Getting your MBA in Management with Michael Chang
On this episode, we get to do a collaborative interview with Michael Chang from STR Like the Best. In this two-way interview, Michael Chang leads us through his mindset of making short-term-rental investing approachable to anyone that’s committed. We talk through his technology stack that he uses to manage his rentals, and areas where he’s upgrading to improve his direct booking rate Summary Highlights In a recent engaging podcast episode, Michael and Gil discussed their personal experiences and realizations on the nuances of short-term rentals, emphasizing the pivotal shift towards direct bookings as a strategic milestone for property owners and managers. Here’s a breakdown of the insightful discussion and key takeaways of their discussion. Evolutionary Path: From OTAs to Direct Bookings Michael and Gil underscored the advantages of leveraging Online Travel Agencies (OTAs) such as Airbnb during the initial phases of establishing a rental business. The gentlemen agreed, that in this period, typically spanning 1-2 years, is crucial for building visibility, refining operations, and understanding guest expectations. However, as experience grows and a loyal customer base develops, the focus shifts towards diversifying bookings through direct channels. By years 3-4, aiming for 50-60% of total bookings via direct channels becomes a realistic and advantageous goal. This transition demands consistent effort and strategic marketing initiatives tailored to your property’s unique attributes. Essential Components for Direct Booking Success Achieving substantial direct bookings hinges on several key components: Tailored Marketing Strategies for Success Successful marketing in the short-term rental industry requires a tailored approach: Strategic Growth Approach Michael and Gil exchange thoughts on the importance of starting small and mastering one marketing channel at a time rather than spreading efforts too thinly. This focused approach allows for better measurement of effectiveness and optimization of resources. Balancing Platform Risks and Rewards While direct bookings offer greater control and reduced platform dependency, OTAs continue to provide valuable exposure and guest protection. Striking a balance between these channels is crucial for maximizing occupancy and minimizing risk. Resources and Guidance For those looking to enhance their direct booking performance, resources like CraftedStays and industry podcasts serve as invaluable sources of guidance and inspiration. This platform aims to provide insights into emerging trends, innovative strategies, and success stories within the dynamic short-term rental landscape. Embracing Innovation and Opportunity As a relatively young industry, short-term rentals present ample opportunities for creativity and innovation. New entrants can leverage this dynamic environment to carve out niches, differentiate offerings, and capitalize on evolving guest preferences. In conclusion, transitioning from OTAs to direct bookings represents a strategic evolution for short-term rental operators. By focusing on building a strong online presence, implementing targeted marketing strategies, and leveraging valuable resources, property owners can unlock new levels of success and sustainability in the competitive vacation rental market. Follow Michael on instagram @strlikethebest & @michaelchangbnb Transcription Michael: You don’t know where to start. Like find people that have done it before. Facebook groups are a great place. Your local real estate meetup, like wherever you can find people that I think it’s also important to find people that you connect with. Right. It’s, I mean, it’s hard. Like I’m, you know, 44 and I have two kids. Michael: Like it’s hard to connect with probably like a 20 year old that like is just starting out and. thing, but like, you know, if you find someone else that is, you know, you and that person on the same wavelength, you know, similar values, similar background, whatever it is. Um, I think there’s that kind of like trust there that gets, uh, you know, that you can kind of bond a lot easier and then that trust factor is a lot higher and then you, you know, kind of take the advice that you’re given because sometimes it’s hard actually, it’s just like, You hear the advice, but like, you don’t take the advice and like, you got to listen to, you got to hear it from someone that you like believe in and trust to, to take that advice. Gil: Hey folks, welcome back to direct booking simplified. We break down the tactics and strategies to win in direct bookings. Today’s show is me slightly different. We have Michael Chang on the line. He’s a short term mental host himself. He does Airbnb arbitrage and is also a coach on today’s show. We’re going to actually do a collaboration together. Gil: Well, we get to interview each other. So let’s get right in. Michael: Uh, it’s my great pleasure to welcome Gil Chan to the show. Gil, thanks for joining us today. Gil: Yeah, it’s great to be here. Michael: And, uh, thanks for, uh, you’re, you’re my first guest where we’re live streaming, uh, the podcast. So, um, you know, anything, anything goes wrong, don’t worry about it. Michael: We’ll just keep talking and, uh, and we’ll edit it afterwards, but hopefully we’ll have a few people watching. And if you’re, if you are watching, if you have any questions, feel free to, feel free to, uh, uh, To write your questions down and we’ll try to answer them. But, um, no, but, but Gil, like, no, great to have you on the show. Michael: We met at STR wealth, um, conference in Nashville back in February. So, um, you’ve been, you’ve been busy ever since with, uh, with, with your properties and new projects. So I’m excited to talk more about that. Gil: Life has not slowed down at all. Um, Michael: but why don’t, before we start off, um, why don’t you give a chance to introduce yourself to the audience? Michael: Um, kind of what you do and, uh, and your portfolio particularly. Gil: Yeah. Yeah. So I, I’m a short term rental host myself. I have three properties, uh, two in Branson, Missouri, sorry, two in the smoky mountains and one in Branson, Missouri, been hosting for a couple of years now, and then I’m also the CEO and founder of crafted