Mapping out the guest journey with Tracey Northcott

Summary and Highlights

In our recent podcast episode, we had the honor of speaking with Tracey Northcott, the visionary behind Tokyo Family Stays, an established vacation rental business in Japan. With over 12 years of experience in the hospitality industry, Tracey shared invaluable insights on how to create a successful and sustainable hosting business that prioritizes authenticity and guest satisfaction over mere profitability.

1. Emphasizing the Local Experience and Anticipating Guest Needs

Tracey’s journey began with a simple yet profound principle: provide guests with an authentic local experience. Unlike impersonal stays, Tokyo Family Stays thrives on connecting visitors with the heart of Tokyo, enriching their travel experience through carefully curated local insights and services tailored to their needs.

2. Developing a Strong Brand Identity and Values

Rather than being just another “Airbnb host,” Tracey advocates for hosts to establish a distinct brand identity and values. This strategic approach not only attracts ideal guests who resonate with those values but also fosters long-term guest loyalty. By embodying values such as hospitality, cultural immersion, and community engagement, hosts can create a memorable and meaningful stay experience.

3. Mapping the Guest Journey and Personalizing Services

Central to Tracey’s success is her meticulous attention to the guest journey. From initial booking inquiries to post-stay follow-ups, every touchpoint is an opportunity to exceed expectations. By anticipating guest needs and preferences, hosts can deliver personalized services that leave a lasting impression.

4. Building a Direct Booking Presence and Nurturing Relationships

While many rely solely on OTAs (Online Travel Agencies), Tracey advocates for building a direct booking presence. This not only reduces dependency on third-party platforms but also allows hosts to cultivate relationships with repeat guests through effective email marketing, SEO strategies, and collaborations with local businesses.

5. Core Values and Authenticity

Tracey’s guiding philosophy revolves around defining core values and purpose (“why”) as the foundation for building a hosting business. By staying true to these values, hosts can authentically connect with guests and uphold the responsibility of hosting beyond mere accommodation.

6. Long-Term Strategy and Sustainability

In a landscape often dominated by short-term gains, Tracey underscores the importance of a sustainable business approach. By focusing on guest satisfaction, community integration, and ethical business practices, hosts can build a resilient and thriving vacation rental business.

Conclusion

Tracey Northcott’s insights challenge conventional wisdom in the hospitality industry. Her emphasis on authenticity, values-driven business practices, and personalized guest experiences serves as a beacon for both seasoned hosts and newcomers alike. By embracing these principles, hosts can not only differentiate themselves in a competitive market but also create meaningful connections that transcend mere transactions.

Transcription

Gil: Hey folks, welcome back to Direct Booking Simplified, where we break down the strategies and tactics to win in direct bookings. On today’s show, I have Tracey Northcott, all the way from Japan. Welcome on the show, Tracey. 

Tracey: G’day, g’day, g’day, Gil. Sorry, I have to be really Australian when I, you know, when I come on podcasts, I’ve got to like, you know, wear my, wear my, um, uh, my nationality with pride.

Tracey: So, 

Gil: That’s awesome. Before we get too deep, Tracey, do you mind giving folks a brief introduction of who you are? 

Tracey: Sure. No problem. So yes, I’m, my name’s Tracey. I’m CEO of Tokyo family stays. So yes, I’ve been in Japan for 24 years. I’m not Japanese clearly. Um, and, uh, I run a vacation rental business. Um, and, I love it.

Tracey: And it’s, it’s brought my family a lot of financial freedom and also, you know, freedom to, to travel and also learn about ourselves. So it’s, it’s been a really, really interesting journey. So I wasn’t always in vacation rentals. I come from a background of science and technology. Um, I was a chemist and then, which is a different whole other story.

Tracey: And then I actually came to Japan to work with my brother, who’s a software engineer, and we make actually language learning applications on mobile phones. So we’ve been doing that for 25 years and that’s still going, but it’s mostly passive at this point. So it lets us play and do passion projects and real estate was always one of my passions.

Gil: Yeah. How did you first get into it? 

Tracey: Well, it was kind of by accident. So we were playing around in real estate. So, um, we, as. as business owners, we were always sort of happy to take on, uh, help other people with their businesses. And we had a friend who was a real estate agent who, who didn’t have like a full paid up company and they wanted to do real estate.

Tracey: They had the license, but didn’t know how to actually run a company. So then we said, all right, rent a desk from us and, um, use our infrastructure and our, you know, our tax accountant and all of those things that you need when you’re running a business. And you play in real estate and then we’ll share some, we’ll do some profit sharing.

Tracey: And so that was fun because, you know, we’re able to, you know, play around with real estate and, and, um, not buying. So I was sort of helping people, um, with subletting, um, you know, the, the visa and, and things are fairly, fairly strict here. So actually getting an apartment when you’re, you know, when you’re working here is quite hard when you’re a foreigner.

Tracey: So I was helping people with a subletting. So I was, I was renting and then subletting to them. And, and that was before the, anything that came out of the vacation rental or, you know, short term rentals. Um, and then I had a, And that was sort of fun. And that was going quite well. Um, and then I had a baby, um, and we were getting lots of visitors and, uh, you know, there was not enough space in our little one, two bedroom apartment in Tokyo.

Tracey: So I thought, Oh, all right, well, this Airbnb thing’s kicking off. So let me rent a second apartment. And, um, As long as I can break even, put my family and friends in there, it’s a win win situation. So yes, but I listed in within three, within three hours it was booked and then we were off. So it was like, okay, well, we have the company structure.

Tracey: This is clearly a good thing. Let’s, it’s just, it’s just starting out. Let’s ride this wave and see where it goes. So, you know, my brother and I don’t have a lot of fear when it comes to new projects. So we just started right? Like arbitrage. Is the name. We didn’t know it then, but we just started renting and re renting, um, and subletting and as, as I had been doing before and I really, I felt I really enjoyed it.

