The Innkeeper's Resource

Need Another Room? Try a Spa!

Inns and B&B's everywhere are usually faced with some limitation on the number of rooms they are allowed. This can have a negative impact on cash flow, but there are creative ways you might be able to create another "room" without violating your local ordinances: create a spa!

Lots of you are offering massage as part of a package. But there's a lesson to be learned from some successful innkeepers that is supported by research from PKF Consulting. Let's look at a real life example.

Once upon a time in a lovely seaside community there was a beautiful inn, a grande dame if ever there was. She radiated warmth, charm, and sophistication. She welcomed guests from around the world year after year and rewarded those returning guests with an ever increasing level of service and guest experience. Rooms were constantly updated; trends were always being catered to. No stodgy innkeepers here, these owners wanted to grow their business.

Over time they increased the number of rooms in the inn until they hit the town's limit, but still they wanted more (kids in college will do that to you). They had a small conference room which doubled as a TV room, as they didn't have TV's in the guest rooms. Alas, times had changed. Guests didn't want to sit in a common room to watch TV anymore, so the innkeepers reluctantly acknowledged that their guests WANTED TV's in the rooms, and now that they could add flat screens, the TV's didn't interfere with the decor. And business meetings had dwindled to the point where the conference table wasn't serving any useful purpose. So, what to do?

The robust gift shop they had developed over the years was now proving to be very profitable. Spas had become popular, too, and with that meeting room going to waste they decided to make it work for them AND their guests. They divided the room in half, converting one part to a small spa room with a bathroom, an independent HVAC system, sound proofing, sound system, fancy lighting controls, and ample room for two massage tables. A true pleasure cocoon!

Working with independent massage therapists, they have now effectively created another guest room, as this spa room generates the income equivalent to one of their lodging rooms without violating any ordinance. And, its very existence helps sell more rooms, because they now have a dedicated spa onsite. They are generating about 5% of total revenues from the spa, most of which is from the rental of the space to the massage therapists, not the pass-through fees to the therapists themselves.

PKF Consulting says that spas generated 3.9% of total revenue (in large hotels with dedicated spas) in 2007. Of that revenue, the largest piece, 55.6%, was massage, with all the other services like skin care, salon, and retail sales making up the balance. It may be risky to try too much on a small scale, but massage is clearly a hit. A really "tricked out" spa room may be a better alternative to in-room massage if you have the space. And if you need another guest room but aren't allowed, this may be the answer.

Have you created a spa in an interesting way? How is it working for you? Please tell us about it.

Peter

The "Death" of Bling and Getting Back to Basics

Had a most interesting conversation with Taittinger Champagne's National Director of the Americas at the opening event of Kennebunkport's 5th Annual Arts In The Inns last night.  Strange intro to start off with Champagne and the demise of bling...but bear with me.

Jerome is a charming gentlemen and we wound up next to each other in line for a glass of bubbly.  After brief introductions, the conversation began with the obligatory, "how's business?"  He responded that he was pleased to see a public return to desires for value, quality, and integrity of product.  This equated to a positive answer for him as the public's desire was showing the beginnings of a re-emergence and re-interest in, by almost any ones standards, a luxury product!  By the way, Taittinger is the third oldest producer of Champagne and has been around since 1734.

As a writer put it, "Champagne is a celebration....but the truly impressive choice doesn't need a second mortgage to afford and therefore can be enjoyed all the more.  This seeming paradox of Champagne is found in a bottle of Taittinger."

The point of this homage to Champagne?  Our industry and all of us as Innkeepers offer our guests a celebration too!  Times together with someone special are times to celebrate.  A well deserved getaway is a time to celebrate.  Staying with hospitable Innkeepers in a glorious Inn is a celebration too.  Just as Jerome suggested that Champagne can be enjoyed on a regular basis, instead of just on birthdays, anniversaries, and so on...your Inns can also be enjoyed too on a regular basis.  We offer a similar paradox to the public in that we offer value, quality and a luxury product that doesn't require a second mortgage.  The challenge is for us to continue to communicate this message to the public in frequent, convincing and compelling ways.  We can be enjoyed regularly too!

