In the midst of running your bed and breakfast business, it can be easy to lose the primary reasons behind owning it; however, understanding the metrics of your bed and breakfast business will lead to better outcomes and long-term growth. Join us as we look at key metrics that will elevate your bed and breakfast business.
1. Occupancy Rate
This metric measures how many of your available rooms are occupied on any given dates. Monitoring this metric will help identify any issues with customer demand and it will inform your decisions about pricing or marketing strategies that can attract customers.
2. Revenue Per Room
Calculate this metric by dividing the total revenue generated in a given period of time by the number of rooms sold in that same period of time. This metric allows you to make an evaluation of resources that need to be invested to retain or increase the average customer value.
3. Average Length of Stay
Also known as “average tenure,” this metric indicates how long guests stay at your bed and breakfast and it allows you to examine the strategies you may employ to improve the length of each stay.
4. Customer Retention
Many bed and breakfast businesses become a favorite place for customers and return bookings are made far in advance. This metric measures how often your customers re-book and return. Assess and redirect marketing strategies if the numbers are low or need improvement.
5. Customer Satisfaction
It is crucial to determine the areas where customers would like to see improvements or changes in your bed and breakfast business. For this reason, you’ll want to include this metric in your analysis on a regular basis and determine how to better satisfy the needs and wants of your customers.
6. Social Media Visibility
Measuring the online activity of potential customers can be tricky; however, this metric will clearly demonstrate the number of social media users who engage with your bed and breakfast business and the number and quality of influencer collaborations with your business. These indicators should be examined and improved wherever possible, as social media visibility is the major driver for the growth of a bed and breakfast business.
Metrics are essential and can elevate your bed and breakfast business to new heights. Use each of these to make improvements, shift directions, add creativity and drive your business toward success and long-term growth. Make sure to update your bed and breakfast business plan to reflect the efforts you are making on these fronts.