The Hidden Revenue Stream in Vacation Rentals

In this episode of the Hospitable Hosts podcast, we welcome Ben Levy, Co-founder and CEO of Localbird, an online concierge service for vacation rentals. The platform enables hosts and property managers to offer guests access to local services and experiences while creating an additional revenue stream.

In the episode, Ben shares what inspired him to build a digital concierge platform that makes it easy for guests to discover and book curated local services and experiences, how Localbird partners with hosts through revenue sharing, and how they vet vendors for quality, safety, and trust.

Press Play now to discover how you can enhance guest stays with curated upsells and earn more with less effort.

If you prefer the highlights, we’ve got a summary of the key takeaways below.

What Is Localbird?

Ben shares he started Localbird in 2022 together with his brother after a frustrating family vacation in Hawaii when they couldn't find an easy way to book things like a surfboard and a car online. When they asked their host, he was excited to help them and handed them a printed guidebook with local recommendations.

That experience inspired Ben to build a digital concierge platform for short-term rentals, so hosts can easily offer travelers curated recommendations. The platform helps hosts earn more through revenue sharing, and guests discover unforgettable stays.  

“For hosts, we realized they were missing out on a huge opportunity to capture a lot of the revenue their guests spend on experiences, both outside and inside the rental. So, think of activities, transportation, private chefs, massages, yoga classes, and much more. Things we've gone out and found the vendors for, made bookable, and distributed through a network of thousands of property managers across the US, Mexico, and Costa Rica. The vision is to turn every stay into an experience worth remembering and worth talking about when you're back home.”

Ben says they offer a platform where travelers can book independently or chat with a concierge. He explains they have “an AI and human hybrid team,” where AI handles many conversations to ensure guests get fast responses and personalized, relevant offers. Humans handle more complex requests or changes that come up during a trip.

What Localbird’s Experience Feels Like for Hosts

Ben emphasizes that the onboarding for hosts and property managers is really seamless. “You connect your PMS and then approve the messages that will start going out to your guests. We time those messages and personalize them to each guest,” he explains. “It’ll be based on your market, the knowledge base we have for it, and the network of vendors we've reached out to and onboarded there.” Hosts have an opportunity to invite their own vendors as well.

Benefits for Hosts Joining Localbird

Ben points out that hosts can join Localbird and add their properties for free. Localbird handles everything—vendor coordination, guest communication, and support—and hosts automatically earn commission on every booking without extra work.

“We make money when guests book experiences. We take a commission from the vendor and split that revenue share with the host. For example, we have hosts with a hundred properties doing around 50 or 60K a month in gross booking volume of experiences, earning around 7 to 10 thousand dollars in net profit from those commissions. Since they're not paying anything on them, it goes straight to their net profit.”

Ben notes that by offering curated local experiences, hosts enhance guest stays, which leads to glowing reviews and repeat bookings. “We see it a lot in the reviews. Guests will talk about how the concierge helped them and was there for them,” he says. “And I think being there for the guest, for things beyond just their stay, is no longer a luxury these days. It's more of an expectation.”