Sunday, January 7, 2018

Lessons learnt from the B&B: 2 years on

Our family just completed 2 years of running a Bed & Breakfast/ home stay. Looking back, we realise that we stepped into this venture quite blindly, which is not advisable at all when starting a new business. Due to lack of experience, we did no prior market research or risk assessment. However, we've learnt a thing or two along the way.

We are still a no-profit business with 7 more years to go on our loan repayments. Essentially, still in the danger zone. Amid challenges and ongoing improvements, we've come to enjoy certain aspects of this little family business. Meeting open-minded people from various cultural backgrounds in various parts of the world have been interesting and rewarding. Hosting and being hospitable gives a warm feeling of satisfaction. A few guest-host relationships have progressed into good friendships.

I've even found my parents' thinking and perceptions changing and expanding slowly.

Shuri: Mom, this guest has an interesting profile. He does a lot of social work in health with vulnerable communities and seems to have an impressive educational background.
Mom: Then he's ideal for you.
Shuri: I think he might be gay.
Mom: No, I meant ideal for the type of projects you do for work.
Shuri: (Embarrassed for walking into that trap, impressed by her wittiness AND her indifference to sexual orientation). Oh. *mind blows*.

Mom: Don't you want to find a partner like the type of backpacker couples that come here?
Shuri: What type is that?
Mom: They seem genuinely happy, are loving towards each other and enjoy traveling without the extra baggage of kids and being overly attached to their jobs and maintaining houses.
Shuri: Yeah, that would be nice.

Of course, not all guest experiences are rosy.

Once, a guest left at the end of his stay without payment. Some are difficult to please and expect 5-star facilities and services for a low budget, some guests leave negative reviews despite our best efforts to keep them comfortable and we've had to bear small damages to property sometimes (because we noticed it after the guests left).

Like a cascade effect, several people and businesses around us have stood to benefit from our business. For example, Kumudu, our helper with housekeeping has a better paying job now for less tiring work (compared to her previous job). Another lady who earns a living by running a grocery store and making string hoppers receives orders from us. The bakery in our neighbourhood has increased sales for sliced bread. Many other grocery stores benefit from our purchases for the B&B supplies. Another family nearby provides accommodation to drivers who bring some of our guests. Take-out restaurants in the area benefit from the increased number of orders from tourists. Many tuk tuk drivers in the area benefit from offering transport and tours to our guests.

Our operations team has also evolved over time to take up various fitting roles, depending on each one's interests, abilities and availability:

Mom - Guest Relations, Chef, Local Buyer, Head of Housekeeping
Dad - Finance, Tours and Transport, Repairs and Maintenance, Garden and Garden Harvests
Bro - Transport, Repairs and Maintenance
Sister - Overseas Buyer
Nicky, our dog - Assistant Guest Relations Officer
Shuri - Hotel Reservations, Human Resources, Records Administrator, Consultant, Naturalist, Quality Control, Marketing, Innovation, Sustainability

Shu's titles boils down to these actually:

Hotel Reservations (making sure the booking calendar doesn't clash with accidental double bookings and responding to inquiries from guests and potential guests), Human Resources (managing people when they become difficult including family, keeping them happy and motivated, and resolving disputes), Records Administrator (meticulously filing, collecting data in spreadsheets and carrying out analyses), Consultant (having to provide information for family friends and others who want advice with starting their own home stays), Naturalist (attempting to generate interest in the environment and wildlife), Quality Control (nitpicking and throwing fits when standards fall - the family hates having me around for weekends for this reason), Marketing (showing off our property listing online and trying to "seduce" guests into booking with us), Innovation (trying out new and wacky ideas, because no one's there to stop it), Sustainability (trying to be environmentally friendly and ethical to the best extent possible).

