These mistakes are Destroying my Airbnb Business

Summary

The speaker candidly discusses the struggles they've encountered since returning to manage their Airbnb business after a year off. They highlight operational mistakes, a lack of hospitality mindset, and a need for cultural change within the company. The video emphasizes the importance of high standards, initiative, and treating guests as the top priority to succeed in the service-based short-term rental industry. The CEO also touches on the challenges of scaling a business, the need for delegation, and the importance of hiring the right management to support growth and maintain a healthy work-life balance.

Takeaways

• 😣 The speaker's Airbnb business is currently underperforming due to mistakes made during their absence from the company.
• 🛠️ The business has been running too operationally, focusing on risk mitigation rather than hospitality service, which is a key issue.
• 💡 Upon returning as CEO, the speaker plans to address these issues and improve the company's service and operations.
• 🤔 The speaker acknowledges the need for balance between being tactful and maintaining an uncompromising vision for the organization.
• 🏨 The hospitality mindset is emphasized, suggesting that the business should 'swing for the fences' to serve customers at all times.
• 📝 An example of poor customer service is highlighted, where guests' inquiries were met with minimal effort responses, leading to negative reviews.
• 🔗 The importance of going above and beyond to help guests, such as providing direct links and additional assistance, is stressed.
• 📉 The speaker mentions an Airbnb algorithm bug that affected bookings, but also points out that some listings underperformed due to service issues.
• 🌟 The speaker intends to hold the company to a higher standard, expecting five-star service and reviews from the team.
• 📚 The concept of 'multipliers' from a book is referenced, advocating for leaders to empower their teams by setting high expectations and appreciating their contributions.
• 🚀 The speaker aims to instill a culture of initiative and problem-solving within the company, encouraging team members to take ownership of tasks and solutions.

Q & A

Why is the speaker's Airbnb business currently not performing well?

The speaker's Airbnb business is not performing well due to a series of mistakes that have been made, resulting in financial losses, negative reviews, and a general mismanagement of the business operations.

What was the speaker's role in the business before taking a year off?

Before taking a year off, the speaker was actively involved in running the business, presumably in a leadership or managerial capacity.

What is the speaker's current position in the company after returning?

The speaker has returned as the CEO of the company, taking charge of operations and looking to rectify the issues that have arisen.

What is the speaker's approach to addressing the mistakes within the company?

The speaker is taking a stern approach to address the mistakes, emphasizing the need for a hospitality mindset and high standards to improve the company's operations and reputation.

Why is the speaker critical of the team's response to guest inquiries about check-in instructions?

The speaker criticizes the team's response as lacking effort and a hospitality mindset, suggesting that they should provide more helpful and attentive service to guests, rather than simply directing them to previous messages.

How does the speaker plan to improve the company's customer service approach?

The speaker plans to improve customer service by encouraging a more proactive and helpful approach, where team members go the extra mile to assist guests and ensure they have the best possible experience.

What is the speaker's view on the Airbnb algorithm and its impact on bookings?

The speaker acknowledges that there was an algorithm bug affecting bookings but believes that it has been resolved. They also note that some listings were not performing well enough, contributing to the issue.

What is the speaker's opinion on the company's current culture and how does he plan to change it?

The speaker believes there is a culture of complacency and lack of initiative within the company. He plans to instill a culture of ownership, autonomy, and high standards, where team members take initiative to solve problems and provide excellent service.

How does the speaker intend to address the issue of team members not taking initiative on projects?

The speaker is considering various strategies, such as incentivizing those who do take initiative, addressing the engagement issue with those who do not, or potentially letting go of those who consistently fail to step up.

What is the speaker's view on the importance of providing excellent service in a service-based business like Airbnb?

The speaker emphasizes that providing excellent service is crucial in a service-based business. They believe that even in less expensive properties, five-star service can lead to five-star reviews, providing a competitive advantage.

What advice does the speaker give to those who are feeling burned out from managing their Airbnb business?

The speaker advises to hire management staff to take some of the workload, allowing for rest and separation from the business. They also recommend letting go of the need to be involved in every aspect and trusting the team to handle issues in their absence.

