations), OTAs do not have the best selections. In traditional markets, the best inventory is not even

listed on OTAs. Premium properties are booked directly with such frequency that VRMs do not list them on the channels.

In Skift’s article “Why Wyndham Is Going After Urban Rentals,” Gail Mandel, CEO of Wyndham Distribution Network, the world’s largest vacation rental management company, said, “We’ve been consistently able to generate about 85 percent of our revenue through our proprietary distribution channels . . . While the remaining 15 percent of revenue comes from third-party platforms.” Skift also posted an interview with Eric Breon, CEO of Vacasa, an emerging company that has quickly become the second-largest vacation rental provider in the United States and one of HomeAway’s largest suppliers of inventory. Breon said, “About half of our bookings come through our own website, and about half come through third-party channels.”

OTAs’ success in vacation rentals, unlike hotels, is dependent on their ability to continually generate new demand because vacationers quickly find that they receive more value, lower prices and higher quality choices if they book directly with property managers or owners.

What if the decision of whether OTAs succeed in becoming the primary source of vacation rental bookings were up to VRMs? The hotel industry gave up control to OTAs post-9/11 as travel came to an unprecedented halt. Hotels rely on a 60 percent occupancy rate to function, and the discounted bookings OTAs captured were a necessity, not an option. However, travel rebounded, and sixteen years later, hotels are still frantically looking for ways to lessen their dependence on OTA channels and drive direct bookings back to their properties.

In contrast, traditional vacation rental markets are not experiencing the same dire circumstances. Vacation rental travel is strong, and VRMs are not desperate to take discounted bookings in order to fill their properties. For example, Wyndham and Vacasa, vacation rental companies are utilizing distribution channels to the fullest, reported that 50 to 85 percent of bookings are still done directly through their own websites and call centers. And dozens of market-leading vacation rental management companies have reported this year that they have removed all or most of their listings from OTAs. "At this point you have to determine whether you should continue to invest in building the [OTA] brand, or use those same funds to begin investing further in your own brand,” said Jason Sprenkle, co-owner at 360 Blue in the Florida panhandle. “That question will depend on the strength of your current brand, your market's dependence on VRBO, and your relative market share." The success of these OTAs is dependent on supply. Without aggregated vacation rental supply, these OTAs cannot dominate the industry.

Growth in the sector is slowing. As we read in “Over $5 Billion Raised” on page 79, the short-term rental industry has experienced less than 15 percent growth in revenue since 2012, excluding newly added owner-occupied rentals. According to the National Association of Realtors, second home sales are down 21.6 percent from 2015 (920,000) and are at their lowest since 2013 (717,000). With maturing growth rates, the modest incremental demand these OTAs are driving to VRMs may not be worth giving up the control that the hotel industry fights daily to reclaim. VRM Intel Magazine | Spring 2017

Knocking It Out of the Park

Organic Growth in Your Vacation Rental Business

Barefoot’s Mike Todd and Claiborne Yarbrough Discuss Baseball It’s baseball season again, sports fans, and for a true fan (like Mike Todd)—or even just an average enthusiast of our national pastime (like Claiborne Yarbrough)—we thought it would be fun to discuss how you can knock it out of the park with organic growth in your vacation rental. So—let’s…play…ball!

First Base One of the most important aspects of baseball is getting on base.

Mike Todd (MT): Traditionally in baseball, it’s easy to think of grand or big events. Think of Babe Ruth pointing to the outfield and calling his home run or Reggie Jackson hitting three home runs on three pitches in the 1977 World Series. Even more recently, we can look to the home run race between Mark McGuire and Sammy Sosa in 1998. These monumental feats by individuals are what define baseball.

Claiborne Yarbrough (CY): Exactly, like when Robert Redford hit the ball into the lights in The Natural. Or when Kevin Costner’s young father showed up for a catch in Field of Dreams (sob and sigh). MT: Well, yes, for a movie, those were both pretty classic. I think our point here is that these are brief instances that built up to a climactic moment. What is missed in this are all the details and strategy that go into each game. Each big hit or big play lasts only a 86

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few seconds, but the game itself can last for hours. What makes up the rest of the time? Each team is contemplating the next pitch and the next matchup. Pitchers are being monitored for pitch count and other stats. Hitters are trying to work the pitcher to throw as many pitches as possible and not going for a home run at each at-bat. It’s just as important to take walks, advance runners, or hit singles. Getting on base is the name of the game. CY: That relates to a strong business axiom—an intentional and strategic improvement in the activities and social processes of a company, day in and day out, will always drive profit and revenue growth.

