 Session we dive into another interview that looks at the effects of COVID-19 in the tourism sector. I am so sure you know this guy if you are online. He goes by the name M.C. Japolo. He is known as Alan Uteno. He is the founder and CEO of Japolo Holiday Homes. Thank you very much Alan for coming. Thanks a lot. Should we go with English Swahili? Zote zote. Introduce yourself for someone who is meeting you for the first time. My name is Alan Uteno, well known as M.C. Japolo. Apart from being the brand which is known as M.C. Japolo. I am an entrepreneur. I run a business called... So many people refer to it as Holiday Homes. But in real sense it is an Airbnb business. We ensure that every guest, every visitor that comes into Kenya, whether local tourists or international tourists, get satisfied, a place, get comfortable. We do say being home away from home. Nice. So they have a good staycation if they are domestic guys from home. So this is the first time meeting you as M.C. Japolo. And now you are well known from the internet vibes and all that. So let's go back to when it all started, at what particular time did you get into the Airbnb business that you are into known as Japolo Holiday Homes? What inspired me to do this? Actually I am an M.C. I do host events. So they always say that despite using a jembe you can also use another tool to make your garden bear fruits. So when corona came and hit us so hard as artists, I thought of doing something else rather than staying at home. So I decided to stay at home. So this holiday home is my home for long. So I just decided that, I will definitely say I won't lose because I am a fan of Shnumba. I will say I will definitely say I won't lose because I am a fan of Shnumba. The fan of Shnumba is what I want to say. I will say I will make a screen, I will make a kitanda, I will make a nini. I will say I will definitely say I won't lose because I am a fan of Shnumba. Even if corona is gone, things just get back to normal. So how did you raise your initial startup capital? When it comes to Airbnb, it's critical because you have to think about location and the target clientele. Let's start off with how did you raise your capital and how did it all start? Capital is all about savings. I can say that I had loaned from any bank or from any lending institution. It's all about being smart. Today you are paid maybe, your work pays you like 30K. Maybe you can spend 10K and save 20K. After a span of one year, you will be having a good cash which can make you start another business of your own dream. I started this business from the little I had from the accounts when corona hit us. And how were the first couple of months of operation? We have been in operation for the last, I think this is like the fourth month, fourth fifth month. And who are your target clientele? I have a clientele. Who are your target clientele? I have a clientele. That's my number one. One of my fans told me that he was hosting events. I took advantage of that. And he told me that he was hosting events. So the first person who reached me, I told him that he was hosting events. Then we went to tell a friend to tell a friend. Ah, referrals. Yes, referrals. So he told me that he was hosting events. He told me that this is a nice place. He told me that he was in a hotel. We were used to like in Kenya, he told me that he was near Kenya. He told me that he was in a hotel. He told me that he was going to spend up to maybe 24 hours. He told me that the following morning Sunday he was going to visit me. He told me that he was in a hotel. So the services we provided, we always provided our place. He told me that he was hosting events. He told me that he was hosting events. Right. And how did you do like identify a location? And what are the couple of things that you looked out for? And decided that this particular location is suitable for me to set up an Airbnb? Okay. First, I considered the distance from the airport to the place I wanted to locate this business. Because mostly you get mostly guests coming in. Maybe let's talk about international guests coming in. We go to after places like semi national park, airport, malls, shops. Amenities. So I considered kwa location ataka kwa startingize the business in a fat list kwa karebuna. These amenities mostly clients wananga lea. Then I appealed to the place. Accessibility pia. Kwa karebuna roads, kwa karebuna the so-called SGR terminals. At least again in our host, kama kuna umtumeni bia naishi kile leshua. And the following morning ataka akachapna SGR, at least kwa ni place karebuna SGR terminals. Ataki amuka sambili. Bado kitu kama wanawa ataka kwa terminals. So this is what I considered. Then ya mombasa. We have also the same business in mombasa. I considered kwa kila mtu huwa ataka kwenda mombasa. Easy long holidays. Wototo wa mefunga. Wazajwa nataka kupelika wototo wa mombasa. So uko piya gili na nika consider kama na ifungwe bia shara ni ifungwe place first the place mpa kikuna swimming pool. At least mtu kama hata henda kwa beach ata access swimming pool. Ya. So the reason the factors in nifanya bia shara zote ni mezi strategies kwa place enye. Mtu aki yenda tu atare dika. Ya. And the aspect of credibility because we have people who acclaim they operate Airbnb services. Then you end up probably been paying online and when your client gets on ground things. Different. Sure. So how do you build credibility to the fact that whatever you're telling your potential client that this is actually true? Okay. For me how I've been operating it is that I do tell the client don't pay. Advanced payment I mostly don't accept. So after checking whatever posted maybe it's on Airbnb, it's on Trivago, it's on Booking.com. Just check then come to the house, to the apartment. After getting that everything I posted there is the same that you're getting on the ground. Then you can now go ahead and pay. You can either pay through the app or you can pay through Empesa or through the whichever means you want to pay through. But so long as if I told that we don't have hotshaw or maybe I've written over there that we have hotshaw, then you come and get that hotshaw is not functioning. You don't have to pay. I'll rather get you another place or give you a referral. Okay. What does it take to start and run an Airbnb business? Okay. Actually for me you just have to be like you just have to be real if you want to run