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- [00:00]
Guy Raz
Wondery subscribers can listen to How I.
- [00:03]
Rick Steves
Built this early and ad free right now.
- [00:06]
Guy Raz
Join Wondery in the Wondery app or on Apple Podcasts.
- [00:11]
Rick Steves
Listening on Audible helps your imagination soar. Whether you listen to stories, motivation, expert advice, any genre you love, you can be inspired to imagine new worlds, new possibilities, and new ways of thinking. Audible has an incredible selection with over 1 million audiobooks, podcasts and audible originals all in one easy app. Enjoy Audible anytime while doing other things household chores, exercising on the road, commuting, you name it. Audible makes it easy to be inspired and entertained as part of your everyday routine without needing to set aside extra time. There's more to imagine when you listen. Sign up for a free 30 day Audible trial and your first audiobook is free. Visit audible.combiltine I recently stayed at an incredible Airbnb in Palm Springs and I thought to myself, wow, I could live at this place. Have you ever been enjoying your stay at an Airbnb when you suddenly ask yourself, wait a minute, could I do this too? Find out how much your place is worth@airbnb.com host if you run a small business, you know there's nothing small about it. But when decisions begin to feel daunting, one thing that has helped many entrepreneurs is knowing that they have the right plat with all of the tools they need to succeed. Shopify Shopify is the commerce platform behind millions of businesses around the world and 10% of all E commerce in the US get all the big stuff for your small business right with Shopify. Sign up for your $1 per month trial and start selling today at shopify.com built go to shopify.com bilt shopify.com bilt hey everyone, it's Guy here. So you know, I'm actually old enough to remember what it was like to travel overseas with just a guidebook to get around. No smartphones, no gps, no easy Internet, no influencers telling us what we were supposed to do. No long lines at gelato shops. Anyway, for those of you who remember that time, and especially for those of you who don't, this episode is for you. And we first ran it back in the spring of 2021.
- [02:41]
Guy Raz
Enjoy. Did you sit down and say, okay, this is the strategy. We're going to create a travel business and we're going to do all these different things or do the things that eventually happen kind of just happen haphazardly?
- [02:58]
Unnamed Guest
No strategy at all. I never really wanted to look in the book and say, oh, now you have a coo. Now you have A, I don't even know what that stuff is until it becomes apparent, oh, we need a guy to do this. And then they go, yeah, that's called a cfo. We're just kind of going, oh, that's why they have that.
- [03:23]
Rick Steves
Welcome to How I Built this, a.
- [03:25]
Guy Raz
Show about innovators, entrepreneurs, idealists, and the stories behind the movements they built. I'm Guy Raz. And on the show today, how Rick.
- [03:38]
Rick Steves
Steves backpacked around Europe on bread and.
- [03:41]
Guy Raz
Jam and a few dollars a day and turned his passion for no frills travel into a $100 million brand. Giving your products away for free doesn't sound like a winning business strategy. In fact, it's one reason why most regional newspapers in America collapsed when media first went digital. Because at the dawn of the Internet age, most newspapers made their content available online for free. And lots of subscribers wondered, why am I paying when I could just read it on the Internet for nothing? It's an old truism. Once you start to give away your core product, people don't place as much value on it, except when that truism is false. Like, remember a few years ago, we had an episode about the rapper Logic and his manager, Chris Seru. Logic spent the first several years of his career giving his music away for free, free downloads online. But that free music made its way into the hands of a small and loyal following, people who would pay to see Logic perform those songs at a venue. And over time, that following grew until thousands of people would turn out to see him live. And when Logic finally released his first major label album in 2014, after years of giving his music away, the record shot right to the top of the charts.
- [05:14]
Rick Steves
This approach is actually how Rick Steves.
- [05:17]
Guy Raz
Created a $100 million travel business. Rick has spent much of his career giving away travel tips, information, videos, and audio tours for free. But his brand is so trusted, considered so authentic by millions of people, that his travel guides are among the best selling of all time. And before the pandemic hit, 30,000 people a year went on tours organized by his company called, not surprisingly, Rick Steves Europe. And Rick's done this by being, well, himself, a super nerdy, super earnest tour guide who visits popular sites around Europe on the cheap. His public television show is so recognizable that Rick's up there with PBS icons.
- [06:07]
Rick Steves
Like Big Bird or Bob Ross or.
- [06:10]
Guy Raz
LeVar Burton or Arthur the Aardvark. And what's remarkable about Rick's story is he never planned on building a huge business. He caught the travel bug as a 14 year old when he tagged along with his parents on a business trip to Europe. Rick mainly grew up in the town where he still lives, Edmonds, Washington. As kids, he and his sister spent a lot of time camping with their parents and being active members of the Lutheran church.
- [06:40]
Unnamed Guest
We'd go to church, not every Sunday and I do remember it was kind of embarrassing. We'd go to church and then after communion we would, we would go up there and have the wine and the wafer and then we would, as a family, we would walk straight out of the church. It's like, thank you, that was tasty. And then we'd walk to the car and we'd go camping. And it was like, that was, when I think back on it, kind of not a very polite way to go to church. But you know, my parents were juggling a lot of things and they wanted to have their cake and have their community and vacation too. But yeah, we grew up. I mean, now I love the whole Lutheran style of Christianity, but back then it was just, you know, it's who your parents and your grandparents were. So, you know, we were Lutherans.
- [07:27]
Guy Raz
Yeah. Tell me a little bit about your parents. I know that your dad was, they had like a piano repair and importing store in Edmonds. Tell me about that.
- [07:38]
Unnamed Guest
Yeah, my dad was a piano tuner. He was the go to guy in Seattle for, for concert pianists and so on. And an old German guy said, steves, you should import the finest pianos in the world from Germany. So my dad thought, well, that's interesting. And he went to the piano fair in Frankfurt and made connections with the great piano makers and he decided to import pianos. And I remember when I was a kid, that was what we were all excited about. I couldn't step into a home without lifting up the fallboard and seeing what the name was above the keyboard for that piano. And you know, I knew the Beatles paid a blutner. And each piano has a different personality. Even to this day, you know, I can't go into a building in Europe when I'm traveling. If I see a piano without checking out the name of it or I squint to see, you know, at the, on the TV special what piano that person playing.
- [08:30]
Guy Raz
And presumably you, you played piano, you grew up taking lessons.
- [08:34]
Unnamed Guest
Well, I had to. I mean it was, that wasn't an option. And it's interesting, my dad made me play the piano. My mom wasn't musical, you know, so that was a big part of my childhood. And I remember one day I came home from school and my dad said, son, we're going to Europe to see the piano factories. And I thought, dad, that's a silly idea. But it was actually what opened up my world.
- [08:56]
Guy Raz
So, age 14, your parents take you to Europe for this trip. And this, this trip really, I guess was like, was revelatory, right? Like, what do you remember about how that trip made you think about the world? I mean, you're only 14, so you're still a kid.
- [09:17]
Unnamed Guest
Yeah, my very first moments over there, I remember just stepping out of the hotel on my very first morning in the Netherlands. And there was a stop sign in front of this little town in the Netherlands. And all the people had bicycles with racks on the front of the bicycles and in every rack there was a set of wooden shoes. And they're all pedaling out to the farm where they were going to work in the farm with their wooden shoes for a practical purpose, not for tourism, but because you needed wooden shoes to walk around in the soggy bog.
- [09:46]
Guy Raz
I mean, were you, were you curious and excited about everything you saw? Were you more like a typical 14 year old kid where you were kind of bored with some of the museums and things like that?
- [09:57]
Unnamed Guest
At first I didn't want to go. I was a 14 year old with a bad attitude. Then I got over there and I've always navigated, I navigated childhood with a pragmatic understanding that things go better if you're not fighting your parents. And I just thought, okay, I'm gonna make the best of this. And then I was always into stuff. I remember I had no money at all, but I was collecting things. I would collect bottle caps because in Europe when you have a bottle cap, it says what city it was bottled in. So I'd have all these exotic bottle caps, beer or soft drinks with where it was bottled. And I collected that. I collected matchbooks, I colle, you know. And I also was a businessman. I would guy. It's, it's kind of, when I think back on it, funny, because I found the most incredible business for a 14 year old because I was a coin collector. Coins sold in Seattle in the 60s, foreign coins for 3 cents apiece, you know, in the coin markets, if it was a German coin or a Norwegian coin. So I could buy 52 Groschen coins for a nickel and bring them home and sell them for 3 cents each. That is a markup, man.