MT: Right. A smart business understands that increasing revenue through getting on base builds a growth mindset throughout the business. That way, when the opportunity for a home run or a big moment does come along, you will be ready to go for it. CY: Which is why it’s critical to focus on building incremental revenue. At your vacation rental, are you offering early check-in or late check-out for an additional fee? Can you offer a mid-week cleaning? Going further, you could start to offer activities or other experiences that allow your guests to have a great vacation rental experience. Offer travel insurance to your guests so that they can have peace of mind if their vacation plans are interrupted because of local conditions or health concerns. There are so many ways to increase revenue, especially in markets where the pricing of vacation rentals may be squeezed by competitive forces.

MT: There are lots of ideas about how to build foundational and incremental revenue. Therefore, it’s important to have a technological platform that helps you build on ideas without adding staffing demands.

Second Base MT: In baseball, most of us have probably heard of “small ball.” Think about Billy Beane, executive vice president of the Oakland A’s. The A’s were a smaller-market team that didn’t have the revenue to go after high-priced free agents like the Yankees or Red Sox could. Therefore, they had to think of another way to be competitive. Basically, they began looking at baseball in a much more scientific and analytical way—they emphasized getting runners on base and getting pitchers who didn’t put runners on base. There are many simple statistics used to measure how well a player does in any given year. The traditional statistics for hitters include batting average, home runs, and runs batted in (RBI). For pitchers, the statistics include wins, strikeouts, and earned run average (ERA). Today, there are many statistics that look not only at the total game but also at situational aspects. For instance, a manager has a pretty good idea of how well a certain player can put the ball in play and advance a runner from second base to third base at a certain point in the game. Likewise, a manager may be able to determine how well a certain pitcher does in getting a hitter to hit a ground ball.

CY: Today, vacation rental management (VRM) also has statistics. Back in the day, there was a simple set of tasks required to manage and book homes. To rent to guests, a company would print a brochure, mail it out, take telephone calls, and receive checks.

MT: That’s right. As in baseball, the small-ball strategies of vacation rental or property management have become far more complex. VRMs have small teams of people that focus on social media, Internet marketing, pricing analytics, marketing portal placement, and operational analytics. CY: Being able to leverage a technology ecosystem is key to being able to manage all the complexity of this business. What becomes so critical here is API technology—how many touch points you can get access to that allow you to integrate your various partnerships such as guest information, home automation services, and industry-wide data into one strategic system.

MT: Like the small ball concept to create strategies to get on base, VRMs need to diversify their strategies to build revenue and grow in their market.

Third Base MT: It’s a good thing when runners get to third base. The modern baseball mindset looks at the situation, quickly analyzes it, and employs the highest percentage potential outcome to score a runner. Again, a home run is great, but it’s not necessary to score a runner from third base. A ground ball to the right side of the field will most likely score that runner. Each opportunity is different, mainly because each player is different. CY: When I think of baseball players, outside of the movies, I always picture someone in an older uniform, cigar clamped in his mouth, stomach hanging over his belt, and not in the best of shape.

MT: This couldn’t be further from where we are today. Players are true athletes who tend to specialize early in childhood all the way to the professional ranks. These finely tuned athletes uses the latest techniques to train and push their skills. This includes the most advanced nutritional practices, strength and conditioning regimens, and mental training. CY: This is yet another similarity with the vacation rental industry. In the past, most employees found their way into vacation rental management because they happened to live in a resort area.

Now, however, they are extraordinary professionals who train and specialize with the help of professional organizations that are dedicated to education, networking, and business development.

MT: Yes, like finely tuned athletes, it is your professional employees that are poised to help you keep advancing your business. There is a large work force out there now that is very tech savvy. Therefore, it is critical that they have the right technology to use daily. How easily can they analyze and adjust rates based on last year’s pace? How efficiently do your different departments communicate with each other? Do owners have access to basic information that will allow your staff to get on with other critical aspects of your business?

Bringing those Runners Home MT: Even as the baseball world keeps developing more and more statistics to analyze each situation in the game, the same basic rule applies as when Abner Doubleday first invented the game: score more runs than the other team and you win.

