New research from Direct Line for Business has revealed nearly half (47%) of B&B owners across the UK are nervous about oversupply in the market due to Airbnb and budget hotels.
Direct Line for Business has revealed B&B and guest house owners across the UK are worried about the impact Airbnb and budget hotels are having on their business. Nearly half (47%) are nervous about oversupply in the market in the next 12 months as a result of more Airbnb options and the growth of the budget hotel sector.
B&B owners are also concerned about the impact of regulation, with nearly a quarter (22%) believing B&Bs are stifled by over-regulation. All B&B owners need to ensure that their business follows strict regulations, whether it be for obvious things such as fire safety, food standards and alcohol licences or ones you might not expect including television and music licences.
“Level the playing-field of enforcement”
David Weston, chairman of the Bed & Breakfast Association said: “B&B owners are dedicated to their businesses and go above and beyond to provide an outstanding service to their guests. The B&B Association welcomes competition but is working with the government to level the playing-field of enforcement so all our guests are protected. Owning and operating a traditional B&B remains an ambition for many Brits looking to move into the hospitality industry.”
On average, B&B owners are anticipating a 55% occupancy rate over the next 12 months.
For their business to continue to be financially viable, B&B owners need occupancy of 49%. This means B&B owners are expecting to be very close to the mark in financial viability, with one major event or emergency likely to have a significant negative impact. In fact, one in six (16%) B&B owners are anticipating a shortfall in occupancy over the next 12 months.