Competencies of a Successful Bed

¶ … Competencies of a Successful Bed and Breakfast

The objective of this work is to examine the literature and study relating to the core competencies of a successful bed and breakfast and to answer the questions of: (1) What elements would maximize the success of a bed and breakfast? (2) What are the common mistakes most B&B owners make? (3) How can I market the bed and breakfast business effectively and logically? (4) How would I obtain customer relationship? (5) How would I manage human resources and maintain daily outstanding service? And (6) How can I justify my funding request to a financial institute?

"A Customer Satisfaction Study in South Taiwan's Bed-and-Breakfast Inns" states that a bed and breakfast is generally known as a private home where a guest is provided a place to stay for the night." (IvyThesis, 2008) the bed and breakfast concept of accommodation has existed throughout recorded history. Bed and breakfast establishments were first known to be used in England, Scotland and Ireland. Bed and breakfast establishments have existed in the United States since the early settlers. The literature existing on bed and breakfast establishments indicates that the bed and breakfast business is in a "unique position to leverage relationship building into sustainable competitive advantage. Quick customer response, an obsession with a quality product or service that bears the family name and a genuine desire to provide outstanding customer service are the bases for developing strong customer relationships." (IvyThesis, 2008) Evidence also exists which suggests that "family businesses that can create and maintain superior customer relationships" as well as "maintain superior customer relationships, enjoy competitive advantages associated with customer loyalty, perceptions of trustworthiness and good will." (IvyThesis, 2008)

Tourism slowed down after the events of September 11, 2001, however, the bed and breakfast establishments "have managed to hold their own. According to the latest industry figures compiled by the Professional Association of Innkeepers International, these businesses managed to pull in $3.1 billion in revenues in 2002, which was only slightly lower than in 2000. The number of inns in the U.S. meanwhile, has grown to 19,500 from 19,000. The average daily rate for a room has climbed to $136.70 in 2002 from $128.87 in 2000." (IvyThesis, 2008) Ten steps which are stated to be prerequisite to a successful bed and breakfast establishment include those as follows:

Formulate a business plan. Include an introduction, description of the business, sales potential, personnel, consultants, commitments and financial information. Make a month-by-month schedule of projected income and expenses. Review the outline often and make changes as necessary;

Determine your market. Determine who comes to your location: tourists, travelers, or businesspeople. Form a profile (economic standing, family status, interests) of potential customers based on the local attractions they visit. Ask other inn or hotel executives in the area about their primary market;

Project sales revenue. One way is to combine projected occupancy and room rates. Local chambers of commerce and tourist bureaus have information on occupancy rates for existing hotels, motels, and inns,

Research your location. Choose a location based on your potential market. Find out how many inns are in the area, how long they have been in business, and if any have gone out of business;

Choose a building, Your inn will be someone's home away from home. To succeed in this competitive industry, most inns offer a private bathroom for each bedroom. The building must be in an area with a low crime rate and within the service area for emergency service it should also accommodate parking for guests and owners;

Learn the law. Visit your local chamber of commerce for information on the federal, state, and local regulations that will apply to your inn. Obtain a business license, which requires an annual fee. State regulations include sales tax permits and unemployment insurance taxes, if you have employees. Local requirements, which vary by community, are administered by the health department, building and zoning department, the department of public works, the fire department, and the planning commission;

Get insurance. As an innkeeper, you will be liable for personal injury to guests and damage to your property, innkeepers should have commercial liability coverage for their building and contents of the public: areas. Keep records of contents, receipts, and appraisals and report all losses;

Renovate and furnish. Develop a schedule for subcontractors and ordering materials. Avoid costly fees by learning basic maintenance skills. A queen- or king-sized bed in each bedroom is standard;

Calculate room rates. Find out what other inns and hotels in the area are charging. Set your price by analyzing what the room has to offer such as a private bath, or Jacuzzi. Breakfast is usually factored into the rate;

Promote your inn. Plan how to promote your inn. Create or order brochures, stationery, and business cards. "Be able to convince people why they should come to your location," Hardy adds. Use your Website as a valuable marketing asset and offer specials during certain seasons. (IvyThesis, 2008)

Guests are attracted to the bed and breakfast establishment many times because of "the promise of a special breakfast." (IvyThesis, 2008) Considerations in preparing and planning meals include:

1) the number to be served;

2) the type of place settings to be used; and 3) the method chosen for serving.

The best planned meals generally are inclusive of foods with textures, temperatures, colors and sizes that vary. The primary goal in table settings is to make them attractive and the food appealing to the guests. Healthy and nutritious dining are very much the vogue in today's world therefore guidelines that should be considered in preparing health meals include:

1) the use of low-fat products;

2) the inclusion of whole grains, fruits and vegetables as well as bran and oats which can be served in muffins, quick breads and cereal;

3) limitation of the use of fats and high cholesterol products and other saturated fats;

4) limitation of the use of salt; and 5) limitation of the amount of sugar used. It is related that upon having fulfilled what are termed "one-dimensional requirements...the higher the level of customer satisfaction..." only then will requirements of attractiveness of the bed and breakfast have its full effect on the guests.

