This paper examines the core competencies required to operate a successful bed and breakfast (B&B) establishment. Drawing on academic literature, industry guidebooks, and business planning resources, the paper addresses six key questions: what elements maximize B&B success, what mistakes owners commonly make, how to market effectively, how to build customer relationships, how to manage human resources and daily service, and how to justify funding requests. Topics covered include business planning, market analysis, service quality models, guest satisfaction drivers, host–guest interaction styles, marketing strategy, and the personal and professional characteristics of successful innkeepers.
The paper demonstrates integrative literature synthesis: it draws together hospitality research, small business extension resources, and service quality theory (SERVQUAL) and applies them to a single business context. This technique shows how theoretical frameworks can be mapped onto practical industry questions, bridging academic and applied knowledge.
The paper opens with an industry overview and historical context, then moves through a prescriptive ten-step launch checklist before deepening into guest satisfaction drivers, service quality models, and market analysis frameworks. An archival review section presents Cheng's (2004) Taiwan B&B research in detail. The paper closes by synthesizing owner characteristics and marketing principles into a portrait of the successful B&B operator.
A bed and breakfast (B&B) is generally defined as a private home where a guest is provided a place to stay for the night. The bed and breakfast concept of accommodation has existed throughout recorded history and was first widely established in England, Scotland, and Ireland. Bed and breakfast establishments have also existed in the United States since the era of early settlers.
The literature on bed and breakfast establishments indicates that the B&B business occupies 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 further suggests that family businesses capable of creating and maintaining superior customer relationships "enjoy competitive advantages associated with customer loyalty, perceptions of trustworthiness and goodwill" (IvyThesis, 2008).
Tourism slowed following the events of September 11, 2001; however, bed and breakfast establishments managed to hold their own. According to industry figures compiled by the Professional Association of Innkeepers International, these businesses generated $3.1 billion in revenues in 2002 — only slightly lower than in 2000. The number of inns in the United States grew to 19,500 from 19,000, and the average daily rate for a room climbed to $136.70 in 2002 from $128.87 in 2000 (IvyThesis, 2008).
Industry guidance identifies ten prerequisite steps to establishing a successful bed and breakfast:
1. Formulate a business plan. Include an introduction, a description of the business, sales potential, personnel, consultants, commitments, and financial information. Prepare a month-by-month schedule of projected income and expenses, and review and update the outline regularly.
2. Determine your market. Identify who comes to your location — tourists, travelers, or business travelers. Develop a profile of potential customers (economic standing, family status, interests) based on local attractions. Consult other inn or hotel operators in the area about their primary market.
3. Project sales revenue. Combine projected occupancy rates with room rates. Local chambers of commerce and tourist bureaus maintain occupancy data for existing hotels, motels, and inns.
4. Research your location. Select a location based on your target market. Investigate how many inns operate in the area, how long they have been in business, and whether any have closed.
5. Choose a building. Your inn will serve as someone's home away from home. To compete effectively, most inns offer a private bathroom for each bedroom. The building should be in a low-crime area, within reach of emergency services, and able to accommodate parking for both guests and owners.
6. Learn the law. Visit your local chamber of commerce for information on federal, state, and local regulations. Obtain a business license. State requirements include sales tax permits and unemployment insurance taxes if you have employees. Local requirements — administered by the health department, building and zoning department, public works, fire department, and planning commission — vary by community.
7. Get insurance. As an innkeeper, you are liable for personal injury to guests and damage to property. Commercial liability coverage for your building and the contents of public areas is essential. Maintain records of contents, receipts, and appraisals, and report all losses promptly.
8. Renovate and furnish. Develop a schedule for subcontractors and material ordering. Learning basic maintenance skills can help avoid costly fees. A queen- or king-sized bed in each bedroom is standard.
9. Calculate room rates. Research what competing inns and hotels charge. Set your price by evaluating what the room offers — such as a private bath or Jacuzzi. Breakfast is typically factored into the rate.
10. Promote your inn. Plan a promotional strategy and create brochures, stationery, and business cards. Be prepared to articulate clearly why guests should choose your location. Use your website as a key marketing asset and offer seasonal specials (IvyThesis, 2008).
Guests are frequently attracted to bed and breakfast establishments by "the promise of a special breakfast" (IvyThesis, 2008). Planning and preparing meals requires consideration of: (1) the number of guests to be served; (2) the type of place settings to be used; and (3) the method chosen for serving. The best-planned meals incorporate foods that vary in texture, temperature, color, and size. The primary goal of table settings is to make them visually attractive and the food appealing.
Healthy and nutritious dining is increasingly important to guests. Guidelines for preparing health-conscious meals include: (1) using low-fat products; (2) incorporating whole grains, fruits, vegetables, bran, and oats in muffins, quick breads, and cereals; (3) limiting fats, high-cholesterol products, and other saturated fats; (4) limiting salt; and (5) limiting sugar.
Once basic, one-dimensional requirements are met, optional "attractive requirements" — not expected by guests but effective in creating higher satisfaction — include: (1) a large-screen television; (2) a large shower with multiple showerheads; (3) a fireplace in the guest room; (4) a private balcony; and (5) breakfast served in the guest room along with other amenities.
The most important factor in B&B success is the quality of service delivered to guests. The SERVQUAL model developed by Parasuraman, Zeithaml, and Berry (1985, 1988, 1991) identifies five dimensions of service quality:
Understanding: the gap between consumer expectations and management's perceptions of those expectations.
Service standards: the gap between management's perceptions of consumer expectations and service quality specifications.
Service performance: the gap between service quality specifications and the service actually delivered.
Communications: the gap between service delivery and what is communicated to consumers about the service.
Service quality: the gap between customer expectations of service quality and customer perceptions of the organization's actual performance (IvyThesis, 2008).
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