- [11:02]
Guy Raz
There is a photograph of you. It's you, your mom, your dad, and I think a little sister. And you've got shaggy long hair and big glasses. And it's a photo of your family in Europe. And this was I guess 1969, the summer of 69.
- [11:21]
Unnamed Guest
Are we looking out a window? I think that's. Yeah, that's my mom and my dad and a piano salesman who took care of us from Burzendorfer in Vienna and an old man we met and it was Sunday and we went to this little village and we dropped in on the church and after the mass, everybody, it just felt like it was an old Wild west scene. Everybody was wearing black and top hats and long mustaches. And everybody walked across the dusty square, past the fountain, over to the wine garden and they would drink their wine and they would smear lard on rustic bread and tell stories. And it was multi generational. And to me that was probably one of the eye opening things that I thought this world is just inviting me to open up to it and explore. And I remember this old guy, he looked like a caricature out of some silent movie. He had a big handlebar mustache and a fancy carved pipe. And he was telling stories about how he witnessed the assassination of Archduke Franz Ferdinand in 1914 that kicked off World War I. And he was old enough to have witnessed it. And I was just wide eyed and I was right on the border of the communist world, right there between Austria and Hungary and oh gee, it was a cauldron, it was a whirlpool of culture and history. And had my parents not taken me to Europe, I just would have not had that dimension to my world.
- [12:52]
Guy Raz
And of course that was just the first of what would be many more, dozens more trips to Europe.
- [12:58]
Unnamed Guest
Yeah, And I remember on the next trip to Europe, I was in the train station in Copenhagen, going between the piano factories in Germany and the relatives in Norway. And I saw these backpackers. And this was back in a time when literally a 16 year old kid in the United States could be on his mother's passport. I didn't have a passport. My mom had a passport with two photographs on it. It was her and her son.
- [13:23]
Guy Raz
This is the second family trip.
- [13:24]
Unnamed Guest
It was the second trip, yeah. Two years later. And I was 16, so I don't know, that would have been 10th, 11th grade or something. And I remember I was in the train station with my parents and I saw these kids. This was really a eureka moment for me because I was literally legally chained to my mom to travel with her passport. And then I saw these kids with backpacks with the European equivalent of a Eurail pass, an Interrail pass. And they were free as the wind, and they had no parents in sight. And I remember looking at the destination board in that old fashioned Copenhagen train station, which to me is sort of almost a mecca of travelers to go into these old train stations.
- [14:07]
Guy Raz
You can see the letters flipping.
- [14:09]
Unnamed Guest
Yeah, those letters flipping. And it's going to Berlin or Stockholm or Amsterdam. And I saw those kids and I looked over at my mom and dad and I thought, I don't need you guys for this. The world can be my playground. And I vowed right then in the Copenhagen train station that I would go back to Europe every year after I graduated from high school. And I have. So that was quite a commitment, quite a vision. And I didn't have any intention of making a business out of it. This is just what I did in the summer. It was just fun.
- [14:39]
Guy Raz
So the day, I guess like the day after you graduated high school, this is 1973, you did. You went on a solo or you went with a friend, I guess to Europe. You were 18, right? And you were there pretty much all summer traveling around Europe.
- [14:54]
Unnamed Guest
That was a hardcore trip. That was the best trip of my life. And I wanted to go to Europe. I was gonna. I was hell bent on going to Europe. And my parents said, well, you gotta have a buddy to go with you. And they said, you gotta send home postcards. So if you disappear, we know where you are and we can come and find you.
- [15:09]
Guy Raz
And how did you. How did you pay for it? How did you have the money to do that?
- [15:15]
Unnamed Guest
I remember I used to. I had a. I had a jar on the mantel in my parents, in our home, and it said, send a poor boy to Europe. And every time guests would come over, I would try to beg a little money. But I was a piano teacher and I was making good money as a piano teacher. I think I made $6 for a half hour lesson. And that was really good money. But back then you could go to Europe really cheap. You could fly to Europe for a few hundred dollars. You could get a year rail pass, a student year rail pass for, I think it was $250. And we lived on three or four. There was no $5 a day. We lived on like $3 a day.
- [15:56]
Guy Raz
I mean, that was a time where one of the most famous guidebooks for Americans was Arthur fromMer's Europe on $5 a day. And were you living. You were living on that or even less than that a day?
- [16:07]
Unnamed Guest
Less than that, yeah. I mean, how do you live on.
- [16:10]
Guy Raz
I mean, 1973, I get it, but how do you live on less than $5 a day in Europe, even in 1973.
- [16:16]
Unnamed Guest
You know, Guy, I've got the journals for this. I was a journal writing fiend. I wrote every day, even when I was 14 years old, what the weather was like, how much money I had in my money belt, what food I ate. And I can trace every day I was in Europe for every year until I got wrapped up in my business much later, when I didn't have the energy, the bandwidth to do that. And when I was 18, my buddy Gene and I, we would have a game, would see how many hours we could go without spending any money. I mean, when we were sightseeing, we'd go right up to the door and if it cost, we'd find a way to sneak in the back door and we would visit it. We would buy a single room in a hotel and I'd sleep on the floor. Once a week, we'd put all of our money on the bed and we'd count up the money and we'd divide how many days we had left and we'd say, oh, no, we're slipping down below $2 a day. We've got to really tighten up. And then we went home after that trip with no money, and we went from the Frankfurt Youth Hostel out to the airport on an expired rail pass. It was frightening. We were really good at stowing away on trains and boats, and the conductors were coming from either end of the train, and we knew we were just going to the suburban airport. So it was like two collapsing walls with those spikes on it, like in Batman and our Superman. And they were coming closer and closer on the left and the right. And we were just, let's get to the airport. And just in. We got to the airport, the door opened and we popped out before the.
- [17:45]
Guy Raz
Conductor, before they could see your expired rail passes.
- [17:49]
Unnamed Guest
And I came home and I was sick. I was what the doctor called chronically undernourished or chronically fatigued because you were.
- [17:57]
Guy Raz
Not eating while you were on this trip.
- [17:59]
Unnamed Guest
I had no sense of nutrition. I would eat bread and jam. One of our theme songs, Kodachrome, was a big hit that year by Paul Simon. I don't know if you remember that. Can I sing it? I'll sing it a little if I can remember it.
- [18:14]
Guy Raz
Don't take my Kodachrome away.
- [18:17]
Unnamed Guest
So it was like, when I think back on all the crap I ate in Europe, it's a wonder I am here at all. Although my lack of good nutrition never hurt me none. I got maggots on my stomach wall. Oh, gosh, bread and jam. You know, we went over there and I often think back, why was that trip so great? And that trip was so great because it was a challenge, because every penny mattered, because everything was new, because we were totally on. And it was just the beautiful part of growing up.
- [18:49]
Guy Raz
I remember that feeling too, because I traveled around Europe around 19, 20 years old. And that feeling, when you do that on your own and you had to make all these choices and decisions and you do, you come back a changed person. It really is transformational.
- [19:05]
Unnamed Guest
Yeah. And even as a teenager, I was aware of that. And I often think if the world was smart, they would establish a fund and give every American kid a little gap year trip. And it seems extravagant, but it'd be a small price to pay to get Americans out of their home and into the rest of the world and realize this world's a beautiful place and it's worth being part of. You know, if you grew up in the United States, you think the world's a pyramid with the United States on top and everybody else trying to figure it out. And you get over there and you realize, no, they like their style of life and they've got. They've got different dreams. They don't have the American dream, they've got the Bulgarian dream. And these are revelations I had as a teenage traveler that are still integral to the talks that I give today.
- [19:51]
Guy Raz
So you take that trip and you come back to Edmonds and you start college. You go to the University of Washington. And what was your. I mean, at that point you're still, you know, young, 18, 19, 20. But did you start to think, you know, here's what I'll do with my life. Like, what did you. What did you start to think you might do with your life?
- [20:10]
Unnamed Guest
At that point, I just. I think I just was very happy to be a piano teacher. I love teaching piano. I had a studio, so I was a little businessman. I had the studio next to my parents piano store, paid $200 a month for the rent. We had a recital hall where twice a year the kids would do their recitals. And I bought a coffee machine where I could actually serve coffee in styrofoam cups to all the parents. And it was just for me. I was just like so happy to do that. And the kids wouldn't pract. So I'm just going to go to Europe. I'll see you in the fall. Life was going to be simple and sweet like that. And then I thought, well, I should get something Practical. So I got a business degree also. So I got a history degree because I loved that, and business degree because I thought it would be practical. But I had no thought about turning my love of travel into a business. But then things unfolded.
