Bed and breakfast are commonly referred to as BBs, is a modern style of hosting guests in rooms with a capacity of between 10 to 20 people, unlike hotels that accommodate hundreds of people. Guests live with the hosts like a family that has invited them, and they share a lot within the paid room rate. BBs come with several offers that can include snacks on the pillows, drinks in the fridge, and an interactive environment with the hosts. Unfortunately, hotels are being rejected for BBs because they cannot meet the logistics of providing little favors to all their clients at the same room charge rate.
The number of rooms occupied to full capacity daily has continued to rise according to the statistics. BBs make money as a result of running a small enterprise; consequently, they are bound to be understaffed. Running of 8 to 10 rooms might require less staff than resorts that employ hundreds of staff to run their business. This makes BBs make extra cash from that venture than their counterparts. They require few cooks, room stewards, and even security may be optional if the neighborhood is secure.
Maintaining the apartment is done at a low cost, subsequently positioning the owner to leverage the earned profit. BBs are not functional throughout the year; they only function during a thriving season or whenever there are events in the neighborhood. The cost of maintenance, together with paying wages to the servants, reduces if it is closed and channeled to some other investment areas.
BBs make cash by including offers in the room rate that lures visitors into booking their rooms. For example, if they charge a room at the cost of $100, the cost of a room is $50, and the extras offer are less than $50. They are certain prices that will allow them to benefit from big profit margins, making them stand out from the rest of the facilities. Offers are used as bait to attract customers to go to BBs. A price set has been calculated to make sure a house is making a large profit from a business.
Capital of setting up BBs is low compared to luxurious resorts. An entrepreneur will require maybe towels, mattresses, and other things. The cost of buying the materials used in running a BB is similar to furnishing their homes. Rewards that are coming out of the venture are high, consequently, realizing gains. This is because guests frequent BBs when the seasons are high, and making payments that are profitable.
Flexibility of BBs throughout the year, unlike hotels that are fixed to offer particular services, BBs mostly adopt their customers’ requests. They are becoming popular and taking more guests than their counterparts since those facilities deliver whichever service requested by their clients. Tourists travel in groups, subsequently, travellers would like to stay in a facility that has freedom.
Students like to get all their services catered for in the room rate, and other travellers. BBs are getting cash from the many guests that are attracted to such principles. Cooking services offered for a group are usually cheaper, BBs end up saving cash when cooking for their guests. BBs gain cash by saving on the budget for the group apart from the rest which caters for accommodation. Tourists can also negotiate for extra services at an additional cost because the home setting is comfortable, and make tourists to frequent.
Setting prices that are slightly under the rates paid in hotels, and restaurants to attract more tourists. The strategy of BBs is to attract many customers that will occupy the whole facility to maximize profits. If a facility has 20 rooms and is all occupied the owner realizes profits since the cost is shared among all tourists. Sharing of costs makes charges to reduce entirely up to making profits. BBs are gaining profits by making sure a facility has exhausted its capacity.
Hosting guests in a home setting is a new way that the hotel industry is shifting into by achieving to offer their services in a comfortable environment. This industry is shifting from a luxurious setting without privacy, to a new tourist-friendly facility. BBs are trying to create a new environment in the tourism industry, which has also fueled residents near hotels to convert their houses into facilities, and make profits during high seasons.