Outlines

00:00

😟 Airbnb Business Struggles and Leadership Challenges

The speaker candidly discusses the current difficulties faced by their Airbnb business, which is underperforming due to operational mistakes and a lack of hospitality mindset. They have recently returned to lead the company after a year off and are confronting issues that are affecting reviews and financial outcomes. The CEO emphasizes the importance of balancing tact with a clear vision for the organization, especially when addressing problems that could harm the company's reputation or livelihood. The speaker also hints at an upcoming webinar to address the Airbnb algorithm issue, which has been affecting bookings, and stresses the need for a proactive and service-oriented approach to guest inquiries.

05:00

🤔 Addressing Organizational and Cultural Flaws in Business Operations

The speaker identifies a cultural and philosophical problem within the company, where there is a tendency to avoid confronting negative issues and a lack of initiative among team members. They express a desire to shift the company's approach towards addressing every negative review seriously and to stop merely celebrating positive ones, as the expectation should be excellence in all aspects. The CEO discusses the need for a high standard of performance and the importance of holding the team accountable for delivering five-star service. They also touch on the issue of team members not taking ownership of tasks, which leads to inefficiencies and missed opportunities, and the need to foster a culture of initiative and problem-solving within the organization.

10:01

🌟 Prioritizing Guest Satisfaction and Service Excellence in Business Growth

The speaker outlines their commitment to prioritizing guest satisfaction as the core of their business strategy, emphasizing that in the service-based industry of short-term rentals, providing exceptional service can lead to competitive advantages. They share personal experiences of business growth and the challenges of scaling, including the importance of delegation and the empowerment of management staff. The CEO also discusses the importance of taking days off and allowing the team to handle issues in their absence, which can lead to a more robust and less stressful business operation. They conclude by offering support and resources through their mentorship program for those looking to grow their Airbnb businesses and overcome similar challenges.

Keywords

💡Airbnb business

The term 'Airbnb business' refers to the operation of renting out properties on the Airbnb platform. In the video, the speaker discusses the challenges they are facing in their own Airbnb business, emphasizing the importance of customer service and operational efficiency to maintain a successful business in this domain.

💡Operational risk mitigation

Operational risk mitigation involves strategies to reduce or manage the risks inherent in business operations. The speaker mentions this concept when discussing their policy of not sending check-in guides to guests until they are ready to check in, which is an example of operational risk mitigation to prevent guests from checking in early and causing issues.

💡Hospitality mindset

A 'hospitality mindset' is an approach focused on providing exceptional service to guests, prioritizing their needs and experiences. The video emphasizes the importance of adopting a hospitality mindset in the Airbnb business, as it is a service-based industry where guest satisfaction directly impacts reviews and occupancy rates.

💡Algorithm bug

An 'algorithm bug' refers to an issue within a system's algorithm that causes unintended or erroneous outcomes. The speaker mentions discovering a bug in the Airbnb algorithm that affected bookings, and they plan to share insights on overcoming such issues in a webinar.

💡Five-star service

The term 'five-star service' denotes the highest level of quality in service provision, often associated with luxury hotels. The speaker aspires to deliver this level of service in their Airbnb properties to ensure positive guest experiences and reviews, even in less luxurious accommodations.

💡Leadership

Leadership refers to the ability to guide, influence, and inspire a team towards achieving goals. The video discusses the speaker's role as a CEO and the need for strong leadership to correct mistakes, improve service, and drive the company's growth and success.

💡Burnout

Burnout is a state of chronic stress that can lead to physical and emotional exhaustion, often resulting from overwork. The speaker shares their personal experience of burnout due to managing too many responsibilities in their growing Airbnb business, highlighting the importance of delegation and self-care.

💡Mentorship program

A mentorship program is a structured initiative where experienced individuals guide and support less experienced ones in their professional development. The speaker mentions their mentorship program, 'Cracking the Short-Term Rental Code,' which aims to help Airbnb hosts grow their businesses.

💡Rental arbitrage

Rental arbitrage is a strategy where a property is rented at a lower price and then resold at a higher price, often used in the context of short-term rentals. The speaker discusses their expertise in rental arbitrage, particularly in securing properties with favorable terms for new entrants to the Airbnb market.