Inns today are catering to those travelers looking for a more authentic experience...and leave the bling behind!  This new (at least new within the past few months?) sensibility bodes well for us on multiple levels.  Leaving aside the more sensitive issues of politics, religion, and the world, let it suffice to say that this new sensibility does bode well for B&B's and Inns as we are the keepers of the keys to creating an authentic experience for our guests. One that is driven by the basics of hospitality, value, authenticity and integrity of experience. The Bling in our lives during this decade has been shown to be flashy, transient, transparent, and of little real lasting value...no room at the Inn for bling in 2009!

So to all of us in the unique lodging industry, I propose a toast, with a glass of Taittinger of course, and wish you a summer of blue skies, full rooms, and a lasting legacy of gracious hospitality.  Cheers!

Rick

Champagne is a celebration. The minute the familiar pop of a champagne cork is heard the mood is lightened and smiles brighten. However, the choice of champagne is always a difficult one. Those looking to impress will usually start at the bottom of the list where the big names, with bigger price tags, reside, but the truly impressive choice doesn’t need a second mortgage to afford and therefore can be enjoyed all the more. This seeming paradox of champagne is found in a bottle of Taittinger.

Read more: http://french-wine.suite101.com/article.cfm/champagne_taittinger#ixzz0HZzNQHPM

Champagne is a celebration. The minute the familiar pop of a champagne cork is heard the mood is lightened and smiles brighten. However, the choice of champagne is always a difficult one. Those looking to impress will usually start at the bottom of the list where the big names, with bigger price tags, reside, but the truly impressive choice doesn’t need a second mortgage to afford and therefore can be enjoyed all the more. This seeming paradox of champagne is found in a bottle of Taittinger.

Read more: http://french-wine.suite101.com/article.cfm/champagne_taittinger#ixzz0HZzNQHPM

Champagne is a celebration. The minute the familiar pop of a champagne cork is heard the mood is lightened and smiles brighten. However, the choice of champagne is always a difficult one. Those looking to impress will usually start at the bottom of the list where the big names, with bigger price tags, reside, but the truly impressive choice doesn’t need a second mortgage to afford and therefore can be enjoyed all the more. This seeming paradox of champagne is found in a bottle of Taittinger.

Read more: http://french-wine.suite101.com/article.cfm/champagne_taittinger#ixzz0HZzNQHPM

Champagne is a celebration. The minute the familiar pop of a champagne cork is heard the mood is lightened and smiles brighten. However, the choice of champagne is always a difficult one. Those looking to impress will usually start at the bottom of the list where the big names, with bigger price tags, reside, but the truly impressive choice doesn’t need a second mortgage to afford and therefore can be enjoyed all the more. This seeming paradox of champagne is found in a bottle of Taittinger.

Read more: http://french-wine.suite101.com/article.cfm/champagne_taittinger#ixzz0HZzNQHPM

Birthdays, Blogs, and Twitter

Today is my son's 31st birthday. As a father, I'm proud of him. He lives in Costa Rica, so we don't see each other very often. Over the weekend he asked me to be his friend on Facebook. Like his sister a few weeks ago, I didn't exactly "ignore" or reject the offer, but I gave him the chance to reconsider and opt-out. Like his sister, he agreed.

Why would I NOT want my children as "friends" on Facebook? Most parents would KILL to have the insights that being a "friend" can give about their kids. It wasn't that I didn't want and wouldn't love the chance to be their "friend," it was simply that Facebook, for me (and, I suspect, for many who are reading this post) isn't really a social tool. It's a business tool. So why should that matter?

