Business is booming in the hotel industry so, if you’re thinking about opening a bed and breakfast, there is no time like the present. Whether you opt to run a B&B out of your home or use a separate property, you could potentially reap some exciting profits. For example, Airbnb reports that the typical UK host brings home £6,000 in extra income.
There are some factors you need to consider to give your bed-and-breakfast business the best chance of success. Everything from physical location to staying up to date with building rules and regulations needs to have your attention if your business venture is going to flourish.
Understand the industry
While you don’t need a specific qualification to open a bed and breakfast, having a keen understanding of the hospitality industry will help your establishment stand out from the competition.
Some locations in the UK offer better demand for bed-and-breakfast hotels so doing your research on where to open it could make all the difference to your profits. Is your B&B easily accessible? Is there ample choice for leisure activities? How well is it served by existing accommodation options? These are all things that you should consider before committing to a location.
Customer service is the bread and butter of the hospitality industry so providing unparalleled service should be a priority. Make an effort to understand the needs of your customer base and always welcome constructive criticism that you can use to improve.
Keep prices competitive
Your prices need to be competitive if you’re going to stand out from your competition but they also need to be profitable. The amount you can earn depends on your running costs, whether you need to employ staff and how much you can reasonably charge guests.
Use your calendar and compare what you offer to the average prices of similar listings nearby and alter your price model as needed. You can also consider promotions and discounts during off-seasons that see less demand for your service. Guests can get the best-value deal under certain conditions without you having to change your regular practices when demand is high.
Rules and regulations
When opening up a B&B, you need to make sure you comply with the fire safety regulations and other local-authority health-and-safety laws. There may be specific rules which mean you require planning permission to convert a room or room into a bed and breakfast.
Early in the process is the best time to consider your needs in terms of B&B insurance and licensing. While insurance may help to cover your bases should the unexpected occur, you might be surprised at how many relevant licenses will be involved. You might be looking into TV or alcohol licenses as well as fire risk assessments.