Friday, September 22, 2023

Understanding social group journey | Revinate

Karen Stephens: Good day and welcome everybody to the Lodge Second podcast. I’m your host, Karen Stephens, the CRO of Revinate, and I’m very excited to be joined as we speak with Philip Bates. So, Philip Bates is the CEO of TMC Hospitality. Welcome, Philip.

Philip Bates: Thanks, Karen. It’s a pleasure to be right here.

Karen Stephens: It’s very thrilling. We’re into 2023. You’re the first podcast visitor of 2023, and we’re able to rock.

Philip Bates: Superior. It’s an honor, and um, I’m glad to be in 23.

Karen Stephens: Yeah, proper? 2022 was an attention-grabbing yr, uh, I’m positive for all of us. Um, yeah, and we’re gonna soar into all of that good things. I do know we’ve got quite a bit to speak about. Uh, however earlier than we get to that, I’ve 5 questions that I ask all of my company. So, I hoped we might heat up with these simply so all people will get somewhat bit extra of an concept of, of who you’re and, and what you do. Is that each one proper?

Philip Bates: Completely.

Karen Stephens: Okay, nice. So the very first query, uh, when did you begin working within the business, and do you bear in mind your very first day on the job?

Philip Bates: That’s an important one. Um, I began in 2013, and I really began shopping for, began by shopping for Airbnbs. And so my first day on the job was um, buying a home in Orange County, California. And I bear in mind form of strolling as much as the garden and being like, “What are we gonna do right here?” Um, and, and, uh, and, and it was, yeah, it was enjoyable.

We like transformed it, and we, we purchased FF&E, and we found out how one can promote it, and it was, it, it ended up being fairly cool. It’s a, it’s a superb reminiscence.

Karen Stephens: Wow. That’s actually cool. You recognize what, I even have an Airbnb myself. I’ve a, a cabin up in Tahoe, um, that I used to stay in.

Philip Bates: Oh, nice market.

Karen Stephens: Yeah, it’s implausible. But it surely’s, wow, that’s, it’s actually a crash course in income administration, and yeah. Um, hospitality from the bottom up. That’s nice. So what number of, how, what number of Airbnb visas did you find yourself with in the end if you began there?

Philip Bates: I had, uh, 30. I, I, uh.

Karen Stephens: Wow.

Philip Bates: Yeah, we, um, I, I, you most likely would’ve run into this in Tahoe.

Um, we actually acquired ’em going and, however then I simply began noticing like, “oh, wow, just like the cities don’t actually like this.” Generally the residents get bothered within the neighborhood, and in the end that, that form of simply took the love out of it for me as a result of I simply was like, “I don’t actually wish to be retaining my neighbors up at night time if some random visitor decides to be loud that I can’t management that.”

It’s somewhat tougher to maintain a grip on that when your rooms, your rooms, are form of disparate. However yeah, we acquired as much as 30. Um, at the moment I used to be really eager to get to hundreds, and go everywhere in the nation. Um, however I, I finished at 30, offered ’em, after which acquired into motels.

Karen Stephens: Wow. That’s attention-grabbing. And what was your first leap into motels? So how did you make that, that cross?

Philip Bates: Nicely um, so within the metropolis I used to be in, we, we had been largely in San Diego, Palm Springs, and Anaheim. And all of these cities, most likely much like Tahoe, like in 2013 and 2014, they had been very professional Airbnb. They had been incorporating the tax income into their future planning for the town, and it was a superb factor. However, very, in a short time, uh, residents began complaining. And so once I noticed that happen, I assumed, you recognize, I don’t understand how lengthy Airbnbs might be form of skilled year-round investments, and I’d wish to take the Airbnb product and form of put it right into a lodge the place you do away with the influence on the neighbors, however you continue to present that lodging that I feel is form of underserved within the, within the market proper now.

Karen Stephens: Proper. And I wanna get into that undoubtedly once we get into this, once we speak about social group journey. So we’ll put a pin in that for positive. We’ll come again to that.

Okay. Subsequent query for you. So what’s the most uplifting second to this point in your profession?

Philip Bates: Oh man, you, you could have good ones.

Karen Stephens: I do know, zingers, proper?

Philip Bates: The preferred I do know, um, in my profession. Um, I feel I, you recognize, uh, the, the, I feel, um, there’s quite a bit. Um, however one was fairly cool. We developed a lodge in Mexico and bringing my, uh, 2 sons to it was fairly cool.

They had been kinda like, “oh that is the place you’ve been going.” Like they, they, they only didn’t actually, they’re youthful. They’re form of like, they’re, um, on the time they’d’ve been 4 and 6, and they also, um,

Karen Stephens: Proper.

