Apr
22
2013

The Perpetual Pain of Policies

Blaise Bahara and Bess Giannakakis are the innkeepers of Gateway Guesthouse, a modern B&B located near downtown Austin, Texas. Blaise combines her business background with Bess's professional chef experience to run a successful B&B that's booked up during every event in the city. In today's post, Blaise generously shares tips on how to create and enforce policies as an innkeeper--one of the profession's most confounding challenges. Thanks Blaise!

As with most innkeepers, we have learned about our policies and enforcing them the hard and painful way--the not-zen, not-fun, not-B&B-like way! If I can save even one new innkeeper from making one of our mistakes, it's worth sharing our experiences with you.

I actually do not feel the specifics of the policies matter all that much, as long as they are sane and in line with most standard or regional industry practices. Therefore, I’m not going to bore you with the specifics of our policies. You can view them here if you're interested.

The more important point is how you enforce those polices while maintaining your business and sanity without being a jerk. Every policy situation is different, so we try to enforce our policies using a set of guidelines rather than a strict letter of the law.  We take each request and set it up against these guidelines:

1) The answer is yes, but if it’s not possible for us to accommodate the request, we try to find an alternative. For instance:

  • Yes, you may leave your bags here on our back deck, but we can’t accommodate an early check-in.
  • Yes, we will try to offer you a refund, less the administrative fee, if we’re able to rebook the space.
  • Yes, you can invite your friends from Austin or other hotels to hang out with you here at our pool (pictured).  But we have a daily usage charge of $75 per person for up to three hours.
  • Yes, we can have some scones and coffee available for you after 9 a.m., but not the chef-made breakfast that will be served between 6 a.m.-9 a.m.

2) The request cannot potentially interfere with the happiness of another guest or our neighbors. This comes into play most often with our pool and spa.

3) The request cannot interfere with time we have set aside to be closed,” and therefore, alone. Because of the type of inn we choose to run, it is all about personal attention from us when desired. That means that at some point, every so often, we need down-time or become grumpy bears. For the enjoyment of all our guests, we guard this time.

4) To be 100% honest, the request cannot cost us more money that we feel it will generate in goodwill. It’s basic ROI.

There are truly only a few times we’ve ever just flat-out said no to a request. I can remember all of these instances, and frankly, hated them every time. It is unpleasant for both guest and owner when we have to be strict, but at the end of the day, you know if it is outside the guidelines and is simply not a wise idea to facilitate any other answer than ‘no.’

The final thing I will say is that when a policy is being ignored, without question, the faster you can address the issue, the better. For instance, if you look outside and there are strangers at your pool hanging out with guests, do not delay because you think they’ll leave any minute. They won’t. They are there because your guest told them it was a rockin’ place to hang out, and they are not going anywhere soon. Go out immediately, ask the guest aside, and quietly remind them of the policy.  They can then choose how they wish to proceed; hang out elsewhere or pay the day charge.

These are the tough times. They are never fun, and frankly, you might ponder, “Who on earth would think that is OK?” The wise move is to respond calmly, not react. The response is to assess your guidelines and take action as needed, and quickly.

You and your guests will then all be happy campers!

Pictured: Blaise and Bess

Dec
18
2012

Which Type of Aspiring Bed and Breakfast Owner Are You?

The following guest post is by Susan Poole, B&B coach and innkeeper of 40 Bay Street Bed and Breakfast, an Ontario B&B.

Over the years of working with many bed and breakfast owners, I have found that most owners fall under one of two categories. The first are the owners who run their bed and breakfast like a hobby; the others are people who want to own a bed and breakfast business.

Neither type is wrong, and typically, the reason both want to own a bed and breakfast tends to be the same--they love to meet new people, cook, and entertain. A guest staying at one or the other would not know the difference. It’s the outcomes at the end of the year that reveals the difference. A hobbyist owns a bed and breakfast because they love what they do; the other in order to make money doing something they love. 

To determine which type you want to be, ask yourself the following questions:
1. Have I/am I planning to discuss this idea with my financial adviser?
2. Have I/am I planning to make inquiries about accountants and the income tax implications of owning a business?
3. Have I/am I planning to speak to a lawyer about the options for setting up my business?
4. Do/will I have a business plan?

If you answered no and have no intentions of following up on those tasks, then I would respectfully suggest that you fall into the hobbyist category. You will reap the benefits of your bed and breakfast by the wonderful people that come your way, and may or may not break even financially at the end of the day, depending on the amount of money you choose to invest into marketing your B&B.