💡Service-based business

A 'service-based business' is one that primarily offers services rather than physical products. The video's theme revolves around the importance of understanding and excelling in the service aspect of the Airbnb business, as the quality of service can significantly impact customer satisfaction and business success.

💡Competitive advantage

A 'competitive advantage' is a characteristic or strategy that makes a business more appealing to customers than competitors. The speaker talks about providing five-star service in B-class properties as a way to gain a competitive advantage in the short-term rental market.

Highlights

The speaker admits their Airbnb business is currently underperforming and shares their mistakes to help others learn.

After a year off, the CEO has returned to find and correct significant operational issues within the business.

The company's operations are too business-like and lack the hospitality mindset required for guest satisfaction.

A common mistake is the lack of effort in responding to guests' inquiries, leading to poor reviews.

The company needs to balance operational risk management with a commitment to hospitality and customer service.

The speaker emphasizes the importance of not just sending check-in guides but also answering guests' questions directly.

The Airbnb algorithm issue is being addressed, but listings still need to perform well to avoid a downward spiral.

The company's culture has a serious backbone problem, with a lack of initiative and accountability among staff.

The CEO is implementing changes to hold the company to a higher standard and expect five-star service and reviews.

The company needs to embrace a philosophy of appreciation for employees' work while maintaining high expectations.

The CEO discusses the challenge of staff taking initiative on projects and the need to address this engagement issue.

The company's culture does not currently foster a sense of ownership and autonomy among employees.

The speaker shares their personal experience with burnout and the importance of hiring management to alleviate it.

The CEO is working to create a blueprint for growing an Airbnb business, including team structure and compensation.

The speaker offers mentorship for growing Airbnb businesses and dealing with leadership and growth challenges.

The importance of focusing on service quality over expensive properties to achieve five-star reviews is highlighted.

The CEO's commitment to providing exceptional service in all properties, regardless of class, to gain a competitive edge.

The speaker's personal journey from managing a small number of properties to leading a large Airbnb business.