Philip Bates: I might simply disappear, you recognize, and so they wouldn’t actually know what I used to be doing. Um, and form of having them stroll round and just like the employees, you recognize, give ’em particular treats and issues like that. And, uh, that was fairly cool. Um, however, you recognize, the enterprise itself simply lends itself to plenty of actually rewarding moments since you’re at all times interacting with individuals, and you may make their days, you may make your staff’ days, you may make their vacation, you may make their, you recognize, household trip, et cetera.

And I feel that’s considered one of simply typically the particular issues about hospitality.

Karen Stephens: Completely love this business. There’s so many alternatives for that. That’s proper. Okay, so right here’s one other one. What’s your most hanging expertise to this point when it comes to meals or a keep or, or a vacation that you simply’ve executed personally?

So if you do get to spend time with your loved ones and take ’em, take ’em out. The place, what’s your, a superb second or a reminiscence that you simply’ve executed to this point?

Philip Bates: Oh, you recognize, um, we’re, we’re actually, my spouse and I, um, we, we like, journey is our factor. And so like all our discretionary spending goes into like journeys. And I might say it’s most likely a tie between, um, this type of beachfront villa we rented in Thailand the place um, simply the service was, was, insane. We had like somewhat punch pool within the entrance, and also you’re proper on the sand, that it was the softest sand I ever felt. It was like flour, um, in your ft. Yeah, identical to so soothing and, um, that or, or a, um, very, ornate, is form of the mistaken phrase, however simply very element oriented, uh, boutique lodge we stayed in, in Istanbul, um, the place, you recognize, as is frequent within the Center Japanese type of architectural and design, they only have, they’ll put 1,000,000, you recognize, small little tiles on one wall, and it’s simply so beautiful if you take a look at it each up close to and from afar.

So I’d say it’s most likely a tie between these.

Karen Stephens: Wow. These are nice. I like Istanbul. It’s considered one of my favourite cities. Um, yeah. As you stated, simply so stunning, visually, so stunning, and so attention-grabbing. Mm-hmm. After which the meals is unbelievable. Oh yeah. Yeah. And I like a seashore trip, so I’m on board with you for each of these. These are good.

All proper. We solely have 2 extra. They usually’re straightforward. They’re straightforward. This one’s tremendous straightforward. So have you ever met any celebrities whilst you had been within the trenches? Anyone come to thoughts to this point?

Philip Bates: Yeah, I’ve met a pair. I met, um, I used to be engaged on a, a lodge in Miami, and I, I acquired to hang around with John Legend for a short time.

That was cool. Um, and, um, who else would I’ve come throughout? Oh, really I had a very cool expertise in Nashville. There’s a, uh, um, a singer-songwriter I like named Peter Bradley Adams, and we had been form of internet hosting an occasion. After which, um, considered one of my associates was like, “hey, I wanna introduce you to my buddy Peter.” And it was like this musician I’ve been following for years and I had no concept what he regarded like.

And um, I acquired to satisfy him there on the property. In order that was fairly cool. I used to be like, “Pete, that’s superior.” Like, he launched himself with that title. And I used to be like, “that’s very odd you had launched like together with your center title.” And so I used to be like, “you’re not a singer, are you?” And he was like, “oh, yeah.” Anyhow, it was cool.

Karen Stephens: That could be very cool. That’s good. Ah, nice. Okay, final one. Who’re the ladies at work you’ve been impressed by? So do any girls come to thoughts, um, that you simply’ve labored with over the previous few years? Both, you recognize, straight or collaboratively?

Philip Bates: Sure, sure. Um, 3 come to thoughts. We’ve got an advisor named Glen Appel, who’s, who’s simply fantastic, um, girl within the business who, um, actually ties collectively plenty of skillsets that I feel are arduous to seek out in anybody. Um, she understands design and repair. She understands finance and form of growth. So she’s an advisor to our firm and, um, she conjures up me typically.

However I feel the one who most likely wins probably the most is our basic supervisor, Christina, um, our Drift Mexico property.

I really met her, um, once we had been having bother throughout building. I wasn’t pleased with our, uh, building undertaking supervisor, so I fired him. After which somebody launched me to her and she or he’s this like petite, very nicely dressed girl and, and, and the development world in Mexico, and there’s plenty of machismo and all that form of stuff, and she or he exhibits as much as the positioning in like Prada sandal or Prada, like slippers, and like whipped these guys into form.

Karen Stephens: Good.

