Coach House Bed and Breakfast
Executive Summary
Opportunity
Problem
We have tourists that like coming to visit and explore Tybee Island. Some people think travelers just need a place to rest their head and put their stuff. Travelers need to create a home away from home. A place where they can fully recharge from their worries and travels
Solution
The Coach House guest will have every need met to ensure his/her comfort. For special occasions, catered meals, chilled wine, etc. can be provided for an additional stipend. During the weekends, guests will return to the B&B in the evening and find cheese, fruit, and wine for snacking before turning in.
Market
B&Bs, along with other short-term lodging on Tybee Island, have long been a substantial part of the island tourism. Of the short-term lodgings on Tybee, ten are categorized as inns, 19 as long-term lease facilities (rentals, condos, and houses) and only four as B&Bs, including the Coach House. Hotels/motels constitute the largest percentage of rental properties on the island in terms of units.
Ironically, at least on Tybee Island, the rise of Airbnb and its competitors have increased the demand for B&Bs rather than hurt us with more competition. People are more aware of the possibility of non-hotel lodging. And of course we participate in this new channel with our profile and standing on Airbnb.
A modest projection for increased unit rental is 30% per year. Competitors on the island have averaged 30% + rental increases over the past three years, and the Georgianne Inn is forecasting 50% increases for the next two years before hitting full capacity. This projection is without any significant increase in advertising or exposure, but is based on the general average increase in tourism.
Our two major customer segments are tourists from the north who traditionally prefer the cozy environment of B&Bs, and local patrons who need the facilities for various events. Subscriptions to various Web services will provide international exposure to potential customers for nominal annual fees.
Competition
We are uniquely positioned with Airbnb. The bed and breakfast industry offers a unique lodging environment, which caters to an ever-increasing group of travelers. B&Bs create a climate of home, where guests become temporary members of a larger family. The B&B home opens itself to guests, allowing them to participate and share in the richness of a community, while still allowing whatever degree of privacy is preferred. Meals can be shared with the innkeepers and other travelers allowing new relationships to be created and old ones enriched. Or, meals can be taken in the privacy of the guest’s room.
A variety of settings available in the B&B are situated to enable individuals or small groups to locate the perfect setting for whatever mood or activity one is pursuing (reading, watching television, playing board games, etc.). In the B&B, a guest is a guest in one’s home, not a customer. It becomes a place to return to: at the end of a day, or during the next vacation (like going home).
At the Coach House B&B, guests will have the right mix of membership and privacy. Being dutiful without being intrusive is a delicate balance and one that owners have mastered in their various walks of life
Why Us?
We start with a critical competitive edge: there is no competitor we know of that can offer the convenience and luxury one will find at the Coach House. We have traveled the country and stayed in many B&Bs. We know how to create the climate that others seek when shopping for B&B lodging. We hold up very well against Airbnb competition.
Expectations
Forecast
We estimate average monthly fixed costs to be approximately $8,000 for expenses plus interest payments. Peak and off-season will have significant impact on the monthly earnings. For the first year, on-season revenues will offset off-season losses. As Coach House B&B builds its market position among the local patrons, we anticipate that off-season revenues will be enough to break even during that season.
Our far-out profitability is unrealistically high. We leave it that way knowing that other expenses will come up. We expect to revise upwards as needed.
Financial Highlights by Year
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