- [20:59]
Guy Raz
I read that while you were still in college, there was something called the experimental college, which I think is still around, which some universities have it. And it's basically free classes for people in the community. And you started to offer a class called Travel Europe Cheap, which I'm assuming this was free. You would just give these lectures for free?
- [21:18]
Unnamed Guest
No, not quite, but almost a couple bucks. But I, that was the turning point for me. I was in the dorm and when I look back on it, I just love teaching things. I love. I teach piano and I teach travel. And I would spend a lot of time at lunch helping people plan their trips. And I was the local expert in the dorm. And I remember, you know, I remember I took a class about taking the hippie trail from Kathmandu to. No, from Istanbul to Kathmandu. That was what, the ultimate backpacker trip back to.
- [21:51]
Guy Raz
You taught a class or you took a class?
- [21:52]
Unnamed Guest
No, no, I took the class. And this guy, I was gonna do this trip and there's no good information back then. Today we have a glut of information, but back then, you know, you just didn't have much information. This guy, I signed up for his class and there was like 15 of us there dreaming about, just like wide eyed, he's done this trip from Istanbul to Kathmandu over Khyber Pass. And we sat there and he was just too cool for school. He just didn't prepare. He didn't care about our trip. He had the information, but he didn't give it to us. And it really frustrated me. And at that moment I realized if somebody has travel experience and other people need it, it's wrong not to be well organized and share it in an artful, careful, practical way. And I thought, you know, I could do the same thing and I could really help people. So I put together this class and it was sort of a lark. You know, it's just this goofy college where people teach you how to fix your bike or how to build a log cabin or how to forage and eat snails and all this kind of stuff and. And I was teaching a class called European Travel Cheap. And I remember, I'm not going to mince words, this is European Travel cheap. That's all it is, how we're going to afford to go to Europe. And it was a six Wednesday class or something like that. And I thought I'd get 20 kids from the dorm signing up. I had 100 of their parents signing up. And I just remember, holy cow, I've struck something here. These are not the students, these are the parents. And I left the dorm. I was trained to be very efficient. I knew it would cost $8 for the class and I thought, okay, I better. And I don't want to have a backlog because of lack of change, you know. So I went. I remember I actually went to the class with like a hundred two dollar bills and I came home with change for the year 100 times, $800 in 10s and 20s. And I, for me as a kid in the dorm, $800. That paid for my flight and my rail pass for next summer's trip.
- [24:00]
Guy Raz
And by the way, Rick, how detailed were you going into in these classes? Was it like, here's how you get to Europe, here's where you stay, here's. Or was it.
- [24:11]
Unnamed Guest
I would sit on a table facing the group in the classroom and I had a slideshow. I had my slide projector and I showed slides. And I remember I could. It was too. After a while it got. I mean, I was teaching all the time. I was just a teaching maniac. I would teach all Saturday. I would give that six week course in a one Saturday session because people from out of town wanted to take it and they couldn't come every Wednesday night. So they would drive in and I would teach from nine till five with an hour break for lunch. And I could keep 100 people into a packed little hotel ballroom all day long giving my talk. And I got better and better at it. And I experimented with the delivery time after time, how I would teach this and how I would get the points across. And eventually my mom's sister, my aunt, said, you should write a book. And I thought, that's so stupid. But then I thought, well, wait a minute, I've already written the book by giving this talk over and over and over. And I just sat down and gave my lecture to the paper. And there it was, the first edition of Europe through the Back Door.
- [25:18]
Guy Raz
Essentially, when you say you gave your lecture to the paper, you were just kind of talking out loud and typing it out.
- [25:23]
Unnamed Guest
Yep, I think I even hand wrote it or something. But it was just my lecture. I mean, because I had given that lecture. And for me, giving the talk is recreation. It's how are you going to design these ideas and get it across and how are you going to illustrate it and you're going to talk about bed and breakfasts. And how did that relate to youth hostels? And what about sleeping on the train and finding cheap free places to sleep and whatever. And after each, at the beginning of each class, I had everybody write on a piece of paper their fears and apprehensions. And I would survey for a long time, I would survey the class in the first night and what are your fears and apprehensions? And I really got good at knowing what people's fears and apprehensions were.
- [26:05]
Guy Raz
But what were they afraid of?
- [26:07]
Unnamed Guest
They're afraid of the language barrier, they're afraid of not finding a room. They were afraid of getting diarrhea, they're afraid of pickpockets. They're afraid of how do I use my traveler's checks properly? And I just would have all of these issues that I would just bing, bing, bing.
- [26:23]
Guy Raz
So you took your lecture essentially and you typed it up into a book that you called Europe through the Back Door. And did you structure the book in just a clear way? It was like country by country. Is that how you organized it?
- [26:39]
Unnamed Guest
In the beginning, the book was two halves. It was like two books bound together. The first half was all the skills. Packing, hotels, eating, transportation, communication, you name it. And then the last half were individual chapters on my 20 favorite discoveries. These are the back doors. So I didn't need to write a guidebook to Paris or to Ireland. I just need to share my discoveries. And for a long time, I kind of almost prided myself in not having to bog down on phone numbers and prices and hours and that kind of stuff. I just wrote creative articles to turn people onto my favorite corners. The south coast of Portugal, Dingle peninsula in Ireland, Arrow island up in Denmark. The Mosel river valley instead of the Rhine for your castles in Germany.
- [27:26]
Guy Raz
And did you get it formally published? Did you start to distribute it to bookstores? Tell me what the book looked like and how you made that.
- [27:36]
Unnamed Guest
The book looked so simple that once it was already sold, people when I tried to get publicity, they thought it was a pre publication edition. They would say, when's the book coming out? This is the book. It was a very simple thing. I didn't know what it was. It was selfish, by the way, it was self published. I didn't know what an ISBN was, so it didn't have an ISBN, which was stupid.
- [27:55]
Guy Raz
Did you xerox the pages and staple them together?
- [27:58]
Unnamed Guest
My girlfriend typed it for me. My. My roommate was an artist. I gave him the photographs and he sketched them really nicely. And then it was a time when you type and you correct by Typing it on another piece of paper with a glue stick. You glue that strip over the line that has the mistake. So it was a lovingly put together pile of 180 pages. And I took it up to the publisher and I dug up all my money and it would cost a couple thousand dollars and I got a couple thousand books, came back a few weeks later, picked him up in my Oldsmobile station wagon, drove home, and now I had the first self published edition of Rick Steve's Europe through the Back Door. And then after that I finally got a publisher, which was a blessing.
- [28:43]
Guy Raz
And how much were you charging for the book in that first year?
- [28:47]
Unnamed Guest
I think it was $4.95.
- [28:49]
Guy Raz
And so you were just hawking them yourself? You were going into bookstores and saying, hey, I've got these books. Or you were going to giving lectures and offering the book for sale.
- [28:57]
Unnamed Guest
And then I would have the books in my car and it was literally the books in the back of my car. And I remember a few occasions I was giving a talk and oh no, you can't sell anything on the premises here. Okay, after the talk I'd say, if you want to buy the book, I'll be out of my car and it's just five bucks, you know, and then it's just bam, bam, bam, selling like hotcakes. And I got to the point where I would get bigger and bigger classes and I would sell the book for the book got bigger and bigger and bigger. But I kept it at $5 for a long time just because I wanted to move those books. And I knew though that my audience was my parents age for many years. Now I'm older, so I don't have audience that's my parents age anymore. But in the beginning I was always thinking, I'm talking to my parents and their friends.
- [29:41]
Guy Raz
And when you were leading these lectures and talking about going to Europe, were you just saying, look, you can do this. I don't speak French, German, Dutch. You can get a little guidebook, you can make it work.
- [29:54]
Unnamed Guest
I think that's part of how I was successful. Part of my appeal is I'm not a scholar, you know, I mispronounce the words. I don't know how to. I don't say Paris, you know, I say Paris. I speak only English, you know, Remember I was interviewing my students. That was a fear and apprehension. I don't speak the language and I tell them, well, neither do I. And I write guidebooks, I make TV shows, I lead tours and have great vacations going to Portugal.
- [30:21]
Guy Raz
So I have to imagine after you publish Europe through the Back Door, self publish that. I think the first edition came out in 1980, is that right?
- [30:29]
Unnamed Guest
Yes, that's right.
