- The core point of view
- Market analysis
- Product research
- The competitive landscape
- Regulatory policy
- Other factors
- Risk analysis
I. Core viewpoints of B&Bs
- High-end B&B, new opportunities for diversified Profitability Models B&B occupies a unique position in China’s tourism market. It is not only a place to provide accommodation, but also a lifestyle experience. Compared with traditional high-end hotels, high-end B&Bs pay more attention to personalized services and unique design styles, which to a certain extent can satisfy consumers’ pursuit of unique and high-quality life. Its profit model also shows diversity and innovation. In addition to traditional lodging income, they can also increase their income by providing special catering, organizing theme activities and selling local specialties. For example, some high-end B&Bs will invite local chefs to provide guests with specialties, or organize activities such as art exhibitions and concerts to attract more tourists. At the same time, high-end B&Bs can also cooperate with neighboring tourist attractions and launch package ticket services to improve visitor satisfaction and loyalty.
- Precise Positioning, Unlocking the Wealth Code High-end B&Bs need to accurately position their target customers in order to achieve sustainable profitability because of their outstanding characteristics and small scale. The positioning of target customers should be based on factors such as market demand, competitor analysis and own resource advantages. Generally speaking, the target customers of high-end B&B are mainly high-income people, business people, couples and families. These customers have high requirements for accommodation environment, service quality and privacy protection. Therefore, high-end B&Bs need to provide high-quality accommodation facilities, personalized services and rich activity experiences to meet customers’ needs. At the same time, high-end B&Bs can also conduct publicity and promotion through social media, tourism websites and other channels to improve brand awareness and reputation.
- Risks and challenges coexist, and intelligent response creates the future High-end B&Bs also face some risks and challenges in the process of profitability. First of all, market risk is one of the main risks faced by high-end B&B. Changes in demand in the tourism market, fluctuations in the economic environment and other factors will affect the profitability of high-end B&Bs. Secondly, housing maintenance risk is also a concern for high-end B&Bs. High-end B&Bs are usually located in areas with beautiful scenery, and housing facilities and equipment need to be constantly maintained and updated, otherwise guest satisfaction will be affected. In addition, legal compliance risk is also an issue that high-end B&Bs need to pay attention to. High-end B&Bs need to comply with relevant laws and regulations, such as fire protection, environmental protection, hygiene and other legal requirements, or they will face penalties and operational risks. In response to these risks and challenges, high-end B&Bs can adopt the following coping strategies: first, strengthen market research to understand market demand and competitors’ situation, and adjust business strategies in a timely manner; second, regularly check and maintain housing facilities and equipment, and improve the reliability of the equipment and the service life of the guest rooms; and third, understand the relevant laws and regulations and update the policies in a timely manner, and carry out compliant operations to avoid unnecessary business losses.
II. Market Analysis
2.1 Tourism Market Trends and Demand for High-end B&Bs
2.1.1
Tourism Consumption Upgrade Driven With the improvement of people’s living standards, tourism consumption is constantly upgrading. Tourists are no longer satisfied with traditional standardized hotel accommodations, but pursue a more personalized and quality experience. This trend of consumption upgrading has greatly driven the growth in demand for high-end B&Bs. On the one hand, consumers are demanding more and more for the accommodation environment, and they aspire to have a unique living experience and enjoy a peaceful and comfortable space during their journey. High-end B&Bs usually have unique design styles, beautiful natural environments and attentive services, which can fulfill consumers’ demand for high-quality accommodation. On the other hand, the upgrading of tourism consumption has also prompted consumers to pay more attention to the cultural connotation and emotional experience of tourism. High-end B&Bs are often able to combine local cultural characteristics to provide tourists with in-depth cultural experiences, such as participating in local traditional activities and tasting local cuisine, which makes high-end B&Bs more and more popular in the tourism market.
2.1.2
The Rise of Personalized Tourism DemandUnder the trend of personalized tourism, high-end B&Bs have ushered in a broad market opportunity. Today’s tourists pay more attention to personalized travel experience, and they hope to customize their travel itinerary according to their own interests and needs. High-end B&Bs are able to meet this demand, providing personalized services and unique experiences. For example, some high-end B&Bs can provide customized catering services according to guests’ preferences or arrange exclusive travel activities for them. In addition, the diversified room types of high-end B&Bs can also meet the needs of different tourists, such as family rooms, couples’ rooms and theme rooms. The rise of personalized tourism demand has brought more market opportunities for high-end B&Bs, and has also prompted high-end B&Bs to continuously innovate and improve their service quality to meet the increasingly diversified needs of tourists.