Tracey: So, yeah, that was the plan. Um, and that was 12 years. So, yeah, my son’s just turned, yeah, my son’s turning 14 very soon. So that’s how long it’s been. 

Gil: 12 years ago. So back, back then, Airbnb was barely even around then, if I remember correctly. 

Tracey: Barely. Well, I hadn’t heard of it and, and someone blew my mind.

Tracey: They said, Oh, you’re actually renting an apartment from someone on the, like a gig thing. And cause that was, that was when the word sort of gig economy would just sort of get into it. to the lexicon. Um, and, uh, you can see our working dictionaries. Sorry. So when, when it was just coming in that, that gig economy, you know, people were sharing cars, people were sharing houses.

Tracey: It’s like, Oh, this is fun. And then we all went as a family to Korea and we tried it out. Um, because service departments for a big group would just. expensive and impossible. And, you know, we had my father who was, you know, needed a nap every day and I had my baby who was, you know, needed a nap every day and hotels just weren’t suitable for for us.

Tracey: So we tried it out and we thought, Oh, game changer. This is great. I get to live locally. I get to see what it’s like, even for a couple of days of what it’s like to experience another culture. Go shopping in a local shop and my mind was like, okay, we need to do this in Tokyo. So that’s what I did. 

Gil: Nice.

Gil: Nice. Did you end up, I know you will get into this in a little bit for with direct bookings, but at what point did you end up start doing your own direct bookings or did you always start off on the Airbnb side first? 

Tracey: We were, we were all in Airbnb. We were, um, you know, we, we just, because it was easy, right.

Gil: It’s 

Tracey: easy to get in and easy to find customers. And, um, and it was, you know, a bit of a love fest and until it wasn’t. So, um, and so we, we then sort of started dabbling in, um, VRBO for example, because they, they were seeing that we had a fairly big portfolio and they said, Oh, how about you come join us?

Tracey: We’ll help you join our platform. And then. It came to a point, I think it was about five years in that, um, regulations came in, regulations changed and, um, it looked like, um, you know, Airbnb weren’t giving us any help at all. So I’m looking at my books and looking at the size of this business thinking, well, this isn’t a small business, right?

Tracey: This isn’t a, uh, and why am I giving all my money to Airbnb when the actual raw numbers were just so high. So when the regulations came in, I thought, well, if I now am getting regulated, I’m actually now, you know, I’ve gone from a hobbyist to a professional operator. Um, I need to get a website. I need to do my own marketing.

Tracey: I need to, you know, just, you know, get going that way because we were getting a lot of repeat bookings. So, well, why am I They’re my customers now. Why am I still sharing, sharing that? I’ve done the work. I’ve created that demand. So, you know, um, let’s, uh, you know, let’s, let’s have a hybrid. Um, and, and I think it was, I took on a, Like a property management software because they’re having a black Friday sale.

Tracey: I looked and went, Oh, okay. I know a bit of tech. Um, this company’s having a black Friday sale. So, you know, let’s give it a go. So of course I got under the hood and played around and made my own website. Um, and then started getting direct bookings. So that was 2016, 2017. Okay. 

Gil: Okay. What was the regulations like when you mentioned that like 20, 2014, 2016?

Tracey: They announced them in 2016 and they actually didn’t roll out in until 2018. So there was like a two 18 month flag where they were getting all of their ducks in a row. So because there was a lot of backlash. Um, there was a lot of hosts doing it badly. There was a lot of hosts that weren’t educating their guests about just general good, uh, citizenry.

Tracey: So, you know, Japan is a very quiet country. People live on top of each other. And so there is a lot of unwritten rules about trash and about, you know, being quiet. And I don’t know if you’ve ever been to Japan, it is a quiet country. So even on the trains, people are not yakking on the phone and whatever, everyone’s barely mindful of, um, of their personal space.

Tracey: And so when you’ve got a lot of random unknown people walking around tiny streets, it raises a lot of concern quite rightly. Um, and so the government was like going, well, we need to fix this up. But Airbnb got their lawyers and involved and they actually passed the law to make to say, well, actual short term rentals are actually now a valid like business.

Tracey: But these are the rules 

Gil: and it was like, 

Tracey: okay, well, you know, they’ve created a window for operators to, you know, get compliant and the things that they were asking for were pretty much what we were doing anyway, because as serious operators, you know, we took G of care. you know, where people sleep is really, you know, is a, is a responsibility.

Tracey: And so it’s a lot of safety and we’re also had a lot of duty of care around our neighborhoods. And so we were kind of doing that anyway. Um, and the regulations weeded out a lot of people who were just phoning it in then weren’t really interested in their guests or not. They were just trying to make a quick buck.

Tracey: Which is fine. I think it’s been very good for the business to, to weed out the bad operators and let the good operators where their business with pride. Um, so I’m a big, you know, I work with my community. I, I, you know, I work with at the, at the festivals. I buy my little lantern, um, because I’m grateful that the community has welcomed us and my guests in there.

Tracey: So. We do a lot of that locally. Like we do a lot of local, you know, um, outreach. Um, and yeah, so getting the license, we had to get a property management license so that the company needed the LLC needed. Um, so I spun out a separate LLC and so that then I got as a licensed property manager and then each property then needed.

Tracey: A license based on the zoning, like, which is that if it’s residential or commercial, um, you needed to have a fire safety certificate done. So that needed commercial. So the things we had to pay for were commercial grade fire alarms, commercial grade fire extinguishers. Because Japan is so paranoid about fire.

Gil: Right, right. Everyone 

Tracey: lives on. It’s very dense. 

Gil: Yeah. 

Tracey: But and also all the houses of wood. So, um, they’re all, we’re all living in wooden houses and they’re all made of wooden paper. So, you know, fire is a huge problem. Um, and so we just had to, you know, Like tick all the boxes. Um, and that’s, you know, it’s hard.

