Bed and Breakfast Inns and Their Mode of Operation


Bed and breakfast inns are romantic rooms across historic homes, made especially for couples. An accurate portrait of these inns would be rich scents cinnamon rolls and fresh coffee wafting up from the kitchen, coupled with fire crackles in the hearth. Found in historic homes such as the Craftsman bungalows and Queen Anne mansions, these homes are perfect destinations for the holidays.

What is a bed and breakfast inn?

These inns are hybrids between private homes and luxury hotels. Instead of up to 50 rooms found in hotels, bed and breakfast inns have about 10 guest rooms. The owners also live and mingle tourists like they were guests. Depending on the type, guests may experience turn-down services, deluxe touches, and luxury treats during their stay. And of course, there is the typical ‘breakfast’ in bed at guests’ quarters. B&B inns are becoming popular with approximately 50% increase in demand and a price hike to $121 within four years.

Can you make profits from B&B inns?

Regardless of your reason to start a B&B business, you should understand the profit factor. As a host, your potential revenue bank must surpass your capital. But the answer is relative. Your profits will depend extensively on the age of your business, the number of guest rooms, your locale, and your marketing efforts. Bear in mind that the business is not very lucrative, but since it is a lifestyle decision, you’ll make profits every time you sell.

Startup capital

Forget about your profit potential for a while. If your bed and breakfast inn doesn’t attract guests, your earnings will remain low. Apart from the capital needed to erect the structure itself, you will also buy comfort items such as towels, mattresses, and pillows. And if you have decided to convert your home, you must upgrade the fixtures or equipment in the home.

The amount you spend on your B&B business will also depend on the number of guest rooms. Generally, small properties will require startup capital between $20,000 and $40,000, while luxury properties require up to $50,000 for each guest room.

Typical markets

Proper planning and research precede every potentially successful business. Research also includes marketing strategies and potential guests. Below is a list of typical target markets:

  • Business travelers – Business trippers and traveling salespeople are often patrons at bed and breakfast inns. If your location is in the urban local, your potential target should be business travelers.
  • Tourists – these are people that always seek a great time, especially during the holidays. Their modus operandi involves shopping, national parks, amusement parks, and other monuments in the area. So, you may want to choose a location with man-made attractions.
  • Romance – Bed and breakfast inns are best for romantic getaways, and the most visited locations will rake in a high number of guests annually.
  • College or university – Are you in a college town? Graduations and homecomings pool a lot of crowds, and when hotels are fully booked, adventurous visitors may try out your B&B.

Bed and breakfast inns are often better choices than hotels and are designed to deliver an unmatched experience to the visitor. You will find a handful of them across different locations if you are planning a holiday already.