2.2 Competitive Landscape of the High-end B&B Market
2.2.1
Competition Between Traditional Hotels and High-end B&BsTraditional hotels and high-end B&Bs have obvious differences in terms of services and pricing. Traditional hotels usually provide standardized services and focus on efficiency and convenience to meet the needs of business travelers and group tourists. High-end B&Bs, on the other hand, focus more on personalized services and unique experiences, emphasizing interaction and communication with guests. In terms of pricing, traditional hotels have relatively stable prices, which are usually adjusted according to factors such as seasons, passenger flow and brand influence. The pricing of high-end B&Bs is more flexible, adjusted according to room type, season, passenger flow and other factors, focusing on cost-effectiveness and market demand. Traditional hotels have advantages in terms of brand effect and business functionality, while high-end B&Bs are more competitive in terms of flexibility, personalization, and experience.
2.2.2
Competitive Analysis of Similar High-end B&BsThe focus of competition between similar high-end B&Bs is mainly on service quality, design style, experience programs and brand awareness. In order to stand out in the competition, high-end B&Bs need to constantly seek a differentiated development direction. On the one hand, guests can be attracted through unique design styles and decoration features. For example, combining local natural landscape and cultural features to create a unique style of B&B architecture and interior design. On the other hand, it can provide rich and diverse experience projects, such as picking, fishing, skiing, boating, etc., to meet the guests’ needs for personalized experience. In addition, improving service quality and brand awareness is also the key for high-end B&Bs to gain an advantage in the competition. By providing attentive and professional services, we can win guests’ reputation and loyalty, and at the same time, strengthen brand publicity and promotion to improve brand awareness and reputation.
III. Product Research
3.1 High-end B&B Product Characteristics
3.1.1
Unique Design and Decoration Style The unique design concepts of high-end B&Bs often integrate natural and humanistic elements. Taking high-end B&Bs in Zhejiang as an example, Moon Workshop in Lin’an, Hangzhou retains the mottled vicissitudes of the old walls and old wooden beams stained by smoke and fire, and utilizes logs, masonry, yellow mud walls, and old countryside objects to create a natural and simple temperament, which is complemented by panoramic glass windows and modern furniture, presenting a perfect combination of tradition and modernity. This unique design style allows guests to enjoy a comfortable stay while experiencing a strong historical and cultural atmosphere. Moganshan’s Linqiguyinyin is also transformed from an old house, but has a very design-oriented appearance, with tables and chairs in the courtyard forming a 360-degree viewing platform, and three floor-to-ceiling glass windows in the main public area with 270-degree unparalleled views of the mountains, and the site is divided into three different courtyards, each with its own unique characteristics. The unique design style plays a crucial role in attracting customers, which satisfies the guests’ pursuit of personalized and unique experience, and makes them fall in love with it among the many accommodation choices.
3.1.2
High-quality facilities and equipmentsProviding high-end B&Bs with high-quality facilities and equipments in order to enhance the customer experience. For example, Lijiang Kainuo Resort inn・Designer Garden Hotel is equipped with Dyson hairdryers, which are stylish in appearance and have excellent blowing effects, bringing quality assurance to guests; the automatic flap and automatic flushing function of the smart toilet allows guests to feel convenient and comfortable; the large bathtub is spacious and comfortable, providing guests with an excellent bathing experience. Xinchang Xinchang Mountain & Cloud B&B is decorated with care, adopting imported bathrooms and sanitary ware, with high-end atmosphere. Xishan Hidden Hotel places two different materials of pillows and all imported soft and comfortable mattresses for customers’ sleeping condition, presenting the best room for customers. These high-quality facilities and equipments not only improve guests’ accommodation comfort, but also enhance the brand image and market competitiveness of high-end B&Bs.