I have a tendency to tweet things every so often, usually about great hospitality-related articles that would be of interest to my Twitter followers in the lodging industry. Those show up on Facebook. And I usually comment on hospitality related subjects on Facebook, though not as much as I might or should. Blog posts like this on The Innkeeper's Resource sometimes show up on my pages, too. It's coming along, little by little, as I develop more of a network with innkeepers and become a fan of more inns. The thing is, when I look at my kids' Facebook pages, they really do carry on conversations with friends about cultural things, personal things, politics, and humor. My conversations, such as they are, are business related. And that kind of throws cold water on their youthful musings.

Maybe I should get a separate "personal" Facebook page. Don't get me wrong, I've had some old friends from my past find me on Facebook. And it's a treat to reconnect. But Facebook for me is a networking tool. And, as I get the hang of it and others in the innkeeping industry get the hang of it, it's bringing some of us together. That's fun. I think it will be to our mutual benefit. But somehow, Dad's business just seems out of place on a 30-something's page.

Am I wrong? Have any of you experienced a similar dilemma? Let's hear about it!

Peter

Fine Wine, Smart Ploys, and Bookings

Wine and travel go hand-in-hand. For those of us who love a good bottle of our favorite (or maybe an undiscovered favorite!) wine, no journey or evening meal are complete without a glass of the nectar of the gods. So it comes as no surprise that many of your guests also love a great bottle of wine.

Regardless of a traveler's budget, there are great wines out there today from around the world. But this isn't a column about wine, per se, and The B&B Team doesn't recommend (officially) any wine at all. However, we love to talk about service, ingenuity, and personalization in the travel industry, so I enjoyed reading a recent article in the Wine Notes section of the Wall Street Journal called, "Bringing Your Own to Fine-Dining Places." It seems even the toniest restaurants are having to be creative in this challenging economy.

Most people know that if you want to (and are allowed to) take a special bottle of your own wine to a restaurant, you'll pay a (sometimes hefty, even punitive) corkage fee to have the sommelier open it for you. That hasn't completely changed, but there is writing on the wall.

Dorothy Gaiter and John Brecher write, "More and more restaurants are offering special deals on wine - 50% off on Mondays, say. But we were looking out for something more - BYOB with no corkage at top-notch places." As it turns out, they found a few experimenting with a range of variations from "corkage-free" specials to discounted wines on otherwise slow nights, or even every night. The goal was to encourage folks who might otherwise stay home or go somewhere less pricey to dine with them and save on the cost of wine. Danny Meyer of the Modern restaurant in Manhattan is quoted saying, "We decided ... there would be a graciousness behind it, that you would actually flatter us bringing in something from your cellar to have with our food and hospitality. We decided that if we did this, we have to actually go overboard to demonstrate our appreciation."

Does this sound familiar to innkeepers? It should, because those of you who make your living offering gracious hospitality are experimenting with variations on this theme to generate business. Stay three nights, get the fourth free. Stay with us five times, and your sixth stay is 50%. Book our best room for Friday and Saturday, and we'll include a gift card for our favorite restaurant (or maybe a bottle of your favorite wine). You get the picture.

Creative packaging is all about adding value and personalizing, recognizing that creating an incentive to spend time/money with you can generate win-win scenarios, whether it's no corkage fee for your wine while at a fine dining restaurant or special promotions and add-ons to stimulate the desire to book a night at your bed & breakfast now.

Are there any great restaurants in your area offering a deal on wine or "no corkage Mondays?" Do I hear "weeknight rooms?" 

Peter

The Innkeeping Conference / Atlanta / April 2009

What a great conference! 

High energy, a true sense of camaraderie and a realistic and renewed optimistic outlook for 2009.  Kudo's to all the attendees who made the trip to Atlanta, the PAII staff, the vendors for their support, the sponsors and all the speakers who shared so much information and thought with us all.

Peter and I had the "Privilege of the Podium" for several different speaking opportunities.  One of the highlights, for us, was a collaborative effort with Peter Yesawich, of Y Partnership, on "Inside the Heads of Your Guests....How the latest on Traveler Behavior Affects B&B's and What To Do About It!" This presentation incorporated the latest information from Y Partnership's most recent travel and hospitality industry overview and is now blended with The B&B Team's overview and information about the B&B and Country Inn industry.

