The B&B Industry’s Weaknesses, Strengths, Challenges and Opportunities

– A Unique Perspective

FOBBANovember 9, 2011

THE LANDSCAPE

Competition

Changing Customers…Changing Desires

Multi-Generational Guests

WILL GENERATIONS X AND Y BE THE B&B INDUSTRY’S BEST

CUSTOMERS?

SELF-RELIANTINFORMAL

INDEPENDENTWIRED TECHNOPHILESSEEKING EXPERIENCES

SKEPTICAL

Changing Tastes

Desire for Personalization

1 out of 4

Knowing What Customers Need or WantWhat do consumers feel is more important on your web site

than you do?

Virtual tours Property safety systems

Promotion information Information about the city

Tour event packages Transportation information

Contact persons Copy of the menu

Mailing addresses Dining service hours

Frequently asked questions Description of the dining area

Feedback forums Photos of the dining area

Fax numbers Photos of menu items

Personal safety assurance Recipes of menu items

Source: BED-AND-BREAKFAST WEBSITE DIMENSIONS AND ATTRIBUTES: COMPARISON OF CONSUMER AND INNKEEPER PERCEPTIONS

Social Butterfly or Caterpillar?

1 out of 2

Where is all of this going to go? Will you get tons of bookings?

Flash Sale Travel is UP!

14% up to 20%...50% involved lodging

Source: 2011 Portrait of the New American Traveler

LOOKING IN THE MIRROR

The dichotomy in which we live…

Value for the price

Room rate

Location

Previous experience

Reputation

Premium quality mattress and bed linens*

Free breakfast*

Quiet, soundproofed guest rooms

Free Internet*

Late checkout at no extra charge

* up significantly over prior year

Source: New American Traveler

Top Factors When Choosing a Hotel

We have nearly everything (and more?) guests want from hotels.

So, why do B&Bs get overlooked or eschewed?

What is the #1 reason travelers do not choose B&Bs and inns?

The #2 reason?

The #3 reason?

The #4 reason?

Myths and Generalizations

I stayed in a B&B once. My girlfriend booked it, and she apologized for it before it was even over. It wasn't exactly what either of us had thought it was going to be. But seeing as you can get a hotel and meals combined cheaper, with much better privacy and food, the B&B really should be nearing extinction. I stayed at a B&B in Scarborough with my girlfriend. After the bloke showed us the room, we immediately got down to some bedroom gymnastics, and after the festivities, nipped across the hall to the shower, only to find him just walking away from our door after listening in to our antics. Brrrrr. B & Bs are often highly creepy, and remind me of the in-laws and the huge amount of time they have on their hands. Youth hostels, by contrast, are very relaxed and fun, and are great for families. No candlewick bedspreads either. I thought the funniest moment in Three In A Bed was when the woman admitted that she didn't like younger couples to stay in case they had sex on her pristine sheets. It made us feel instantly rather sorry for her husband, in so many ways.

Couldn't agree more. B&Bs represent the worst of both worlds - all the awkwardness of being a guest in someone else's home, none of the supposed pleasure of staying with friends or relatives. Why anyone would want to stay in them, when faced with the alternatives (camping, anonymous chain hotels, nice boutique hotels, sleeper train services, cottage rentals, even dare I whisper caravans) is quite beyond me. b+b's should not be rated on there hygiene..food ...fixtures and fittings .ect....but on the weirdness of their owners

Innkeeper Sign Language

Outdated Websites

Typical Websites

Awesome Websites

What I am encountering…

Benchmark Metrics

Occupancy • 39% (Up from 37.6%)

Average Daily Rate• $151 (Up from $150)

Revenue per Available Room (RevPAR)• $57 (Flat)

Source: Industry Study of Innkeeping Operations and Finance

Despite our real or perceived issues…

Privacy

Less crowded

Quiet ambiance

Better sense of local culture

Try new things

Personalized services

Home-cooked food

Unique architecture/décor

More romantic

Feel more pampered

Like to interact with other guests

More affordable

Pet-friendly

Source: New American Traveler

Why do people love B&Bs?

Sense of place

Scents

Crossing the threshold

Memorable rooms

Memorable people

Love

Source: Jay Karen’s Brain

What makes a B&B special?

THE NEED FOR A MOVEMENT

What percentage of leisure travelers stayed at an inn or B&B last year?

What percentage of business travelers stayed at an inn or B&B

last year?

Imagine if we could move the percentage up just 1 point!

Are you adapting?

Or is your market shrinking?(“…they have their place…”)

Innkeepers must do things differently

So does the B&B industry…

What it is NOT

… another top-ten most romantic inns list …

… old school …

What it is…

… edgy, humorous, worthy of sharing…

… portal to existing assets …

… new school …

… unique promotions …

Since the launch

Kick Gas Media Pick Up

Vets Media Pick Up

What else is in store?Deployment of Videos

IDTDW?Contests of Facebook

LivingSocial Themed Week?AirBnB Attack

MancationsTons of ideas!

What’s the role for innkeepers? “One room for one night…”

What’s the role for associations?

Support the GRASSROOTS campaign! JOIN PAII!

Mark your calendars!

Innkeeping Conference & Trade Show

January 23-26, 2012

The Peabody Hotel - Little Rock, Arkansas