- [30:31]
Guy Raz
I'm assuming that it was clear to you because you had established a business, right? You called it Europe through the Back Door a few years earlier. It was like, you probably filed an llc. But it's not clear to me that you thought this was still going to be the way you were going to make a living up until 19 came up.
- [30:49]
Unnamed Guest
I don't know if I filed anything. I'm kind of laughing at that because I was. I was so klutzy then. I was just having fun teaching and selling books out of the back of my car when I had books to sell. But when I think back on it, friends and loved ones and relatives give me these ideas, and my gut response is, no, that's crazy. And then I think about it, and it's actually a great idea. And a good friend of my parents, Patty Price, said, you should take bus tours around. And I just thought, that sounds horrible. And then I thought, God, there's huge efficiency engineers sharing the rental cost of a minibus. And I'd love to, you know, I love to help organize people's trip plans at the table in the dormitory over lunch, and I'd love to take people around Europe on these minibus tours. And so I, you know, I was giving these talks, and it was very easy to talk people who were enamored with me because of my fun stories I could tell about traveling. You know, it was kind of natural they'd be interested in traveling with me if I'm made that possible. And I did. And the minibus, there was no. There was no promises. The minibus tours were like. It was like a commune on wheels. It was not profitable except to cover my costs so I could stay over there longer. And, you know, everybody had to almost sign a little agreement that says they wouldn't complain about the lousy accommodations. It was so upfront.
- [32:08]
Guy Raz
So you. You would basically. Would you drive the bus?
- [32:12]
Unnamed Guest
Yeah, I drove the bus. That was a beautiful formula. When people want to get into the travel business and make some money, I say, you know, I think the best thing is just to have a forte. Just, you know, you are Mr. Scandinavia or you are Mr. Baja or Ms. Baja California and just do that specialty with eight people on a minibus. And the economy of sharing a vehicle with eight people is wonderful. The fact that you don't have to take care of a driver and a guide, but the driver can be the guide is wonderful. And that was kind of my original formula there. And this worked really well at the time. I would actually have a day where I would announce my minibus tour plans for the next year and I would give the talk. I would say, okay, I'm gonna explain the tours and then I'll take deposits for the tours on that day. And I'd have four or five tours that I would do with the minibus. I was always the guide and the driver. And that night all those tours would be full.
- [33:13]
Guy Raz
They would sell out.
- [33:14]
Unnamed Guest
They would sell out that one night.
- [33:15]
Guy Raz
And it was like what, 10 or 12 people per tour?
- [33:17]
Unnamed Guest
Eight people per tour. It was usually 22 days. Back then I only did 22 day tours. I was on a one man crusade to help Americans have a longer vacation. I was just amazed that we put up with such short vacations. And so it was 22 days in Britain, 22 days in Germany, Austria and Switzerland. It's funny because now, 40 years later, it's evolved where that's way too long for the American market. And the longest tour is 20 days and our best selling tours are 10 or 12 days.
- [33:46]
Guy Raz
So I'm trying to picture this. I mean, you are like in your late 20s, you're offering these minibus tours with eight people and you're driving the minibus and you're the guide and you only speak English. So I mean that's a lot to take on. Like you didn't have a local guide with you, it was just you and eight people.
- [34:04]
Unnamed Guest
Oh yeah. And I, I didn't have the sophistication or the appreciation of a local guide or the money for a local guide. So we were just bumbling around together. You know, I remember we would do the craziest things. We'd go through the. There's an oak forest where Admiral Nelson used to get his masts for his ships in southern Wales. I forget the name of the forest of something very romantic. And we would take turns sitting up on the top of the bus on the luggage rack and a couple of people up on the top of the luggage rack just so they could look up at the oak forest as we rolled through it slowly. Every night in the youth hostel, we'd pull out the map and debate. We would actually debate what we're going to do the next day. And this was a formative time for me as a tour organizer because again, I was learning what the market wanted. I was learning how many hill towns can a mortal tour find worth climbing up? How many Madonnas and children can a mortal tourist be excited about? I don't to want. After a while, it doesn't matter if it's Raphael's greatest. They're gonna stay in the bus and do something else because they're burned out on Madonnas and children. It's interesting. I remember this is this business kind of philosophy, I think, of mine. I would have the handbooks for those tours laying around in my lectures. And the handbooks were designed so people could be independent in the context of the tour. There was always this focus.
- [35:30]
Guy Raz
Everybody got a handbook who joined the team.
- [35:32]
Unnamed Guest
That's right. Yeah. And time and time again. And I was so, so impressed by how honest my students were in these classes. I gave. I never checked ID for checks when people were giving me any money for anything. And I just didn't need to. They're just great people. But they were stealing this book, these books. And I thought, these tour handbooks are driving decent people to theft. They need to be available for sale. So the next year, sort of a radical thing to do. I put everything I knew about doing the tour in the handbook for the tour, intending to give people the information necessary so they could do the Rick Steves tour without Rick Steves. They could buy the book for five bucks and do it on their own. And some people said, oh, you're giving away all your secrets. No, it was a great thing because it turned people onto the tours and it opened up my teaching to people that wouldn't take the tours anyway. And then I could stand in front of these groups of people who were taking my class for free and say, I don't care. You can take my tour or you can buy this book and do the tour without me. Wow. But just do it and do it right.
- [36:32]
Guy Raz
When did you start to think of yourself as the real deal? Because I think a lot of people, including myself, have had, and sometimes still have imposter syndrome. We're like, how do people listen to me? When did you start to think, God, I'm not an expert, but.
- [36:50]
Unnamed Guest
Right. Well, you kind of grow into it. I remember a big breakthrough for me was Arthur Fromer. I mean, he was the granddad of all this. He's the guy that inspired the democratization of international travel.
- [37:05]
Guy Raz
You're up on $5 a day.
- [37:07]
Unnamed Guest
Right?
- [37:07]
Guy Raz
His classic book.
- [37:08]
Unnamed Guest
Yeah. And I was just a kid and I mean, it must have been right after I self published my book. I didn't even know he knew who I was. He had me fly all the way to New York and be on his radio show and. Wow, ours, a TV show, I think, maybe. And he put his, you know, he kind of effectively put his arm around me and he said, ladies and gentlemen, I'd like you to meet the next Temple Fielding, Eugene Fodor and Stephen Birnbaum of the travel publishing world. Those were the big household words in the 50s and 60s. Fielding guides, Fodor Guides, Burn Bomb guides.
- [37:43]
Guy Raz
And eventually, I mean, you would do. You would, you know, do your own, like Rick Steves guides, because you'd get a publisher and start the publishing them. But, I mean, for a while, I guess you were pretty much hawking that first book on your own, right?
- [37:56]
Unnamed Guest
Yeah. And there was sort of this. It was like this big business that was just a little kernel and it was just ready to burst out because there was such a market for it if it was designed and what do you call scaled up properly.
- [38:10]
Guy Raz
What about your personal life? Were you married at that point in the 1980s?
- [38:16]
Unnamed Guest
Yes, I was married. I forget. I remember my class was Wednesday nights, and I got married on a Saturday and a Sunday, of course. So I remember giving a talk one Wednesday and saying, I'm going to get married this weekend. That whole next week was dedicated to getting married. And then the next Wednesday I was back in the University of Washington giving the experimental college class. So I guess that's a little indication that I was focused on my business quite a lot. And my wife was a very supportive and beautiful partner for that period of my life. And then I got this complexity of a growing family and kids and also a business that was just taken off, and my heart was in two places at the same time.
- [39:02]
Guy Raz
And sounds like it was still a regional business. This was still like Pacific Northwest. Rick Steves is the guy in the Pacific Northwest.
- [39:08]
Unnamed Guest
I remember the day. I remember I was walking to the book fair once in San Francisco, and my publisher put his arm around me and he said, rick, if you're ever going to get anywhere, you got to have more titles. Because then I just had two or three titles, and I thought, oh, more titles. That sounds like a lot of work. And then I had to branch beyond that, Favorite places, essays and generic travel skills into specifics. Where are you going to sleep in Brussels? Where are you going to eat in Copenhagen? What time is the museum open in Dublin? And that was a lot of work, and that was a big change. But that's what people wanted and that's what we could offer in a unique Rick Steves kind of way. So then we embarked on all of making all of These guidebooks to different countries and different regions and ultimately different cities. But from 80 on, after I had the guidebook, the bus tours were, were funding the idealism of the business. Then I started to get people working with me. And that was kind of a breakthrough. You know, you got a book, you got an idea, and you need to realize it's not a one man show.