Philip Bates: A lot in order that I used to be like, “hey, do you wanna be our basic supervisor, uh, afterwards?” and she or he did. And she or he’s been with us for two years now. And, and she or he, uh, she’s superior. She’s actually powerful.

Karen Stephens: Oh, that’s nice. I like that story. Implausible. All proper, cool. Nicely, thanks a lot for that. That was an important warmup. Um, so I’d like to get in somewhat bit extra. Inform us somewhat bit extra about TMC Group. So I do know you’ve acquired 2 distinct manufacturers in there, however are you able to simply give our listeners somewhat little bit of an concept of what the group is, and the manufacturers inside there?

Philip Bates: Yeah, for positive. So the explanation we form of funnel issues as much as TMC, um, is that we additionally do growth. So each considered one of our initiatives we’re both the only real developer on it, or we’re form of co-developing it. And, you recognize, that doesn’t actually have a lot of a model as a result of it’s largely an organization that simply form of buys and invests in property. Our consumer-facing manufacturers are Bode and Drift, and so inside TMC we, we primarily have, um, we’ve got a growth arm after which we’ve got branded lodge administration arm. Um, and to form of give {that a} blanket title, we name that TMC Hospitality.

Karen Stephens: Okay, acquired it. Bought it. And then you definitely, you talked somewhat bit about, it was actually attention-grabbing for me to listen to, um, that your background began with Airbnb and, uh, as a result of I had been studying among the quotes that you simply had about social group journey, so I assumed, “oh, okay. Nicely perhaps”, you recognize, to begin with, I used to be, I used to be gonna ask you anyway to outline for us what that was, however I feel now I’ve a greater concept. However please inform all people what’s social group journey, and the way do your manufacturers form of cater to that?

Philip Bates: Yeah. Um, nicely, social group journey, we kinda loosely outline it as events of three or extra who’re, who’re touring collectively.

Um, it tends to skew somewhat extra leisure, however, however we’re undoubtedly beginning to see an uptick in, in enterprise vacationers touring on this method, whether or not it’s to collaborate or to do an, an govt management offsite or one thing like that. And what we discovered form of in our analysis and in exploring within the Airbnb area is that, when you concentrate on the precise lodge, um, significantly in America, um, it was really largely constructed, like when you concentrate on Conrad Hilton form of going out and beginning Hilton and all that, it was, they had been constructed round, they had been constructed for the rich, and so they had been constructed for the touring enterprise individual. That largely, really a few of Conrad Hilton’s first ones, I feel from his e book, if I recall, had been like, virtually like hostile. It was like, a flooring with like beds, and like curtains. Like, take into consideration like a World Struggle 2, like hospital ward, form of virtually like that, proper?

After which like we upgraded to, you recognize, to particular person rooms, and, um, and nobody actually form of paid consideration to the social group. And I, and I feel issues like Airbnb, and HomeAway, and actually the web, and good pictures, and expertise actually form of unlocked this enormous phase of journey of people that wish to journey with households, wish to journey with teams of associates, colleagues, who actually had nowhere to go, and Airbnb form of turned an outlet for that.

Um, and we stated, nicely, perhaps we are able to make a lodge for that. Um, and form of mix the perfect of each worlds of what do individuals love about motels, let’s deliver that in. After which what do individuals love about Airbnbs? Let’s deliver that in. And we expect this can be a actually good second in time for hospitality to form of take one other leap ahead into how, um, higher lodging and experiences are provided within the, within the business.

Karen Stephens: Yeah. That’s nice. So are you able to gimme an instance of the way you deliver these 2 worlds collectively? So, do you could have plenty of neighborhood areas? Do you could have extra suites? Like what’s the, the construction that lends to that social group dynamic?

Philip Bates: Yeah, for positive. So I’m in, I’m really in Palm Springs proper now, touring, touring, um, 1 of our motels that’ll open in February. And in that lodge, simply from the room perspective, you may lease a daily lodge room, which is, you recognize, 325 ft, has a, has a, you recognize, a, a desk, a king dimension mattress, a full walk-in bathe, um, every part you’d get from a pleasant lodge room. However then we even have 2 bed room items that can have 2 lodge rooms connecting straight right into a front room with a kitchen, with a spacious balcony. Um, so 2 {couples} might, might lease that, or dad and mom with youngsters might lease. Or simply 2 associates might, might lease that. Um, and then you definitely, we develop from there. You possibly can have, we’ve got 3 bedrooms and we’ve got 4 bedrooms, et cetera. In order that’s within the room. Um, proper? However I feel if we simply keep, keep within the room for somewhat bit. Um, some areas we, I feel have pulled extra from motels are, um, typically if you go to a Airbnb, you, you present up and there’ll be like a bottle of wine, you recognize, issues like that. However typically you, you could have like an empty kitchen or no matter.