Transcripts

do not want to have to confess to this

but my Airbnb business sucks

so bad right now and I think you should

probably talk to you about it so you can

learn from my mistakes now I'm not one

to try to trash talk people that I work

with my team that I like them they're

great people for the most part but as

some of you know I am now recently back

running my business after taking a year

off I've been back at the front of the

company for about a month and I'm just

seeing some stuff I'm seeing some stuff

that shouldn't be the way that it is

it's huge mistakes it's costing us money

it's costing us reviews and it's just

doing business the wrong way for the

wrong reasons so in this video I'm going

to talk to you about some mistakes that

I'm trying to clean up as we speak like

these are real mistakes that I haven't

even got through yet like they're

happening it sucks so learn from my

mistakes in this video and let me make

you a better Airbnb host Welcome Back

YouTube world it is kind of cool to be a

CEO again I'm not gonna lie uh the year

off was really nice but I was really it

shouldn't get back into something and

all of a sudden there's a need for me to

come in here and you know clean up shop

a little bit and I don't want to be

unnecessarily hard on my team but there

are things that have to get fixed with

an organization if we want to be an

organization and sure even watching this

video could hurt somebody's feelings but

as the CEO of a multi-million dollar

company with 150 properties it's not my

job to save people's feelings it's to

save the company from making mistakes

that can cost it's livelihood or

reputation so yeah I'm going to be a

little Stern and it's important to do so

as a leader of an organization you guys

need to be able to balance that level of

tact and that uncompromising vision for

whatever it is you're trying to achieve

as a organization summary I'm gonna give

you some really heavy examples here but

the summary of what's going on is we're

running our business too much like a

business too operationally and we're

running it from a position of pessimism

is how I'm going to diagnose this and

what's dangerous about this is we are a

Hospitality business there are

businesses that do a great job with risk

management right and making sure you

don't over promise or you know you don't

put yourself in too big of a risk but in

Hospitality you should be swinging for

the fences to service your customer at

all times and there's some things that

I've been noticing inside the just the

chat threats because you know taking a

year off I wasn't reading our

conversations with guests here's an

example that has happened multiple times

in the last couple of days somebody

would ask for check-in instruction

clarification and just you guys know we

use a Google drive like a Google

Business thing for our checking guides

we don't store them on Airbnb so we can

send them to a guest when we're truly

ready for them to check in because

sometimes a guest can get a checking

guide check in early without permission

cause a fiasco and so this is one of

those operational risk mitigation things

that we've done now I'm not sure if I

don't like that it might be fine right

it could be cool to use the checking

guides on Airbnb and just not give

people their door codes right away stuff

like that you mean we can do something

like that but this isn't one of the ones

that I think is like our egregious

operationally driven problems but when

somebody sends a message asking for

clarification on their check-in like

check-in instructions like what the unit

number is or how parking works are staff

just responds hey we've already sent you

the checking guide please see your

previous message and that isn't so both

like sorry pardon my French but that is

like the least effort response on the

planet and that deserves a two-star

review that says hey we don't care right

we already helped you once you only get

one we're not even going to be here for

you and I really I really hate that

because that's not Hospitality minded

instead if you want to not do what my

people have been doing and you'd want to

not make this mistake anytime that

somebody needs any help at all you

should go what is the most impressive

thing I can do right now what's the way

that I can be the most helpful right now

so at bare minimum you could copy the

link to the checking guide that you

already sent them paste it again and say

hey here's a copy to your checking guide

then just also answer the questions so

they don't have to click on the link to

the checking guide but now they have the

checking guide link if they want it and

then offer any more help be like I will

be here for you if you need anything

else thank you so much right and that

message is a much more of average effort

response to the question at hand and so

these are the types of things that I'm

talking about Hospitality mindset and

these types of things can compound right

now we've been dealing with this whole

Airbnb algorithm thing and yes there was

an algorithm bug I've actually found the

secret and I'm going to be doing a

webinar on this soon so join my free

Facebook group the hosts of Airbnb

automated on Facebook if you want

information on what I'm going to like be

doing this you know how to Unbreak break

the algorithm because a lot of you if

you have empty calendars you're going to

need that but it's not only just the

algorithm the flaw in the algorithm is

balanced out by the fact that some

listings just aren't performing quite

well enough and it's causing a downward

spiral for the most part and so when you

have these types of issues where you

know guests aren't happy with this or

that when you don't run them extra

supplies if they show up to an apartment

or a house and they're missing a couple

towels or it's low on body wash if you

don't jump to fix those situations to

give them the best experience possible

this will come back in your reviews

it'll come back in your occupancy and

then yes a company should have a slow

season an algorithm bug will cause you

to have zero bookings so we all need to

step up our game if we want to stay in

business this is a service based

business and I can tell you since I

fixed the algorithm bug I've actually

set up four new properties and they all

got bookings at pretty much exactly the

24 hour mark because Airbnb can hold

these things up to 24 hours for review

and so you know they take it they hold