- [40:19]
Guy Raz
When we come back in just a moment how Rick went from selling books out of his car to hosting an incredibly popular TV show. And how that, that success and all the work that went with it would wind up taking a big toll on his family life. Stay with us. I'm Guy Raz, and you're listening to how I built this.
- [40:47]
Rick Steves
I just got back from a trip to Germany and I stayed at an awesome apartment right in the heart of Munich, right on the Marienplatz. And it was like one of the coolest places I had ever stayed at where I could cook and enjoy the city and hear it and feel it and just walk right out into the main square. Right there was a beautiful place. And to be honest, I really didn't want to leave. The next time you're away from your own home, consider hosting your space on Airbnb. Hosting on Airbnb provides you with an extra income stream. Plus your earnings could even help offset the cost of your next trip. Your home might be worth more than you think. Find out how much@airbnb.com host what does the future hold for businesses? Ask nine experts and you'll get 10 answers. Rates will rise. Rates will fall. Inflation's up, inflation's down. Can someone please invent a crystal ball? Until then, over 41,000 businesses have future proofed their business with NetSuite by Oracle, the One Cloud ERP. Bringing accounting, financial management, inventory, HR into one fluid platform. I know a ton of businesses that rely on NetSuite and find it incredibly invaluable. Whether your company is earning millions or even hundreds of millions, NetSuite helps you respond to immediate challenges and seize your biggest opportunities. Speaking of opportunity, download the CFO's guide to AI and machine learning at netsuite.com built the guide is free to you at netsuite.com built netsuite.com built Finding great candidates to hire can be challenging. You get too many resumes and not enough candidates with the right skills or experience. But not with ZipRecruiter. ZipRecruiter finds amazing candidates for you fast. And right now you can try it for free@ziprecruiter.com Bilt ZipRecruiter's smart technology identifies and connects you with top candidates. Quickly ditch the other hiring sites and let ZipRecruiter find what you're looking for. The needle in the haystack. Four out of five employers who post on ZipRecruiter get a quality candidate within the first day. Try it for free at this exclusive web ZipRecruiter.com Bilt Again, that's ZipRecruiter.com BILT ZipRecruiter the smartest way to hire.
- [43:42]
Guy Raz
Hey, welcome back to How I Built this. I'm Guy Raz. So it's around 1991, and from his home in Edmonds, Washington, Rick Steves is running a pretty successful travel business, writing guidebooks and doing small tours of Europe for months at a time. And then comes a pretty important turning point. He starts making a TV show called Travels in Europe with Rick Steves. Tell me how that began. I mean, did you, did you find a production company and have them follow you through Europe? I mean, how did that idea even come about?
- [44:20]
Unnamed Guest
You know, when you just said that? I'm just thinking, I am such a reluctant. I'm sort of, in a way, I'm eager and I'm just like an Energizer Bunny about all this. But in another way, I'm sort of like digging my heels in like a stubborn dog and saying no. You know, some loved one says, you should make tours and take people around on a minibus. No. And then I do that. And then somebody says, you should write a book. And I say, no. And then somebody, actually a whole bunch of people in the late 80s were coming to me and saying, you should make a TV show.
- [44:46]
Guy Raz
Yeah.
- [44:46]
Unnamed Guest
I thought, no way. But then I thought, these are smart people and they've worked with other people, made shows. They've got a track record of success and they see something in this. And I thought, well, I'll give it a whirl.
- [44:57]
Guy Raz
So the idea was you'd make a TV show where you'd be touring cities in Europe and kind of taking us with you on the journey. But how, I mean, how would you like, how were you gonna finance it? What were you gonna.
- [45:11]
Unnamed Guest
Well, that was the trouble. I mean, everything I'd done up until now had been, no finance necessary. I'm just, I'll give a free. Gather 10 people together. I'm there all day giving you a talk, you know, but this was different because you had to have a funder. You had to have it's expensive production company, huge investment of time. And for me, it was investment of time. Do I really want to take all that time away from researching my guidebooks and dedicate it to making TV shows where I'm not learning anything? You see, when I'm researching, I'm learning, I'm contributing. It's a huge practical investment in my program of who I am as a travel teacher. Sure. The TV show. It takes six days to produce a half hour TV show, and you learn nothing during that. I mean, I always thought, oh, I could learn while I'm there. No, it's just so all consuming. You're just there waiting for the jackhammer to stop, trying to remember your lines, waiting for the clouds to go away and then saying it. And then you go to the next place and you do it. And after six days, if all goes well, you have a show.
- [46:09]
Guy Raz
But how did you find. I mean, how did you even begin the process? Did you find a production company and then start to pitch the show? What did you do?
- [46:18]
Unnamed Guest
No, I didn't want to do it. They found me and I did it.
- [46:22]
Guy Raz
This was a small production company. They were called Small World Productions.
- [46:25]
Unnamed Guest
Small World Productions. Yeah. And they were. A lot of people had been contacting me. There was this flurry of interest in the late 80s, and I was skeptical and I felt like, well, I can actually play hard to get because I don't want to do this. And they were really smart, good people. And they knew what I did. They had been followers of mine, you know, they knew my program. They drank the Rick Steves Europe through the back door, Kool Aid. And they wanted to share it on public television. And I said, okay, if you guys think you can do it, I'm with you. And I was basically a hired hand. I was the host.
- [46:59]
Guy Raz
So they owned the whole thing. And they hired you as the talent, let's say.
- [47:04]
Unnamed Guest
Yeah, one of their friends had a few thousand dollars that he could be the funder. And we did a pilot. And I look at it now, and it seemed kind of gawky, but at the time, it was good enough to get the show off the ground.
- [47:18]
Guy Raz
And what you make a pilot and pitch the idea to. To public TV stations?
- [47:22]
Unnamed Guest
Yeah, when you make a TV show for public television, you need a station to be your presenting station. And Seattle opted out for some reason. So Oregon took it up and Oregon Public Broadcasting, OPB all over the country now, you know, 30 years later, people think I'm from Portland because my show gets the little OPB jingle. And they presented it to the system in a Few channels picked it up and if it works well, there's a buzz and other channels pick it up the next time around. But what that ended up doing was kicking off a series and we did five series with Small World. And I remember it was expensive. Every dissolve was a financial decision. I remember they had to go to an editing suite and just have forever.
- [48:07]
Guy Raz
An avid suite, right? Yeah.
- [48:10]
Unnamed Guest
And a camera was hugely expensive. Now anybody can afford a camera. But back then you took out a bank loan to have a camera.
- [48:17]
Rick Steves
Yeah.
- [48:17]
Guy Raz
So this was really, I mean, this production company, they had this idea you were the face of it, but it wasn't your.
- [48:25]
Unnamed Guest
Wasn't mine. No. The only pay I was getting was the exposure, I suppose, to the public and the chance to say. And he writes a guidebook. So at the end of the show he writes a cool book. And if you like the show, you like the book, you buy that. And then Small World would make a little money.
- [48:41]
Guy Raz
And I mean, that was kind of risky. I mean a great risk because you were essentially giving them the ip. I mean, they owned the intellectual property of this and it could have worked entirely in their favor and not in your favor.
- [48:55]
Unnamed Guest
I had no option. I mean, they knew how to do it. I didn't, I didn't have any capital. And for me it was an adventure. It was one of those things that if an opportunity comes along, say yes. I had the energy and it turned out to be frustrating because I wanted to be more than what they wanted me to be.
- [49:18]
Guy Raz
What did they want you to be versus what you wanted you to be?
- [49:21]
Unnamed Guest
They wanted me to be an obedient host that would learn his lines and stay out of the way. I had a teaching agenda. They had a let's state business agenda and I had a teaching agenda. So they wanted to produce shows that would be pleasant to watch and popular and I wanted to produce shows that would teach the Rick Steves style of travel.
- [49:47]
Guy Raz
But I mean, in 1991, you were not the kind of typical television host. You know, you're. You've got this, you know, kind of nerdy earnest thing going and which of course today, that's why people love you. But then people were going for the deep bassy voice that kind of. So I mean, I'm just curious why they thought you were the guy to be the face of travel.
- [50:17]
Unnamed Guest
Well, if there wasn't public television, I don't think anybody else would have taken a look at me. But public television was the domain of the Bob Ross's and the Mr. Rogers and the Rick Steves, I think. And we were all getting started back or we were doing it back then. We were part of the time. I look at it and I think, boy, that was dorky. But it's me, it's honest, it's authentic, and it's driven by a passion for travel. And we all were true blue for public television. And it's just hard to have. I've got a lot of friends now that are travel teachers that are trying to break through with a TV show on public television. And I don't know how you do it. I mean, I'm very lucky that I had the breaks that I had way back then.
