Determining a room rate: a tough job for a B&B-owner! Unfortunately, there’s no standard formula for this: bed & breakfasts differ too much from one another. However, there are some steps you can follow when determining your room rates.
- Try to find out the room rates of other B&B’s and hotels in your area. What do they offer for their prices? Now make a comparison based on facilities. This helps to determine what your room rates should be.
- Do not automatically adjust your room rates to an industry average! First you have to find out whether or not these rates will cover your costs. It’s better to set room rates based on an estimation of your costs: purchase, accommodation, depreciations, interest, man hours. Make a global calculation (per half day, not every five minutes).
- The room rate strongly depends on your location. However beautiful your B&B might be, if it isn’t located in a popular region, this will influence the rates. For example, normally, room rates in touristic towns are higher than the national average.
- Determine different room rates for high- and low season and/or week days and the weekend. High season usually lasts from April until September. School holidays are usually also considered as high season.
- You can also work with discounts. Do you mainly have guests on weekends and would you like more occupation on week days? Than you can decrease the rate for week days or offer an attractive midweek rate. The opposite is also possible of course.
During the course of time you can refine your room rates, based on demand, which is how most B&B owners go about it. Ideally, you then end up with the optimal room rate for your bed & breakfast. Find more tips and advice from other B&B owners in Bedandbreakfast.eu’s discussion group on LinkedIn, you’re welcome to join!