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The Cost Of Your Bed & Breakfast Will Affect Business

Jan 26, 2008
Many people wonder how much they should be willing to pay to stay at a bed & breakfast location. It is important for consumers to understand that they price will be dependent upon demand. This is the same way that it works for hotel rooms and that is why you can get a lower price during the week and off peak seasons.

The quality of a bed & breakfast is going to affect the overall price. Five star hotels are able to charge guests more than those with only three stars. You will be paying for the overall decor, the prestige, and the services that are offered at such a location. You don't want to charge too little for your bed & breakfast rates as it can be a red flag for those looking at it.

The reputation that your business has is going to affect how much you are able to charge per night. The more demand you have for your rooms the more you should be able to charge for them. If your rates get too high though people will look at other options. You can't blame a consumer though for trying to make their travel dollars stretch as much as possible.

One way to find out if you are getting good price is to compare what the hotels and other bed & breakfasts in the area are charging. If all of them are around $100 per night you can consider it to be a fair price. However, if the location you are looking at is twice as much as the rest you should inquire as to why.

The price isn't the only factor that determines if someone is going to make a reservation at this type of business. It is one of the most important ones though that they do look at. As the owner of such a business you need to keep a close eye on what others are charging. Otherwise you could be losing business to your competition.

Don't make the mistake of pricing your rates for the business based on how much money you still owe on it. Your guests aren't concerned with how much money you have tied up in the business. Instead they are focused on what you can offer them as far as a great place to stay for a decent price.

Sometimes you will have to lower your prices in order to get more people interested. Consider this to be an investment in your overall success though. You can cut the rates or offer a significant discount if they stay for three nights instead of just one or two. Chances are they will be so impressed with your bed & breakfast they will return in the future.

As you build up a solid reputation as offering an affordable bed & breakfast with all the perks you will be able to increase your prices. Keep an eye on how that affects your business though. You may have to choose between $15 extra for each person that stays or charging $15 less and getting 50 more reservations each month.
About the Author
Patti Rob - Bed & Breakfast writer, entrepreneur and enthusiast. Visit Bed and Breakfast Profits to read more before you make an offer on a B and B for sale.
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