Tracey: I’d won’t buy it. We had to hire a legal scrivener just to make sure all that paperwork was done. My life is too short to deal with Japanese, um, Japanese form for learning. So, um, Yeah. So we did all of that. We got licensed with them. Then we were able to access a lot of the, uh, a lot of the infrastructure that’s open to legitimate small businesses.

Tracey: So, you know, subsidies and marketing, you know, marketing opportunities and working with the travel and tourism board, all those sorts of things. When you move, when you have that mindset shift of moving from, well, I’m, I’m, you know, I’m an Airbnb host to, uh, I’m a small business owner and I, and I run short term rentals and these are the people that I’m serving and this is what I’m delivering.

Tracey: It just is a game changer. Um, and then you then put the tech stack and all the other things in place to meet that, to meet that mission. 

Gil: How have you seen, so you’ve been hosting for 12 years now. Oh, how have you, besides the regulations, how have you seen things change, um, in your area? Or even as a host.

Tracey: Sure. Well, like I said, I think it’s really good that it’s, there’s a lot more professionality in the business now. So, um, people, it’s a mature market, uh, people are creating and the people who are doing well are the ones that have a, have a solid product, a solid brand that have a solid, um, you know, level of service and it’s, it is, it is actually niching out.

Tracey: So, you know, there’s a very big distinction price wise and also look and feel to the premium end and that luxury end right through down to the, you know, the dormitories and the students at the budget end. And that’s healthy. I think that’s very, very healthy because then you know where you fit in that, in that business and you can really dial into, um, to your customer.

Tracey: Um, and you don’t then have to. You don’t have to worry about anything else. You can really 

Gil: focus 

Tracey: on your brand and really focus on your customer because there’s enough business. You don’t have to sort of figure, think, Oh my God, I have to accept everyone because I’ll be broke. It’s like, actually, no, there is enough business for everybody at every level.

Tracey: Um, and you’ve only got 365 days a year to fill. So you would make sure that you’re full with the right customer for your product. So yeah. 

Gil: Nice. Nice. Um, Talk to me a little bit about, um, how you went into your, your direct book, actually rewind back a little bit. You take things a little bit differently. Um, you spend, we talked to earlier, you, you, you talk a lot about the community.

Gil: How you treat your guests, just your mentality on being a host. Do you mind spending a little bit of time 

Tracey: just talking 

Gil: about your, not your methodologies, but like just how you think about being a host? 

Tracey: Well, I think it’s very local and I think having a unique point of view. So what I’ve really dialed into is what I’m selling and what I’m selling.

Tracey: And what people are buying is a local experience in Tokyo. So they’re not buying cheap accommodation. They’re not just buying a place to stay. They are getting a window into a different lifestyle. Um, and that’s what I’m selling. So I give people every, so I really know my customer. And I know what they’re needing.

Tracey: So I of course have anticipated what they’re going to need and I’ve solved those problems before I even realized that it is a problem. Um, and I also know what else they’re likely to want to buy. And so I’ve, Collaborated with a lot of other companies that I feel are in alignment with my values and my customers values and brought them into a, you know, like again, an extended product.

Tracey: So people are coming, they’re going to be looking for tours, they’re going to be looking for transport or, you know, babysitting or translation. I’ve got a solution for all 

Gil: of 

Tracey: those problems in advance. So. And of course, then I’ve pre written all of the, you know, answers to the questions that I’ve always had.

Tracey: So that makes my workflow a lot easier, but also it, it allows the guest to really feel seen, to really feel understood, and to really feel, Um, and so that’s always been my goal. Um, it’s not just, well, here’s the case. See you later. Like, good luck. It’s like, well, we’ve been here, I’ve lived here 25 years. I know the challenges that you’re going to see.

Tracey: Um, and I know the things that you’re going to want. Um, and. You know, here it is from my point of view. Um, and then, and I hope that that’s also what you need. So, uh, it just gives people a base. So I give tips on great restaurants that are local and where they’re going to be treated really well when they walk in the door.

Tracey: Because some places are still not very open to foreigners. Um, a lot of, a lot of restaurants, especially if they’re traditional or they’re, they’re run by people who are a bit nervous, they’re worried about language. they’ll get turned away at the door. Um, and so that’s not a great experience for guests.

Tracey: So I direct people to the restaurants that have an open door policy for, for, um, for visitors. So, you know, um, hopefully my guests feel that You know, I’ve got their back and, and I want them to have a great time because it’s only really short, right? They’ve only got a short amount of time. Often they’ve been planning this trip with their kids for, for a long time.

Tracey: They want to maximize everything. And I want to make it as simple as possible. 

Gil: Yeah. Yeah. That makes a lot of sense. Especially I think like from what I know from Japanese culture and I, we’ve been to Japan ourselves too. There’s a big contrast with Japan and the culture there. And even like the Western world here, there are just things that you would do differently in Japan that you wouldn’t do any elsewhere and vice versa.

Gil: So it makes a lot of sense how you mentioned that you try to anticipate those needs than those ones and what they’re looking for. Yeah. What’s your delivery mechanism? How do you actually convey that to your guests? Are you doing guidebooks? Are you delivering messages at very discrete times and places?

Gil: How are you, how are you actually executing on that? 

Tracey: It’s always a journey. It’s always trial and error. Um, and it’s just built up over time of knowing. So there’s, there’s a couple of answers to that question. First of all, I’ve really mapped out that guest. journey. So from booking, so from interest, this is my marketing hat going on here.

Tracey: So from interest to conversion, to, you know, to making the booking to knowing how excited people are when they first book through to the housekeeping things of, well, I need your idea at this particular point I need, you know, for, for my compliance. So at each stage of the guest journey, um, I, I know what people I’m needing and also what I’m needing.