3.2 Value-added Service Creation
3.2.1
Characteristic Catering ServiceThe characteristic catering service provided by high-end B&Bs can greatly increase customer satisfaction. B&Bs are becoming a popular choice for consumers to go out and live, and the catering income of some B&Bs occupies 60% – 70% of the total income of B&Bs. For example, Ninth Mile Technology, a company I work with, creates special catering services to satisfy tourists’ tastes. It opens up the whole chain of resources such as cold-chain transportation and low-temperature preservation, and provides B&Bs with a whole-process food solution from buying to eating by building an ecological model of “kitchen design + zero-basic staff training + standardized ecological pre-prepared dishes”. B&Bs can choose local unique ingredients, such as tourists traveling to Moganshan, freshly picked bamboo shoots provided by local B&Bs, with salted meat, stew a pot of salted meat roasted bamboo shoots or salted vegetables roasted bamboo shoots, so that tourists can experience the local culinary characteristics. At the same time, the B&B can also determine the direction of catering, carefully design the menu and restaurant environment, improve the quality of service, and use social media marketing to attract more guests through the research of tourists’ catering preferences, such as questionnaire surveys, social media surveys, and personalized service surveys.
3.2.2
Enrichment of Activity PlanningThe various types of activities organized by the high-end B&Bs have enriched the customer experience. For example, a high-end B&B’s full set of activity game planning includes activities such as tasting golden chrysanthemums, ice-breaking game, secret duel game and bonfire party, etc., with rich and diverse contents. 11:30 Arrive and take seats, taste chrysanthemum tea, host’s speech introduces the activity itinerary, grouping of people for ice-breaking activities and introduction of the game rules. 2:00 Begins the secret treasure hunt game, 4:00 End of the game and record the ranking, 4:20 Begins tearing up the game, 4:20 Begins the secret treasure hunt game, and 4:20 Begins the tearing up of the game. 4:20 Start tearing the name card game, synchronized preparation of bonfire, barbecue, roast turkey, the end of the game according to the ranking of the awards, 5:00 bonfire party trivia games, one person to send an apple, 6:00 end of the activity return. In addition, there are some high-end B&Bs that will organize art exhibitions, concerts and other activities, or organize activities such as picking, fishing, skiing, boating and other activities in combination with local natural landscapes and cultural characteristics to meet guests’ needs for personalized experiences. These rich activities not only increase guests’ participation and interactivity, but also enhance the attractiveness and competitiveness of high-end B&Bs.
IV. Competitive Landscape
4.1 Analysis of Major Competitors
4.1.1
Competitive Challenges of Traditional Hotels Traditional hotels, as one of the major competitors of high-end B&Bs, have multiple advantages. Firstly, traditional hotels usually have strong brand influence and wide market recognition, and dominate the business travel and group travel market. Secondly, traditional hotels have perfect facilities and equipment and professional service teams, which can provide standardized and efficient services. In addition, the geographical location of traditional hotels is often superior, located in the city center or near transportation hubs, which is convenient for guests to travel. However, traditional hotels also have some shortcomings. On the one hand, the design style of traditional hotels is relatively single, lacking personalization and characteristics. On the other hand, the service mode of traditional hotels is relatively fixed, which is difficult to meet the personalized needs of guests. In the face of the competitive pressure of traditional hotels, high-end B&Bs can adopt the following coping strategies. First, highlight personalized service, provide customized service experience according to the needs of guests, in the era of increasing homogenization of everyone, only in the service to kill a road to ensure survival. The second is to create a unique theme characteristics, this is the basic plate of the B&B, combined with local culture and natural landscape, to create a distinctive atmosphere of accommodation. Third, strengthen cooperation with local tourism resources and launch special tourism packages to attract more tourists.
4.1.2
Emerging B&B Brand Competition With the continuous development of the B&B market, emerging high-end B&B brands are also on the rise. These brands usually have innovative design concepts and flexible business models, and can quickly adapt to market changes. For example, some emerging B&B brands focus on cooperating with designers to create a very artistic B&B space; some other brands use Internet marketing to rapidly increase brand awareness. The competitive strategies of emerging high-end B&B brands mainly include the following aspects. The first is to focus on brand building and attract target customers through unique brand image and values. The second is to continuously innovate service content and provide more diversified experience programs. Third, strengthening cooperation with online travel platforms to expand market share. However, emerging B&B brands also face some challenges. On the one hand, brand awareness is relatively low, and a lot of time and resources need to be invested in marketing. On the other hand, due to the lack of business experience, there may be some problems in service quality and management level.