Um, we construct what we name just like the Drift Market, which is, think about type of your most connoisseur, native, um, market, um, actually good wines, actually good dry pastas, actually good chips, cheeses, meats, et cetera. We are going to totally inventory that pantry. Um, actually good cocktail choice, good beer choice, um, such that if you are available relatively than simply having like a lone bottle of wine on the desk, you even have a full, um, fridge, which I feel is somewhat bit extra akin to what you would possibly expertise in a lodge the place the providing could be a little bit extra sturdy. Um, however increasing outta the unit, um, we’ve got, we could have occasion areas. Um, so we, we’ve got a, an occasion garden the place you can, you can have a marriage, you can have a celebration, you can host a live performance very simply. Um, we’ve got an enormous pool on this property, um, with I feel 10 personal cabanas, um, plenty of chaise lounges. We’ve got a full-service restaurant with a very cool bar that opens onto the pool. Um, we’ve got occasion areas, we’ve got yoga studios.

Um, and, and, and form of going again to the Airbnb story, that is situated proper downtown on the strip versus the place my previous Airbnbs had been, which might’ve been in a neighborhood someplace.

Karen Stephens: Proper.

And so that you’re, yeah, that’s proper. So that you’re somewhat extra centrally situated, which I feel, yeah, I imply there’s undoubtedly plenty of attraction to exploring a, a neighborhood if you journey someplace in an Airbnb.

Philip Bates: So I, I wouldn’t wanna detract from that, however I, I feel typically, individuals are eager to go to type, type of leisure facilities after they journey, and with the ability to be situated proper on the downtown strip helps.

Karen Stephens: Completely. It appears like the perfect of each worlds, cuz you can have a, a bunch or 2 {couples} say, you recognize, that they will every have their very own room. These are the identical dimension. They will come collectively, get all of the yummy snacks and wine, and have that on the balcony, after which they’re half of a bigger, enjoyable expertise with cabanas and swimming pools, so then you definitely’re really within the motion.

Philip Bates: That’s proper.

Karen Stephens: That sounds phenomenal. Yeah. So what’s the title of the property that’s opening in February?

Philip Bates: That will likely be Drift Palm Springs.

Karen Stephens: All proper. Drift Palm Springs. Yeah. Okay. You heard it right here first individuals. That’s gonna be enjoyable. I’m enthusiastic about that. Um, so one other factor that I, I’ve been studying up on among the, among the publications you’ve executed over the past yr. You’ve additionally talked quite a bit about expertise and the way that lets you form of scale. So, um, each assist you scale and in addition how, sadly we’re in an business the place generally we’re somewhat slower to maneuver. Um, however do you could have only a couple ideas or tips for our listeners on the market on the way you’ve form of checked out expertise and the way you’ve adopted that on your, on your model?

Philip Bates: Certain. Um, I feel, I feel we as an business have struggled with this for some time.

Um, you recognize, and I feel, I don’t assume it’s essentially, um, distinctive that we should always have struggled with it, um, however, however we nonetheless have, and um, I feel that’s as a result of lots of people have tried to make investments to, to, to get expertise for expertise’s sake. However on the finish of the day, what we’re actually right here for is, is form of a visitor expertise.

And so once we take a look at expertise, we form of have somewhat triangle and it both wants to boost the visitor expertise. It wants to cut back value, or it wants to extend income. And if it doesn’t type of fall in there, we don’t, we don’t do it. Um, yeah.

Karen Stephens: Yeah, for positive.

Philip Bates: And secondly, secondarily, there’s um, there’s plenty of sensible entrepreneurs who’re beginning tech corporations you could combine into. And so lots of people, um, I, I do know some CEOs of lodge corporations, I received’t point out them, who, who’ve regretted spending tens of millions of {dollars} on making an attempt to construct their very own tech, solely to construct it, after which have another firm who, who’s solely centered on that product, construct it higher. And provided to ’em for cheaper, and so they actually have, have sunk these tens of millions of {dollars} into that tech expertise.

And so I might say, I feel it’s essential do plenty of analysis earlier than, um, you do it as a result of, um, some huge cash and plenty of sensible entrepreneurs are coming into the tech area, and relying on what dimension firm you’re, you can get a really elegant tech stack just by shopping for the best tech integrations and simply actually having subscriptions. Alternatively, if you happen to’re actually dedicated to it, um, I feel, which we’re somewhat bit extra, um, we, we do form of a purchase, construct evaluation the place we’re like, “hey, first we wish to, we wanna see if we are able to purchase that tech element that we’re making an attempt to resolve for.” And by purchase, that might be subscribed to, it might be built-in into, it might be any of that. However, however successfully, we, we inform ourselves we wanna be the perfect at offering hospitality experiences.