CY: I get it. Get on base, advance the runners, and bring them home with logical high-percentage hitting. The parallels keep coming here. In the vacation rental world, you can be incrementally building each aspect of your business with the help of technology. Build guest loyalty: earn the trust of the guest by becoming the local expert and providing excellent service. A system that allows you to follow up with and keep track of each guest is invaluable in this process. Build owner acquisition: Does your technology allow you to follow up with guests who might be potential home owners? Can your owners access information that will allow you and your staff to focus on other tasks rather than taking the time to satisfy the owners? Build ancillary revenue: Does your technology allow you to create a complete vacation experience for your guest by upselling services and activities? MT: Also included in the incremental approach for your business is having true partnerships with other technologies. Just like your business, you do not want to spread yourself too thin in certain situations. Baseball has specialists who do certain jobs in certain situations. Think about the closer who comes in during the ninth inning to stop the other team from getting more runs. Your business also should look at the technology partnerships you have and ask if that technology is trying to take on too many roles and spreading itself too thin. Sometimes I think that providers who offer everything don’t really have the specialized focus needed to help you meet your incremental goals.

CY: I really get the connection of how baseball, like the vacation rental industry, has redefined itself. In baseball, analysis of the data can offer the best opportunities for the team at any given moment. The vacation rental industry is growing, and companies need to have the right technology that will provide data that can be analyzed and used to offer the best incremental opportunities to grow their business. CY: Hey Mike? MT: Yes?

CY: Who’s on first? Claiborne Yarbrough and Mike Todd work in sales for Barefoot Technologies, a vacation rental and property management software firm. They both enjoy the opportunity to work with prospects and clients to offer a highly personalized approach to leveraging technology to support vacation rental, property, and resort managers with the opportunity to really knock it out of the park. For more information about Barefoot, you can e-mail claiborne@barefoot.com or mike.todd@barefoot.com or call 877-799-1110. VRM Intel Magazine | Spring 2017

Great Expectations

Require Efficient Operation Competition and Increased Consumer Expectations Dictate Operational Changes

acation rental management is a complicated business. Managers need to excel across a wide range of skills and initiatives: hospitality provider, social marketer, asset manager, trust accountant, maintenance department manager, and more. While one foot walks a fine line as both a partner and competitor to OTAs to acquire new guests, the other builds the company’s brand presence online. At the same time, one hand prepares individual homes for a turn day and delivers a guest experience that competes with hotels while the other manages owner relationships. Managers play a game of Twister that stretches and contorts their workflow. In the past, managers could “get by” with doing business the way they always did. Times have changed. Now, with hypercompetition in the vacation rental market and nearly impossible consumer expectations, success or failure depends on using the right technology to drive efficient operations in each part of the business.

Successful managers have always prioritized efficiency and technology by using a host of software solutions to run their businesses. Friendly competition with long-time managers in local markets still exists, but today, managers must also compete with OTAs, Airbnb, and hotels, all of which are pushing further into the vacation rental market. At the same time, tech-forward companies with national footprints (e.g., TurnKey, Evolve, Vacasa, and Vacation 88

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Rental Pros) are focused on efficiently delivering exceptional service at lower costs. Further, these companies have the capital to fund their technology and growth. To keep pace with innovations and investments in the vacation rental market and to remain competitive, managers need to modernize their property care operations and programs.

This need for efficient and purposeful operations is multiplied by the phenomenon of ever-increasing consumer expectations, which is often referred to as the “Amazon Effect.” The more consumers interact with on-demand apps, “smart” devices, and seemingly impossible logistics, such as two-hour shipping, the more these consumers come to expect these same standards of service from all providers. Consumers have become so spoiled that according to a recent IBM survey, 76 percent of consumers “expect businesses to understand their individual needs.” These consumers are the guests many rental managers are trying to acquire, satisfy, and bring back. They are also the property owners who are becoming harder to impress.

For guests, this means delivering a property that not only meets the manager’s standards for cleanliness and property appearance but is also exactly as consumers expect from the high-resolution photos and floorplans they’ve seen online. As a rental manager noted

in a recent conversation, “People spend a lot of time researching a property; they envision themselves and their family in these homes before they book. If they arrive and it doesn’t look exactly like they expected, they’re upset.” Unfortunately, consumer patience and tolerance for mistakes is near zero, so rental managers cannot afford to make mistakes. Every unit needs to be accurately prepared and on time, without exception. The cost of acquiring a traveler and the consequences of negative reviews and refunds are too high. Only by meeting consumer expectations can rental managers drive repeat bookings, extract the full value of their marketing dollars, and deliver rental revenue to owners.

Managers should utilize new technologies to provide their field staff with the tools they need to perform. The operational workflow for cleaners, inspectors, and maintenance personnel must be optimized, just as managers optimize their search engine marketing campaigns and dynamic pricing. As staff shift to cover a particularly busy turnover, everyone must easily access and reference standard property appearance photos to deliver consistently, reliably clean, and guest-ready properties.