4.2 Competitive Differentiation Strategies
4.2.1
Service DifferentiationHigh-end B&Bs can differentiate themselves from the competition by providing personalized services. For example, provide guests with perfect private butler service, follow up the whole process from booking to leaving the store to meet the various needs of guests. It can also provide special breakfast services and customize the menu according to guests’ tastes and needs. In addition, high-end B&Bs can organize a variety of thematic activities based on their own resources, such as yoga courses, cooking courses, cultural lectures, etc., to enrich the guests’ accommodation experience. In terms of service differentiation, high-end B&Bs can also focus on details and provide guests with thoughtful gifts and welcome letters to make them feel the warmth of home. At the same time, strengthen staff training, improve service quality and professionalism, and provide guests with a better service experience.
4.2.2
Theme feature differentiation High-end B&Bs can differentiate themselves from the competition by creating unique theme features. For example, take the local history and culture as the theme to create a B&B space with a strong cultural atmosphere. Or take the natural landscape as the theme, and integrate the B&B with the surrounding landscape scenery. It can also take a specific art style as the theme, such as Mediterranean style, Scandinavian style, etc., to create a unique accommodation environment. In terms of differentiation of theme features, high-end B&Bs can cooperate with local artists and craftsmen to display local cultural and artistic works, providing guests with a richer cultural experience. At the same time, publicity and promotion are carried out through social media and other channels to attract the attention of more guests.
V. Regulatory Policies
5.1 Interpretation of Policies and Regulations of B&B Industry B&B industry,
as an important part of the tourism industry, has received more and more attention in recent years. In order to regulate the development of the B&B industry, national and local governments have issued a series of policies and regulations. These policies and regulations have had a significant impact on the development of high-end B&Bs.
5.1.1
Operating Permits and Regulations High-end B&Bs need to apply for a series of operating permits and documents, including industrial and commercial business licenses, health permits, letters of qualified opinion for fire inspection, and special industry permits. In the process of applying for business permits, high-end B&Bs need to meet certain normative requirements. For example, according to the industry standard “Basic Requirements and Evaluation of Tourist B&Bs” (LB/T065-2019) issued by the Ministry of Culture and Tourism, buildings used for B&B operation shall have no more than four operating floors and a floor area of no more than 800 square meters. In addition, the B&B building should comply with national standards and requirements for housing quality and safety, and fire safety should be implemented in accordance with the “Guidelines for Fire Prevention in Nongjiaolu (B&B) Buildings (Trial)” (Jiancun [2017] No. 50).
5.1.2
Safety and Health StandardsHigh-end B&Bs have strict standards and regulatory requirements in terms of safety and health. In terms of safety, B&Bs should be equipped with necessary anti-theft, emergency and escape safety facilities, establish all kinds of relevant safety management systems and emergency plans for emergencies, implement safety responsibilities, and conduct regular drills. The source, processing and sale of food should meet the requirements of relevant national food safety standards, and employees should hold health certificates in accordance with the requirements. In terms of hygiene, B&Bs should have the necessary basic supporting facilities such as pollution control and safety protection, and meet the requirements for environmental protection; they should keep the environment hygienic and clean, strengthen hygiene management, and change and sterilize public supplies and utensils once a guest, and change disposable supplies and utensils once a guest.
5.2 Policy Trends and Opportunities for the Development of High-end B&BsPolicy trends have brought both opportunities and challenges to the future development of high-end B&Bs.
5.2.1
Opportunities Brought by Encouraging Policies Government policies encouraging the development of B&Bs have brought many opportunities for high-end B&Bs. For example, the Ministry of Culture and Tourism and other ten departments jointly issued the “Guiding Opinions on Promoting the High-Quality Development of Rural B&Bs”, which puts forward that it encourages the activation and utilization of resources such as unused rural residence bases and unused residences in accordance with the law, incorporates qualified rural tourism infrastructure projects into the scope of support by special bonds of the local government, subsidizes the investment in construction and renovation and upgrading of rural B&Bs or provides subsidized loans, and provides subsidized loans for those who return to their hometowns to develop B&Bs and start businesses. Those who start their own business in B&B development can enjoy relevant tax incentives in accordance with the regulations. These policies and measures provide financial support and policy guarantee for the development of high-end B&Bs, which help attract more investment and talents into the B&B industry. In addition, governments around the world have also introduced policies and measures to encourage the development of B&Bs. For example, Zhengzhou Municipal Bureau of Culture, Radio, Television and Tourism, Zhengzhou Municipal Bureau of Finance announced ten measures to promote the high-quality development of tourism lodging, to support and reward social capital investment and complex projects containing Grade A (or five-star) lodging; to integrate the implementation of the whole village to promote the development of the entire village operation of lodging in the townships (offices) and villages to give subsidies to the integration of the project; to create the introduction of branded lodging, to encourage lodging to assess the standard and leveling, to enhance the The government has also provided financial incentives and subsidies for the creation and introduction of branded B&Bs, encouragement of B&B evaluation and grading, enhancement of B&B design, and improvement of B&B management. These policies and measures provide a favorable policy environment and development opportunities for the development of high-end B&Bs.