for review some people they unlock your

listing like two hours later three hours

later ours they tend to hold ours almost

24 hours and we've been getting bookings

right after the 24 hour mark so I can

tell you that the bug isn't permeating

anymore and even the listings that we

have that had like no bookings when the

when the bug hit we're starting to get

bookings on those two thankfully so

hopefully that's all put to bed and I

can show you guys in a webinar exactly

what we did to like dream jump our

position and the algorithm it'll work

and to be really honest with something

that I find kind of distasteful within

the company there's just a lot of

gassing each other up for no reason we

treat people way too sensitively and

this is a philosophy problem for a

winning team we have these meetings

every two weeks and I've actually told

the company we're gonna do these every

week now but when we go through we look

at reviews Haley had it set up where we

would do one negative review and one

positive review right hey here's a

negative review these are positive what

I think we should be doing is going

through every single negative review

looking for things that are wrong and

fixing them and the positive review

read-off that we do is just so that way

people feel less bad about the fact that

they're negative reviews there's really

no purpose of reading the positive

review they should all be positive so

that's one thing that I want to change

right away is hold the company to The

Standard we are the best at what we do

right we have 150 properties we don't

get this big for no reason and at this

point that we should expect five-star

service from our team our staff for

cleaners everybody and we should expect

five star reviews in return we should be

reading the five-star reviews and going

oh hey that was so nice that should be

expected we have a serious backbone

problem in our culture and I'm going to

be shaking it up now that I'm running

the company again there is a book called

multipliers that talks about this kind

of phenomenon you can be a leader that

really just makes everybody hate you

it's true you can like steal all the

energy from a room and people like oh

this guy right those guys are the ones

that tend to think that they know

everything won't take anybody else's

solutions they need to be the one that

Champions every project they need to be

the one in the Limelight in the center

all the time this is not what's going to

go on and this is not how you actually

will run your business multipliers talks

about how we can make people better by

giving them true appreciation for what

they do right but tell them what their

expectations are and hold them to a high

standard because they are a high quality

of person we don't hold them to a high

standard because you the leader high

quality person has nothing to do with

you you don't say oh I'm the best so you

have to be the best too no it's like hey

you you over there you are my team

you're the best at this and because I

know you're the best at this I'm gonna

hold you to a standard and you're going

to perform and we will win together and

you're going to get your flowers for the

part that you play in this big complex

game and you will have the respect and

the notoriety for the work that you do

but it is on you to be the best and I

expect that from you because if this

company is going to be competitive we

all have to show up and play 100 one

thing that I don't quite have a fix for

yet I'm really hoping to get fixed is

how people jump on projects or don't

part of the algorithm fix we had

sections of our listings that we needed

to retweek right all 150 listings needed

a tweak and I outlined hey team these

are all things that have to get done now

I'm here in Houston setting up 16

apartments and I can't do all that stuff

myself I can't do everything at once and

so I put it on my team's shoulders to

make adjustments to all of her listings

and days later it's not done and I'm

going back to my team going hey we need

to have this done now it's a very clear

issue that's costing us money somebody

please do it and we don't have anybody

who jumps on it now this is splitting

hairs because what I'm asking the

company to do is to have this sense of

ownership and autonomy where somebody

would jump in where four or five people

could do the job but one person jumps in

and says hey I'll do that right now we

have a couple people in the company who

can do that but they Wane in and out of

whether or not they want to it's an

engagement issue and the fact that the

other three people of the five qualified

persons never do that is probably also

why the two that are capable are not

wanting to do it all the time they feel

like they're the only two that really

put their skin in the game and the other

three people sit along the Wayside

they're going to feel an imbalance

within the company they're going to feel

mistreated so it can go a couple of ways

I have to tweak the three that don't

jump up and say yes I'll do it and kind

of crack the whip and get them to like

rise to the challenge of being just like

their peers or have to let them go which

is also kind of sad or I have to

incentivize the two that will do it and

start to create an imbalance in my

performance style pay structure maybe

and give them maybe more so what they

deserve now the other three people get

kind of butt hurt because the other two

are getting paid better but the other

two are the ones that take initiative

and that is a mistake that was created a

long time ago which is that we did not

breed a culture of initiative and

solving problems and another example of

this is when we have an issue we could

simply start to Google solutions to the

problem right the people who discover

the problem and guest communicates with

their Central team says hey there's

something wrong with the heater there's

something wrong with the TV there's

something wrong with the door lock or

something our Central team who knows

everything about all the listings could

literally Google a solution to a problem

and figure it out without asking their

Superior for a response and then waiting

for that Superior to get back to them

they could actually take the initiative

to solve the problem themselves and this

is another thing that I'm hoping to

drive into the company is this I have

the power to solve this problem for the

guests and it means so much to me that I

get to be the one to solve the problem