- [50:59]
Guy Raz
I mean, the stations got it for free because you guys were handling the underwriting and you got some publicity, and this turned you into a celebrity, like, kind of quickly. Right.
- [51:09]
Unnamed Guest
You know, one thing I've had as a business sort of value is be other people's cash cow. Everybody is struggling. Everybody is desperate to be viable from a business point of view. And if all you are is your own cash cow, nobody's going to want to talk to you. But if you honestly are other people's cash cow, then you become a key player for all these organizations because you're making them money. And I'm a cash cow for my publisher. I do a lot of things for my publisher that, while other writers just complain that their publishers don't promote them properly, I realize, no, I got to do my own song and dance, and my publisher appreciates that, and I pay for it and I benefit from it. And from a television point of view, Well, I was Mr. Pledge Drive, right as soon as I could.
- [51:56]
Guy Raz
You were raising money for stations all over the country.
- [51:58]
Unnamed Guest
I was spending 20 days a year, 20 days on the road doing pledge. And to this day, I mean, I just was talking to the people at public television a week or two ago, and they said nearly 20% of all the money that they raised in pledge this last quarter was from my show for the whole system.
- [52:18]
Guy Raz
When did you first realize. Because the show debuts in 1991, and it's so super fun to watch because it's so nerdy. And I love it. I love it for that reason. It's so. I mean, it's really special. When did you start? When did you first realize that people were recognizing you and going, hey, there's that guy from tv. Like, do you remember that feeling of when that happened?
- [52:42]
Unnamed Guest
Yeah, it was very. I remember the first time I ever saw somebody with my book in Europe. I remember the first time people started recognizing Me from the TV show. And then the first time people from the other hemisphere would know me from seeing the TV show in YouTube and other streaming ways. But, yeah, over time, that became more and more of a deal. I remember coming into a youth hostel high in the Alps, and I just checking for the guidebook information and dropping in, and there was the guy who ran the hotel said, oh, there's a Girl Scout group in the dining room, and they love to see you because they're here with your book. And I came in to the. I just interrupted their dinner, and they just go, oh, there's the guy we saw on tv. We saw his shows before we took our trip. And the Girl Scout leader says to the girls, girls, if it's not to your liking. And they all go, change your liking. And that's one of my slogans in my. In my guidebook. If it's not to your liking, change your liking. So they were true blue and doing, you know, honoring my little, little slogans without me even knowing it. And that was, you know, that's pretty fun when you work really hard to realize you're having an impact that way.
- [53:53]
Guy Raz
Meantime, you're doing these shows, which is super labor intensive. You are also going to Europe to lead tours. You're also updating your guidebooks. You're traveling around now doing fundraisers for public radio stations. And you've got a family at home. And. And I mean, I imagine you were away from home for months on end throughout the year.
- [54:21]
Unnamed Guest
Yeah, yeah. When I think back on was tough. I mean, I needed two lives, and my, you know, a lot of people work hard, and it takes a toll on their families. I worked hard, and it was sort of addictive to be writing a business that was rising up. And it was my dream, and it was also so enjoyable. And I loved parenting. I was married to my work as well as to my family. And in that case, it didn't work well.
- [54:57]
Guy Raz
And there were demands on being Rick Steves. People needed Rick Steves for a variety.
- [55:03]
Unnamed Guest
Of reasons, and that was a big deal. In fact, my relationship with my son was difficult for. For several years because he really recognized that my public had hijacked his dad and his other friends had dads that didn't have a public. And I've had this attitude that if you've got. I was going to say an adoring public, but, you know, you got fans who love your work.
- [55:31]
Guy Raz
Rick Nicks, they're everywhere.
- [55:33]
Unnamed Guest
Rick Nicks. Yeah. I mean, I feel like. Like you owe it to your public. To take time and talk to them and to visit them in person. So it's a choice you make.
- [55:44]
Guy Raz
I mean, I can imagine that that caused some tension or stress in your marriage with your wife.
- [55:53]
Unnamed Guest
Yeah, she just was realizing, and I think her friends were helping her figure this out, that you got to stop being in Rick's shadow. You know, she'd go to the grocery store and she'd buy the groceries, and she'd sign the check, and they'd go, oh, are you that Rick Steves? And I'm sure that gets really old because she's stuck with the kids, and she's doing all the responsible things a parent should do, not a mother a parent should do. And she was doing it pretty much alone. And I was doing the family thing a lot like my dad did. My dad was out there being the big personality, conducting the band, you know, being everybody's favorite piano technician and going with the concerts, and my mom was at home making sure the books worked and the kids were getting their shots and all that kind of thing. So, you know, I was. That was just a choice I made, and I don't know how else I could have done it, frankly. I went to the soccer games and the football games, and I was. I was very frustrated because I wanted to be working, and I didn't want to be sitting there with the other parents watching the kids kick the ball. And it was a difficult thing. Now, my kids, as adults, now, they're in their early 30s. We have beautiful relationship, and I'm. They know. I feel sad that there wasn't two of me, and much of those years were the formative years in my business, and we missed a lot of opportunities. On the other hand, we did a lot of great things, too, and I wasn't. I just don't want somebody else to dictate what it takes to be a good dad. I had a little chip on my shoulder about that because I didn't feel like I needed to help the kids moved into the dorm. You know, I mean, move into the dorm yourself. You know, I'm busy. And if that's wrong. Well, that's not wrong. It's just one person's assessment of what it takes to be a good parent. But I just miss the joys, the little magic moments, you know, you can't. I'm pretty practical about the reality that you can't do it all.
- [58:08]
Guy Raz
Yeah. So you did this first series, television series with this production company for, I guess, five seasons, and then. And then a couple years later, you relaunched the show as Rick Steves Europe. Right. Also on public television. And this time it was your show. Right. And this was gonna be different. This was going to be the way you wanted to do it.
- [58:32]
Unnamed Guest
Yep. I suppose creative people have had that, you know, where they're in a band and they want to be the composer and the manager and create the vision and say what album they're going to do next. And I got to the point with Small World where it just. We had different visions and we weren't enjoying the collaboration. And especially when you're making tv, if you're not having fun in the field, you know, it's not gonna. The product is gonna suffer. So I wanted to have fun in the field, and I wanted to be in. To be totally honest, I just wanted to be in complete control. I knew what I wanted to make. Life is short. I'm spending a third of my time in Europe making tv. You see, my time in Europe is divided. It's basically a third involved with the tour program, a third involved in researching the books, and a third involved in producing the TV shows. And that's a big commitment.
- [59:29]
Guy Raz
What's really remarkable to me is that a lot of people don't realize this. With all the television out in the world today, a lot of people don't really make that much money from tv. The TV in some ways, is like a vehicle to promote other things you do. And my understanding of the way your business works is that television. And then you started a public radio show, which you have a podcast and radio show and all this, you go to your webpage today, there's all this free content. And my understanding is that virtually all of your revenue comes from giving tours in Europe. Rick Steves tours that you no longer personally lead, but tours and books. That. That is like the vast majority of your revenue. It's not the TV shows, it's not the radio stuff, it's not the content on your website.
- [60:15]
Unnamed Guest
Yeah, I think the worst thing I could do is charge for the TV show because then nobody would watch it. People couldn't afford to run it. I mean, public television doesn't have much money and they have to choose. I mean, my show ran every night in Los Angeles for years. Every night in prime time. Because. Because Los Angeles Public Television broke away from PBS because they couldn't afford the dues.
- [60:40]
Guy Raz
Kcet, right?
- [60:41]
Unnamed Guest
Kcet. Yeah. And I was there. I was their favorite little guy for years.
- [60:47]
Guy Raz
And it was free content for them that they liked. And they just entered.
- [60:49]
Unnamed Guest
It was free and they had a budget. Reality and they said, well, we can do this and it'll cost us X, or we can do this and it'll cost us nothing. And everybody likes that and it's free, so let's do it. So as long as my shows are good and popular and free, we can do no wrong. That's why our show, it just has wheels and we work very hard. It's got legs. I mean, we work really hard to make the shows so they are evergreen and they get run a lot. We try to pack as much content in there so people can watch them several times and still get, get stuff out of it. And it works quite well.