Tracey: And so those things are automated wherever I can. Um, and then, um, with, so first of all, things that I’m anticipating their excitement, so when they’re booked, when they’re first booked is when they’re first excited. And then I’ve met, you know, cause they’re, Look through everything. And okay, I’ve made a decision and I’ve booked like on a book now.

Tracey: So that’s a big load off their mind. So then I hit them with, well, now that you’ve booked, we’re really, we’re thrilled that you’ve come, that you’ve chosen us out of all your choices. Now, how else can we help you? Here’s a link to what I think are some great tours that you can look at, here is a, and I actually have a, I’m redoing this now though.

Tracey: Um, link page of all the links that I think are useful for people. Um, and then a bit further along, but closer to, we get people booking well in advance, I get people booking 12 months in advance, so I have a lot of time and then usually like seven days beforehand, I hit them with, well, You’re coming. We’ve got a bit of like housekeeping to do so.

Tracey: I need your names and you’re like all your passport details and all that stuff for my legal requirements. And then by the way, do you need a phone charger? So again, I’m making money on that. Like, do you need a phone like SIM card or a portable Wi Fi and use this, use this code and you’ll get a good deal.

Tracey: Um, and so at each stage of anticipated. What needs to happen? Cause if you give everything too early, you’ll overwhelm people and they won’t hear anything and then they won’t give you what you need. So you’ve just got to drip it out. Um, and then I also have a bunch of, of like set replies based on what I know people asking for.

Tracey: So where do I store luggage? How can I do an early check in all of those things? I’ve got prewritten in a friendly. I make sure that it’s very accessible. It’s very friendly. It’s very helpful. And it’s not very like, you must listen to my rules. Like, I think a lot of hosts. because they’ve had problems.

Tracey: They then become very draconian about like, you know, someone else made mistakes. I’m going to stop you from making that mistake before you’ve made it. And then before long you, you have this communication style, which is very unwelcoming. So I have the belief that people want to do well, they want to behave well, they want to do the right thing.

Tracey: You just have to give them the tools to thrive. Um, and, and, and also not be. You know, not be daddy, you 

Gil: know, 

Tracey: behave yourself, clean your room. No, no, we don’t, we don’t do that. We, we treat people as adults and we just help them along the way. 

Gil: That’s awesome. That’s awesome. And I’m guessing that that, that went through after hundreds and hundreds of hosts and guests coming through, you’re learning what the questions are, what they’re asking for, where they’re having issues.

Gil: Do you do any. Post checkout surveys, or how do you learn from where does that feedback loop come from? 

Tracey: Yes, we do ask questions. Um, I’m also of the belief you have two eyes, two ears, one mouth, use them in an order, listen. Um, and I think that’s really, that’s really useful, um, to, to listen and actually listen with empathy.

Tracey: Um, And because, you know, people are nervous, right? People, you know, and they’re, they’re coming to you with your concerns. So you have to sort of treat that with respect and think, okay, well, that’s their, they have a problem. It’s a problem for them. You know, I can’t just dismiss that as well. There’s nothing right.

Tracey: I can’t do that. I listen, right. Okay. Well, how can I make that part of the story? How can I make that part of the journey easier? Look, there’s always going to be Muppets. Don’t get me wrong. There’s always going to be people that don’t read anything that are going to be disrespectful. So I’m not, I’m not speaking to them.

Gil: I’m speaking 

Tracey: to the people, to my ideal guests who are looking for, looking to, you know, really have a great time and be respectful and, and learn about another culture. So I’m, that’s what I’m giving them. Um, And that, that feedback loop. Yeah, I, I, I’m still doing all the guest communications, believe it or not.

Tracey: Um, and as well, and people might be really surprised at this, we meet every guest. 

Gil: We check, 

Tracey: we check them in. Um, and yes, that’s an investment in time and, and staff, uh, and when you’ve got 30 properties, that’s a lot. 

Gil: Right. 

Tracey: For us, we have built that into our cost structure. We’re not the cheapest, we’re not the cheapest place in town.

Tracey: We don’t want to be the cheapest place in town, but we give the best, we give more value than what people are paying. And, um, So, we know that our guests mostly arrive by plane, usually at night. They’re tired, they’re overwhelmed, they’ve got kids with them, they’re hungry. So, what we do is give a friendly face, here it, here it all is.

Tracey: This is how, like, you know, this is how you use the air conditioner. This is how you turn on the bath. This is how you use the stove and, and also, you know, let’s get you, let’s get you settled with your internet and everything. And then, um, and then 

Gil: let them rest, 

Tracey: right? So you can’t, again, you can’t just sit them down and go, you must do this.

Tracey: You’ve got to, you know, you’ve got to, um, have that, Um, you know, have that level of empathy that you can see how people are feeling and then allay their feels because when you, when people have arrived, you see them, they’re so stressed, so stressed, but when they see you, they, their cortisol go down, goes down.

Tracey: They just, that stress just drops. And that is what people remember. They don’t remember how much they paid, but they remember how you made them feel. So, 

Gil: yeah. Yeah. I, in the back of my mind, I’m, I’m trying to plan a trip with my wife right now to, to go to Japan. And like, I think what I think you’re alluding to, or you’re speaking to is, it’s not just about the property.

Gil: It’s not just about the stay itself, not the structure. It’s really about how do you give them a really good stay? In the local area. And I think if you were my host, I would feel really comfortable traveling to traveling to a very new place that has a lot of norms that I’m not used to or a lot of things I might wanna experience that I, I need to go and do my homework on.

Gil: So I, I think like to, like, I think to your credit. The 12 years have added a lot of wealth of information for you to make sure that you’re keeping a really high bar in terms of what you want to deliver to the moments that you want to deliver to your guests. 

Tracey: And it is a balance between being annoying.

