It's been a while...

I know, I know. It's been forever since I've posted anything. We've just been really busy on a number of fronts, including lots of traveling and staying in lots of hotels. Which got me thinking...

Ask nearly anyone who travels for business and they will probably tell you that business travel sucks. Traveling for business is not at all as fun as it sounds. No matter the how large the expense account and no matter how great it may sound to eat out at nice restaurants every night, the hassles and inconveniences constantly levied by the airlines, your grill being four inches from the back of some dude's head in United Economy, crazy taxi drivers, distant car rental lots, and dirty hotels can cancel out those aforementioned perceived benefits. I'm not generally a complainer- I just lower my expectations and take one for the team, as it were. The funny thing is, when I started traveling on business 12 years ago I really looked forward to getting on the road. Some romantic notion of flying on airplanes and hotel room service seemed to have clouded my thinking.

This week I've stayed at two hotels which claim to have been awareded the 4-Diamond distinction. Both hotels lost my reservation, didn't have my frequent guest rewards card number on my reservation and both checked me into rooms that were allegedly "clean" but were much dirtier than my own bedroom (which isn't THAT clean). Above all else, I felt like a stranger in both of the cities I've visited this week and I couldn't seem to get good directions or recommendations from the bell stand.

Speaking of dirty hotels, the Huffington Post released this expose yesterday...

The home based lodging movement aims to make travel much more accessible and authentic by empowering homeowners and property managers with the ability to compete with hotels for paying guests. For those people that question why would anyone want to allow a stranger to stay in their home, you need look no further than the fact that businesses such as HomeAway.com and even free classifieds and accommodations sites like Craigslist and Couchsurfing.org have become exceptionally popular. One of our competitors is even launching an integrated marketing campaign that includes a 30 second Super Bowl commercial. This demonstrates that there's a lot of growth potential in this space and will prove to be a viable and growing alternative to hotels in the future.

Until next time... Travel safe.

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
http://www.staysherpa.com/

Stay Smart. Stay Sherpa.

Follow Lucky the Sherpa on Twitter

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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.


Follow Lucky the Sherpa on Twitter

Check out our Facebook page

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