5.2.2
Challenges and Responses to Increased Regulation With the rapid development of the B&B industry, increased regulation has become an inevitable trend. Strengthened regulation has brought certain challenges to high-end B&Bs, which are mainly manifested in the following aspects: firstly, it has increased operating costs.
In order to meet the regulatory requirements in terms of safety and hygiene, high-end B&Bs need to invest more money in upgrading and remodeling facilities and equipment, which increases operating costs. Second, it raises the operating threshold. Regulation has strengthened the more stringent requirements for operating licenses and specifications for high-end B&Bs, raising the operating threshold, which may lead to the elimination of some B&Bs that do not meet the requirements. Thirdly, it increases the difficulty of management. Strengthened regulation requires high-end B&Bs to establish more comprehensive management systems and emergency plans, and to strengthen the training and management of practitioners, which increases management difficulties. In the face of the challenges brought by strengthened regulation, high-end B&Bs can take the following countermeasures: First, strengthen their own construction. High-end B&Bs should invest more to improve the quality and safety of facilities and equipment, strengthen hygiene management, and improve service quality to meet regulatory requirements. Second, strengthen communication and cooperation with government departments. High-end B&Bs should actively understand the policies and regulations, take the initiative to communicate with government departments, strive for policy support and guidance, and jointly promote the healthy development of the B&B industry. Third, strengthen industry self-discipline. High-end B&B can strengthen industry self-discipline through the establishment of industry associations and other ways to standardize business behavior and improve the overall level of the industry.
VI. Other Influencing Factors
6.1 Geographic location and natural environment influence
6.1.1
Advantages of being close to scenic spots High-end B&Bs close to scenic spots have significant advantages. First, the source of customers is guaranteed. Taking Jingxian Chaji Village on Xiaozhu B&B as an example, its proximity to the entrance of the scenic spot and the convenience of parking attracts a large number of tourists. The proximity to the scenic area means that it can share the passenger flow of the scenic area, especially those popular scenic spots with a large number of tourists and a correspondingly high demand for accommodation. Secondly, the supporting facilities are relatively perfect. There are usually catering, shopping and other supporting services around scenic spots, which provide convenience for tourists and increase the attractiveness of B&Bs. Furthermore, tourists stay longer. After touring in scenic spots, if the B&B is close to the scenic spot, tourists are more inclined to choose to stay nearby so that they can continue to play or rest the next day. For high-end B&Bs near scenic spots, the development strategy can start from the following aspects. One is to cooperate with scenic spots to launch package ticket services. For example, the B&B and the scenic spot jointly launch a package of accommodation plus scenic spot tickets, which is convenient for tourists and also improves the B&B’s competitiveness. The second is to provide special transportation services. For example, provide shuttle services to and from scenic spots to increase the convenience of tourists. Thirdly, combine with the characteristics of the scenic area to create thematic activities. For example, if the scenic area is dominated by natural scenery, the B&B can organize activities such as hiking, photography, etc.; if it is a historical and cultural scenic area, it can hold cultural lectures, traditional handicraft experience, etc.
6.1.2
Unique natural environment attraction High-end B&Bs with unique natural environment have great attraction to consumers. Relying on architecture, design and luxury decoration alone, the vitality of such products will not be too long. People come to the mountains from the city to experience the beauty of nature. The unique natural environment can allow tourists to get away from the hustle and bustle of the city and enjoy peace and relaxation. For example, those B&Bs located in the mountains, by the sea, or in the forests can provide fresh air, beautiful scenery, and a peaceful atmosphere. There are many ways to utilize the unique natural environment. On the one hand, a viewing platform can be created. It allows visitors to better appreciate the natural beauty, such as by the accented swimming pool at Orakuno・Green Mountain Wall, where visitors can look out over the mountains and bamboo sea and enjoy an ethereal feeling. On the other hand, outdoor activities are available. For example, hiking, cycling, fishing, etc., so that visitors can fully integrate into nature. In addition, the natural environment can be utilized to design special rooms. For example, rooms with panoramic floor-to-ceiling windows allow tourists to enjoy the natural beauty while lying on their beds.
