As I reflect on my journey of starting a B&B back in 2001, I realize how little I knew about running a business. I was driven by my passion for hospitality, cleanliness, and creating a welcoming atmosphere in my home. However, I soon discovered that simply having a beautiful property wasn’t enough to attract guests.
Here are the three significant mistakes I made, and that many other B&B owners may encounter:
Big Mistake No. 1: Neglecting Marketing
Initially, I underestimated the importance of marketing. Despite having a charming property, without effective marketing strategies, it remained undiscovered. I learned that marketing is just as crucial as the quality of your accommodations. Once I began exploring marketing tactics and discovered what worked best for my business, I felt invigorated. Finding success in marketing is exhilarating and can drive the growth of your business.
Big Mistake No. 2: Misunderstanding the Target Market
I made the error of distributing countless leaflets locally when my target market was international. Recognizing this mistake led me to understand the importance of knowing my ideal guest. By identifying and focusing on the guests I could best serve, I was able to reach them online effectively. Understanding your primary source of business and concentrating on those channels can save both time and money spent on ineffective marketing efforts.
Big Mistake No. 3: Over-Delivering at the Cost of Profit
In my eagerness to please guests, I overlooked the financial aspect of my business. By constantly offering extra amenities and services without considering the impact on my profit margins, I found myself working tirelessly without adequate financial reward. Learning to balance exceptional service with sustainable profitability was a crucial lesson. Incrementally increasing prices helped me maintain quality service while ensuring a healthy profit margin.
Conclusion: Lessons Learned
Embarking on the journey of running a B&B has been a profound learning experience. Understanding the significance of marketing, identifying the target market, and maintaining a healthy balance between service and profitability are invaluable lessons. Each mistake has served as a stepping stone towards refining my business practices and ensuring long-term success in the hospitality industry.
Tools like PMS (Property Management System) and CM (Channel Manager) only assist lodging establishments in operating more simply, saving time, and being more efficient compared to not using them. However, that is not the root of growth or the challenges faced in the accommodation business. If you want to effectively manage OTA channels and create stable growth, you should have a clear understanding of how OTA platforms operate, such as their nature, operational models, and how they display, calculate displayed prices, and collect prices (after deducting commissions). Of course, larger hotels that want to approach it systematically will do it synchronously from the beginning, but smaller lodging establishments wanting to reduce operational costs should overlook it and focus on optimizing display and providing outstanding customer care.
Synthesized by: OTA Lyst