Key areas covered include: Web 2.0,Travel 2.0, Social Media Tools, Blogs, Twitter, Reputation Management, Mobility and more.  For those of you in Atlanta, thank you for joining us in this session.  For those of you who did not attend the conference, we would be pleased to share the findings, observations, recommendations and suggestions that will help you navigate the 2009 season.

For more information,  Peter can be reached at 434-286-4600 or I can be reached at 207-967-1995.

Rick

2009 Inns For Sale Study Released

After much anticipation, the 2009 Inns For Sale Study researched by Hilary Jones of Inngenium, LLC was released at the recent Innkeeping Conference and Trade Show hosted by PAII, the Professional Association of Innkeepers International, in Atlanta.

The study, now in its fifth year, takes a snapshot of the bed and breakfasts and inns for sale in March of the year and breaks the statistics down into several categories by price, size, state, region, and the country as a whole. The core criteria is that the property be currently operating with two or more guest rooms, be for sale, and be advertised in at least one of several primary "inns for sale" websites.

In March, 2009 there was an increase over 2008 of 6.4% in the number of inns for sale across the country, rising to 990 properties. New to the study this year was an examination of how many inns had verifiably sold since the previous study. 82 properties had sold, indicating that there is currently a twelve year supply of inns for sale, assuming no changes and no additions!

On average, despite a soft economy and a devastated real estate market, prices on average were up 0.7% nationwide, though this varied by region and property size. The increase was "1.5% for inns in the 5-10 room class and 10.9% in the 12-15 room class. Prices did however drop for larger inns (17-40 rooms) by almost 2%." Regionally, prices trended up everywhere except in the New England, Pacific, and South West regions. Only the East North Central region remained static.

Another important observation of the study is that inns appear to remaining on the market longer with 21% being for sale for two or more years and 5% still available after three or more years. The B&B Team, sponsors of the study, believe that this 2-3 year time period to sell a bed & breakfast inn is not unusual, but there is clear statistical evidence to support this. Additionally, a large number of properties which are still operating dropped off the list in 2009, indicating discouragement with the marketplace.

In light of the large numbers of B&Bs and inns for sale, The B&B Team believes that the smaller properties, those that would be desirable as residences, should focus their efforts on selling as residential real estate rather than as B&B's. This will increase their owners' chances of a successful sale in a timely fashion. Inns that are viable going concerns should ensure that their asking price reflects what an over-saturated marketplace and lenders will find "reasonable and defensible."

Yes, We All Do Need A "Pep Talk"!

Yesterday, Peter wrote a posting, "How About Some Optimism". In only a matter of hours we had several comments plus other emails thanking him for writing this piece.

No question, we are suffering as a nation, and as a world, through some of the most devastating economic times since the 1930's. The reality however, is that the world is not coming to an end, the sky is not falling and life does and will go on.  As an optimist and as a realist, better times are ahead...when, I don't know...but they are coming!

We've heard from a variety of hospitality folks all praising the posting. Check them out, they're great comments. At the same time, we've had several phone conversations with other Innkeepers who are truly in a funk and are being run roughshod by the Blue Meanies...(with apologies to the Beatles).  

Some are predicting the end of our industry, others are complaining about phones not ringing, others are grasping at straws as to their current business...but the one thing in common that these folks share is that they are sitting and stewing about the doom and gloom and are doing NOTHING to stimulate their business!

Those that are doing well are being thoughtful, creative, positive and aggressive.  They are keeping themselves at the top of their game and continue to play the game by their rules.  While we all have off moments, they realize that if they become another voice of darkness, they will communicate this  through their words and actions and that just won't do anyone any good.

The message?  Keep your head high! Don't forget why you became an Innkeeper! Recognize the times and creatively respond to them but do not become a victim of them. Finally, work your website, your SEO, the social media sites, and continue to offer the service and hospitality that we should provide everyday. 

Need to talk? Have some questions?....we're here for you.

Rick

How About Some Optimism?

It's been a long, cold winter, not just because the weather has been that way, but also because the United States and the World have been rocked by a horrible recession. Every time you turn on the TV, open a newspaper, listen to the radio, or read your news on the Internet (take your choice of venue), the doom and gloom are almost overwhelming. But guess what? I think everything is going to be just fine!!!

I have the reputation of being an optimist. Last fall when things were starting to get really shaky but "they" still hadn't declared us in recession, I was telling Rick that I wished they'd just tell us we were in a recession so we could get it over with. Well, we finally got it, and it's a doozy. The loss of confidence is startling, but it's not all unfounded. There were lots of mistakes made the past few years, and the pendulum is swinging far in the opposite direction. But success in all things depends upon optimism. And, as they say, this too shall pass.

The world is full of people who bemoan the failure that they feel has been thrust upon them; and there are those who have had stellar success by the sheer strength of their optimism and belief that they would succeed. Some good planning is important, and luck and timing can play a role, but without optimism no amount of planning will be enough. Optimists can sell ideas; pessimists just depress people. Enter the bed & breakfast industry to provide some of that psychic "care and feeding" that people who feel battered and bruised by the economy need. Innkeepers are the stars in the economic landscape, but the lodging and travel industry have been hit hard and are being hit even harder by a tone in Washington that suggests that travel is somehow a bad thing, at least for corporations.

There's a great article by Chris McGinnis entitled How I Saved 100 Jobs. It's a recount of the people he encountered traveling to a conference on business, people who needed people like him to have a job. There are a LOT of people who's livelihood depends upon travel, and, despite all the negativism, there are signs of hope and reasons to be somewhat more optimistic.

Peter Yesawich's YPartnership released their Insights February 2009 with results of their latest travelhorizons(tm) survey. This survey looks at travelers' near term intentions. Amazingly, the U.S. Traveler Sentiment Index(tm) shows an increase of 15.3% over the October, 2008 figures. While this is 3% below the sentiment index a year ago, it is a positive, optimistic trend. It says that travelers (those folks who stay at your inn) are feeling a bit better about leaving home. People want to and are going to travel.

PricewaterhouseCoopers, the consulting firm, did a recent study in Britain that would probably have similar results if conducted in the US. In the study they observed that 25% of travelers are trading down in their plans by staying someplace less expensive, taking a cheaper flight, waiting for a last minute deal, and cutting the length of their trip. But overall, the intention to cut back was less than last year. That's an optimistic sign.

Furthermore, PWC suggests that travel companies should hold back on discounting. We talked about this in our article, Innkeeping Success Without Discounting. "It is vital that companies hold their nerve, do not panic into cutting prices too soon and remain flexible in what they offer consumers." As travelers look to save, every innkeeper may benefit from the guests that are coming to them instead of staying at the more expensive place. So, instead of cutting your rates, think in terms of a new demographic coming to your inn. Of course, no one is "trading down" to the highest end properties, so they have to be more creative in attracting recession-weary guests, but some folks aren't going to give up the luxury they feel they need and deserve; they just might travel less often and for fewer days. So, this is another reason to be optimistic. Everyone who does a good job should be able to get a piece of the pie. Those who aren't doing all the right things aren't going to get as much business, no matter how much they cut their prices. A judicious blend of many strategies is the best course.

We are optimistic that 2009 is going to be a good year. It's really essential to feel the joy of coming to work every day, whether it's helping our clients be successful with our guidance or seeing the creative things innkeepers come up with that work. Optimism works. Look around you. It's everywhere if you open your eyes to it. And we need all that we can get.

Peter

An Online Community

Alright, so we write a lot about blogging and social media and the importance of it in your marketing, etc., etc., and sometimes you just want to tell us to SHUT UP already. We get it. But we don't give up that easily!

A couple of weeks ago in my article, "Do Innkeeper Blogs Work?" I mentioned a blog, My Bella Vita, by an American innkeeper in Italy, Cherrye Moore. Something happened this past week that caused me to dig a bit deeper into her blog and to reflect on the power and strength of online community. Something happened to Cherrye's father, and the outpouring has been remarkable.

If you explore My Bella Vita, you'll read a lot about Italy, about food and art and history. But you'll also learn a lot about the author. And you'll learn a lot about blogging. It's by inference and the prominent link to Il Cedro Bed & Breakfast that you'd want to stay at her B&B as well. Cherrye gets an unusually large number of comments to her blog posts because, as she told me, "people feel like they know us through the blog." Remarkably, she replies to every comment, something we're told to do to be effective. But then she told her readers on Feb. 13 that she was going home to Texas for a couple of weeks because she'd received the middle of the night phone call that no one wants to receive. "It's your father." And something amazing happened. 

In just a couple of days nearly forty people have left comments, offered prayers and best wishes. No doubt some are friends but many, like me, are strangers. Sometimes it's tragedy that makes us realize how many people "out there" really care. And then you realize that it really is possible to create a community in cyberspace.

The whole purpose of a blog for a bed & breakfast is to share something of yourself and your area with the larger world, to make people feel like they want to come stay with you. You begin to create an emotional connection with your past and future guests, and as you write and make the effort you may not know if anyone is really reading or if they care. But if you persist you might be surprised.

Is this for everyone? No. But if you visit My Bella Vita you'll understand why a blog can be a powerful tool for communication and for creating community. And you'll understand better what drives some people to "broadcast their lives to the blogosphere." And why people would want to stay at Il Cedro Bed & Breakfast. And why you might consider following a great example of what works.

Peter

Do Innkeeper Blogs Work?

Every year The B&B Team travels to various innkeeping conferences, sometimes to exhibit in the trade show, but always as speakers. In the past month we attended the Mid-Atlantic Innkeepers Conference and Trade Show in Hot Springs, Virginia and just this week were at the 17th annual conference of CABBI, the California Association of Bed & Breakfast Inns, in Monterey. As always, we had a great time meeting innkeepers and speaking about topics that we're passionate about, like "Attracting the i.guest in a Slowing Economy"(a version of which we presented on a PAII webinar recently) and "Inn Branding and Market Positioning."

In both of these presentations we focus on the contemporary traveler, the i.guest, who is intelligent, independent, informed, imaginative, Internet-savvy and empowered, and Identified. This i.guest is using the Internet and social media to make travel decisions, and one of the topics that always comes up when we mention blogs is, "Does a blog bring innkeepers business?"

While we have anecdotal evidence that it does, based on some innkeepers who swear by their blogs, there is some new evidence of a blog's effectiveness in generating new business.

Stephanie at the Albert Shafsky House Bed & Breakfast in Placerville, CA has been writing a blog for a year and a half. Before speaking to an eager audience at CABBI about blogging and social media, she showed us her Google Analytics page that proved that one of the top referrers to her B&B's website is her blog. And her bounce rate on those referrals is a mere 25% or so. That's quite something. She thinks that the blog is integral to their marketing, along with the B&B's Facebook page and other efforts. Steph and Rita are really working social media, and it's paying off.

This morning I received a Google Alert linking to My Bella Vita, a blog by an American innkeeper in Italy, Cherrye Moore, at Il Cedro in Calabria. We exchanged an email or two, and I asked her if she got any business from her blog. Her reply was that her "blog site has been a great source of leads for our B&B." She also made an incredibly valuable point, that many people go out of their way to book with them, "because they feel like they know us through the blog." That, folks, is what social media, Web 2.0, Travel 2.0, and all the other stuff is about. Successful innkeeping is about building relationships and providing enduring experiences.

If a blog at your inn could help you build relationships before you've ever met a potential guest, that's really getting a head start on a long term relationship that can pay great dividends, both financial and "psychic," as Holly Stiel likes to say.

For all the inspiration from all the innkeepers mentioned above and those that keep us going every day, all I can say, again to echo Holly Stiel (and some guy with sideburns), is "Thank you, thank you very much!"

Peter