Tracey: Being of service. So you do have to strike that. And also you’ve got to protect your own, like, you can’t be a people pleaser and like just be at everyone’s beck and call. You have some fairly strict boundaries as well. So, so there is that, so yes, we meet everybody and we give them the information, but hopefully we’ve given them enough information to help solve their problems.

Tracey: Um, you know, but of course there’s always going to be something like a guest yesterday, didn’t know how to turn on the shower because they’d press the wrong button. So. So you still have to be available for that, but, and it’s, it’s not a, it’s not a, and I think that’s the thing I want to stress to people is that it’s not a passive job, if you’re doing it right.

Tracey: And if you want to, because you know, we’re very focused on, on, on profit, you know, we, you can have a business where it’s heart centered and guest centered and full of integrity, but. That can also be profitable. Um, and then nothing wrong with that. So don’t feel like, you know, so I’m very comfortable with charging the amount that I do because I know the value that we’re giving.

Tracey: So, yeah, so we’re not people pleases, you know, we, we offer a very high level of hospitality and missed experience, but we also are charging what our, you know, what we feel is a really good exchange of, um, you know, exchange of money for service. Yeah. 

Gil: Yeah. Yeah. Uh, I want to transition a little bit to talk about what I, what I really want to, uh, like have you really convey to our listeners is really how to, how you think about direct bookings and you mentioned something very interesting right now about mapping out the user journey.

Gil: Thank you. You have two steps in here that most folks that are on Airbnb don’t really consider or primarily on Airbnb. You mentioned interest and conversion as the two first two steps in that journey before even any of the booking stuff. What did you mean by that? What are those two phases for you? 

Tracey: Well, first of all, you’ve got to stand out from everything else.

Tracey: Even if you are only on Airbnb for starters, right? You, you still need to, um, optimize that listing to jump off the page. And that obviously, you know, you want to have a unique point of view. You don’t want to be generic. And I think when you’re generic, you’re in a sea of living room photos, or you’re in a sea of bedroom photos.

Tracey: A potential guest will go only to price. So what you, what you want to do is show your unique feature, your something that’s going to jump off the page. Like what is it that your guests in the past have told you is the reason that they went, they decided to book with you. So there’s that. So you, first of all, you’ve got to get that interest.

Tracey: Um, and that’s to do with title. Obviously you, in a search, whether it’s direct booking search or whether that’s on there being like a OTA search, you’ve got to obviously be up high enough and there’s a few tips and tricks on how to do that. Once you, once you’re in that sea of photos, you’ve got to be able to have a great You know, a great title, something that’s speaking to the speaking to your ideal guests.

Tracey: Um, then once you peak their curiosity and then they tap on that, they tap on the photo to see more of the photos. Um, you’ve got to convert them based on, um, based on what they’re looking for. Um, and there’s a, there’s a flip side of that coin as well, because if you’re trying to specifically target a type of demographic or a type of buyer, then They need to see themselves in those photos, but it also helps when the person who is not your ideal guest doesn’t see themselves there because they’ll self select away.

Tracey: It doesn’t mean they’re bad people. It’s just that they’re not, what they’re looking for is not what you’re selling. So, you know, I’m just giving an example of, um, let’s say that, You have someone who is allergic to just getting random thing. If you’ve got someone who’s allergic to cats, they might be a lovely person, but they’re allergic to cats and your property has a cat or is pet friendly or you really love, you really love cats, um, and make cat people like cat people.

Tracey: Right. So, and, and if you show photos of like Cats or you’ve got, um, you know, you’ve got a cat themed, um, doorbell or a cat themed like linen on your bed, a dog person’s going to look at that and go, yeah, not for me and self select away. Doesn’t mean that person is a bad person. It’s just that they’re, they’re, they’re not right for what you’re selling, but a cat person will go, yes, I want that.

Tracey: And they’re not looking at price. They’re going, yes, I want that. And they’re going to, they’re going to keep looking at that to make sure that this is in alignment with what they are looking for. So being very clear, and I’m just using cat person and dog person as a, as a, as a metaphor, right? I mean, it could be like a luxury guest and a budget guest, right.

Tracey: It doesn’t, you know, or, um, you know, someone who loves antiques versus someone who really loves, you know, modern architecture. I’m just giving those extremes. So what you don’t want to be is generic. You want to really be like, you know, loud and proud about your brand and what your values are. Um, and so I’m also really, you know, I’m also really careful about sustainability and also inclusion and diversity.

Tracey: So, everything. I have a lot of LGBTQ families and I make sure that if someone lands on my page, they know that my house is a safe place. That’s really, that’s really important to me. Um, you know, I look after families. Now, if your family has like, you know, two moms, two dads, whatever, I, that’s not a problem for me.

Tracey: Um, it’s, it’s because you’re a family, there’s a certain cadence and rhythm to family life. I know what that is and I can, you know, and I can, I’m anticipating your needs. Um, But so we get a lot of LGBTQ families. So because, because I have that as a value in my bio, um, you know, I talk about, I talk about my values and the company values, and at the same time, if someone who’s like, Oh, I’m not, you know, I’m not interested in inclusion and diversity, that’s fine.

Tracey: We’re not in alignment. Doesn’t mean you’re a bad person, but you don’t feel comfortable renting from me and I don’t feel comfortable like renting to you. So we’ll just part as friends. And so I think that’s really important. 

Gil: That’s a really good tangible example. I, I like that a lot because that’s, that’s not something as, as Jose you really think about.

Gil: Um, but. I think that’s amazing that you thought about the different guests that you have in there and really making sure that the guests feel at home, um, and even down to inclusion as well too. So I absolutely love that. 

Tracey: Sustainability is another one. It’s a really big selling point. If you have sustainability values that you have built into your business, as in.

Tracey: So I work, I encourage people to take their own water bottles. And there is an app in Tokyo where you can find places where you can fill up your water bottle for free. And I tell people about this. And so that’s so that people who are like, who, this is a really important value in their life. Can recognize that I’m a kindred spirit and they’ll go, yes, I want to, I want to, I want to pay my hard earned dollars to, to, to Tokyo families days because they understand our values about sustainability.

