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572. Treat Airbnb Like An Airline And Get Rich · Thanks For Visiting

• 1:04
  Sarah Karakaian: Hello.
• 1:05
  Sarah Karakaian: Welcome back to another great episode.
• 1:06
  Sarah Karakaian: My name is Sarah Karakaian.
• 1:08
  Annette Grant: I'm Annette Grant, and together we are...
• 1:10
  Annette & Sarah: Thanks for Visiting.
• 1:12
  Sarah Karakaian: So most hosts think they're renting out a room or a house for the night, right?
• 1:17
  Annette Grant: Mm-hmm.
• 1:17
  Annette Grant: Airlines used to think the same thing about a seat.
• 1:21
  Annette Grant: It's just transportation, getting you from point A to point B.
• 1:25
  Annette Grant: Then they reimagined what a flight could be, and that's when the airlines got rich.
• 1:32
  Sarah Karakaian: Charging for something extra can feel like you're nickel-and-diming, but it's all in your head.
• 1:38
  Sarah Karakaian: You're offering convenience, luxury, something special that a guest wants, and charging for it is you serving them, not squeezing them.
• 1:49
  Annette Grant: We've been hosting for over a decade, built a multi-million dollar portfolio, and we work with hundreds of hosts who collectively generate over $2 million in monthly bookings through our private coaching program, Strategic Host.
• 2:01
  Sarah Karakaian: Today, we're covering three things that airlines did to reimagine the flight and how you can do the same thing for your business.
• 2:10
  Annette Grant: By the end, you'll walk away with something specific to add to your listing this week.
• 2:16
  Sarah Karakaian: In 1978, the government deregulated the airline industry, okay?
• 2:20
  Sarah Karakaian: Before that, routes and fares were set for all the airlines, so airlines could not compete on price.
• 2:27
  Sarah Karakaian: But once that changed, they needed a reason for a passenger to choose them over an identical flight on someone else's plane.
• 2:36
  Annette Grant: The first move was loyalty.
• 2:38
  Annette Grant: In 1979, Texas International Airlines built the first program that tracked how much someone flew and then rewarded them for it.
• 2:47
  Annette Grant: Then American followed suit in 1981 with the AA Advantage program.
• 2:52
  Annette Grant: This was invite-only at first, and the reward was a first-class ticket.
• 2:56
  Annette Grant: British Airways then partnered with American within a year, and then quickly followed by Korean Air, who launched its own version in 1984.
• 3:04
  Sarah Karakaian: The second move was pricing extras separately.
• 3:08
  Sarah Karakaian: In 2007, Spirit separated checked baggage from the ticket.
• 3:12
  Annette Grant: Ooh, RIP Spirit.
• 3:13
  Sarah Karakaian: Wow, yeah.
• 3:14
  Sarah Karakaian: American matched it in 2008, $15 for a first bag.
• 3:19
  Sarah Karakaian: Ancillary fees jumped 42% industry-wide the following year to $7.8 billion.
• 3:25
  Sarah Karakaian: By 2023, that number was nearly $118 billion.
• 3:31
  Sarah Karakaian: People may have called it nickel-and-diming when it started, but now we check the bag fee before we book, and we just decide, pay it or pack lighter.
• 3:41
  Sarah Karakaian: It was never really about the bag.
• 3:43
  Sarah Karakaian: It was airlines realizing a seat is not the whole trip for a passenger, and your listing is not the whole stay for your guest.
• 3:52
  Annette Grant: One of our strategic host members, Kim Kelly, took a trip a couple of months ago where she wasn't in her usual seat as the host.
• 4:00
  Annette Grant: She got to be the guest, and that gave her a first-hand look at what an upsell feels like from the other side.
• 4:08
  Sarah Karakaian: So Kim and her group paid a trip fee plus a percentage of the grocery bill to have their fridge stocked before arrival.
• 4:16
  Sarah Karakaian: She sent her list, and that was it.
• 4:18
  Sarah Karakaian: No car rental needed, no first day lost to a grocery run, and of course, she loved it.
• 4:24
  Annette Grant: She brought that experience back into our community, and it sparked a full conversation.
• 4:29
  Annette Grant: Hosts started asking each other the same question.
• 4:31
  Annette Grant: "What's something that could've been offered to you as a guest that would've been a game-changer?"
• 4:36
  Sarah Karakaian: And you would've paid extra for?
• 4:38
  Annette Grant: Absolutely.
