Bed And Breakfast Business Plan
Opportunity
Problem
Tourists love to come visit Tybee Island and explore it. Many people believe that travelers only need somewhere to rest their heads and store their belongings. Travelers should create a home from home. They need a place they can recharge and unwind from their worries.
Solution
Every need of the Coach House guest will be met in order to ensure their comfort. For special occasions, catered meals, chilled wine, etc. You can request an additional stipend. During the weekends, guests will return to the B&B in the evening and find cheese, fruit, and wine for snacking before turning in.
Market
B&Bs, along with other short-term lodging on Tybee Island, have long been a substantial part of the island tourism. The short-term accommodations on Tybee include ten inns, 19 long-term rentals (rentals, condos and homes), and four B&Bs. According to units, hotels/motels account for the highest percentage of rental properties in the island.
Ironically, at Tybee Island least, the rise of Airbnb (and its competitors) has increased the demand and not decreased it. People are becoming more aware of the possibilities of lodging other than hotels. And of course we participate in this new channel with our profile and standing on Airbnb.
The average annual increase in rental units is only 30%. The island’s three largest competitors have seen an average of 30% + increases in rental prices over the past 3 years. The Georgianne Inn forecasts that 50% will increase for the next 2 years, before the island reaches full capacity. This projection is without any significant increase in advertising or exposure, but is based on the general average increase in tourism.
Our two major customers are tourists from the northern region who like the intimate atmosphere of B&Bs and local patrons who use them for special events. Subscribe to Web services for nominal annual fees to get international exposure.
Concurrence
Airbnb has positioned us in a unique way. Bed and Breakfast offers a unique lodging option that caters to a larger number of travelers. B&Bs can be described as a « home away from home » where guests are treated like family members. B&Bs allow guests to share in the community’s richness and provide privacy for those who prefer it. 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.). A guest at a B&B is not a customer, but a guest. It becomes a place to return to: at the end of a day, or during the next vacation (like going home).
The Coach House B&B guarantees guests privacy and membership. The delicate balance between being helpful and being respectful is something that the Coach House B&B owners have successfully achieved in various areas of their lives.
Why Us?
We start with a critical competitive edge: there is no competitor we know of that can offer the convenience and luxury one will find at the Coach House. We’ve stayed in many B&Bs throughout the country. We are able to create the atmosphere that guests desire when they search for B&B lodging. We’re able to withstand the competition from Airbnb.
Expectations
Forecast
The average monthly fixed expenses, including interest payments, are estimated to be $8,000 The monthly earnings will be significantly affected by the season and peak. On-season revenues will outweigh off-season loss for the first year. As Coach House B&B establishes its market position among local patrons, we expect that off-season revenue will be sufficient to break even during the season.
Our extreme profitability is absurdly high. We keep it this way because we know other expenses may rise. We expect to adjust upwards as required.