Back-office staff deserve modern tools and software to complete their jobs and represent the brand and hospitality standards of the company. Breezeway is helping rental managers meet these challenges with intelligent software that coordinates every step of a property turn day, including cleaning, property inspection, and follow-up tasks. No longer will managers be forced to use typical offline processes, paper checklists, calls, and separate calendars for internal teams and service partners.

Increased competition has forced managers to concentrate on the winning of new guests, channel management, and the development of sophisticated marketing strategies. Most managers have done little to improve the services that they provide to their property owners. As more options become available for owners to market their rentals themselves, and commissions are squeezed by new managers in every market, it’s time to refocus on the owner experience and deliver elevated service. Monthly owner statements are no longer sufficient to demonstrate how well a manager is taking care of the property. These income statements, which demonstrate limited context and lack visuals, do not tell the whole story. In fact, they often create more questions and confusion. Managers instead need to showcase the amount of time and energy they spend caring for and protecting the owner’s most valuable asset while demonstrating their knowledge of the property. At Breezeway, empowering managers to demonstrate how well they care for their owners’ properties is our core mission. Our mobile app enables managers to collect and organize information about the property, including the make and model of the dishwasher, the location of the hot water heater, the number of windows, and the length of the driveway. Robust, organized, and actionable data not only create better records but allow rental managers to be

more effective at their job and give homeowners complete insight into their homes.

Property management services have traditionally been reactionary—something breaks and the manager fixes it. This happens for several reasons. First, it is difficult for managers to stay in front of preventative maintenance. Second, many owners question the need for maintenance and repairs, not only because they want to avoid expenses but because they don’t understand why the repair is needed. By improving the way rental managers communicate their work to owners and helping owners understand the full picture of their property, the conversation changes, trust is established, and their dynamic improves dramatically. This also opens the door to offering ancillary services to owners and helping them feel confident about the management services for which they are paying. Before I cofounded and launched FlipKey in 2007, managers struggled to differentiate their brands, particularly on third-party distribution websites. Rental managers had limited tools beyond the testimonials on their websites to showcase their professionalism and the great experiences of their guests. Ahead of the channel distribution trend, FlipKey offered the first verified guest review platform for vacation rentals and helped managers collect and leverage guest reviews to increase consumer confidence and close more bookings. Today, with consumer awareness of the vacation rental industry three times what it was ten years ago, there is tremendous opportunity.

Companies that leverage technology to drive efficiency, improve operations, and elevate consumer experiences will capitalize on the growth of the vacation rental industry and dictate new standards of service. Forward-thinking, optimized workflow and intelligent property care programs will allow smart rental managers to deliver more value to their customers. This will make the difference between managers who meet the high expectations of their customers, both guests and owners, and outperform the competition and those who go out of business.

About Jeremiah Gall Jeremiah Gall is a serial entrepreneur and vacation rental market veteran with a history of delivering great products to rental managers over the past twelve years.

In 2006, Jeremy cofounded FlipKey.com and developed marketing tools and the first verified guest review platform for professional rental managers. He continued to manage FlipKey’s global professional services group, working with more than three thousand property manager clients. Before leaving in 2013 and after the acquisition by TripAdvisor, Jeremy grew FlipKey into one of the largest vacation rental businesses in the world. Jeremy is the founder and CEO of Breezeway. Breezeway’s mobile app and solutions give rental managers the tools they need for optimized turn days, efficient operations, and excellent property care programs.

Jeremy has shared in-depth analyses of the vacation rental market at national travel shows and in industry publications and is a regular presenter at VRMA conferences, MIT, and Boston College. He is an avid vacation rental fan and enjoys splitting time between Boston and South Carolina. VRM Intel Magazine | Spring 2017

Housekeeping

Basics

Taylor-Made’s Joe Refosco Addresses Common Questions and Concerns

“C

leanliness is next to Godliness” is not just an old adage to be taken lightly. You get only one chance to make a good first impression. Cleanliness is one of the most important aspects of the property management business, and it can make or break your reputation. Housekeepers are the backbone of our companies, and their efficiency, knowledge, and loyalty to their profession is extremely vital.

is the ability to receive a quick response and ability to reach out to anyone to discuss certain situations.

Hiring Housekeeping Staff

Training

When Taylor-Made Deep Creek Vacations hires housekeepers, we look for people who take pride in their work, show attention to detail, and are dedicated to doing their very best on each assignment. We deal with and oversee many tasks, and knowing we have the best cleaning staff on the lake makes one less worry for us.

Overall, we have a great deal of faith in our housekeeping team and their ability to resolve issues independently. Our seasoned staff members assist new employees by training them to our specifications. Our standard home-appearance training video is required viewing for new hires and also acts as a refresher throughout the year for all staff.