• 4:38
  Annette Grant: Right?
• 4:38
  Annette Grant: Without a question.
• 4:39
  Sarah Karakaian: So here's the action.
• 4:41
  Sarah Karakaian: Think about the last trip you took anywhere as a guest.
• 4:44
  Sarah Karakaian: What did you gladly pay extra for, or wish someone had offered you and you would've gladly paid for?
• 4:51
  Sarah Karakaian: I would start there, but it really is a mindset shift on your end as the business owner as seeing this as offering convenience and luxury to your guest.
• 5:05
  Sarah Karakaian: Airlines added luxury, they solved problems, and they built excitement around the occasion of a trip.
• 5:12
  Sarah Karakaian: Let's break down all three.
• 5:14
  Annette Grant: So number one, luxury doesn't have to mean a full concierge menu right away.
• 5:19
  Annette Grant: Something as simple as a forgot something basket.
• 5:23
  Sarah Karakaian: Mm.
• 5:23
  Annette Grant: With phone chargers, a toothbrush, toothpaste, sunscreen.
• 5:27
  Annette Grant: This upgrades the experience without you having to charge a thing.
• 5:32
  Annette Grant: So does something like a charging station with an outlet for every type of device in one place.
• 5:37
  Annette Grant: Once you're ready to go further, for example, one of our strategists inside Strategic Host, Wendy Doris, she runs a full concierge page for her guests.
• 5:46
  Annette Grant: She does charcuterie boards, cocktail bars, a paid s'mores kit, fridge stocking, custom requests.
• 5:53
  Annette Grant: Guests choose what they want before they even arrive.
• 5:56
  Sarah Karakaian: Annette, do you wanna share the luxury addition to your recent stay that you didn't have to pay for?
• 6:03
  Annette Grant: Oh, yes.
• 6:03
  Annette Grant: The luxury item that I just encountered was I stayed at two different properties that both had a car program.
• 6:10
  Annette Grant: One hotel had partnered with Lexus, and you could, um, just check out one of their many Lexuses on site for.
• 6:18
  Sarah Karakaian: Is it Lexi?
• 6:18
  Sarah Karakaian: Lexuses...
• 6:19
  Annette Grant: Lexuses, I think.
• 6:21
  Annette Grant: I don't know.
• 6:21
  Annette Grant: One of their Lexus vehicles for a couple of hours.
• 6:24
  Annette Grant: The other property had the same partnership, but with Mercedes, and you could also check out a vehicle for around four hours.
• 6:32
  Annette Grant: Just go to the front desk, give them your insurance, ID, and the car was yours.
• 6:38
  Annette Grant: It was amazing.
• 6:40
  Sarah Karakaian: So just to get your thinking outside the box a bit about what you could offer at your property.
• 6:45
  Sarah Karakaian: Really, the sky's the limit to impress your guest.
• 6:47
  Sarah Karakaian: So the action here is I want you to think of one touch of luxury that's feasible for your business right now, whether that's that free forgot something basket or something guests pay for, and add it in this week.
• 7:01
  Annette Grant: Okay.
• 7:02
  Annette Grant: Problem-solving is the second.
• 7:04
  Annette Grant: Offering a guest the choice to come a day early.
• 7:08
  Annette Grant: When the dates already open, that solves a problem for them.
• 7:11
  Annette Grant: Their trip gets to start sooner.
• 7:13
  Annette Grant: They've got a landing pad for their luggage, and they get time to set up for whatever brought them to your city in the first place.
• 7:21
  Sarah Karakaian: The action here is to make that offer to a guest this week.
• 7:25
  Sarah Karakaian: If you're not sure exactly how to word that message, we have a link in the description showing exactly how we send those messages to our guests.
• 7:33
  Annette Grant: Excitement is the third, and it's the one that hosts skip, but it doesn't need to be complicated.
• 7:39
  Annette Grant: Some of our hosts coordinate balloons through a local vendor for a guest celebrating a graduation or a birthday.
• 7:46
  Annette Grant: Others might arrange flowers for an anniversary or a proposal.
• 7:50
  Annette Grant: Nobody is inflating these balloons themselves or making these bouquets.
• 7:55
  Annette Grant: They are the connector between the guest occasion and someone local who can deliver on it.
• 7:59
  Sarah Karakaian: So the action here is the next time a guest mentions why they're traveling, and by the way, you should ask, let's say it's a graduation, an anniversary, a reunion, that is your cue.
