In this month's B&B newsletter:

1.     How Are B&Bs Being Affected By The Reported Downturn in the Economy?

2.     Next B&B Course Dates

3.     Online Booking   

How Are B&Bs Being Affected By The Reported Downturn in Economy?  

You may have noticed that I didn't send a newsletter out in May. I have been so busy running the B&B, taking course bookings following our article in the June 2008 edition of Country Living and rushing to finish our new downstairs B&B room, that I've not had a spare minute.

In the April newsletter I was pondering on what effect the reported downturn in the economy would have on the B&B business. I heard a radio report the other day that claimed that hotels and B&Bs in towns and cities continued to see good bookings, whilst rural areas were really suffering. I've also heard that we're seeing a similar trend here in the Welsh Marches, though some businesses are standing out by continuing to do well.

One of the reasons suggested for this town/countryside divide was that visitors from overseas - no doubt benefiting from the strong euro -  were keeping our urban colleagues busy, whilst B&Bs out in the countryside tended to rely on the domestic UK market, who were not travelling so much.

Luckily for us, Hopton House is bucking the trend somewhat with strong forward bookings - both June and July are already looking much healthier than last year.

Of course I can't definitely say why this is but I have some ideas.

1. Our Website

As I said in April we have just implemented a new website. It was a nerve wracking thing to do having just won Gold for Tourism Website of the Year in the West Midlands, but, to my eyes, it was beginning to look a bit dated and was starting to creak.

I think the new website looks clean and modern and has loads of pages and information for potential guests without looking overcrowded.

The search engines like websites with lots of content that are being regularly updated. My content management system allows me to update the website on a daily basis in just a few minutes adding pictures and new text.

A new website of a similar quality to mine isn't cheap - but I've earned back the cost of it hundreds of times over.

2. My Target Market

I was talking to my guests at the weekend - the daughter of some repeat guests who had bought her and her husband a stay at Hopton House for a Christmas present. When I asked how her parents were she said that had just come back from a holiday to the states.

It then occurred to me how many conversations I have with my guests about where they have just been on holiday and where they are going next. Many of the people who come and stay at Hopton House are youthful retirees with no mortgage who probably go on a couple of big holidays a year and several long weekends away. These type of people are unlikely to be affected by the economy and, if they are, they will just reduce the number of long holidays and breaks rather than cutting them out altogether. The aim is to make sure that when they do go away - they come to me! That's where the marketing comes in.

This is why, on the courses,  I continually emphasise the need to understand your target market, design your B&B to appeal to your market and then marketing to attract them!

3. Investing in Your Business

It may seem counter intuitive, when everyone is tightening their belts, to spend money on your business, however it seems to be paying off for us at the moment. In October we nearly bottled out and decided not to spend the money we had planned to update the business, but we decided to take the risk.

We have upgraded the existing B&B rooms, added a sunroom and added a new B&B room. And the changes seem to be appealing to our potential guests.

We are one of the most expensive B&Bs in the area yet our business is doing well compared to some of our cheaper colleagues. So, in times of recession, not everyone is looking for a cheaper deal.

Of course, as I say on the courses it's important to ensure that you create a B&B that will appeal to guests who come to the area, so 5 star luxury won't been appropriate for everyone. If, for example, you create a child welcoming B&B, next to a theme park, you will probably be onto a winner if you're one of a few in the area doing it.

Next B&B Course Dates  

Thanks to the Country Living article the one day "How to Set Up a B&B" course on 4th August is now full. I have another one day course on Monday 22nd September.

If you want to stay at Hopton House please book soon as we only have 3 rooms. You can pay over the phone by card or book the course on the website. You will be invoiced for the remainder on your departure.

 

If you can't make the 2 day course but would like all the information on Marketing and Running a B&B, I suggest you do the one day course then sign up for the Marketing and Running a B&B email courses , followed up by a phone call with me to answer any questions you may have.

Here's some feedback from a course participant on the last 2 day course run in May

"Thank you so much for putting this course to together.  We all need guidance when making this life changing move and there is so little out there where people can work through the various stages together and talk about all the things that arise.  There is plenty of info in books or on the internet but in reality it is impossible to read everything and follow every thing so your course, covering all the important areas, totally fits the bill.   It really opened eyes to what is involved and the commitment that you have to give your business on a daily basis.  I have to say I came away more determined than ever to find a business for my husband and myself with a better understanding of how to do this.

I found the content of the course very good especially the marketing and the computing areas which I have extremely limited expertise.  Plenty of handouts are good because they can be read at leisure and referred to when needed and useful for my husband who couldn’t come.  I thought the course was generally at a good pace .  The brainstorming was useful and got us all thinking.  I have to say, I can’t think of any negatives as I got so much out of it. 

Apart from the course I enjoyed my stay and enjoyed your lovely home.  You live in a wonderful area and cook a mean breakfast!  I was pleased to see proper fried bread which seems a rarity in these days of cook-from-frozen hash browns and such like.  Thanks for everything "

Online Booking

I trialled an online booking system last year for 3 months and decided not to continue with it. I had just one booking in 3 months - and that was because the housesitter we had in referred the guest to the system when they phone. The fees charged by the company were 10% of the booking and I didn't receive any money until 2 months after the guests had stayed.

 I decided it was too expensive and the B&B guest market wasn't yet ready for it. However I've just decided to give it another go. In just a year I've seen big changes in the way people use the internet and I think you can be limiting  your market, particularly, the number of overseas guests you attract if you don't have some facility for online bookings.

 The system I have chosen was already included in my availability system supplied by the American company, www.webervations.com. I pay about $80 a year for it with no additional charges on top.

 For this particular package, you do need to have your own credit card processing facilities and whilst it shows the payment amount in pounds and the date in UK format, it does ask guests which state or territory they live in.

 However I have had 2 bookings from it in a week and I suspect one of those bookings, at least, is from the silver surfing generation. So it's not just the younger generation who it will attract.

 If you're having a website built you could have online availability and booking built in. Beware though that this isn't a cheap option. A fully secure ecommerce site would cost several thousand pounds. It's probably much better to buy a slot in package such as webervations. Unfortunately I have yet to find one in the UK that is cheap, robust and cost effective. I'm sure they'll come. In fact many of the local tourism associations are now starting to offer online booking via their websites e.g. www.visitchester.com