Running a B&B or guest house is one of the most fulfilling jobs. One of the most commonly asked questions I get is, how profitable is running a B&B/ guest houses business? My honest answer is, IT DEPENDS! It is very difficult to give a one word answer to this questions as there are a lot of factors at play. In this article, I will unpack some of the factors to best answer this question.
In a nutshell, like any other business, running a B&B or guest house should give you a profit. Otherwise, there wouldn’t be a need to even think about running an accommodation business if it didn’t give profit. If you apply these tips, they should work for you regardless of where in the world you are! Here are the 6 most important “Propers” that will make your B&B or guest house give you a good profit.
The B&B industry is a notoriously industry. You have got to be aware of that and choose a location that will work on your advantage. No matter how beautiful your establishment is, if the area is not attractive or safe the guests, you will struggle to fill up the rooms.
Consider the following when choosing a location for your guest houses:
Believe it or not, guests still consider pricing a lot when making a booking. If you charge too high, you will chase customers to your competitors and if you charge too low, you will invite trouble. Check the other B&Bs and guest houses around the area and be in the mix. Even if you attract the international market, bear in mind that pricing plays a major role in the guest’s decision on whether to book or not.
Also be mindful of Airbnb. Airbnb is a growing trend among bookers, so ensure that your guest house is competitive in terms of your rates.
Of course you need to have attractive facilities. Ensure that your facilities are well managed. Remember, word of mouth is the best form of marketing. So your guests will definitely tell others about your guest house, and if they enjoyed your facilities, they will return.
Here are things to have in mind:
Of course you will know by now that no matter how attractive your B&B or guest house is, if you do not marketing it, nobody will know about it. You need to spend a lot of time marketing your B&B in order to attract guests and make money.
Here are some amazing marketing ideas to marketing your B&B or guest house:
It is very important that you manage your staff properly in order to maximize satisfaction and repeat business.
Here are some tips to help you better manage your staff:
Of course you may make your money, but if your financial management is not up to scratch, you will make poor decisions that may affect your profit.
Here are tips for proper financial management for your B&B/ guest house:
In closing, here is something to think about: A 5 bedroom B&B that charges R800 per night, makes a monthly revenue of around R96 000 at 80% occupancy and around R48 000 at 40% occupancy.
You will realize that in order to maximize your profits, you have to maximize occupancy and minimize costs. The long and short of it is that bed and breakfasts and B&Bs can be very profitable. If you are able to attract guests and impress them, you will cultivate a high number of return guests and enjoy good profits.
If you are planning to open your own B&B or guest house or you aare already in the game but you want to sharpen your sword, please check out our Bed & Breakfast Management Course. This is the most practical course you will find. You study in the comfort of your own space - no travel and accommodation fees. You can also start and finish anytime according to your pace.
Are you a B&B or guest house owner? What do you think about these tips? Where is your establishment located? Please leave us a comment.
Hospitality Coach, Speaker and Consultant