6.2 Marketing Channels and Branding Role
6.2.1
Social Media Marketing Effect Social media has a significant effect on the marketing of high-end B&Bs.
First of all, social media has wide spreading power. Major B&Bs have successfully packaged themselves as net red B&Bs through soft text marketing on social media platforms. For example, a certain B&B located near a lake has attracted the attention of a large number of tourists by highlighting the beautiful scenery of the lake and mountains in the soft article. Secondly, social media can interact with users. B&Bs can publish content through WeChat, Weibo, Jitterbug and other platforms to interact with users and increase brand exposure and word of mouth. For example, Floyd Ranch carries out creative marketing and promotion through Jittery Voice, which has received widespread attention from the market and formed tourism consumption with Floyd Ranch B&B hotel as the destination. The strategy of high-end B&B marketing through social media can include the following points. First, selecting unique features and highlighting the highlights. Such as showing the unique location, architectural style and decoration design of the B&B. The second is to cooperate with stars and celebrities. Leverage their fan base and influence to enhance the popularity of the B&B. Third, skillfully use social media platforms. Utilize WeChat, Weibo, Jitterbug and other platforms to spread the brand image and soft content to expand the scope of dissemination. Fourth, provide ultimate service and let customers become promoters. Through word-of-mouth spreading by customers, more tourists will be attracted to choose to stay.
6.2.2
The Value of Branding.Branding is of great value to the long-term profitability of high-end B&Bs. First of all, branding can improve the recognizability of a B&B. Among many B&Bs, a distinctive brand can make tourists quickly remember and choose. For example, the brand of “Wishful Thinking” in Guizhou has won the favor of segmented customer groups by creating a series of high-end B&Bs in Wishful Thinking, segmenting the market, doing business with a portion of the population, and realizing the difference from hotels in terms of environment and service. Secondly, the brand can enhance the added value of the B&B. A well-known brand can often make tourists willing to pay a higher price for it. For example, Wishful Thinking・Light Luxury catered to current trends when it first opened by setting up an ocean ball pool and swing set, and then gained popularity again last year after it rebuilt its observation deck and landscaped pool according to customers’ preferences. Its branded hair dryers, washcloths, laundry detergents, steam eye masks and other details reflect “thoughtfulness” and “quality” to the extreme. Brand building methods include clarifying brand positioning, creating a unique brand image, providing quality services, and strengthening brand publicity. Clear brand positioning should be based on the needs and preferences of the target customer groups to determine the style, characteristics and service content of the B&B. Creating a unique brand image can start from the architectural design, decoration style, service concept and other aspects, so that the B&B has a distinctive charm. Providing high-quality service is the core of brand building, and it is necessary to continuously improve the quality and level of service from the customer’s point of view. Strengthening brand publicity can be done through social media, tourism websites, offline activities and other channels to improve brand awareness and reputation.
VII. Risk Analysis
7.1 Market Risk Identification
7.1.1
Tourism Market Instability The tourism market is affected by a variety of factors and has a certain degree of instability, which brings a number of risks to high-end B&B. First of all, the fluctuation of the economic situation will directly affect the demand of the tourism market. In times of economic downturn, consumers may reduce their travel expenditures, and the demand for high-end B&Bs will fall accordingly.
For example, when the economy is in recession, corporations may cut their business travel budgets, and high-end business people will have less demand for high-end B&Bs; family consumers may also choose more affordable ways to travel and spend less on high-end B&Bs. Second, changes in the political situation can also have a significant impact on the tourism market. Situations such as political instability and international tensions may cause tourists to travel less, particularly impacting tourism in some specific regions. If there is political unrest in the region where high-end B&Bs are located, they may face the risk of a sharp drop in the number of tourists. Furthermore, natural disasters are also factors that cannot be ignored. Natural disasters such as earthquakes, floods, and typhoons may damage the infrastructure of tourist destinations and affect tourists’ willingness to travel. For example, if the area where a high-end B&B is located suffers from a serious natural disaster, transportation is interrupted and scenic spots are closed, it will be very difficult to attract tourists in the short term, thus causing great pressure on the B&B’s operation. Finally, the impact of public health emergencies on the tourism market is more direct and far-reaching. For example, the outbreak of the New Crown Epidemic caused the global tourism market to almost come to a standstill, and high-end B&Bs also suffered a heavy blow. Tourists reduced or canceled their travel plans for health and safety reasons, and the occupancy rate of B&Bs dropped dramatically, while they also had to face the increased cost of epidemic prevention, staff management and many other problems.