- [61:26]
Guy Raz
I mean, it's really an interesting model because the content isn't what drives the business. You eventually, as you grew and grew and I think you were doing what, tours for 30,000 people a year by 2019 or even more, in a normal.
- [61:44]
Unnamed Guest
Year, we take 30,000 people and 1,200 tours.
- [61:47]
Guy Raz
I mean, it's just unbelievable. So this is. And so the content that you offer, because you can go to your website now and download apps that are free, right? You can download free guides, like audio guides. That is really just stuff you put out there. And I hope this doesn't sound cynical because I don't think this is how you think about it, but it really is a brilliant kind of free advertisement for the things you do sell.
- [62:16]
Unnamed Guest
So we spent a lot of money making this TV show. We've got every right to charge for this, but I would much rather have people run it and then say, how can he afford to do this? And then it becomes a part of their teaching arsenal and then people like us more and, you know, without even being aggressive and calculated, you know, they're going to think good about Rick Steves.
- [62:38]
Guy Raz
When you started to get more visible, when you started to become more visible and, you know, you're on the TV show and they're presumably more people interested in buying your books and then maybe even taking your tours. Did you sit down and say, okay, this is the strategy. We're going to create a travel business and we're going to do all these different things or do the things that eventually happen kind of just happen haphazardly.
- [63:00]
Unnamed Guest
No strategy at all. I always think I kind of like this idea of in Mexico, there's a volcano that just appears. Just a little mountain grows out of the desert and then. And it grows bigger and bigger and all of a sudden it's a mountain. There was not any plan there. And that's kind of the way we grew we become bigger and bigger and bigger. And for me, I never really wanted, I got a business degree, but I never really wanted to look in the book and say, oh, now you have a coo. Now you have a cfo. Now you have a CEO. I don't even know what that stuff is until it becomes apparent, oh, we need a guy to do this. And then they go, yeah, that's called a cfo, you know, and we're just, we're just kind of going, oh, that's why they have that.
- [63:49]
Rick Steves
When we come back in just a moment.
- [63:51]
Guy Raz
Why Rick didn't want the company to grow too big or too fast. Stay with us. I'm Guy Raz and you're listening to.
- [63:59]
Rick Steves
How I Built this. Bigger isn't always better, especially with AI. Supersized models can drain your budget fast. Smaller ones are smart and can help cut AI costs up to 90%. Right size. Your models@IBM.com the AI built for business. IBM.
- [64:45]
Guy Raz
Hey, welcome back to How I Built this. I'm Guy Raz. So by the late 1990s and early 2000s, Rick Steves books and tours and TV show were doing so well that he and his small team were actually a little worried.
- [65:01]
Unnamed Guest
Oh yeah. In fact, for years in my office, the big issue when we had our annual meetings and stuff was how do we not let growth brutalize us? Because we're a gang of collaborators, of friends, like a big family in my business. And we're not as typical. We're privately held. I always say if we were publicly held, we'd have no choice. We'd have to profit maximize. But we have ideals and it's not just making money. And we didn't want to sell our soul. We wanted to maintain who we were. And that's, I mean, I remember the. I just remember when I used to take the checks to the bank myself, you know, and it was not a sliver of that. But so now we've got the power to do things. We've got the power to. You know, when I want to make a show, a TV show about hunger, I dedicate a lot of time and a lot of money to going to Ethiopia and Guatemala. And we finish it with, we don't have to worry about what does every dissolve cost. We make that show first class at whatever it costs and then it has an impact. So we're just really enjoying the success we've had because of the way it lets us do a good job in the tools we use to teach the public.
- [66:10]
Guy Raz
Rick, I don't think many People dislike you. I think probably nobody does, but the rap on you. One of the criticisms of you, and you know this is Rick Steves has ruined these, like, beautiful, quaint places because they're just masses of American tourists coming through them, and they're not special anymore. There's nothing hidden. Like writing about Europe through the back door in 1982 meant one thing, but today it's like every spot on Earth, whether it's Cinque Terre in Italy or the coast of Donegal in Ireland, wherever it is, there's some influencer posing for, you know, posing for photographs in a field. You know, a field of lavender and Provence or whatever it might be like. It's just, you know, there's. It's. It's kind of a trope, but there's some truth to it, which is everything special has kind of been ruined.
- [66:58]
Unnamed Guest
Yeah, I remember there's a cartoon when it was these whalers, and somebody goes, quick, harpoon it before it's extinct. And I thought, maybe that's a little bit like me. My job is to find these undiscovered places and. And tell everybody about them. And, you know, I've thought long and hard about this. You know, I'm the hired hand of my readers. I'm not in business to protect places that I discover. I remember once I went to a lecture with Arthur Fromer, you know, my mentor, my inspiration in so many ways, and somebody said, you know, what's your favorite place in Rome? And he said, I've got a favorite place in Rome. I just go there for myself. It's just. And he described it so beautifully and says, I don't tell any about it because I just want it to be for me. And I thought, arthur, that's not what we're supposed to do. As travel writers, we work really hard to find these great places, and the very, very favorite places need to be more important than anything else shared with the public, as long as that place can handle the public. You know, some places don't want the public or they can't handle the public. And you would be wrong to promote it in a way that overwhelmed it and made everybody miserable. The locals and the tourists. But. But, you know, I'm not. I used to genuinely look for places off the beaten path, but I've been sort of. I've morphed into finding unique, authentic places that are accessible to the beaten path. That's what people want. And, you know, Paris is by no means undiscovered, but you can go to Paris in a way that you can enjoy it without it being a tourist trap.
- [68:25]
Guy Raz
But you know, Wonder Rick, I mean, you've probably seen how, how influencers on social media travel around Europe, around the world, and oftentimes they're not really there to see it, but basically to be seen seeing it. They post pictures of themselves posing in this or in that place sometimes as a way of getting travel perks. Right, and you've seen those kinds of posts, right?
- [68:51]
Unnamed Guest
Yeah, I mean, just last year I was traveling around Europe and it occurred to me, I went to four places in a row where there was this Instagram phenom, this is whatever it is, and I was in Murin in Switzerland and people were lining up to stand on a stump in Murren to get a photograph with the famous mountain behind them, and they're literally lining up to get this photograph. And then I go to the Cinque Terre in the Italian Riviera, and there's five towns nobody goes to. Manarola. And all of a sudden everybody's going to Manarola. And they're on the spit out in the waterfront and Manarola. And there's a big crowd on the spit in Manarola. And I ask my local friend, what is that? And he goes, that's the Instagram spot. Everybody goes there to get their picture and they don't even know the name of the town, you know, and I'm just so thankful that I don't. You know, when I go to the Louvre, I'm not putting on my shoulder pads and getting a selfie in front of the Mona Lisa. I've got some serious art appreciation to do. So that's a different world. And those people are scrambling to make it in that world. And that's fine with me, but it has nothing to do with my work as a travel writer.
- [69:58]
Guy Raz
Rick, for a 65 year old guy, you are remarkably self aware of your privilege and your. You talked about what it means to be a white man in the world and you have been pretty open about your progressive politics. You wrote a book called Travel as a political act in 2009. You've updated it, I think, just a couple years ago. Do you think because you have spent so much time overseas seeing other cultures and talking to other people, that it's actually made you more progressive politically?
- [70:38]
Unnamed Guest
Hmm. I love how travel opens you up to the world and I think it does make you more progressive. I've always been aware that culture shock is a challenge for travelers. And just this last few months I've been thinking about how Culture shock is a positive thing. It's the growing pains of a broadening perspective. And I'm so aware of the gap between rich and poor. I'm so aware that my day latte costs a day's wages for the less privileged. 50% of humanity. Half of our planet is trying to live on $5 a day. I think it's so interesting how you learn about your country a lot of times by leaving at it and leaving it and looking at it from a distance. So this is all to me. You know, my travel teaching has morphed. We talked about it on the very beginning. I said European travel. It was just budget tricks, you know, and since then it has morphed gradually, gradually, gradually over the years. And now it is getting out of your comfort zone and gaining an empathy for people who live differently and see things differently than we do.
- [71:53]
Guy Raz
You know, for somebody who really kind of started this as a passion project. Right. You never, I can't imagine you ever anticipate getting rich off of what you do, but you did. I mean, this is a business that in 2019 generated $100 million a year, staff of 100 people. I mean, you probably have enough money to retire several times over. Was money ever important to you? Is it important to you? Are you uncomfortable when I say you're a rich guy?