• 8:10
  Sarah Karakaian: Don't wait for the guest to ask if you offer any of these things.
• 8:13
  Sarah Karakaian: Offer it up, and then have one local vendor on speed dial for the flowers or balloons.
• 8:18
  Sarah Karakaian: Offer it, and include a markup for your time and coordination.
• 8:22
  Sarah Karakaian: Your guests are going to be so impressed.
• 8:25
  Sarah Karakaian: So building out all of this fully, what to offer, what to charge, how to present it, is exactly the kind of work that we do with the host inside of our coaching program, Strategic Host.
• 8:36
  Sarah Karakaian: Link is in the description to come learn with us live and see if Strategic Host is a good fit for you.
• 8:41
  Annette Grant: And there is one more thing airlines figured out that most hosts still haven't made peace with, charging more when demand is higher.
• 8:48
  Sarah Karakaian: Mm-hmm.
• 8:51
  Sarah Karakaian: In the early 1980s, American Airlines president Robert Crandall built a system called Dynamo to fight off a discount competitor called People Express, who was undercutting them on every route.
• 9:04
  Sarah Karakaian: On January 17th, 1985, so five years later, American launched Ultimate Super Saver Fares priced lower than People Express when demand was soft, but full price when a flight was in high demand.
• 9:17
  Sarah Karakaian: People Express could not match it.
• 9:19
  Sarah Karakaian: They went from being profitable to losing $50 million in a month, and they were gone within a couple years.
• 9:26
  Sarah Karakaian: American's system was credited with contributing over a billion dollars in just a few years.
• 9:33
  Annette Grant: That same logic, price lower when demand is soft, price higher when demand is high, is now standard at every hotel chain and every rental car counter in the country.
• 9:45
  Annette Grant: Not to mention with Uber, with tickets.
• 9:50
  Annette Grant: Nobody blinks an eye at a hotel room costing double during a big weekend versus a random Tuesday.
• 9:57
  Sarah Karakaian: And yet we still talk to hosts who feel wrong charging a full rate or more during a holiday weekend or a local event that is driving a ton of demand.
• 10:08
  Sarah Karakaian: It's like they feel like they're taking advantage of someone, but you're not.
• 10:12
  Sarah Karakaian: You're doing exactly what every hotel next to you is already doing.
• 10:16
  Sarah Karakaian: The airlines, the hotels, and the rental car counters prove the demand is there, so I want you to start trusting it.
• 10:23
  Annette Grant: So the action here is look at your calendar for the next high-demand weekend or local event, and check whether your pricing reflects that demand, or if you're still charging your average rate out of guilt.
• 10:37
  Sarah Karakaian: And we wanna be really clear about something, okay?
• 10:39
  Sarah Karakaian: Loyalty isn't built from upsells.
• 10:42
  Sarah Karakaian: It's built from giving guests a five-star stay.
• 10:45
  Sarah Karakaian: The upsells, like the s'mores kit, the flowers, early check-in, are the bonus on top of that, not the reason someone comes back.
• 10:54
  Annette Grant: The American Airlines advantage worked because American was already a solid airline.
• 10:59
  Annette Grant: The rewards just gave loyal flyers an extra reason to stay loyal instead of switching, and that's the same for you.
• 11:06
  Annette Grant: Nail the first stay, then a guest who already had a five-star experience and also remembers the small touches you added is the one who books you again instead of that identical listing three doors down.
• 11:19
  Sarah Karakaian: And here's the mindset.
• 11:21
  Sarah Karakaian: Airlines didn't get rich by nickel-and-diming anybody.
• 11:24
  Sarah Karakaian: They got rich by reimagining what a flight could be and pricing that with confidence.
• 11:29
  Sarah Karakaian: So we've got to have that five-star stay first.
• 11:32
  Sarah Karakaian: With that one touch of luxury, one solved problem, one bit of excitement on top of it, do one of these this week.
• 11:41
  Sarah Karakaian: Inside Strategic Host, we help hosts build exactly this kind of guest experience, and we help you price it with confidence instead of guessing.
• 11:47
  Annette Grant: Join us live and see if Strategic Host is the right fit for you.
• 11:51
  Annette Grant: The link to join live is in the description of this video.
• 11:53
  Sarah Karakaian: And with that, I am Sara Karakaian.
• 11:55
  Annette Grant: I'm Annette Grant, and together we are...
• 11:57
  Annette & Sarah: Thanks for Visiting.