7.1.2
Risk of Increased Competition With the continuous development of the B&B market, the competition is also increasing, and the high-end B&Bs are facing the pressure of competition from various aspects. On the one hand, traditional hotels continue to penetrate into the high-end B&B market. Traditional hotels pose a strong competitive threat to high-end B&Bs by virtue of their brand awareness, perfect service system and rich marketing channels. Traditional hotels can provide personalized services similar to those of high-end B&Bs by upgrading some of their rooms, attracting customers who were originally inclined to choose high-end B&Bs. On the other hand, new B&B brands are springing up. These new brands usually have innovative business concepts and marketing strategies that can quickly attract the attention of young consumers. For example, some emerging B&B brands have quickly become popular on social media and attracted a lot of traffic by cooperating with Netflix for promotion. At the same time, they may also offer similar services at lower prices, grabbing the market share of high-end B&Bs. In addition, the development of shared accommodation platforms has intensified competition. Shared accommodation platforms provide tourists with more accommodation choices, and tourists can compare the price, location, reviews and other information of different B&Bs on the platform, which makes high-end B&Bs need to work harder to improve their competitiveness in order to attract tourists’ choices.
7.2 Operational Risk Assessment
7.2.1
Cost Control Risk High-end B&Bs have high operating costs, and improper cost control may have a serious profitability impact. First, rent cost is one of the important expenses of high-end B&Bs. If the B&B is located in a popular tourist attraction or the center of the city, the rent is often higher. Moreover, with the fluctuation of the real estate market, the rent may continue to rise, putting greater pressure on the operation of the B&B. Secondly, the investment in decoration and facilities and equipment is also very high. In order to provide a high-quality lodging experience, high-end B&Bs need to be carefully renovated and designed, and equipped with high-end facilities and equipment. These inputs not only require a large amount of capital at the initial stage, but also require continuous expenditure in maintenance and updating at the later stage. Furthermore, labor cost is also a factor that cannot be ignored. High-end B&Bs need to provide personalized services, and usually need to be equipped with professional service personnel, such as housekeepers, chefs, housekeeping, etc.. Expenses such as wages and benefits of these personnel will increase the operating costs of B&Bs. In addition, marketing costs are also on the rise. In order to increase awareness and attract tourists, high-end B&Bs need to carry out various marketing activities, such as placing advertisements on social media and participating in tourism exhibitions. These marketing activities require a certain amount of capital investment, which may lead to cost wastage if the effect is poor.
7.2.2
Service Quality Risks Service quality is one of the core competitiveness of high-end B&Bs, and it is also the place where the biggest risk of customer complaints lies in the process of operation. On the one hand, the instability of staff quality and service level may affect service quality. The services of high-end B&Bs usually require employees with high professionalism and service awareness, and if the employees are not trained properly and have high mobility, it may lead to a decline in service quality. For example, employees are unfamiliar with local tourism information and are unable to provide tourists with accurate advice; or they may have a poor service attitude, causing tourists’ dissatisfaction. On the other hand, the diversified and individualized needs of tourists also increase the risk of service quality. Different tourists have different needs and expectations, and high-end B&Bs need to provide personalized services according to tourists’ needs. Failure to accurately grasp the needs of tourists, or failure to meet their special requirements in a timely manner, may lead to a decline in tourists’ satisfaction. In addition, there are certain difficulties in the supervision and management of service quality. High-end B&Bs are usually small in scale and relatively flexible in management, but they are also prone to inconsistent service standards and inadequate supervision. If an effective service quality supervision mechanism cannot be established to detect and solve service quality problems in a timely manner, the reputation and market competitiveness of B&Bs may be seriously affected.
VIII. Conclusion
High-end B&B, as an emerging accommodation industry, has a broad development prospect and market potential. By accurately positioning target customers, creating unique product features, providing value-added services, adopting differentiated competition strategies, grasping policy opportunities, and strengthening marketing channels and brand building, high-end B&Bs are able to realize diversified profit modes and improve profitability and market competitiveness. At the same time, high-end B&Bs also need to face market risks and business risks, adopt intelligent coping strategies, and constantly innovate and optimize business models in order to be invincible in the fierce market competition.
B&Bs:Bed & Breakfasts #Profitability Models #Insight Report
