The real unemployment rate

Today, the U.S. Bureau of Labor Statistics reported that the U.S. economy lost a paltry 11,000 jobs. With all the fanfare, you would have thought that there was some reason to celebrate. Far from it.

Sure, we're no longer losing jobs at the same pace as at the beginning of the Great Recession, but one in ten people in the labor force is still out of work. Of the 165 million people in the labor pool, that's 16.5 million people that are out of work that are looking for a job and just can't find one. But it's a lot worse than that... The Bureau of Labor Statistics doesn't count people who are employed in part-time jobs to make ends meet or people who are considered to be "discoraged job seekers" and have stopped looking for work altogether - presumably because any family of four can eat off of the $800 subsidy paid twice a month. Yeah, that is, if you like to feed your kids ramen noodles three times a day.

The reality is that our economy, and our labor market, is in shambles. The real unemployment rate is closer to 17.5% when you factor in all the people that have stopped looking or have taken on part-time work just to make a few extra bucks. That's another 12 million people that can't find suitable full-time work. At a "full-employment" rate of 5% unemployment, our economy would have about 8 million unemployed people. There's nearly 20 million more people unemployed than there was when our economy was at full employment a couple years ago. That's freightening.

So, what's one to do if they can't find full-time work or refuses to don the orange apron at Home Depot or the blue apron at Wal-Mart for 25 hours a week and no benefits? Well, many people have turned to eBay to sell there stuff. In the last year, the number of online auctions on eBay has more than doubled. The average daily auction volume in August, 2008 was 15 million auctions. In November, 2009 it was close to 35 million. eBay is as popular as ever because it's a great place for people to make some extra cash. People are selling their stuff in droves.

The unemployed and underemployed are also turning to direct selling and Multi-Level marketing companies in droves. Amway, Tupperware and Avon have all experienced record growth in the ranks of their agents/salespeople. When times are tough, Americans become ultra resourceful. Door to door selling is even making a comeback. Who would've thought? I guess if people aren't at a job, then they're at home, so why not...

Speaking of resourceful, people are also getting into the hospitality business. I recently counted the number of short-term rooms for rent posted on Craigslist. These are rooms for rent by the day - not by the month or by the year. These are people looking to make a few extra bucks by providing lodging services to travelers. I found that on a typical weekday there are more than 1,000 new ads posted for short-term rooms for rent. This is more than double the number from just a year ago. Craigslist lacks essential security features to make it a fully functioning lodiging classifieds site, yet people are willing to take the risk to make a few extra bucks by renting out their extra space to travelers.

Americans possess an unprecendented amount of unused space in their homes. Resourceful people all around the country are learning that they can monetize their unused living space by getting into the hospitality/lodging business. People are running make-shift B&Bs as a way to avoid foreclosure. Not a bad idea if you ask me...

Mint.com posted a humorous video that discusses the real unemployment rate on YouTube.

Russ Hearl
Head Sherpa & Co-Founder
Sherpa Travel Exchange, LLC
601 Van Ness Ave, Suite E-208
San Francisco, CA 94102

415-997-9925 Google Voice
russ.hearl@staysherpa.com
www.sherpatravelexchange.com

Stay Smart. Stay Sherpa.

Project update

Hi everyone, it's been a while since my last post, so I thought I'd drop you a line to let you know what we've been up to. In the last month we've made considerable progress in building the Sherpa home based lodging marketplace. Designing and developing a complex product like this is challenging when you consider that we're building it for mass market adoption. During the last month we found a great software engineer, nearly completed the front-end design of the site and have been hard at work at programming the interface. We also participated in a VC competition that gave us many more ideas to enhance Sherpa's product ease of use and competitive advantage.

Simultaneously, we are ramping up our sales and marketing activities to line up key partnerships that will be important participants in our launch. We are also hard at work building an inventory of great homestays, B&Bs, vacation rentals and home exchange properties.