Attractive requirements, which are indeed optional and not expected by guests, do work in creating a higher level of satisfaction among guests. These attractive requirements are stated to include such as:

1) a big screen television;

2) a large shower staff with multiple showerheads;

3) a fireplace in the guest's room;

4) a private balcony;

5) breakfast served in the guest room as well as other amenities.

The most important factor to the success of the bed and breakfast is the level of service provided to the guests. The work of Parasuraman et al. (1985, 1988, 1991) relates the service quality model which includes:

Understanding: the difference between consumer expectations and management perceptions of consumer expectations.

Service standards: the difference between management perceptions of consumer expectations and service quality specifications.

Service performance: the difference between service quality specifications and the service actually delivered.

Communications: the difference between service delivery and what is communicated about the service to consumers.

Service quality: the difference between customer expectations of service quality and customer perceptions of the organization's performance. (IvyThesis, 2008)

The Bed and Breakfast Market Analysis Guidebook written by Bill Ryan and Michael Chrisler of the University of Wisconsin-Extension Center for Community Economic Development and the Small Business Development Center states that a bed and breakfast establishment market analysis report states the following strengths of bed and breakfast establishments:

Attractiveness of immediate area

Inn's appearance

Proximity to demand generators

Accessibility

Visibility

Guest room quality;

Reputation and ratings;

Management and Ownership

Amenities;

Uniqueness/charm

Pricing

Service

Private Bathrooms

Food quality/full breakfast

Credit Card Acceptance

Recreational activities (Ryan and Chrisler, 2003)

Assessing each of the above-stated factors will allow the bed and breakfast establishment to identify the competitive strength and competitive weaknesses of the establishment.

The work entitled: "Mariner View Bed & Breakfast: Business Plan" states that the top reasons stated in a survey of former guests of bed and breakfast establishments for having stayed at these establishments were the reasons given as follows:

Personal touch - 82%

Charm of building - 79%

Secluded getaway - 70%

Decor - 79%

Roman - 64%

Mariner View Bed & Breakfast: Business Plan, nd)

Offerings that were stated to play the primary role in the purchase decision were those as follows:

Warmth of the innkeeper - 82%

Private bathrooms - 61%

Full breakfast - 52%

Fireplace in the room - 45%

Nearby activities and shopping - 45%

Historical building or area - 29%

Credit cards accepted - 28%

Afternoon/evening refreshments - 20% (Mariner View Bed & Breakfast: Business Plan, nd)

It is stated additionally that "forty-five percent of guests travel to a community where the bed & breakfast is located primarily with intention of staying in a bed & breakfast." (Mariner View Bed & Breakfast: Business Plan, nd) Also considered to be an important feature by 80% of guests is the ability to pay by credit card. Return guests comprise approximately 15% of bed and breakfast guests with another 15% of guests being individuals who have been referred by former guests of the bed and breakfast. Therefore, it can be understood that "quality of stay and customer satisfaction" are both important factors in the decision making process of the guest when choosing to stay at the bed and breakfast as compared to staying at another establishment. Qualities of the room that contribute to the overall satisfaction of guests include the following:

Mattress and pillow quality - 88%

Towels - 84%

Linens - 82%

Washcloths - 75%

Glasses - 62%

Reading lights - 61%

Soap - 50%

Reading material - 30%

The work of Tucker and Lynch entitled: "Hospitality, Tourism and Lifestyle Concepts" states that there are several categories of host types based on social control strategies and interactions with guests. Each of these types of accommodations along with the host categorization and the social control strategies for interactions with guests are listed as follows:

Cultural Stay - Upper middle class / Upper class hostess: This type of accommodation involves the hostess acting like a domestic hostess as if one had gone to visit an upper middle class or upper class friend's house while the friend has gone away.

Farmstay bed-and-breakfast - Service / Jeeves-like: This type of accommodation involves the 'taciturn host providing formal service with minimum interaction; the interaction that does occur is invariably concerned with social control.

Self-catering - Neighbor: A notable feature being the host's distancing from personal responsibility.

Guest House - Maternal: The host takes a very maternal approach, and is solicitous of the guest's welfare.

While these do not begin to cover the full range of interactions that may take place between the hostess and the guests the important point related is that it is critically important that the hostess or owner of the bed and breakfast create their own 'brand' of service provision to their guests and that this 'brand' be of a welcoming nature that makes the guests desire to return again and that ensures that they will tell their friends and associates about the bed and breakfast.

