In the early days I impressed guests with my attention to hospitality, clean design and great upkeep of my first home. Many of these first guests ended up buying property in LA and asking Open Air Home to manage their home, and my business grew by word of mouth.
The degree of upward mobility available within the ecosystem of Airbnb is not something I observe within Uber’s ecosystem. Uber monetizes a drivers time, and sure a driver can impress people with their service, but unfortunately, this driver has little chance at upward mobility within the Uber ecosystem. One of the long term potential successes of Airbnb is its ability to attract hosts who too are looking to not just survive, but thrive financially and grow a business.
Open Air Homes’s Shared Revenue Model
At Open Air Homes, we have always relied on the shared revenue model vs and arbitraged lease model. Simply put, we partner with homeowners who wish to share in the success when we rent their property out. We do not have a lease in place where we arbitrage the rental difference, and we have proven that this approach is less risky and leads towards a long term viable business built around joint success.
Open Air Homes has never believed in or agreed with the principles of the arbitraged lease model. I get into all the reasons why I believe the shared revenue model is better for the industry at large here. By sharing in the success with our homeowner partners, Open Air Homes has an incentive to prevent bad actors from trying to squeeze every available dollar out of a rental home.
We utilize a shared revenue model when partnering with our homeowners, allowing us to succeed only when our homeowners do first. We work with each of our homeowners throughout the onboarding process, to ensure that every home is up to our standard of comfort and design. We offer an elevated hospitality experience 24 hours a day along with unending access to our customer service line for all guests.
The Next Modern Version of a Hospitality Company: Open Air Homes
“The next modern version of a hotel company will be some form of Airbnb, and what they are are completely technological on the front end, so the consumer interface is completely tecnologicial, but on the back end there is no financial engineering to be done because they’re asset light. They’ve completely put the responsibility of the actual real estate into the hands of individuals and many many individuals who then just do it for themselves” (Chamath Palihapitiya from Social Capital speaking on Kara Swisher’s NY Times Podcast Sway, Nov 15th 2020).
At Open Air Homes, we view ourselves as a hospitality brand that also does property management. We are looking towards the hotel industry for inspiration as we set the standard for short term rentals of the future.
We are just getting started, and would love to hear from you about your expectations when staying in a rental home, and the techniques you are adopting as you work to impress each and every guest coming in your home.