Tracey: So again, that’s, um, you know, that’s another way to build your values into, into your business. And, you know, you don’t have to be overt, just, you know, it’s, it’s, it’s subtle, um, because you do want to, you know, you can deliver your hospitality To anyone who, who aligns with what you’re selling. 

Gil: Yeah. 

Tracey: Yeah.

Gil: Switching gears just a little bit on the more of the tactic side. So, um, what are, uh, how’s your direct booking set up right now? What do you, how do you drive traffic to your direct booking channels? 

Tracey: It takes a lot. I won’t lie. It’s taken a long time. So it’s, it is a long game. It’s a marathon. It’s not a sprint.

Tracey: So I’m very careful about the things like the SEO. Um, but you won’t come with the thing is I have that alongside, but you’re not really going to get a lot of organic searches. Um, I’m getting them now. After all this time, but it’s been, it’s been hard. I get a lot of repeat bookings. So of course I collect all email addresses.

Tracey: Um, and I wish, I wish, Oh my God, I didn’t collect email addresses for the first five years, did not. And so all like thousands and thousands of customers that, that, um, that are now back into the wild who. who don’t know my brand. So I wish I’d started collecting email addresses from day one and I nurture those people.

Tracey: So I’m not spamming them. I sent one newsletter a month and I know what my guests are wanting. So my newsletters are very Newsy. They talk about my life in Tokyo with my family because my family is a is built into the brand. So when you rent, you know, you’re renting from Ashley and Tracey and you know, he is next when he graduated from high school.

Tracey: That’s interesting for people, right? That’s interesting because you know, what’s it like for a kid to go to school in another country? So I try to give that sort of snippet of our life. Um, and it’s not just the pretty Instagram reels. Um, it’s, it is, you know, it’s real life or, you know, we went to this museum last week or, you know, I give people.

Tracey: interesting facts about just little local, um, sweet things that are, that we see. Um, and then of course my newsletters are, um, you know, this is because Japanese people love the weather, right? So I talk about how the weather has changed and these are the things that are great to do in June. Um, and then, Oh, by the way, we’ve got a new house that’s open.

Tracey: So it’s not sell, sell, the trick to email marketing is What do people do when they open emails, right? What do they do? They get up in the morning, they scan through their email box. They’ve got their fingers hovered over the mouse. What can I, what can I delete? What can I delete? What can I delete? And I, and if you’re not giving them things that are interesting, they, you will be deleted before people open.

Tracey: So the trick to opening things is remembering the mindset of people read emails, people open emails, To waste time. They’re avoiding work, they’re avoiding work. They are hovering over their email going, Oh, you know, I’m not going to do that now. I’m not going to do that now. I don’t have to, I don’t want to do that job now.

Tracey: Let me procrastinate or let me dream about a trip to Japan. Let me dream about a vacation. So I give them something that they going to open because they’ve got to know over the years that I’m going to give them something where they can, you know, Learn something new or dream about a holiday or, you know, catch up on what Tracey and Ashley have been doing, whatever.

Tracey: So I think that mindset of, that’s what my newsletters are all about. And then people share them and, and the rest of it, it takes time. The other thing is, of course, um, I’m very proud about my brand in my community and I’m not shy about what I do. So, um, yes, I’m on all the Facebook groups and when people go, you know, I’m in the groups where, um, people are talking about planning their trips to Japan.

Tracey: And I have arrangements with a lot of the admins of the big ones of the big groups where I’m, if someone is talking about accommodation or whatever, I’m allowed to. tap into that and say, Hey, you know, blah, blah, blah, blah, whatever. And we’ll answer their questions, help them out, be of service. Um, and then people get to know that you’re not a spammer that you’re like, you’re really interested in helping people out.

Tracey: I also have arrangements with the, if they use a particular code, then that person gets a little, you know, they book directly, then they get a little, um, kickback. Um, It’s a lot, it’s a multi pronged thing. I also have relationships with companies that bring a lot of contractors in to 

Gil: town. 

Tracey: Um, and, and so I, I, you know, I take the HR department out for a coffee and have a chat and who’s coming to town, how can I help you?

Tracey: So standard, you know, like rubber to the road, marketing, you know, relationship building. It’s a lot about relationship building. Um, I also, my PMS connects up with Google vacation rentals. 

Gil: Um, 

Tracey: I believe that Google is really going after the vacation rental market. Um, and going really after Airbnb, so I’m getting a lot more bookings that way.

Tracey: And I’m on, I’m everywhere, I guess. And it’s my, it’s not me that’s everywhere. It’s my brand and my brand values that are everywhere. 

Gil: Nice. What’s your, what’s your, uh, split like now, how much of your revenues are coming from the major OTAs now? 

Tracey: Well, it depends because I’ve got, I’ve, I’m doing a bit of a hybrid, so I’ve got the pure vacation stuff.

Tracey: So they’re the ones with the hotel licenses and the, the short-term rental licenses. Um, it’s called KU here. Mm-Hmm. . Um, but Miku is only 180 days a year, so I have to go after those contractors to get the, you know, to get the monthly bookings to fill up. The other six months of the year is a slightly.

Tracey: Lower cost, you know, slightly lower revenue, but it’s, it’s, it’s nice and regular. And then I use the short term rentals to fill up the calendar. Um, And so I spent a lot of time chasing after those digital nomads, um, the contract workers because the, the vacation rental stuff just now is sort of ticking, ticking along.

Tracey: Um, and so I’m about, I guess I’m about 30 percent like monthly, like mid stay, mid stay bookings about 30%. Um, You know, Airbnb and then about 30 percent direct because a lot of those direct bookings are repeat bookings as well. I’d like to nurture people. Um, you know, as soon as someone’s booked with me, they’re on my mailing list or, and, and I get, and also Japan’s a place where people just come back year after year.

