Smaller is Inn

Cynthia Welch has been seeing a lot fewer “boys with their toys” at the Bokeelia Tarpon Inn on Pine Island, where she serves as innkeeper. “The number of guests staying during fishing season has been adversely affected by the economic climate of higher gas prices and less disposable income,” she says. “People who used to come and stay four times a year are now coming once.”

The travel industry has been hit hard by the recession. People aren’t spending as freely when it comes to vacations—or even taking vacations at all—and hotels have had to slash rates to fill rooms. Although bed-and-breakfasts and small inns have also been impacted, they’ve been somewhat better positioned to ride out the financial storm because of their small size and independent nature.

“Innkeepers are in a much better position to test different marketing packages and strategies,” says Jay Karen, president and CEO of the Professional Association of Innkeepers International (PAII). “They can experiment a little more without having to pass it through corporate headquarters. They can implement whatever they want on the fly. They have the ability to be nimbler when the economy turns south and shake things up a little bit.”

That’s just what B-and-Bs in Southwest Florida have been doing during these troubled economic times. From embracing the Internet and sites like TripAdvisor.com to offering special packages and promotions, they’ve been doing whatever it takes to get people in their rooms and cash in their coffers.

At the Bokeelia Tarpon Inn, a five-room property that opened in 2000, Welch has been emphasizing its personal touch. “The key is customer service,” she says. “Not that big hotels don’t do it, too, but here everything is customized to suit the needs of a particular customer coming through the door, and that sets us apart.”

The inn has also been offering packages designed for special celebrations or events. “We’ll take you on a sunset cruise, with wine and cheese on the boat. We also do a day trip to Cabbage Key and packages with fishing guides,” says Welch.

“People are looking for a value added,” says Nancy Hamilton, communications director for the Lee County Visitor and Convention Bureau. “Hoteliers are trying not to just discount rooms. They’re trying to keep up the value of what a person gets when they visit, and adding in these extras helps entice the visitor.”

It also helps the B-and-Bs fill their rooms, or at least come closer to it. “Our occupancy rates in 2009 were down from 2008, for sure, but probably not as much as at some other properties,” says Welch. “I think it’s a case of being more creative with how you promote your property. Some customers we’re getting used to go away to more exotic locations for a month, and now they come here for the weekend.”

“People are still vacationing,” says PAII’s Karen, “but the question is what are they doing with those two weeks? They might not be opting for the cruise or to fly across the country to go to some amusement park or resort. More people are doing long weekends in the drive market, and that’s what we specialize in. So a lot of the changes in travel behavior in this economy have kind of moved toward us [the B-and-B industry], or have at least not moved away from us.”

In fact, in a survey conducted by BedandBreakfast.com, an online directory of B-and-Bs, 58.8 percent of the 622 B-and-Bs that responded said their business was even or up in the third quarter of 2009 compared with 2008.

Like the Bokeelia Tarpon Inn, the Mango Street Inn in Fort Myers Beach plays up the level of personal service it offers to guests. “We advertise ourselves as being available 24/7 to our guests,” says Tree Andre, who owns the inn with her husband, Dan. “We say, ‘Here’s our card with our personal phone number on it; don’t hesitate to call any time if something comes up.’”

The Andres serve breakfast for guests each morning, and they’ll pack breakfast to go for guests who are leaving early. “We also frequently have things like ‘family dinner,’” says Andre. “We’ll be cooking dinner and guests will be milling around and next thing you know, everybody at the inn is having a meal together.” They also organize wine dinners and boat cruises and might start offering cooking classes.

Open since December 2008, the inn never experienced pre–Great Recession profits. Nevertheless, the Andres are pleased with its numbers so far. During the first high season, it ran at about 89 percent occupancy. During the summer, it dipped to as low as 30 percent.

“I believe that our occupancy will increase enormously just based on what it has already for bookings so far this year,” says Andre. “So many people are coming from referrals or stayed with us or walked by last year. I feel sort of sad for folks who stayed with us last year who are calling now and we have to say, ‘Sorry, we’re booked.’”

According to PAII, there are some 17,000 bed-and-breakfasts and small inns in this country, creating an industry worth $3.4 billion. Most B-and-Bs have between four and 11 rooms. “A middle-of-the-road B-and-B takes in less than $200,000 a year in income,” says Karen.

The industry boasts a median occupancy rate of 43.7 percent, daily rate of $150, and revenue per available room of $58. Compare that to U.S. hotels, which during the week of Dec. 20 to 26, 2009, saw an occupancy rate of 33.8 percent, average daily rate of $85.78, and revenue per available room of $29.02, according to STR, which tracks performance trends in the lodging industry.

“One of the nice things about B-and-Bs is that they only have a few rooms to fill, so their challenge of running closer to full occupancy is probably a little easier to obtain than a big property that has to fill more rooms every night,” says Jack W. Wert, executive director of the Naples, Marco Island, Everglades Convention & Visitors Bureau.

The Mango Street Inn has found the Web site TripAdvisor.com to be helpful in filling its six rooms. “We’re just completely flattered and honored that people are saying such kind things and taking the time to do it,” says Tree Andre. “And who doesn’t look at TripAdvisor.com before they travel these days?”

The Ivey House Bed and Breakfast in Everglades City also has felt the power of TripAdvisor.com. “I think a lot of people go there to see what the real story is,” says Sandee Harraden, managing director of the Ivey House. “Our ratings are very high, and people are directed to come here because of them.”

In a BedandBreakfast.com survey of innkeepers, 62 percent of respondents said that online reviews make guests more likely to stay at their property. “An inn is two times more likely to get someone to book with them if they have reviews on their Web site,” says Marti Mayne, a spokesperson for BedandBreakfast.com. “It’s probably the most important form of marketing a small business can have.”

The Ivey House has been handling recent economic challenges pretty well, benefiting from its location near Everglades National Park, European travelers and the popularity of eco-tourism. Revenues in 2009 were fairly consistent with 2008. “I think people are looking for small, certified-green lodging throughout the state, and they’re looking for eco-tourism,” says Harraden. “And I think we fit into a lot of what people are looking to do for a vacation.”

Even so, the property is always planning ahead so it’s prepared for good times or bad. “You have to be special; you have to be different; you have to be better than anybody else and provide services that people can’t get anywhere else,” says Harraden. “We have to continuously adapt and change our program and what our emphasis is and stay on the cutting edge.”

The Ivey House, like many other B-and-Bs around the country, has been able to holds its room rates fairly steady. But the Hibiscus House in downtown Fort Myers had to reduce its rates to fill rooms. During the winter season in years past, rates ran as high as $189 a night. This winter, rates were $99 to $139 a night. “That’s highly unusual,” says owner Leslie Ayres Seiden. “The rates have never been that low.”

“Where the most expensive rooms were the first to get rented, they’re the last to get rented now in many cases,” says PAII’s Karen. “[Innkeepers] still have guests coming, but they aren’t taking high-priced rooms as much as before.”

With its downtown location, the five-room Hibiscus House used to get some business travelers, but those guests have pretty much vanished, says Seiden. She still expects to see some repeat visitors this winter and spring though, including folks who travel to Fort Myers each year for Boston Red Sox spring training. “We don’t have as many winter advance bookings as we would like,” says Seiden. “We really expect to have a lot of last-minute bookings this year, and that’s fine with us. We’re bending with the times because we have to.”