Recently I was looking at a travel feature I had written several few years ago and, in a sidebar, I had listed local bed and breakfasts and their rates.
I was floored when I looked at the prices: $49. $69. Two-night special: $99.
Long ago and far away...
Getting Better All The Time
The business (and prices) have changed considerably in the past several years and as Jay Karen, president of the Professional Association of Innkeepers International (PAII) noted in an interview with About.com, despite the recession, bed and breakfasts have managed in large part to stay ahead of the financial curve.
“There’s been a small decline in number of B&Bs in the last decade, but the economy itself has not adversely affected the industry in relative terms to the other segments of the lodging industry and hospitality industry.
“In 2010, our average daily rates stayed strong, occupancy rates stayed flat during the recession, and revenue increased a little bit. I believe the reason for that is that in the recession people did not stop vacationing, they just started vacationing differently. They are not going away for an entire week, they are not flying across the country, they are not taking the cruise. They are saying “Let’s stay closer to home. Let’s drive go somewhere closer to home for a long weekend” and that long weekend, drive-in market is our bread and butter.
“So our loyal customers did not abandon us and we found new customers in this economy. People that wanted that more authentic experience close to home started to patronize B&Bs.”
For further reading, visit So You’d Like To Own A B&B
Running the Numbers
Each year, PAII undertakes the monumental task of compiling data for a benchmarking study on the ever-changing industry. Whether you’re an innkeeper, aspiring innkeeper or supplier, this is good data to know. Among the facts that impress me is that there are an estimated 17,000 inns in the United States and whether your bed and breakfast has one room or 20, collectively you’re part of an industry with an estimated worth of $3.4 billion.
If you’re running an inn, there’s a 72% chance that you’re a couple; an 18% chance you’re an individual female; and only a 5% chance you’re an individual male or operating in a non-couple partnership. But nearly 80% of innkeepers live on premises.
In a sign of the times, the rates quoted earlier have given way to an average daily rate of $150. Even in a recession, guests are willing to pay these rates which has led to a median occupancy rate of nearly 44 percent.
As seen on the PAII site, here are some additional snapshots of who we are. (Note that the full photo album is available at innkeeping.org for a fee or, in some cases, free with a certain level of membership.)
- • The typical B&B has an average of six rooms within a 5,700 square foot home.
- • 29% were in rural locations, 23% were cities, 5% in the suburbs, and 43% were located in the village.
- • Only six percent of inns have shared baths.
- • Just over one-third have received historical designation by a local, state, or national historic preservation organization.
- • Most guest rooms will feature Internet, TVs, luxury bed/linens, robes, fireplaces, magazines and jetted tubs.
- • Most inns provide Internet, magazines, hot/cold beverages, board games, fireplace, refrigerator, newspapers, telephone, snacks, fresh flowers, and televisions.
So are you average? Or above?
For further reading, visit How To Write A B&B Business Plan