- [72:27]
Unnamed Guest
No. When I was a kid, I wanted to get A's. As a businessman, you get A's by making money. I pride myself in paying my staff well and taking care of my staff and providing a working environment that helps people feel good about what they're doing and not just earning a paycheck, but contributing in a positive way. And I like to make money. When I make money, I can do things that give me power to do stuff that I think is worthwhile.
- [72:57]
Guy Raz
Like what?
- [72:58]
Unnamed Guest
You know, I like to pay the rent for my local symphony. So my symphony has a tough time financially like most symphonies. And I just thought, how about if one of your fans just paid the concert hall rental fee all year long every year? So I've committed myself to doing that. I care about homelessness here. You know, I try to make sure people can find an affordable hotel when they're traveling in Europe. And I know a lot of people will never see their name on a plane ticket because life is just tough for them. And if we've got money for traveling, we should have money to house people here in our country. So I bought a 25 unit apartment.
- [73:32]
Guy Raz
Building that's in Edmonds, Washington, right?
- [73:35]
Unnamed Guest
In Edmonton? Yeah, north of Seattle. And I thought a lot of well off people have money as a nest egg sitting in the bank making interest. Why not take that capital and buy an apartment complex and then give it to the YWCA or some organization like that to house people. And you still own it, but your money is doing something good instead of sitting in the bank. Eventually I just gave that building to the ywca. And now I go to sleep knowing that my hard work has resulted in the YWCA owning a 25 unit apartment complex that is housing 25 single moms, in this case people who have had problems with hard drug addiction and they were not able to be with their kids. And now they can be with their kids.
- [74:17]
Guy Raz
Do you give yourself some luxuries like when you travel, do you travel first class in a flat bed?
- [74:23]
Unnamed Guest
I've never paid for anything other than economy on an airplane ticket. If I get bumped.
- [74:28]
Guy Raz
You just get upgraded because of your miles.
- [74:31]
Unnamed Guest
No, I don't do miles. I've never collected miles or anything like that. I just have a. I don't want to try to defend it because I don't know for sure why I don't like it. But I don't bother with miles. They really, I don't like miles.
- [74:41]
Guy Raz
So when you fly to Europe, you fly an economy class?
- [74:44]
Unnamed Guest
Oh yeah. I fly way back there.
- [74:45]
Guy Raz
And you just, somebody just sits next to you and they're like, wait, aren't you Rick Steves?
- [74:49]
Unnamed Guest
I just sit there like a Norwegian Bernie Sanders with my noise reduction headphones on looking at my laptop for eight hours.
- [74:56]
Guy Raz
How do you prevent people from giving you a bunch of free stuff or trying to influence your decision by making. Because you've got to be recognized now everywhere you go. It's not like you're an anonymous critic. I mean it's.
- [75:11]
Unnamed Guest
I take it personally because you've got to earn your way into a Rick Steves book. You can't get in there because you gave Rick a nice bottle of wine or that your cousin's already in there. You got to earn it. I owe that to my readers. So it is a constant battle. And I get free rooms when I travel. Nobody would charge me for a room when I go to their hotel because I send them a quarter of their business all year long. But I am very tuned in to the fact that I cannot let that corrupt me if things go south. That hotel, even if it's run by friends of mine, is out of the book and it breaks my heart. But I have had to drop hotels run by friends of mine because it's no longer what it used to be when it earned a spot in the book.
- [75:57]
Guy Raz
Do you think that your audience is getting older or do you think that you are still appealing to, like, if you're young traveler today? Like when I was 20 and I went all over Europe, why would you use a Rick Steves guide versus a let's go or a rough guide or a Lonely Planet?
- [76:16]
Unnamed Guest
Yeah. My staff is tuned into generational changes and so on. I find it kind of boring. Maybe it's because I'm the old generation. But I want to produce content. I think if content is fundamentally helpful, helpful. And if it's well designed and if it's affordable, the format can be devised after the fact to fit the consuming habits of this generation or that generation. So is it an electronic book or a book in print? Is it an app or all that kind of stuff? I don't know. I just want to produce the content. You know, I've been, you know, our guidebooks are the best. Before COVID hit, my publisher was so excited. He showed me the sales chart, and 25 of the top, top 30 guidebooks published in the United States for Europe had Rick Steves on the COVID And I think that is more fundamental than what generation is using it.
- [77:08]
Guy Raz
I mean, what's interesting about your business, right, is that it's a travel business, but it's around the name of this person, Rick Steves. Right. And normally you would say, well, once Rick Steves is no longer part of the equation, there's no business. But I mean, Rick Steves is like Fromers or Lonely Planet. Right. It's you. But it's something else, too. It's actually. I mean, what's interesting to me about your business is that it can survive without the person Rick Steves.
- [77:42]
Unnamed Guest
Yeah. I've wanted to get to the point where the business could survive without me. And I think we're at the point now, and I'm really happy about that, that we've got a team where the company is viable without me. On the other hand, it's a shame when a company is named after a person because then you have other people that should have the potential to be the public face of that company. But it's kind of awkward to say, you know, here's John Doe who is speaking for Rick Steves. It would be nicer if the company was just called Europe through the back door, and then John Doe would not be not Rick Steves. But that's not a problem right now because Rick Steves is still having fun Being Rick Steves.
- [78:33]
Guy Raz
When you think about the arc of your career and what you've built, the top selling business, the top selling travel books are Rick Steves books. $100 million in revenue at your peak. How much of that success do you do you attribute to how hard you worked and how much you put into it? And how much do you think had to do with luck?
- [78:58]
Unnamed Guest
Oh, I think a lot of it is how hard I work. I just basically, I'm not at all complaining about it, but I've given my life to this business. I always work on Saturday. I work every night till 10 o', clock, so. So I'm loving my work, but not everybody can love the work the way I'm blessed to love the work. I believe in what we're doing. I've got my name on the COVID and I like to be America's traveling guinea pig. I like to make mistakes, take careful notes and come home and help people learn from my mistakes rather than their own so they can have a better trip.
- [79:31]
Guy Raz
Earlier in the conversation you were so candid about your family and your personal life. And I understand you're in a new chapter there as well. You and your wife have divorced some time ago. I guess it was pretty amicable. But you now have a new partner. I think her name is Shelley, who's actually a Lutheran bishop. And it sounds like even though you're not traveling as much as you normally would, it sounds like you're in a really good place.
- [80:05]
Unnamed Guest
Yeah, I'm so thankful. And she's been able to introduce me to things that I would have never, ever taken seriously. I've got an apron now, I cook, I know how to use the stove. I'm walking dogs. Shelly's got a couple of dogs. And you know, I would have thought that'd be a deal breaker for anybody who's going to be my girlfriend, but no, these dogs are very important part of our life. So it's totally new to me and it reminds me there's more to life than travel and I'm really thankful for that.
- [80:37]
Rick Steves
That's Rick Steves, founder and owner of Rick Steves Europe. A few years after we ran this interview, Rick announced that he was about to embark on a very different type of journey. He'd been diagnosed with prostate cancer and.
- [80:50]
Guy Raz
Had to undergo some serious surgery.
- [80:53]
Rick Steves
Fortunately, he announced just a few months.
- [80:55]
Guy Raz
Ago that he'd been been successfully treated.
- [80:57]
Rick Steves
And was ready to return to the road.
- [81:00]
Guy Raz
Rick's been pretty public about his experience.
- [81:02]
Rick Steves
Hoping that it will encourage more men.
- [81:05]
Guy Raz
To get tested.
- [81:08]
Rick Steves
Hey, thanks so much for listening to the show this week. Please make sure to click the Follow button on your podcast app so you never miss a new episode of the show. And please sign up for my newsletter@guyraz.com or on substack. This episode was produced by by Rachel Faulkner with music composed by Ramtin Arablouei.
- [81:25]
Guy Raz
It was edited by Neva Grant.
- [81:27]
Rick Steves
Our production staff also includes Alex Chung, JC Howard, Carla Estevez, Sam Paulson, Casey Herman, Kathryn Cipher, Kerry Thompson, Andrea Bruce, and Elaine Coates. I'm Guy Raz and you've been listening to How I Built this.
- [81:47]
Unnamed Guest
Sam it.
- [82:50]
Rick Steves
If you like How I.
- [82:51]
Guy Raz
Built this, you can listen early and ad free right now by joining Wondery plus in the Wondery app or on Apple Podcasts. Prime Members can listen ad free on Amazon Music. Before you go, tell us about yourself by filling out a short survey@wondery.com survey.