The early 2010 launch of Sherpa couldn't come at a better time. People around the world are struggling through this difficult recession and are in need of a life- line. Sherpa will extend a life-line to millions of people by providing them with a way to market their extra living space to travelers in search of a more authentic and personal travel experience. Homeowners and tenants around the world possess an unbelievable amount of unused space that can be monetized by accommodating travelers. With real unemployement hovering around 17.5% in the U.S., many people are looking for new and innovative ways to make some extra cash as they seek their next full-time job or work their way through an educational program that will help them change careers.

Over 50 million trips were booked this year in the U.S. alone where the accommodation type was someone else's home... and not a hotel. That includes vacation rentals, B&Bs, homestays and home exchanges. We're building a product, and a company, that is going to help millions of homeowners get into this market and compete for these paying guests. We welcome your feedback and questions.



Russ Hearl
Head Sherpa & Co-Founder
Sherpa Travel Exchange, LLC
601 Van Ness Ave, Suite E-208
San Francisco, CA 94102

415-997-9925 Google Voice
russ.hearl@staysherpa.com
www.sherpatravelexchange.com

Stay Smart. Stay Sherpa.


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Home based lodging: A recession proof business

The last couple weeks I've been presenting and pitching Sherpa Travel Exchange to investors, potential vendors and just about anyone that will listen to me. Sometimes people have an instinctive reaction to the concept of home based lodging (housing paying guests in your primary or secondary home). The home based lodging market is a lot more than just 22 year olds backpacking around and crashing on each other's couches (ala Couchsurfing.org). This market consists of any type of lodging services provided in one's own home as opposed to a hotel, including: B&Bs, Homestays and Home Exchanges.

The market is actually a $5B+ market in the U.S. alone. With respect to B&Bs, the Professional Association of Innkeepers International cites more than 17,000 B&Bs in the U.S. generating more than $3.4B in revenue. Millions of people each year stay at B&Bs, while the owners sleep in a room nearby. Many consider B&Bs to offer a more authentic local experience than hotels. We agree. Which is why B&Bs will be a major component Sherpa - not only existing B&Bs, but enabling ordinary homeowners to create a make-shift B&B in their own homes to earn some extra cash. The B&B market niche as a whole has proven to be recession proof as money conscious travelers seek more affordable alternatives to boring, sterile and expensive hotel rooms.

I did a quick scan of Craiglist yesterday and found more than 500 new listings posted that were advertising rooms for rent by the day in someones home. Yes, there are lots of people that want to earn a few extra bucks by taking in paying guests. For many of these people it's a better alternative to getting a full-time roommate. But, for all the great things you can do on Craigslist, it lacks important peer to peer reviews of hosts and guests, online booking, background records and other critical pieces of information most people would require to feel comfortable running a make-shift home based hotel/B&B. We are creating some exciting innovations in this regard. Stay tuned...


Russ Hearl
Head Sherpa & Co-Founder
Sherpa Travel Exchange
601 Van Ness Ave, Suite E-208
San Francisco, CA 94102

415-997-9925 Google Voice
russ.hearl@staysherpa.com

Stay Smart. Stay Sherpa.

Follow Lucky the Sherpa on Twitter: sherpatravelx

Check out our Facebook page: www.facebook.com/home.php?#/pages/Sherpa-Travel-Exchange/123269124279?ref=ts

Sherpas aid in fight against global warming

Check out how Sherpas are guiding a delegation of scientists and policy-makers up Mt. Everest to Base Camp...

http://www.fresnobee.com/world/story/1695297.html








Russ Hearl
Head Sherpa & Co-Founder
Sherpa Travel Exchange, LLC
601 Van Ness Ave, Suite E-208
San Francisco, CA 94102

415-997-9925 Google Voice
russ.hearl@staysherpa.com

Stay Smart. Stay Sherpa.


Follow Lucky the Sherpa on Twitter: sherpatravelx

Check out our Facebook page: www.facebook.com/home.php?#/pages/Sherpa-Travel-Exchange/123269124279?ref=ts

Hostage – At The Mercy of the Hotel Giants

Last Spring, I took my 12 year old son up to Reno to play in a 3 day basketball tournament. This meant that I had to find a room for us to stay in. There were not many hotels that were walking distance from the basketball venue, so we were stuck with the decision of staying far away which meant driving through traffic to each game and paying for parking each time, or staying at the adjacent hotel and being left at their mercy regarding price and accommodations. In order to get a good price, I had to play the old hotel game of booking a room, checking pricing every day, and being prepared to cancel and re-book when the price came down. I also had to worry about the room I would end up in.

I later came to find out that this was a small, run down and bed bug invested hovel standing in the parking lot of the main hotel. It was easy to see that the hotel considered people in these accommodations to be second-class citizens. Reading the reviews also led me to another conclusion. The Motor Lodge was just a ruse to get people into the hotel. When people actually arrived and saw how bad it was, they immediately complained and asked for an upgrade. And, for an additional fee, the hotel would accommodate them. I, personally, thought it was misleading and out right robbery.

Well, let me tell you. Hotels are designed to be at or close to capacity at all times in order to meet their revenue goals. This means they will do anything they can think of to bring in more money. Second, the hotel industry has gotten away with having no real competition for years. Taking a look at the numbers, there are about 4.4 million hotel rooms in the United States. Matching this with the fact that hotels like to stay close to 70% full or more, means whenever it is believed a hotel can attain a profitable occupancy rate, one is built. In short, whenever hotel occupancy rates are good, the hotels are free to treat people like trash, because they know they will make their money any way. However, when occupancy rates fall, the hotels are forced to treat their customers better.

Try a Homestay. Yes, you heard right. More and more people are staying in other people’s homes when they take a trip. The accommodations are often better, the price is always better, and your options are unlimited. That is, if you can find a good source for Homestays. That is where companies like Sherpa Travel Exchange come into play. Sherpa will soon be offering a “Travel Exchange” focused on Homestays, Home Exchanges and Vacation Rentals. With 60 million homes in the United States, and 90 million vacant rooms, the inventory potential is huge. If just 5% of the available rooms were up for rent, the number of rooms available to travelers would double. Now this is something that would get the hotel industries attention.

So, my advice to you is to not get caught up in the games of the hotel giants. Don’t get stuck, like a hostage, at the check-in counter asking for a better room because they will stick you in a dump while they wait for you to beg and pay for a better room. Think about a Homestay and get treated like a real person by a knowledgeable local host the next time you travel. Until next time, happy travels.

Darrin Underwood

Contributor

Sherpa Travel Exchange

Follow Lucky the Sherpa on Twitter: sherpatravelx
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What is a Sherpa?

I thought you’d never ask.

Sherpa is a Tibetan word that stands for “eastern people.” The Sherpa people are an ethnic group living high up in the Himalayas in Nepal and parts of India. People commonly refer to a Sherpa when they speak of mountaineering porters and guides that escort adventurous hikers up the treacherous slopes of Mt. Everest. Stories such as “Into Thin Air” by Jon Krakauer depict Sherpa mountain guides as trustworthy, knowledgeable and tough as an ox. Sherpas are renown by the international climbing community for their expertise and experience at high altitudes. For all the stores about Sir Edmund Hillary’s first recorded Mt. Everest ascent, stories about the heroic life-saving efforts of Sherpas are few and far between. Nevertheless, climbers couldn’t scale the icy slopes without the intimate local knowledge of their Sherpa guides. Sherpas are the unsung heroes of mountaineering.

Sherpa Facts

Official language: Dialect of Central Tibetan.
Population: The 2001 Census in Nepal counted 154,622 Sherpas. Sherpas also live in the Darjeeling and Kalimpong in India.
Traditional Clothing: Robe-like garments made of woven woolen cloth known as “Chuba” are worn by Sherpas to keep warm in the harsh winter climate.
Interesting Factoid: In May, 2009, Apa Sherpa successfully climbed Mt. Everest for the 19th time.