Our housekeeping coordinators spend over 80 percent of their time making sure each home is completely clean and of proper quality. The rest of their time is devoted to preparing schedules, proofing payroll sheets, checking service orders, and updating the laundry department on what is needed for the following day.

Communications and Technology To keep in touch with our housekeepers and vice versa, we have instant status trackers, communication cards, iPads/tablets, and cell phones. Advanced technology has proven to be a real plus.

Communication cards are valuable tools for us because we use them to deal with any issues encountered with inspections or cleanings. We find the cards to be extremely effective when communicating between inspectors and cleaners in the field. Inspectors can inform the cleaners that there are items that need special attention, and housekeepers can inform the inspectors if something is broken, the carpet is stained, or there are similar problems. Staff on the job can call or text if there are any questions or special concerns. Software that enables communication between the field and the office is a huge benefit. It can indicate how long a housekeeper was at a property, how long a housekeeper took between properties, and when a property is ready for occupancy. Inspectors use iPads or tablets to check arrivals and departures, and they can enter service orders while at the property, attaching pictures as documentation, which saves a great deal of time and money and allows management to devote more time to other tasks. The upside of easily communicating with team members in the field 90

VRM Intel Magazine | Spring 2017

The only downside is that field staff may occasionally rely too much on management to resolve issues instead of trusting their own instincts. Oftentimes, they can come up with good solutions on their own. We empower them to use their own judgment to solve problems in appropriate situations.

Early Arrivals Should guests arrive early and before the home is ready, the housekeeper politely informs the guests how much longer it will take and allows them to place cold items in the refrigerator and put luggage by the entrance, and so on. The housekeeper explains that they cannot occupy the home until the cleaning is complete. Most guests happily comply with this rule.

Deliveries and Gifts Should additional deliveries be needed, such as wine for a VIP guest, birthday balloons, or romance packages, the inspector is responsible for these details. The inspectors also set out the start-up kits we leave for our guests, which include dishwasher tabs, laundry detergent, Palmolive, a sponge, and a roll of paper towels. We do have a separate kit for our elite homes.

Troubleshooting On occasion, unexpected problems arise that are not the fault of the housekeepers but infringe on their allotted time in the homes. For instance, we have experienced incorrectly bagged linens being sent to a home for a scheduled cleaning. The housekeeper has either had to come to the office to correct the mistake or the director has had to deliver the proper linens. This situation is both inconvenient and time consuming. When something goes awry and time is of the essence, we will pull available staff from other departments to pitch in.

If a worker calls in sick or is a no-show, we must reschedule the home to another housekeeping team. During peak season, that can create another all-hands-on-deck situation in which anyone from a manager to a company owner will go to the home to make beds and attend to other duties. Fortunately, this doesn’t happen very often; our team members realize how important it is to fulfill their responsibilities.

ings. A friend mentioned doing “housekeeping Olympics games,” such as running with a mop bucket, throwing an old vacuum, and stuffing a large pillow in a small pillow case, before and during the season, which all sounded like fun.

Callbacks

Housekeeping team meetings always include an element of fun. We play games with prizes such as new vacuums and gift cards, which are extensions of our overall company culture that promotes a “work hard, play hard” philosophy. Throughout the year, we host events such as our soup cook-off, summer kickoff party, and photos with Santa. These get-togethers offer chances for all departments to interact with one another and remind housekeepers that they are appreciated and integral to our team.

Our job is all about having realistic expectations for the housekeepers, homeowners, front office staff, and, of course, our guests. We strive to provide the best experience for everyone involved. Our team members are always encouraged to do their best, and we reinforce them with ongoing education. Regular, focused meetings between managers and team members provide opportunities to acknowledge their strengths and identify where they may be able to make improvements.

Callbacks are the biggest challenges for the housekeeping team. In an effort to be fast and efficient, housekeepers may sometimes overlook attention to detail. When a cleaning does not meet our company standards, housekeepers receive a callback and must go to the home to correct anything that is not up to par. Callbacks also can cause tension between the inspectors and cleaners, especially if a callback was not a “true” callback. We are working on having the inspectors make sure a deficiency is not something they personally can do within fifteen minutes and lessening the tension by conducting team-building and dual-department meet-

Prioritizing Housekeeping The backbone of any business must be strong and reliable. Too often, housekeepers are put on the back burner in a company because they are not in the office eight hours a day and sometimes become the forgotten players in the game. At Taylor-Made, we respect our housekeepers and reward them in many ways for excellent work. The title of “Housekeeper of the Week” is awarded to those with outstanding cleans. Nominations come from inspectors who feel particular cleaners went above and beyond with their efforts. This award fosters better relationships between departments.