an Airbnb business. First you have to be real because some clients will get clients who are not. You know we are handling different clients and these guys come from different backgrounds. So first you just have to be someone who is real. You just have to be patient. Maybe a client can make a prior arrangement that I'll be travelling or I'll be coming into your place. You'll be hosting me maybe in the next three months. So if you're not patient you won't host that person. You will get a faster deal and forget that there is someone who had already made an advanced booking. Okay. And in a situation whereby I would love to have international clients, how do you go about that? For international clients actually for this business we do get easy time to handle international clients and local clients. Because outside you know in Kenya so many things are still in developing process. But for them they already know that when I'm booking an Airbnb we have this, we have this, we have this, I'm expecting this. I expect host to provide this, this and this. I like hosting maybe a friend of mine who don't know how these things operate. I might tell you that you are checking in at, maybe checking in is between 2pm till maybe 9pm at night. Then you get a friend of yours who will go ahead and come check in at maybe 11.30pm and tomorrow expect to leave maybe the same time 11.30pm. For international clients handling them so long as your place is fully furnished and your place is good it's very easy to work with them. How many Airbnbs do you have? So far there are about 6 to 8. And do you operate on your own or do you have a team? No. Since I'm a youth I wanted to create a job opportunity to my fellow youths. You get most of when corona hit us most of hoteliers lost their jobs. Most of guys in tourism industries lost their jobs. So that's what I do consider. Before opening it I have to like I have to plan whom am I going to put over there because let's say I'm opening it here. I have to get someone who can run it on my behalf whether I'm there or not he or she has to run it. What's your marketing strategy in order to increase the visibility of what you guys are doing to potential clients? What to help me get more and more clients is my funds. I have a big fund base so my number one clients are my funds. Those are like my all time targets are my clients. I've registered them on both apps. They are all of my apps Airbnb, Booking.com, blah blah blah. But my number one target is my funds. Okay. And I'm so sure you've also got to interact with other hosts who actually do the same business of Airbnb. From where you are seated what are a couple of mistakes that a host can do in this space of business and it will just deteriorate the line of business of the day. Actually for my side the biggest challenge I've seen is maybe I've booked a client offline. Then there's an international client or any other client who goes to app pay for the same apartment. And whenever he or she is calling I'm just like I've just disappointed you. I've already given the place or I've just come with a trick to send this client away. You know actually when you are someone who does something with you put all your trust in whatever you are doing. You will feel bad like when you get to a client and you are through app, maybe you get to a client for the first time. Then you get to a client simply because you are fulfilled in trust. So that is the number one challenge for me now. The second thing I want to do is to finish my apartment. Maybe there is a client and another referral. If there is another host and another partner, I will not be able to do that. I will not be able to do that. Because maybe of what you have finished in your home and what you have done in your substandard. So partner, if you have a client and another host is there, you will be able to do that. If you have a client and another host is there, you will be able to do that. And the issue of double booking when it comes to for clients, how do you cope with that situation? That's why for me, I do not want to do that. I do not want to do that. I do not want to do that. I do not want to do that. So I will finish the same. I will make the same chest seats, I will make the same. I will make the same king size bed. So for clients, I will not be able to do that. This blue one is red but it is the same. So at least I will be prevented from booking. I will book even to the mum. Okay, for now she is occupied but I have another one. Can you say that the Airbnb space is a profitable business for someone to get into? For sure. So long as you have clients, it's a profitable deal. How were the margins, especially during the lockdown? And of course there were no international flights. People wanted to just leave home, do more of a staycation. So how was the business at that particular time? In fact, I won't lie to you. That's the time we made the best profit, we made the best deals. Because there were no clubs, there were no hotels open. So for you to change the environment, you could have just gone to Airbnb. Maybe you only need five friends or six friends. Now where is your host? Where is your hotel? The best place for me is Airbnb. At least I can go home. I can go to another home away from home. I can go to my house, I can go to the GP. I remember the slogan, you said my name. Yes, I can go from home. I can go to the GP and access wifi and access everything. I can go to the middle of the city, I can go to the Mombasa Mamtua, I can go to the public beach and I can go to the swimming pool. If someone wants to do a staycation with you guys, how can they reach out to you? Maybe through our social media handles. M.C.Japolo everywhere. M.C.Japolo on Facebook, Instagram, Twitter. Then we also have an office number. You can just call it anytime. On 07-91-606-912. On 07-91-606-912. Right. Piaa po tkita kai M.C.Japolo. Fanya mambo na eventi. You can equally reach out to your product platform. Sure. Through that number. Thank you very much Alan Otieno. Famously known as M.C.Japolo. Japolo. Kha ribusana skulingine. Santesana. All right. So make sure you follow up with M.C.Japolo. So keep up the conversation if you want to a staycation. He's a go-to guy. And as he says, home away from home. Sure. I try to pay for channel so you can find us across all our social media. And all that. Misha Lashira will be right back to wind up and read your comments.