In the past few years, the media has been encouraging people to open short-term rentals and make a fortune, but the Klondike Gold Rush of the late 19th century tells us this get rich quick tale may not have a happy ending. In this episode, I explain what it takes to keep your business afloat in a turbulent market and how to make sure you don't end up like the abandoned Klondike boomtowns.
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Hello, and welcome to another episode of the Direct Booking Success podcast. I'm your host, Jen Boyles, and I am delighted to have you here with me today. Let's get right into it, shall we AirBnB bust? This is affecting us all this year. Even if you are a hundred percent book direct, this Airbnb bus will affect your bookings.er the past few years back to:
I don't believe it. Really, that is not what's going on in my opinion. Last year, 2022 was more of a course correction. This year, 2023, we are dealing with the aftermath from the effect the pandemic had on the hospitality industry. You could almost think of 2020 and 2021 as the gold rush era for short term rentals.e region of the Yukon between:
BoomTown sprang up along all the roots. Take Dawson City before the Gold Rush. It had a population of 500 in 1896. It grew to 30,000 people by the end of the summer of 1898. That's less than two years. No wonder they were called boom towns. How did all these people find out about the gold that was first discovered in the summer of 1896? Why? It was the media, of course, the newspapers started encouraging everyone to head up north and get rich. So let's compare that situation with what happened in 2020. The pandemic hit the world shut down.
No one knew what was gonna happen next, and we were all trying to get through it. So that's not the same. But listen to this. When lockdowns and restrictions began to ease, none of us really knew what was going on or how safe we would be as we'd been cooped up in our homes for too long. We needed to get out, but we wanted to be safe and have our own space to enter short-term rentals.
Even for those who had never stayed in one before. This was a perfect solution. More and more bookings came, and most places were booked solid. Plus, with the guidance that you shouldn't have back to back guests with all the cleaning needing. There just wasn't enough places for all the guests.
The supply of short-term rentals couldn't meet the demand needed. The media saw what was happening and started reporting on this boom in short-term stays that there just wasn't enough places and they were reporting on people who just started to rent out properties that were booked up right away.eeded to make a business out.:
Everyone was happy, everyone was making money. Now I'm generalising here, of course, but it really was a great year for the sector. So what happened in 2022? Kind of like what happened to the boomtowns of the Klondike Gold Rush. Once the prospectors finally made it to the Yukon, they found that it really wasn't a solution that they would be getting rich quick.
The Canadian authorities required each to bring a year's supply of food with them in order to prevent starvation, and they had to carry all of their own equipment, which weighed close to a ton. It was a long way to go. They had to deal with mountainous terrain and cold. So a lot didn't even make it there, but for those who did, they made it all the way to the Klondike.fell. So let's skip ahead to:
Hotels were opening back up. International travel was opening back up. Life was getting back to normal. However, there were still many jumping on to our short-term rental. Get-rich bandwagon. Booking started to fall, guests had more choice, which brings us to 2023. The gold Rush is over. There will be lots of people who have made some money and now the bookings have stopped.
They will move on to their next get rich quick scheme, and I really think this will be a lot of people that will move on. Managing short-term rental properties is not for the fainthearted. There is nothing passive about it, and it takes some work and those who can't or don't want to do it will leave.at's exactly what happened in:
So how can you avoid being like one of those boom towns that dried up after the gold? Here are three tips. Number one, diversify. Okay? Stop getting all your bookings from one platform, one online travel agency like Airbnb. Look at where else you can get bookings and use marketing to promote your own direct booking website.
Number two, make your property a destination. Give guests a reason to come to you and book with you. Don't be the place where they stop one night and move on. They can use a hotel for that. Look at what add-ons you can offer and what's happening in your local area. Number three, invest in the experience guests have with you.
Your guests will tell others about their stay, and you want them to talk about how amazing it was, how great your communication was, how great their accommodation was, how much they enjoyed their time. If you work on these three things, then your outcome will not be the same as the boomtowns of the Klondike Gold Rush.gs, and welcoming new guests.: