In a recent discussion with some fellow innkeepers, the age-old issue of whether B&Bs should follow the path of hotels and always focus on profitability came up.
It's an issue that comes up a lot, in fact, among innkeepers at small inns of all kinds.
After all, most innkeepers came into this profession fairly late in their careers. They made a dream come true.
Sure, it's not the same dream for all innkeepers. For some, it's a dream of a small town life where home is work and every day is an adventure in entertaining. For others, it's an urban inn where hospitality and old-world charm are still in big demand.
In other words, it's all about quality of life. They didn't choose this profession to become rich. They chose this profession to enjoy a gracious and hospitable life, connected deeply to the community around them.
So to get those folks thinking in terms of profit/occupancy/ROI/ADR and the such, well, it's not always easy.
The key, in my mind, is in making the connection that without focus on all those old boring hotel-like stats and issues, there will be no quality of life. Once the innkeeper has, essentially, put all the family eggs into this one grand dame of a basket, the profitability becomes just as important as the hospitality.
So how to achieve both a gracious life and maintain a profitability that will sustain the inn?
Hard work, of course.
But innkeepers, as a lot, certainly aren't afraid of hard work. Their lives, in fact, are all about hard work. Long hours, constantly being on. Early perkiness for breakfast. Late evening patience for late arrivals. Endless time spent arranging days and evenings for perfect getaways for guests young and old.
But to achieve profitability and sustain the inn longterm - without burning out the innkeeper in the process - well, that requires diligence to a plan. A plan to improve occupancy for some. A plan to attract a whole new segment of guests for others. A plan to control expenses without eliminating the amenities guests have grown to expect.
And, perhaps most importantly, a plan for innkeepers to have breaks.
More revenue means more money for staff. Part-time innkeepers during the week perhaps. More breaks with innsitters taking the helm for a few days or weeks.
Or, for some, just closing up a few days here and there and taking a deep and quiet breath.
There is no right answer for the question of occupancy. Some small inns have successfully reached an ADR that allows them to make a good living at 30% occupancy. Why would they want more if that's working?
But for others, especially those who may be significantly leveraged, lower occupancy may mean something has to give. Amenities perhaps. Or not enough left for staff. Maintenance may get deferred, eventually leading to lower quality stays for guests and difficulty maintaining room rates or occupancy. Clearly, for those inns, developing and sticking to a plan that will achieve profitability is key to keeping the dream alive.
To me, the best answer is always to find the balance. An inn that is not profitable will become a strain on the entire family of the innkeeper who will never find the gracious lifestyle he or she is seeking. An inn that focuses only on the bottom line and begins to eliminate freebies, staff, or maintenance will soon lose track of its most important commodity: gracious and generous hospitality.
Hospitality, after all, is not about stinginess. And burned out innkeepers can't possibly provide the gracious hosting necessary to create unforgettable getaways for guests.
The challege for smaller inns is to find that balance without sacrificing value for guests or time for themselves.
And to trust that the world won't stop spinning if a break is needed. However the innkeeper decides to get that break.