And so to the extent there may be tech off the shelf out there, let’s combine with that. However very oftentimes, there’s not tech out there, or for instance, in our, in our case, as a result of we’re catering to social teams, technologists aren’t actually as centered on that area of interest as they’re the extra broader, uh, hospitality. So we’re at present making an attempt to resolve issues like, “hey, if a bunch of 4 {couples} come, how can we make paying for every part and splitting these funds simpler?” How can we make speaking amongst these events simpler such that perhaps Karen, you’re the like type of chief of that group, however you’re dealing with the reserving, and everybody’s form of hitting you up for info of like, “hey, when can we examine in and what’s our code and this and that?” Can we, take that burden off of you, and distribute all that info out into the 4 events somewhat bit simpler? Um, and people are, these are options which can be somewhat bit extra customized to our model that we, we are able to’t discover available in the market, and we’ll select to construct these sorts of options.

Karen Stephens: Options to suit.

Nice. Mm-hmm. Nicely, I feel that’s some nice perception, you recognize, as a result of lots of people do purchase expertise for expertise’s sake, or simply to step again for a second and go, “wait a second?” Yeah. Are we both chopping prices, driving, driving income, or, and is the visitor expertise needs to be?” You recognize, I imply, some methods you simply must function, however for probably the most half, you recognize, ensuring you’re bettering visitor expertise means you’re producing loyalty and repeat bookings, and that’s income.

So let’s make it possible for we’re at all times considering of these issues. I like that.

Philip Bates: That’s proper.

Karen Stephens: Oh, okay. So we’re right here, we’re at the beginning of 2023. So the ultimate query for you, I feel you, you form of hit it final yr, we, we, we noticed form of the emergence of, you recognize, I don’t just like the phrase however I’m gonna use it, bleisure, proper? The, the enterprise and leisure coming collectively. Um, and, after which I feel your, your manufacturers are clearly, um, you recognize, actually centered and, and the social group idea. I like that, that idea, and I feel it’s gonna be tremendous highly effective, and solely develop. Um, is there anything that you simply’re seeing form of as we begin 2023, what do you assume this yr is gonna reveal for us?

Any crystal ball gazing moments?

Philip Bates: For, for our group? I, I want. If I had it, I might, I might undoubtedly share it. One, one factor I’ve observed, significantly on the bleisure entrance is, um, Thursday, actions that happen on Thursday and Friday are undoubtedly extending into Saturday and Sunday. Um, in, in a convincing method that earlier than it was like 2019, it was, Monday to Thursday is, is enterprise and, after which form of Friday by means of Sunday it was leisure. And the place we’re lagging, we’re nonetheless not likely seeing that Monday, Tuesday, and Wednesday like we did pre-pandemic, however what we’re seeing is plenty of Thursday, Friday enterprise journey that’ll simply flip enterprise off on Friday, after which they’re staying Saturday to Sunday.

Final yr, and significantly, you recognize, this time of yr, um, in 2023 the place January and February are sometimes good enterprise instances and dangerous leisure instances, relying in your market, um, we’re undoubtedly noticing that pattern. And, and admittedly it’s actually serving to offset among the, uh, earlier midweek stays which can be, that aren’t actually again but.

Karen Stephens: Proper, proper. That’s so attention-grabbing to see that shift. And I believe a few of that’s, you recognize, clearly plenty of extra individuals, nicely, we’re touring much less for the enterprise general, that so many individuals are home-based, that if you do exit, you do wanna go on the finish of the week when you may benefit from the weekend there. Whereas I feel if I feel again to myself in 2019, I used to be out and again and I needed to be dwelling on the weekend. I simply needed to be dwelling.

Philip Bates: That’s proper.

Karen Stephens: So it’s, it’s like perhaps much less journeys, however extra high quality and, and along with different issues.

Philip Bates: Yeah. And, and that interprets to a, to a barely longer keep than, than earlier than.

Karen Stephens: Proper, which is nice. Nice for all of us within the lodge area, for positive. It’s nice. So Philip, the place can uh, people discover extra details about TMC?

Philip Bates: There are a couple of methods. So we are able to go, you may go to um, You may as well go to our model particular pages, which might be, that’s C O, or That’s B O D

Karen: Okay, nice. Nicely, thanks a lot, Philip. It’s been a pleasure and I want you an exquisite and affluent 2023.

Philip: Thanks. Similar to you.

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles