Book Review and Summary: Tales of Horror and Happiness in Hospitality
HOSPITALITY, n. The virtue which induces us to feed and lodge certain persons who are not in need of food and lodging.
This month’s financial book is a bit different than past books. I came across this book from following Dr. Kiona on Instagram through her handle @hownottotravellikeabasicbitch where she educates all of us how to be better travelers by understanding the history and cultures of the places we visit. The book is titled: Tales of Horror and Happiness in Hospitality by Dr. Kiona and Maria Gangat. You can find it on Amazon (linked) or check out her Instagram story highlights for more info.
Learn more about Dr. Kiona and Maria Gangat over at Hosts2Go.
This book covers two prevailing concepts that’s heavily discussed in the financial independence, retire early (FI/RE) community: house hacking and geoarbitrage so it fits in nicely here.
The book itself is easy to read. If you’ve got some quiet time, you can probably get through it in a few hours. There are nine total chapters, broken down below.
Two Broke Girls Find a Side Gig
Hospitality: Love or War?
Long Term vs. Short Term
How to Write a Bomb Listing…That People Still Won’t Read
Staging and Photography
Start-up Costs, Taxes and Making a Profit
Tips on Making Your Listing Zero Waste and Organic
How to Avoid Disaster and Horrible Guests
Hosting Profile & Reviews
The book is very foundational. This is the book for someone who has been toying with the idea of hosting of renting out their own space. If you want to start up a real-estate conglomerate this is not the book for you. This is probably the book for you. It’s a bit too basic in that regard. If you do want to make some money on the side, then this could be the start of your journey.
While this book is geared to those who may want to manage properties, it’s also good to read as a traveler as it provides you a perspective on what hosts have to go through and there are a lot of tips on how to be a better guest.
I would also recommend this book for those with families overseas that are looking for alternative financial opportunities. While the book is in English, I think it’s easy to translate the concepts in this book into other languages.
Melmastia, or hospitality, is the requirement Pashtunwali places on all its tribesmen towards others, whether they are strangers or members of one's own tribe. Melmastia requires hospitality and profound respect to be shown all visitors, regardless of distinctions of race, religion, national affiliation as well as economic status and doing so without any hope of remuneration or favour.
- Wikipedia
Things I Love About the Book
The book starts out with the stories of the two authors. Their main objective going into the short-term rental business was to alleviate financial stress. This is important because just like them we all need to be thinking outside the box when it comes to pursuing financial security. Perhaps, this book will light a fire in you to do something about your own debt and financial worries.
The book is honest about it really means to be a host and a landlord. It’s not all roses. That’s something you have to prepare yourself to encounter if going into a venture like this. Sure the money may be good, but don’t discount mental and emotional stress throughout the process.
They have a section on zero waste living. Waste is a big challenge for marginalized communities and while tourism can bring about financial upside to local communities, it also creates new challenges of waste and resource depletion. It’s something we all have to think about as travelers.
Great examples and discussion of what it means to be culturally aware of where you are staying. On one side are the stories of the hosts and how hosting has helped them create financial security for their families in places that don’t have too many opportunities. On the other side are the expectations of guests coming from more well off countries.
Using Geoarbitrage to Your Advantage
The authors provide a host of scenarios where you can fully utilize the concept of geoabitrage. Geoarbitrage is basically moving to a place with a lower cost of living while continuing to earn the same level of income. This allows you to increase your savings rate or pay down debt while still pursuing a lifestyle that is similar or close to the one you are enjoying at home at half the cost.
Airbnb has facilitated many folks to pursue the strategy of geoarbitrage by allowing them to rent out their current space in dollars while incurring housing and travel expenses at a lower rate.
This is something to think about as the future of work moves remotely. Do you really need to stay in your current city? Is it possible to rent out your space and move to another city with a lower cost of living but with the same standard?
I talk about how my parents are pursuing geoabitrage as retirees in the Philippines (though they are in the US due to Covid).
The Future of Hospitality
I believe Airbnb and similar companies will dominate the hospitality space post-pandemic. Right now, Airbnb doesn’t have the fixed expenses that traditional accommodations company have. Companies like Hilton and Marriott have to pay for the upkeep and maintenance of their existing properties. Airbnb has very limited real-estate ownership so their expenses during this pandemic are very little in comparison. Airbnb has also been able to pivot towards Experiences and I think this is where they will continue to stand out post pandemic. The combination of places to stay along with unique experiences will continue to change the way we all travel in the future.
In addition, the real-estate market is hot right now and there will most likely be a lot of people who will want to monetize their second homes in the future so the supply of accommodations will likely increase, good for guests, maybe a bit more competition for hosts and this is where it’s important for hosts to really make the effort to stand out.
I do want to acknowledge though that Airbnb does displace locals out of their own neighborhoods. So it’s important to be aware of this. Here in New Jersey, Jersey City residents voted in favor of stricter short-term rentals as large scale investors where buying up properties to put on Airbnb depleting the supply of rental units thus increasing costs. In addition, the influx of visitors (tourists) generated more traffic and waste in the city. If you are doing this in another country, be respectful of the people and the culture especially if you aren’t from there. As with everything, there needs to be a balance.
Final Notes
A quick and easy read with a lot of actionable tips to get you started managing your own properties.
As someone who is into the details, I appreciate hosts who provide as much information about their property. With the resources available today, there’s just no excuses not to provide great photos, sample itineraries, etc.
On a personal note, I too attempted to put our apartment on Airbnb just for the sole reason of trying it out. We didn’t necessarily need the money, but figured why not try and see what happens. I didn’t even have a plan in place to where we would stay should we receive a booking. The biggest draw for our apartment was it’s view of New York City. Based on comparable listings then, we would only need to rent it out 10 days to be able to pay our rent. That was very promising!
I never ended up publishing the listing, but I’ve always been intrigued by the idea. I have dreams of owning an eco-friendly community some day so good to keep these ideas in the back pocket. Some people will say that the market is saturated with housing listings, but this is where a good host can stand out.
One last thing, I think one of the important things about pursuing financial independence is that once you are there, you can use the reclaimed time and energy to focus on the things that you love and want to do so think about that as you explore all of the ways to reach financial independence.
Have you read the book? What are you thoughts?
Book Review and Summary: Tales of Horror and Happiness in Hospitality by Dr. Kiona and Maria Gangat