Tracey: And it’s wonderful. Cause I get to see the kids grow up and we have the relationships and we, you know, we have the dinner it’s. It’s, it’s kind of nice. Yeah. 

Gil: That’s, that’s a very healthy mix. So that’s, that’s, that’s, in my opinion, that’s like a really good mix where after a couple of years, if you’re able to strive towards that, you have a very sustainable business.

Gil: You’re not at the mercy of any one channel, any one platform. 

Tracey: Yeah. I mean, look, I’m, I’m, you know, a lot of people have this sort of love hate relationship with the Airbnb and booking. com for example, it’s, it’s, and, it’s, they are though that the, they spend so much money on marketing. They have such a top funnel and they have such a brand awareness in the market.

Tracey: So, you know, you can’t, you can’t not have one of them as a marketing channel. Um, again, it’s a mindset thing is like, they are one of my marketing partners. I have a number of them, but at the end of the day, I run a business. These are my values that my staff know that they’re working for me. tried to train everyone around me to, to, to say, instead of saying, Oh, Tracey has Airbnbs.

Tracey: It’s like, Tracey has a short term rent. It’s it, I know it’s subtle, but no, it’s subtle, but yeah, I, I really am on a mission. It’s going, it’s, you know, some, because Airbnb has become a verb, it’s come a noun and a verb and, um, like Kleenex and, you know, Xerox ox and all of that. And, and like, okay, we, we just, you know, you can’t fight against it.

Tracey: You just have to, you know, keep your identity within that, you know, within, within that, um, infrastructure. 

Gil: Yeah. What’s your opinion on folks that are maybe two, three years into their hosting? They have a handful of properties. Mm-Hmm. . Should they be going into direct bookings or is this something that. You, you should do when you scale, like how, what’s your opinion on that?

Tracey: Always. I always think it’s a great idea to have, even if it’s just a one page, like a one page site, because it’s your brands. Like, you know, you don’t work for Airbnb, like you work for yourself. Look at all the, look at, and be proud of the things that you’re achieving for your family and also your community.

Tracey: Um, we, you know, have that brand that, that, you know, You can, you know, you can tell people what you do and they, and They can recognize instead of, sometimes I think people go, Oh, you’re just an Airbnb host. And I really push back on that. Like I run a seven figure business. I employ lots of people. I, and I’m self employed.

Tracey: I’ve built a house. I have like, you know, I’m doing good and I’m proud of what I’ve done. So I’m not going to let that, you know, let anyone diss me for being a, just an Airbnb host, like nah. So that’s, what’s great about having your direct booking website is it’s like, this is what I do. These are the customers that I make happy.

Tracey: And I sleep really well at night knowing that I’ve, Being a part of memories of families all over the world who are very grateful that I’ve done what I’ve done and that that’s a really nice feeling so why not be proud of that and Yes, I’m having that direct booking website having that brand having your personal values loud and proud and Rather than aligning yourself with another company values, right?

Tracey: And so it also helps your staff, staff. It helps when you’re hiring staff to make sure that they’re in alignment with your values. And a lot of my staff have been with me 10, 10 years. Um, they’re, they’re, they’re part of our family and they, they know what we’re doing and we have our cleaners are, you know, our cleaners have our backs, right?

Tracey: They’re there because they can help us. manage some of these things. So we have a team relationship. I’m not in there going after a cleaner going, Oh, you’ve missed that hair and you’ve missed that hair. It’s like, no, no, no. We don’t have that. We have, we’re, we’re on all of this together. We’re delivering a service for our paying guests.

Tracey: And you know, uh, that just then blocks out a lot of the other noise. 

Gil: Yeah. Yeah. It’s, it’s almost like on the, on the outside, what you’re trying to do is really convey that brand of what you’ve built, but also internally you’re conveying that you’re a business and you’re not just doing this as a hobby.

Gil: You’re not just doing this as an investor trying to maximize revenue. You’re actually building a sustainable business around this. 

Tracey: We’ve got customers who love us. Um, and, uh, yeah, we, we, like I said, we bring money to other companies in the, you know, other, other businesses in the community. It’s, it’s, um, you know, it’s, it’s a full, it’s a full business.

Tracey: Um, and. you know, and there’s nothing wrong with being proud about your brand. Um, nothing wrong with that at all. I mean, um, uh, there was something else I was going to sort of remember, but, um, but it’s escaped me now, but yeah, but having, you know, being very clear about your brand is, is what’s really, you know, um, I know that I’m teaching my child, um, you know, about that and about how to, to recognize, you That you’re doing something good in the world, you know, without getting too will and whatever, but yeah, um, yeah, we’re making money, but we’re also, you know, what we do is valuable to people.

Gil: Yeah. Yeah. I’ve known, only known you for a little bit, Tracey, but I, the one thing that I kind of gather about your personality, your character is there’s so much authenticity. About your character, the way that you think about the values that you have for your employees, the values that you have for your guests, your community.

Gil: Um, I love that on this authenticity from you. 

Tracey: Thank you. I try, I try it, you know, I’m, I’m in my fifties now. It’s, it’s been Jenny, right? So, you know, I’ve, I’ve been through lots of sort of, um, uh, visions of myself and. Where I am now, um, you know, I’m okay. I’m like, I’m, I’m proud of what I’ve built and I’m proud of my history and I’ve got no regrets.

Tracey: I’ve learned a lot along the way. A lot. 

Gil: So I think, I think, I think you’re more than okay.

Gil: Tracey, I usually end with two, two questions. I think this is a good time to transition to it, to that. The first question is what’s that one piece of mindset advice that you would give to someone that is starting something completely new, 

Tracey: sit down a journal or a journal or whatever, and actually figure out what your values are.