for the guest because I'm in the

business of solving guest problems and

this is how we thrive in this industry

if I can get my company to fall in line

under that one major principle which is

our guests are the most important thing

on the planet it's the only way that

we're in business and it is our goal to

take every opportunity to impress upon

them how much we love them we will take

those opportunities this is what our

company needs to do to survive in this

industry because like I said in a

previous video this isn't a

product-based business this is a

service-based business and so now that

I'm CEO again we're going to play house

and we're going to try to Ritz Carlton

the world to death in the short-term

rental space and really start to drive

an impressive quality of service because

like for example this apartment that I'm

in we're the 16 I'm setting up they're

like B minus class properties they're

not very special but you can give

somebody five-star service in a b-class

property and they will give you a

five-star review which is a huge

competitive Advantage for us if you

stack it all together right you have

cheaper properties which means you can

be more press competitive you have

hourly housekeepers which is one of our

Specialties pay by the hour we lead them

hopefully keep them engaged keep them

happy which is something that I'm

working on and then they'll do cleans

for half the price or a third the price

that our competitors do we have a highly

responsive pricing like model that I

built myself which I teach to my

students which allows us to generate

Revenue in situations that other people

can generate and of course I'm one of

the biggest nerds on the planet so when

this algorithm bug hit I was deep in the

nuts and bolts of the software to try to

figure out what it was these are all

advantages that we have and we can press

those advantages and out compete our

competitors who think that you have to

buy expensive furniture and pay

expensive rents or buy expensive

properties in order to get a five-star

review and those people have been

leaning too much on the product that

they offer and they are not really

focused on the competitive advantage of

the people that they have so thanks for

coming to my Ted Talk on that one and

even if you don't have a team you might

be suffering from the same thing I'm

going to be real I burned out at 1.2 I

started in this industry the end of 2014

early 2015 I had a few apartments and I

was fine sometime until early 2018. in

2017 February I intend doors because the

Super Bowl hit Houston I'm like you know

we're gonna set up some properties and

make some money for the Super Bowl I

didn't grow that portfolio until the

summer 2017 when I started this YouTube

channel I still only had 10 doors but

then from there after start making these

videos I'm like you know what I'm to

grow this business to prove to the world

that rental Arbitrage is a thing and I

really only grew this business because I

told you guys I went but what happened

is once I had about 30 35 properties

inside of Houston and started expanding

to Dallas I was getting really burned

out because I was the one picking up the

phone at 1am whenever a guest had a

problem right that was a really good

specialist but I just didn't have enough

energy to do it all and be a leader at

the same time so I burned out that's

when I finally started to hire more

management staff because I needed a

solution I wasn't going to go out of

business so I had to start hiring

management staff and this could be right

at that line that you guys are at a lot

of you have 10 15 20 properties and

you're running it on your own you have

your housekeeping team you have a couple

customer service reps you've got a

handyman and you're just doing it all at

this point you really do need to hire

somebody to take full days off your

plate where you can have down days and

you need to truly separate on those days

which means you should shut your phone

off and let things break in your absence

and then force that manager that you

hired to deal with the fact that things

are breaking and you'll see and they'll

see that you guys survived even though

it went terribly you still survived and

this will make you less nervous about

taking days off and that will make them

feel more empowered about handling

issues because even if stuff breaks

you're not going to fire them these are

the things that people need to have made

clear and so you need to truly separate

if you're in this position and let

things break while you're gone and kind

of let that e go and that worry shut

away and then you'll start to really

feel good about your days off and then

your rest will be restful because if you

take days off and worry so much about

every little thing that could go wrong

in your company you're not going to get

any rest on your days off I will say

there is a blueprint to building a

company like mine over 30 properties 50

100 Doors you know how many housekeepers

to hire you know what va's should be

doing what your locals like management

team should be doing how to compensate

really rare team members like

maintenance guys movers designers stuff

like that all of this isn't a blueprint

that I teach in my mentorship program

called cracking sucrose so if you're in

my free Facebook group you can reach out

to me Alberto guy named Enzo got him

Donnie they're all part of my onboarding

team um or if you're not in my free

Facebook group join my free Facebook

group and start to ask around most of my

students have Airbnb properties already

um that's really where I shine is

helping hosts grow yes of course I'm

really good at getting new people in the

business getting landlords to give them

free rent rental Arbitrage is great for

newbies because it's a cheaper way to

get into the space and of course I've

pioneered how to get landlords to say

yes so we're good there but really

beyond that a lot of my students have 50

100 200 400 doors and you can too you

can continue to grow you aren't dealing

with a Airbnb problem if you're watching

this video you're dealing with a you

problem a growth problem a leadership

aptitude problem and you can get past it

it just takes some work so I'm here for

you if you need anything and put in the

comments I'd love to hear your feedback

thank you so much for watching this

video and listening to my problems I'll

see you on the other side

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