Why “Sherpa” Travel Exchange?

We thought about calling our innovative new company Scooby-Doo Travel Exchange or some highly descriptive utilitarian name like Rentyourextraspace.com, but we just didn’t think those names exuded any character or embodied the ethos of the company and its Founders. So, we decided to create a modern, contemporary brand around the Sherpa mascot and the values that Sherpas represent to their patrons and the larger Himalayan community. From a business standpoint, we think an engaging, humorous and helpful Sherpa mascot gives us a chance to differentiate ourselves from current and future competitors. So, we named our mascot “Lucky the Sherpa” because we think that if you use Sherpa Travel Exchange that you will “Get Lucky” by spending less on travel or avoiding lodging costs altogether through our Sherpa Home Exchange program.

Thank you for visiting Sherpa Travel Exchange and may your journey be safe, rewarding and memorable.

Sincerely,

The Sherpa Travel Exchange Team

Couchsurfing

Earlier this year I took some time out to travel the world. I met amazing people with whom I shared memorable experiences. However, I couldn't help but wonder whether I was getting the *real* feel of the cultures of the cities and countries that I had visited or some commercialized facsimile. Nearly two months into my trip I met some travelers in their early 20s while traveling through Switzerland. When I asked what hotel or hostel they were staying at they said they weren't staying at any hotels or hostels on their 6 month trek. Puzzled, I asked them if they were camping. They told me they were "couchsurfing." They continued to say that they joined the Couchsufring.org project so they could avoid spending money on hotels and hostels by crashing on someone's proverbial couch (in most cases, someone's extra bedroom).

Intrigued, I decided to check this out by visiting Couchsurfing.org. I was surprised to see that Couchsurfing has more than 1.4 million members from around the world and they have facilitated millions of cultural exchanges. The leaders of the Couchsurfing project states that the goal of Couchsurfing is to foster cultural exchange, goodwill and understanding. This simple concept has really taken off and Couchsurfing is experiencing a meteoric rise in memberships.

I subscribe to several blog feeds through Google Alerts, and judging by the sheer volume of people writing about Couchsurfing experiences, I would say that it represents a a significant sea change in the hotel business. I'm not saying that Couchsurfing is for everyone, because it clearly favors the adventurous. Couchsurfing is great for those people who favor an authentic cultural experience rather than a run of the mill tourist experience provided by most hotels and resorts. I used to work in the hotel industry and many of the hotels receive kick-backs from local restaurants and attractions for referrals. So, you gotta wonder if you are getting legitimate recommendations from a hotel concierge or front desk clerk.

Here's a good article that speaks to the virtues of Couchsurfing.

http://wildcat.arizona.edu/wildlife/students-build-global-community-by-hosting-strangers-on-couches-1.794753

Couchsurfing aside, the U.S. Census Bureau's American Community Survey found a 9.8 percent rise in cohabitation in the U.S. during the last year. Driven by higher unemployment and foreclosures, people are deciding to take in roommates or share their homes. Sherpa will help ordinary homeowners monetize their unused space by competing with hotels for paying guests. With more than 90 million unused rooms in American households, we think Sherpa has a good chance at doubling the lodging supply in the U.S. by helping people monetize their unused rooms. Stay tuned...

Russ



Russ Hearl
Head Sherpa & Co-Founder
Sherpa Travel Exchange, LLC
601 Van Ness Ave, Suite E-208
San Francisco, CA 94102

415-997-9925 Google Voice
russ.hearl@staysherpa.com

Stay Smart. Stay Sherpa.

Follow Lucky the Sherpa on Twitter: sherpatravelx

Check out our Facebook page: www.facebook.com/home.php?#/pages/Sherpa-Travel-Exchange/123269124279?ref=ts