Tracey: What’s important to you? What, what’s your why? Um, yeah, you know, making money and everything is, is. Is, is wonderful. But why are you doing it? What’s important to you? And, and actually figuring that out and having that as your core. And then every other decision becomes. easy because you’re not copying anybody else or you’re not, you know, you’re not, you know, not living someone else’s life.

Tracey: You’re actually building and designing a business based around what is important to you. So, yeah, 

Gil: that’s, that’s awesome. So reminds me, reminds me very much about the Simon Sinek start with why 

Tracey: I love, love, love that video. I love it. 

Gil: Um, all right, the next question, the last question, um, what’s the one big takeaway for STR operators that you would want them to gather from this episode today?

Tracey: Nurture your guests, nurture them, um, and see them as people. Um, yeah, so recognize that Taking care of people where they sleep is actually a really big responsibility and a really big privilege. Um, and their money is, is an exchange of that trust. So take that trust very seriously. 

Gil: I love it. I love it. All right, Tracey, where can folks find out more about you?

Gil: Stay up to date. Book with you. 

Tracey: Well, there’s two things actually. First of all, you know, I know I’ve really gone into sort of the vision and the authenticity and everything. I actually have a journaling prompt. It’s a product. I think it’s like 15 or 80, right? It’s a PDF that you can download that you can actually figure out your company vision for yourself.

Tracey: Um, and you can download that and I’ll give you the link. So. That’s how you can figure out your business for yourself. Shameless plug. Um, but also Tokyo family stays. Um, so that’s, you know, if you’re coming to Tokyo, you know, someone is coming to Tokyo, uh, see if it’s a good fit. Right. So it’s. Some of my places aren’t for everybody and that, and I’m okay with that.

Tracey: Um, I, I tell my family and friends that when they’re coming to town, it’s not compulsory that you come and stay in one of my places. It’s not you, you do you, and like, it’s your holiday. You’ve got to make sure that you maximize your goals, your travel. Um, so that’s Tokyo family stays. And also the Tracey Northcott consulting is, um, is, uh, where I, you know, Help people figure out what their, you know, what their mission is and what their, what their brand is 

Gil: before we end, talk a little bit more about what you, you talked a little bit about your specialization, but as part of your consulting, what do you, what do you do there?

Tracey: I’m mostly working with, so. During the pandemic, when the Japan borders were shut, um, I was mostly working with people abroad. Um, um, and I sort of found, um, the hospital host community. So these are also hosts all over the world who have that sort of passion for hospitality. And, you know, there’s a book and there’s a couple of books and there’s a community.

Tracey: So I’m, you know, I, I love hanging out with these kindred, these people who they’re so awesome. 

Gil: They’re so awesome. 

Tracey: Yeah. So share these values. I mean, and there’s, there’s people like me all over the world and that’s like, that’s really nice to know. Um, and, um, what was the rest of your question? Cause I was getting all 

Gil: your focus for your consulting company.

Tracey: Oh, and, but, but recently, um, Japan, the Japan market is just so hot. Um, I don’t, I don’t know if you’ve seen a lot of the, the YouTubers that they’re buying and they’re buying, they’re buying these cheaper. There’s these cheap houses in the countryside and they’re renovating. And of course, they want me to teach them about the licensing and they want me to teach them about like how to maximize their profits as well as give like a unique stay.

Tracey: So, um, I’m working with a lot of, actually after this call, I’m, I’m going out and doing a site inspection of someone who’s bought a property and they’re like building their brand. And, um, and, You know, I get to play with houses, so that’s fun for me. So, 

Gil: yeah, 

Tracey: I get to play with houses and then they can, then, you know, then they can take my advice or not.

Tracey: Right. So this is what I think is a great choice for them. Um, but is again, trying to draw it out of them. Is this in line with your values? Is this in line with what your vision for your business is? Because there’s no one right way to do it. There’s no one right way to do it is, is there’s your way and, you know, trying to copy another person is just not very authentic.

Tracey: Um, but it’s hard. I won’t lie. It’s, it’s, it’s hard to get to that place. So getting coaching, whether it’s me getting other people, getting coaching to actually figure out the essence of your business is, um, is really key to like a robust and long term strategy. 

Gil: Yeah, yeah. And we were talking previously, you make it very approachable in terms of your coaching as well, too.

Gil: You can do hourly coaching, if I remember that correctly. 

Tracey: Yeah, and I can also audit, audit you, like your listing as well. Like, are you putting your best foot forward? Who are you attracting with this, with your listing? Um, Because it’s, you know, marketing is, is hard because you spend, you have to wear all the hats, right?

Tracey: When you’re a host, you have to set up the house. You have to take care of the cleaners. You have to do, or like do the decoration. And then you have to think, Oh, how am I going to sell it? So it’s completely different, um, like disciplines. 

Gil: Right, right. Right, Tracey. It was really good having you on the show.

Gil: It was really good spending another hour with you. I’m very blessed to have that time. Um, 

Tracey: thank you for reaching out. I appreciate it. 

Gil: Yeah. I’m glad we met man. 

Tracey: Yeah. I hope that your listeners, your, your watches find value in this. That’s my goal. So I’m going to get a little nugget and they’re able to sort of tweak their business.

Tracey: Then, you know, my job’s done. 

Gil: Yeah, I think what I gather from this show specifically, it’s, it’s not just about the tactics, but it’s really about the mindset of how you think about your guests and the journey that you want them to have. Um, and that carries to. On the OTAs, but it also carries off the OTAs as well, too.

Tracey: Yeah. You don’t have to, you don’t have to drink Kool Aid. You can have your own brand and then just use them, use the OTAs as a, as a way to find your customer. So, 

Gil: yep. Awesome. Thank you, Tracey. Can’t wait to have you back. 

Tracey: Anytime, anytime. 

Gil: Bye. 

Tracey: Bye.