| Before you consider setting up a Bed and Breakfast | | | | B&B, the higher the occupancy. Though you |
| you must do your financial projections and work out | | | | need to ensure that your B&B also meets the |
| how much money your B&B will actually make | | | | needs of the guests coming to the area. If you are |
| to see if it is actually worth setting up in business. | | | | in the middle of nowhere on a long distance walk, |
| If you are buying an existing business you will | | | | you are likely to be more attractive to potential |
| probably have access to the business accounts which | | | | walking guests if you provide cheap good value |
| will show you how much money the previous owners | | | | accommodation than if you are running an expensive |
| have taken each year. This will give you a good idea | | | | boutique hotel. |
| of how much money you can expect to make. If | | | | Facilities Offered |
| there is potential to improve the business you may | | | | The facilities you offer to guests may well have an |
| be able to make more money. Or you may make | | | | impact on your occupancy levels. If you are not |
| less money than the existing owners, depending on | | | | within walking distance of a pub or restaurant you |
| how you run the business. | | | | may need to offer evening meals to guests to |
| Bear in mind that previous good performance does | | | | encourage more people to stay. |
| not guarantee good takings for the future. There | | | | If you are next to a famous children's theme park or |
| may be factors beyond your control, such as a weak | | | | a famous dog showground, you will probably reduce |
| dollar, bad weather, an outbreak of foot and mouth , | | | | your occupancy levels if you do not take children or |
| which may all contribute to a decrease in the number | | | | dogs. |
| of people staying at B&Bs. | | | | If you want to tap into the business tourist market |
| If you are setting up a brand new business what | | | | you will need to offer facilities such as internet |
| factors will affect your occupancy and potential | | | | access, good showers, early breakfasts etc. |
| turnover? | | | | How Much You Charge |
| Location, Location, Location | | | | Obviously the price you charge for a one night stay |
| This is probably the most important factor to | | | | at your B&B will affect how much money you |
| consider. Your location is going to affect the price | | | | take in a year. |
| you can charge, your occupancy levels and the type | | | | The price you are able to charge will depend on all of |
| of guests you have coming to stay. | | | | the things I have already discussed; location, quality, |
| Your location and proximity to popular attractions or | | | | style and facilities offered. Pricing can be difficult to |
| business areas will affect your occupancy levels. | | | | get right and I know some people are uncomfortable |
| English country B&Bs without any business | | | | with it. On my courses I have noticed a tendency for |
| tourists tend to be seasonal, with most of their | | | | people to want to undercharge for fear of being |
| guests staying between spring and late autumn. | | | | seen as greedy or pricing themselves out of the |
| Whilst B&Bs that benefit from business tourists | | | | market. |
| or a popular year round attraction or in a city may | | | | I would suggest spending some time on the internet |
| well see good occupancy figures throughout the | | | | to get to know your local B&Bs and the prices |
| year. | | | | they charge, then setting a price about the same as |
| Quality and Style of B&B | | | | similar B&Bs to yours. You can then review your |
| Generally speaking, the higher the quality rating of a | | | | prices over time and adjust as necessary. |