II. ARCHIVAL REVIEW

The work of Cheng (2004) entitled "Antecedents and Consequences of Relationship Quality in the Bed -- and Breakfast Industry of Fu-Hsing Village, Taiwan" states that research has noted "that service provider's expertise, experience and professional appearance enhances guests' trust and satisfaction." Furthermore, the innkeeper's "knowledge of local attractions, events, and restaurants is an important factor when that guests consider their experiences with bed-and-breakfasts Offering an interesting and friendly atmosphere is at the heart of the bed -- and -breakfast industry." (Cheng, 2004) Women particularly seek lodging at the bed -- and breakfast "because they offer security, quaintness, attractive appointments, and a relaxing home-away-from-home atmosphere." (Cheng, 2004) Cheng additionally relates that the provision of amenities of innkeepers "...are also a vital factor for guests in selecting bed-and-breakfasts." Factors that result in higher relationship quality and the resulting increase in "positive word of mouth, share of purchases and relationship continuity are those of:

1) greater service providers' relational orientation;

2) customer orientation; and 3) service providers' attributes. (Cheng, 2004)

The study reported by Cheng (2004) states that the reason guests choose to stay at bed and breakfast establishments include those as shown in the following table labeled Figure 1.

Reasons Guests Stayed at the B&B

Source: Cheng (2004)

Cheng (2004) states that the factors that attracted guests to stay at the B&B include those listed in the following table labeled Figure 2.

Factors that Attracted Guests to Stay at the B&B

Source: Cheng (2004)

Activities that Cheng (2004) states attracted guests to the bed and breakfast establishment include those listed in the following table labeled Figure 3.

Activities that Attracted Guests to the B&B

Source: Cheng (2004)

Cheng (2004) states that recommendations that innkeepers provided to guests that were most useful are those listed in the following table labeled Figure 4.

Recommendations from Innkeepers Most Useful to Guests

Source: Cheng (2004)

Finally, the information sources that Cheng (2004) states were used by guests in discovering a bed and breakfast establishment include those listed in the following table labeled Figure 5.

Information Sources Used by Guests to Discover a B&B

Source: Cheng (2004)

According to Cheng (2004) bed and breakfast innkeepers should focus on:

a) being friendly, b) being knowledgeable about the area's attractions and able to plan trips for guests, and showing interest in self-development to provide better service

Bed and breakfast owners should enhance privacy by focusing on:

a) Providing a quiet atmosphere; and b) Offering private facilities, such as a private bath.

Additionally important for the bed and breakfast innkeepers to provide an environment that is quiet for their guests "Therefore, maintaining a quiet atmosphere and providing a private bath become very important to B&B innkeepers success." (Cheng, 2004) in order that the orientation of guests are enhanced and an atmosphere that is 'homelike' exists the bed and breakfast innkeeper must necessarily focus on:

a) Putting guests' interests and needs first, b) Dealing with guests' inquiries or complaints effectively,

Providing social activities, and d) Creating a homelike atmosphere. (Cheng, 2004)

It has been demonstrated by Kim, Han and Lee (2001) that "higher service quality results in repeat purchases." (Cheng, 2004) Cheng also relates the work of Kaj, Tore and Christian (1994) "...creates a strong relationship with the service provider that leads to relationship longevity or customer retention." (2004) Additionally, the following facts are related by Cheng:

1) Choi and Chu (2001) stated that from the customers' point-of-view, service quality, room quality, and value are factors that most influence their decision to rectum to the same hotel.

2) Thorsten, Gwinner, and Gremler (2002) noted that positive word-of-mouth communication helps to attract new customers.

3) Bowen and Shoemaker (1988) found that a loyal guest helps create new guests through positive word-of-mouth. Satisfaction with the company is positively associated with word-of-mouth about the company.

4) Word-of-mouth about the salesperson is related to word-of-mouth about the company (Reynolds & Beatty, 1999).

5) Kaj, Tore, and Christian (1994) mentioned that customer retention generates steady revenues and increases profitability of the business.

6) Previous studies found that it costs approximately five times more to attract a new guest than it does to keep an existing one (Bowen & Shoemaker, 1988; Christopher, Payne, & Ballantyne, 2002; Reichheld & Sasser, 1990).

7) Vallen and Rande (1997) argued that bed-and-breakfasts that spent the least on marketing (less then $1,000) showed the lowest occupancy rate. There are only a few ways to measure property-to-property performance, comparisons of total profits, profits-per-available room, and return-on-investment (Hotel Online, 2004).

8) Occupancy rates and average daily rate (ADR) are two common indicators of a property's success (Lubetkin, 1999). (Cheng, 2004)

The bed and breakfast establishment is stated by Cheng (2004) to be characterized by the following:

a) Generous hospitality and personal attention to guests b) Architecturally interesting or historic structure

Owner involvement in business d) Clean and comfortable ambiance and surroundings e) Individually decorated rooms.

In the case where the owners of the bed and breakfast are not active daily in the operation of the establishment, the establishment, in the mind of the guest, begins to take on the appearance of a hotel. Marketing is becoming increasingly important as the bed and breakfast establishment become more and more popular for accommodation. Cheng (2004) states that word-of-mouth is the most frequent source of information about bed -- and breakfasts for customers." Marketing factors that impact the potential for future markets include changes in:

population, such as an increase in older people or an increased diversity in the population;

available income due to changes in employment;