Feasibility Study Report for B&B Business in Hunter Valley
Australia is a country that is rich in tremendous inspiring scenery that offers both the local and international tourists exceptional experiences. There exists distinguished enthusiasm in its innate beauty that is enriched by the people’s culture and history. Such enthusiasm has led to a boom in the number of individuals that visit the country from across the world. The increase in the number of visitors mirrors the good infrastructure like the expansion of airports and good roads that allow visitors to move with ease to tourism sites in the country. This implies that travellers can access as many tourist sites as possible within a day. It also implies that the country has a favourable economy that offers opportunities for developers to build tourism sites to meet the tourists’ increasing accommodation needs (OECD, 2020). The boom in the country’s tourism also inspires businesspeople to engage in B&B businesses due to the high demand for accommodation facilities. B&B business is the type of accommodation in which the owner of a premise offers guests a fully furnished room with breakfast for the next morning incorporated in the price. This feasibility study is about a B&B business in Tropical North Queensland that would lead to a possible acquisition.
The General Attributes of the Market
Unlike hotels in which visitors inquire about matters accommodation from the front desk through emails or by placing special requests to the departments of customer service, B&B businesses are run by the owners. Nonetheless, there can be extra personnel to assist with the stripping of beds and serving breakfast, although it is usually the owner who maintains the overall cleanliness of the rooms and cook meals. Of importance to note is that a B&B business’ success comes with qualifications (Skripak, 2016). Such is because guests would always expect quality services that match the value of their money.
Additionally, the B&B business owners deal with high correspondence levels across varied channels. They might also be subjected to long working hours, leaving them with little time to rest. In this regard, the business owner must always be in a position to sacrifice their time and offer faultless services to clients at any time regardless of where they are. The owners should also be aware that their business will only succeed if they engage in good market reviews since the industry has numerous competitors (White, 2009).
Importantly, the B&B business has a competitive advantage over the hotel business. This happens because the B&B owner-to-visitor correlation offers a welcoming experience that several hotels cannot. In an era where clients can book hotel rooms online, clients for B&B businesses connect and relate directly. It is this form of a direct link to the roots of the business that keeps the B&B businesses alive. With a market value worth million, the B&B business is here to continue (Pfister et al., 2009).
Although the décor and facilities of a B&B business (pools, gyms, and bars) are the same as those of a hotel, the numbers of visitors who visit B&B are likely to be smaller since they usually have fewer rooms. On the other hand, just like hotels have premium price tags on welcome treats, happy hours, and owner-hosted foods, B&B also finds such as principal components of customer service (Pfister et al., 2009).
B&B also emerges as highly affordable with the cost per night significantly less compared to many hotels. Thus, it taps into varied audiences without regard to age demographics. For instance, it can host Generation X and Baby Boomers who have the money to pay for extra services. Additionally, it can be a host to millennials and students who need cheaper alternatives of accommodation. This scenario develops a window for a B&B business to tap clients who can be very lucrative, especially if the location is highly in demand (White, 2009).