Sri Lanka is an increasingly popular destination for international travelers and expatriates who return home to visit friends and relatives. In 2013, Lonely Planet nominated Sri Lanka as the #1 destination in the world to visit. In 2015, Forbes Magazine ranked the island among the “Top Ten Coolest Countries” to visit. Condé Nast Traveler, Rough Guides, Lonely Planet, The Guardian, and the New York Times identified Sri Lanka as a top location to visit in 2016. In 2017, guests from 39 countries stayed at our B&B (up from 26 in 2016).

Travel trends in Sri Lanka are seasonal. Six months of the year are considered the high season according to the national statistics; January, February, March, July, August and December.
National Statistics


According to the Annual Statistical Report 2016 of the Sri Lanka Tourism Tourism Development Board, the average occupancy is 74.76% while the hill country (which we belong to) records 75.24%. However, we still have a long way to go in matching the national statistics. And theoretically, it's difficult to match since we can't employ full-time permanent staff yet and we close operations when the family needs time off.

Statistics from our B&B for 2016 and 2017


Here are some of our lessons learnt, two years on:

1. Don't let the competition intimidate you

The Sri Lanka Tourism Development Board (SLTDA) actively promotes locals to open their homes to tourists. They use annual visitor statistics to back this. The result is an unregulated bloom of tourist guesthouses, home stays and apartments in all the major cities of Sri Lanka. We don't have an accurate count of such establishments in our city (not all are registered with SLTDA), but we estimate there are close to 500 in our city alone. While competition can give tourists attractive rates and a range of options to choose from, the competition hurts many businesses, especially those who have made big initial investments. In comparison, banks, which readily provide high interest loans to homeowners for tourism services, and the tourist board itself, which collects a registration fee and an annual license from registered tourist establishments, stand at an advantage.

Despite all this, using constructive criticism to one's advantage, being confident in your own unique brand (despite what your competitors do), experimenting with new ideas without fear, seeking advice from experts, and continuously thinking of creative ways to enhance guest experiences are some of the things that will help the business stay in the game.


2. It is a lot of hard work. Having a good team helps a lot. 

It's round-the-clock work, especially during tourist peak season - which is about 4 months in the year for us. We now have extra help with housekeeping. Still, managing calendars, responding to guest inquiries, arranging transport and tours, doing the breakfast service, shopping, paying bills, maintenance of facilities and managing accounts requires time.

Given the level of coordination required, a good team and good communication is a must. They must be trustworthy and capable. Managing the team involves identifying each other's strengths, quirks and the little things that drive them.

It's my parents, mostly my mom, who run the show at our B&B. It helps that she's the only pure extrovert in the family. As an unintended impact, we seem to have grown closer as a family and improved in our communication while running the operations of this B&B.


3. Reviews can make you or break you 

Everyone these days checks online reviews for travel recommendations, hotel reservations and tour operators. True enough, that's the most reliable feedback out there. Bygone are the days when tourism operators and establishments can hoodwink tourists with a lack of transparency in dealings. Modern tourists are well informed through various travel aides and experienced with travel. And as a responsible traveler, it has become one's obligation to leave honest feedback online for the benefit of others. This has made the world smaller and traveling a bit safer, which is good.

A guest review is final and permanent as far as hotel listings go. At times, maintaining ratings is like having to maintain an outstanding report card in school. Slacking will affect ratings and therefore sales.

What it means for service providers is that they will be held strictly accountable for their attitude, quality of service and facilities. This is where things like genuineness, empathy and attention to details scores the brownie points. Most important of all, we have to understand that our guests are people who, just like us, expect honesty and clear communication.

~ ~ ~ 

We don't know what the future holds for our B&B, but we'll try to make it a good one.



References:

Sri Lanka Tourism Strategic Plan 2017-2020. Downloaded on 6th January 2018 from http://www.sltda.lk/sites/default/files/tourism-strategic-plan-2017-to-2020.pdf 

Annual Statistical Report 2016. Downloaded on 6th January 2018 from http://www.sltda.lk/sites/default/files/annual-statical-report-2016.pdf

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