Crossroads

Dickens said it best.

The Best of Times are often crossed with the Worst of Times.

When it comes to coronavirus it feels like a crossroads with no good turns. The options are storms we can see or blind cliffs that leave us with no choice but to take a leap of faith.

It helps to have a parachute.

Like any other business, hosting is impacted by market factors. Usually these bumps in the road happen on a smaller scale – a single event gets cancelled, a tourist season is slow – and though unexpected, they are potholes we are able to navigate around or avoid.

We plan. We read the signs. We turn the wheel.

But now we face a full-scale lockdown and the shutdown of travel and trade. Whether you have property in the short-term rental market or host in your own home, you are feeling the impact of lost income and an empty calendar.

To address the question of being “Market Proof,” you have to ask - Am I Company Proof?

Eggs in a Basket

It’s wisdom from the ages - don’t put all your eggs in one basket - especially if that basket has some big holes.

Coronavirus has given us all an opportunity to examine how we do business and with whom we do business. It’s time to find the holes in your basket.

Dig in and get to know the companies who operate in the home-sharing and rental industry. If you list on Airbnb, VRBO, Home Away, etc. read up on their corporate structure, their work culture, their CEO and their approach to business.

How they respond to crisis is a good indicator of their ability to be a good partner for your business over the long-term.

Remember, it’s your business – so don’t leave everything in their hands.

The more you understand the strengths and weaknesses of each platform, the better prepared you will be to adapt and respond to the impact of the market. Find alternatives and be willing to change your methods.

Hosting Well is the First Step

Being a good host is the first step to being Market Proof.

A firm foundation, built on a good reputation, a positive attitude, and a well-informed strategy, will see you through the worst of times. We all want to know what is coming, and with business slowing - or at a standstill - now is the best time to research and plan.

Adapting well is a cornerstone of Hosting Well – and as the rest of the world hoards toilet paper and flour – you can store up ideas, alternatives and strategies for keeping your business afloat.

Tips and Trends

If cleanliness is next to godliness then your hosting salvation may come down to hygiene. Some experts think people will question the consistency of hygiene standards at home sharing properties. Some suggest that travelers will be wary of sharing hotel spaces with rapid turnover and lots of guests mixing in public.

What does this mean for you? Cleanliness may trump low price after corona. Keep your spaces sparkling clean and make sure your reviews reflect your high standards.

The location principle may be pandemic proof but the good location may be changing. The domestic leisure market may recover more quickly as urbanites who have been cooped up in city homes under lockdown seek rural green spaces to recoup and recover.

Don’t dismiss the stability that long-term guests can bring. A solid one-year tenant who pays on time may be your lifeline to pay essential bills over the next 12 to 18 months.

Consider adding to your portfolio. This may be the perfect time to develop an experience to supplement the rental income. In all honesty, it may also be the time to add properties. If you have the reserves now may be the time to buy.

Be Prepared

Hosting and Hospitality will survive coronavirus. Even if current circumstances cause you to hit the pause button – use the time to prepare for your return.

People will always need a place to stay – what may change is HOW you host and WHAT services you offer.

Be flexible, be willing to change your model, map out a plan and keep your eye on a moving target. Because the only thing that is true about the market is that the market will always change.

We can’t do anything about the unexpected twists and turns – but we can be well-trained drivers with a full tank of gas. Start where you are, Use what you have, and Do what you can to prepare and adapt your business to meet market demand.

For more details about how to be “Market Proof” check out Episode Three of our Podcast!

*Some great articles were published in April on this topic and I want to give credit where credit is due: “Airbnb’s Flame out in the Covid 19 Pandemic could be good news for renters and homebuyers” – Daniel Tencer, April 18, 2020 Huffington Post “Can Airbnb survive Coronavirus?” – Feargus O’Sullivan, April 3, 2020 – Citylab, Bloomberg News