We consider ourselves very fortunate to have such a great team overall, and we are especially appreciative of our seasoned housekeeping crew.

VACATION

JOIN

RENTAL VRHP

HERE ARE SOME

OF THE BENEFITS YOUR COMPANY RECEIVES AS A VRHP MEMBER

HOUSEKEEPING PROFESSIONALS

è Certifications available for housekeepers, executive housekeeper and inspectors è Best practices for Housekeeping and Maintenance teams è Weekly housekeeping articles for vacation rentals è Access to over 70 archived monthly VRHP newsletters è Access to industry experts who can answer your company-specific housekeeping questions è Member discounts to VRHP seminars and the National VRHP Conference in November 2016 è Networking with other VRM companies who make Housekeeping and Maintenance a

number 1 priority

VRHP.ORG

www.face

VRM Intel Magazine | Spring 2017

CALENDAR OF EVENTS

May May 2-3 FVRMA Xtravaganza Annual Conference Orlando, FL Westgate Lakes Resort & Spa www.fvrma.org

May 5-7 Vacation Rental Success Summit Toronto, Canada BMO Institute for Learning www.vacationrentalsuccesssummit.com

May 8-9 VRMA 2017 Western Seminar Anaheim, California Disneyland Hotel www.vrma.com

May 17-19 2017 OPMA Executive Summit Denver, CO Inverness Hotel and Conference Center www.theopma.org

May 23 HomeAway Breakfast Seminar Kauai, HI Kauai Marriott Resort www.software.homeaway.com

May 23 Mind & Dine Workshop Bradenton Beach, FL www.mindanddine.com 92

VRM Intel Magazine | Spring 2017

May 24

June 8

Mind & Dine Workshop Siesta Key/Anna Maria Island, FL www.mindanddine.com

HomeAway Breakfast Seminar Aspen, CO, Limelight Hotel www.software.homeaway.com

May 25 HomeAway Breakfast Seminar Oahu, HI Moana Surfrider, A Westin Resort & Spa www.software.homeaway.com

May 25 Mind & Dine Workshop Sanibel/Captiva, FL www.mindanddine.com

June June 6 HomeAway Breakfast Seminar Breckenridge, CO Residence Inn Breckenridge www.software.homeaway.com

June 7-8 VRM Intel Live! and VRHP Seminar Troutdale, Oregon Historic Edgefield www.vrmintellive.com

July July 11-12 Blizzard University Glenwood Springs, CO Glenwood Springs Community Center www.blizzardinternet.com

July 18 HomeAway Breakfast Seminar San Diego, CA Four Points Sheraton San Diego www.software.homeaway.com

July 20

HomeAway Breakfast Seminar Palm Springs, CA Riviera Palm Springs www.software.homeaway.com

July 26 VRM Intel Live! Denver, CO www.vrmintellive.com

VRM Intel Magazine | Spring 2017

CALENDAR OF EVENTS

August August 15 HomeAway Breakfast Seminar Kona, HI www.software.homeaway.com

August 17 HomeAway Breakfast Seminar Maui, HI Wailea Beach Resort Marriottâ&#x20AC;&#x201D;Maui www.software.homeaway.com

COMING SOON VACATION RENTAL WOMEN'S SUMMIT TBD www.vrmintel.com/womens-summit

September September 12-14 Rezfest Las Vegas, NV https://software.homeaway.com/rezfest

September 20-23 Streamline Summit Scottsdale, AZ www.streamlinesummit.com

September 23-24 Vacation Rental World Summit Florence, Italy www.vacationrentalworldsummit.com

October 5

CALENDAR OF EVENTS

HomeAway Breakfast Seminar Bradenton, FL Courtyard Bradenton Sarasota/Riverfront www.software.homeaway.com

October 14-15 2017 Barefoot User Conference Orlando, FL Westgate Lakes Resort & Spa www.barefoot.com

October 15-18 VRMA National Conference Orlando, FL Omni Championsgate www.vrma.com/2017national

November November 6-8 VRHP Annual Conference Nashwile, TN TBA www.vrhp.org

November 6-9 Phocuswright Conference Hollywood, FL JW Marriott www.phocuswrightconference.com

November 14 HomeAway Breakfast Seminar Gatlinburg, TN www.software.homeaway.com

November 15

October

VRM Intel Live! Gatlinburg, TN www.vrmintellive.com

October 3

November 16

HomeAway Breakfast Seminar Marco Island, FL JW Marriott Marco Island www.software.homeaway.com

HomeAway Breakfast Seminar Asheville, NC Renaissance Asheville www.software.homeaway.com

VRM Intel Magazine | Spring 2017

Your Statewide Vacation Rental Managers Association The Florida VRMA represents the professional management of vacation homes, condos and resort units throughout the state of Florida. We are your statewide vacation rental management industry association dedicated to supporting and protecting the $31,000,000,000 per year economic impact realized through the Florida vacation rental industry. The new Florida VRMA continues to deliver the educational programs, legislative advocacy and member benefits to help you to grow your segment of the industry throughout the state of Florida and beyond. Explore what our new regional chapters can mean for your business as a professional in the Florida vacation rental industry. The Florida VRMA is the largest statewide association in the US market today supporting property managers with tens of thousands of vacation rental units. From major Florida attractions to local supporting tradesman, the Florida VRMA has various participation levels for all businesses and industry partners.

Find out what the new Florida VRMA can do for you at

www.fvrma.org or call us at 407-218-6600 THE OPMA DIFFERENCE Constant focus on the future and the shaping of the lodging industry Controlling our own destiny through leadership initiatives and not simply relying on advocacy and secondary support roles Targeted growth and strategy: Aggregating the most condo hotel rental inventory in the most popular vacation destinations. REPRESENTING

THE BEST OF BOTH WORLDS

CONDO ACCOMMODATIONS

& HOTEL AMENITIES

877.870.6510 THEOPMA.ORG

Assisting our members in measuring and delivering their collective economic impact in the local markets they serve Develop and introduce training programs that provide uniform messaging and that enhance the sales and service levels and the proďŹ tability of the membership Minimize the number of suppliers in any product/ service category translating into more signiďŹ cant long-term relationships with OPMA onsite managers VRM Intel Magazine | Spring 2017

Job Opportunities in the Vacation Rental Industry N ote from VRM Intel and ProVRM.com: For the first time, we are adding this Job Opportunities section to the magazine. VRM Intel magazine reaches over 11,000 vacation rental professionals. If you would like to add a submission for this page, you can post your job opportunity on www.provrm.com and contact amy.hinote@vrmintel.com to place open positions at your company in the next issue.

TruPlace Title: Field Photographer Location: Nationwide The ideal candidate must travel to and from vacation rental properties in their respective region to provide on-site real-estate-style photography and create floor plan drawings. Email: hr-photographer@truplace.com We b s i t e : h t t p s : / / g e t h i re d . c o m / j o b / field-photographer-19

Ascent Processing Title: B2B Sales Account Executive Location: National Ascent Processing, Inc., a leader in payment processing services based in Boulder, CO, is seeking a dynamic, driven individual to be its newest commission-based B2B Sales Account Executive. We are seeking a self-motivated individual with strong analytical capabilities, customer service skills, and a commitment to excellence to generate revenue by developing market potential through forecasting, lead generation, qualification, and closing sales for the Ascent Processing Solution. Email: hiring2@ascentprocessing.com Website: www.ascentprocessing.com 96

VRM Intel Magazine | Spring 2017

PointCentral

Title: Account Executive Location: Portland, OR, preferred, but open to remote locations for the right candidate PointCentral is seeking an ambitious and self-directed individual with proven outside sales and account management experience to join our team. The Account Executive is responsible for driving revenue through an assigned customer vertical by prospecting for new leads, managing existing leads and developing existing customers. Email: Mark Schow (mschow@alarm.com) Website: www.pointcentral.com

Beach House Logos Title: Sales Representative Location: TBD In an effort to grow Beach House Logos, we are looking for a dynamic and experienced Sales Associate to execute new account development. •Must be familiar with the vacation and hospitality industry •Must have strong communication skills •Must be a fast starter and ready to hit the ground running Phone: 302-200-9997 Email: Info@beachhouselogos.com Website: www.BeachHouseLogos.com

VRM Intel Magazine Title: Marketing and Media Coordinator Location: Remote Passion and experience in the vacation rental industry is a must. Like our readers, we operate with a lean staff, so VRM Intel magazine is looking for a detail-oriented

“doer” who can jump in and handle the following: managing social media, formatting and posting to the website, editing articles, coordinating events, working with advertisers on deadlines and agreements, attending industry events, interviewing property managers, updating the job board, and maintaining a master calendar of all that is going on in the industry. Email: amy.hinote@vrmintel.com Website: www.vrmintel.com