If you have answered yes to the majority of those questions, then you are definitely not a hobbyist. However, a word of warning: a business plan is essential for every business owner, whether you plan on seeking financing or not. A business plan is essentially a road map for how you will start and run your bed and breakfast for the first couple of years. It is also a marker for you to compare your original ideas with the reality of the marketplace, such as who your customer is and what that customer is looking for.

There are specific topics a bed and breakfast business plan contains:

•  Description of the bed and breakfast business, including a physical description of the property, number of rooms and long- and short-term goals for the business.
•  Products and services you will be offering. For instance, will you only be offering bed and breakfast? Are you planning to work with local partners to provide other services, such as a spa? Gift shop? Restaurant? Etc.
•  An overview of the industry. What are the trends for the bed and breakfast industry?  Try to create an understanding not just from the B&B point of view, but also who typically stays at B&Bs. What are travel trends that influence where and how people stay? Think national, state and regionally when collecting your data. BedandBreakfast.com conducts traveler surveys twice a year, and The Professional Association of Innkeepers International often has great data on trends.
•  The competition. Don’t limit yourself to just other B&Bs. Anywhere people can stay is potential competition for you. (As an example, the region where my B&B is located recently released a study that said 52% of visitors to the area stayed in campgrounds and/or RVs).
•  A marketing plan. This will not only help in getting the word out about your bed and breakfast, but it will help you create your budget, provide an understanding of how technology will impact on how you market your business, and serve as a tool to monitor where your investments in marketing pay off the most in the future.
•  Information about the owners/management. Figure out all the skills, talents and expertise you have to offer your business. Are there things you’re lacking?  Is it something you can learn? Is it something you will have to hire someone to do for you? Again, not only will it help you plan your budget, but help you determine how vulnerable your bed and breakfast might be from a business point of view.
•  What are the issues that could impact the business? Think not only internally, i.e. if you get sick or if something breaks, but also externally. There are always things that you can prepare for, but may not be able to influence, like the weather, gas prices, or the economy.
•  A risk analysis. The most common analysis is called a SWOT: Strengths, Weaknesses, Opportunities and Threats. Strengths and weaknesses tend to reflect the internal workings of the business, while opportunities and threats are from the outside of the business.  This exercise is great in helping you identify the issues that may impact on your business.
•  The implementation plan, which is commonly overlooked.  However, having your implementation plan in writing helps you to stay on track and keep to your timeline. It is also a great tool to use when planning your budget, as it identifies what expenditures you will be making and when.
•  The financial plan is the most crucial component of your bed and breakfast business plan.  It typically contains a balance sheet (your net worth), a projected annualized profit and loss statement, and three years worth of monthly cash flow statements.  Cash flow statements show when monies are coming in and being spent. Since most B&Bs have cyclical income, cash flows are the key to making sure your business stays afloat in the first few years.  

Creating a business is a lot of work, but will pay off in the long run.  It increases you chances of success by:
•  Identifying potential risks that may occur
•  Organizing budgets and timelines to keep you on track
•  Getting an excellent understanding of how to manage your money


About the author: Susan Poole, The B&B Coach is the owner of the award winning 40 Bay Street Bed & Breakfast. Her three-step system has been created to help people figure out if owning a bed and breakfast can produce the income and fulfillment they envision. After completing the "How to turn your passions into a thriving bed and breakfast business" system, people will know how much income they can create, how much work it will be and what the risks are for them.

Nov
9
2012

Announcing our 2012 Best of BedandBreakfast.com Award Winners

Yesterday, we announced the winners of our eighth annual Best of BedandBreakfast.com awards! These awards recognized 30 of the top guest-reviewed inns around the world; 10 in the U.S., 10 in Canada, and 10 internationally. They were selected through an analysis of the quantity and quality of the traveler reviews received in the past year. We chose inns that had a nearly perfect overall rating and over-the-top traveler reviews that showcase why the inn is so special.

With only 30 awards, many top-notch B&Bs that weren't able to be recognized. This is why we do monthly awards, which give other inns the opportunity to be in the spotlight. Check out our publicity opportunities page to see the upcoming awards and information on how to contact us if you think you might qualify for the topic.

Top 10 B&Bs in the United States

Top 10 B&Bs in Canada

Top 10 International B&Bs


By Emily Starbuck Crone

Welcome

Welcome to Innkeeper News from BedandBreakfast.com, the most comprehensive global directory of B&Bs. Please email our marketing team if you have suggestions for content.

Upcoming Events

Conferences & Events:

  • September 8-10: Texas Bed and Breakfast Annual Innkeeping Conference in New Braunfels, TX
  • September 22-24: MTA/BBAM Joint Conference
  • November 3-5: Wisconsin B&B Association

Free Member Webinars:

  • Come back soon for more webinars!