04 Mar Bed And Breakfast Business Plan
Opportunity
Problem
Many tourists enjoy coming to Tybee Island to explore and visit. Many people believe that travelers only need somewhere to rest their heads and store their belongings. A home away from home is what travelers need. It should be a place where they can unwind from all their worries and travels.
Solution
The Coach House guest is sure to be satisfied. Catered meals, chilled drinks, and more can be provided on special occasions. For an additional fee, a stipend may be available. On weekends, guests can return to the B&B for a snack of cheese, fruit and wine before heading off to bed.
Market
B&Bs, along with other short-term lodging on Tybee Island, have long been a substantial part of the island tourism. Of the short-term lodgings on Tybee, ten are categorized as inns, 19 as long-term lease facilities (rentals, condos, and houses) and only four as B&Bs, including the Coach House. The largest number of rental properties found on the island is in hotels/motels.
Ironically, on Tybee Island, the rise and success of Airbnb, its competitors, has actually increased the demand for B&Bs instead of hurting us with more competition. People are more aware that there is non-hotel lodging. And of course we participate in this new channel with our profile and standing on Airbnb.
A modest projection for increased unit rental is 30% per year. The island's competitors have experienced rental increases of 30% to 40% over the past three year. The Georgianne Inn expects 50% growth in the next two years. This projection is without any significant increase in advertising or exposure, but is based on the general average increase in tourism.
Our two major customer segments are tourists from the north who traditionally prefer the cozy environment of B&Bs, and local patrons who need the facilities for various events. International exposure will be provided to potential customers by subscribing to Web services at nominal annual costs.
Competition
Airbnb is uniquely positioning us. The bed and breakfast industry provides a unique lodging environment that caters for a growing number travelers. B&Bs offer a home-like environment where guests can become part of a larger family. B&B homes are open to guests. This allows them to take part in the richness of the community and still maintain their privacy. Sharing meals can allow for new connections to be made and enhance existing relationships. Or, you can have your meal in your own private space.
The B&B offers a variety of settings that allow individuals and small groups to find the right setting for their particular moods or activities (reading, watching TV, playing board games, etc.). The B&B treats guests as guests, not customers. It becomes a place where you can return to after a long day or when you are on vacation.
The Coach House B&B will offer guests privacy and membership. It is difficult to be polite without being intrusive. This delicate balance has been mastered by the owners in many walks of life.
Why Us
Our Coach House is unique because it offers convenience and luxury that no other competitor can match. We have traveled the country and stayed in many B&Bs. When searching for B&B lodging, our knowledge is invaluable. We stand out against Airbnb competitors.
Expectations
Forecast
Our average monthly fixed cost is approximately $8,000 per month for expenses and interest. Peak and off-season will have significant impact on the monthly earnings. The first year will see an increase in on-season revenue, which will compensate for the off-season losses. As Coach House B&B builds its market position among the local patrons, we anticipate that off-season revenues will be enough to break even during that season.
Our high-stakes profitability is unrealistically high. We are able to accept it because we know that other expenses will increase. We will adjust as needed.
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