Book That Condo Title: Revenue Manager Location: Alabama Gulf Coast, Florida Panhandle Book That Condo is seeking a goal-oriented, analytical revenue manager with vacation rental experience to implement revenue management strategies and processes to optimize and maximize revenue for the area resorts in Panama City Beach and the surrounding areas. The successful candidate will identify new revenue opportunities; provide daily, weekly, and monthly reporting; optimize and expand distribution partnerships; and act as an overall business development consultant for the general manager/owner. The ideal candidate will have a minimum of two years of experience in revenue management. Job posting: www.provrm.com Website: www.bookthatcondo.com

BookingPal Title: Junior Project Manager Location: Irvine, CA BookingPal is looking for an entry-level project manager to join its growing team. The successful candidate will gain tremen-

dous experience working at a fast-paced, highly diversified, technology start-up. Primary responsibilities will be to provide project management support, onboarding, and setup for new companies, existing property managers, property management software providers, and distribution channels and partners. The junior project manager will also work with the existing software development team to identify partner-related technical problems and complete any additional assigned project management and support tasks. Phone: 949-333-0724 Email: Careers@mybookingpal.com Website: www.bookingpal.com

BookingPal Title: Account Manager Location: Norfolk, VA; Destin, FL BookingPal is seeking a self-motivated individual with strong business development abilities, customer service skills, and a commitment to excellence in the travel and hospitality sector to be its newest Account Manager. The Account Manager is responsible for working directly with vacation rental supplier clients and creating recommendations/action plans that increase bookings and revenue from over distribu-

tion channels, including Airbnb, Expedia, Booking.com, Orbitz, and Priceline. The Account Manager will expand on the high levels of service already established, deliver on productivity targets by ensuring inventory levels and promotions match market demand, and develop a strong network of relationships to gain support from OTA and other market influencers. The successful candidate will also be responsible for growing the BookingPal brand by bringing on new properties through existing portfolios, conferences, and trade shows, as well as self-generated leads. Phone: 949-333-0724 Email: Careers@mybookingpal.com Website: www.bookingpal.com

BookingPal Title: Technical Support Advisor Location: Irvine, CA Youâ&#x20AC;&#x2122;re a problem-solver and amazing with customers! Youâ&#x20AC;&#x2122;re enamored by the way things operate and have the ability to figure out how technology works when things go wrong. You can multitask across systems and applications, analyze and resolve a variety of complex technical issues, and comfortably navigate a technical environment. The technical support advisor must have

excellent verbal and written communication skills, as well as the ability to effectively prioritize and manage time. He or she must be here not only to help fix technical issues but also provide an incredible customer experience. If this sounds like you, you could be the next Technical Support Advisor. Phone: 949-333-0724 Email: Careers@mybookingpal.com Website: www.bookingpal.com

BookingPal Title: Java Web Application Developer Location: Irvine, CA BookingPal is seeking a Web Application Developer in our Irvine, CA office to help work on our new Travel Technology Platform. Do you enjoy building products that excite your customers? Do you love to code and excel at solving complex problems? Do you strive for a high level of quality in the software that you develop? Do you take joy in learning and working with the latest technologies? Do you dream of an environment where individuals contribute to the success of each other? If your answer is yes, then this is your opportunity! Phone: 949-333-0724 Email: Careers@mybookingpal.com Website: www.bookingpal.com

VRM Intel Magazine | Spring 2017

The Only Complete Vacation Rental Management System in the VRM Industry Call 252-241-9352 to Schedule a Demo!

Dedicated Team Committed to Solving Your Problems Integrated with Major Industry Distribution Channels The Only System Approved by the North Carolina Real Estate Commission for both Short Term and Long Term Rentals Redundant Cloud Based System Works From Anywhere With Internet Access Comprehensive Marketing Support and Services And a whole lot more!

VRM Intel Magazine | Spring 2017

VRM software assists you to both Manage and Market your rental properties!

MARK YOUR CALENDAR! 2017 VRMA National Conference October 16-19, 2017 | Orlando, Florida #VRMANational

VRM Intel Magazine | Spring 2017

C omes t hroug h w h e n p la n s d on ’t.

Offer yourr guests tthe he m most o s t ccomprehensive o m p re h e n s i v e destination specific travel insurance available in the Vacation Rental Management Industry.

re dsky insurance .com • 8 6 6 .5 4 9 .5 2 83

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Coverage is underwritten by Arch Insurance Company (a Missouri corporation, NAIC #11150) with executive offices located in New York, NY. VRM Not Intelall Magazine | Spring 2017 insurance products or coverage are available in all jurisdictions. Coverage is subject to actual policy language.