Inn Owners in Your Area, Competitors or Colleagues?

by Dominique Lavigueur and Robert Chiasson

Economists define this period in our history as one where supply exceeds demand, i.e. there are more products and services on the market than there are consumers to buy them. To ensure their survival, suppliers must therefore compete among themselves by better serving their customers, by constantly improving their products or services, by continuously fine-tuning their marketing strategies, and by keeping their operating costs as low as possible in order to be more attractively priced.

For some businesses, this fact of life has given rise to a war-like mentality where the competitor is viewed as an enemy who must be crushed. Paradoxically, these businesses are often less successful than those who work in partnership with their competitors. In fact, cooperation in one form or another occurs at every level of the corporate hierarchy all the way down to mom-and-pop outfits, and has consistently proven to be profitable for all parties involved.

The most common form of cooperation among B&Bs and inns is one where one establishment whose rooms are all booked will refer a caller or passer-by to another establishment. At some point in time, the favor is returned. To make sure travelers are well served through this arrangement, it is important that innkeepers be thoroughly familiar with the facilities and services provided by each other. Moreover, they should keep the travelers’ needs uppermost in their mind when suggesting another place to stay. It would be doing a disservice to send a budget-minded vacationer to a pricey establishment.

Another form of cooperation is through active membership in an association which provides an opportunity for B&B operators and innkeepers to share experiences, ideas and news about upcoming developments in the industry. It is also likely that the association publishes a guidebook to promote its members. The publication is distributed to a greater number of consumers than is possible for a single operator to do with his or her brochure.

Less well known, but nonetheless worthy of consideration, are purchasing pools where groups of B&B operators or innkeepers band together to negotiate better prices for products and services they need to conduct their respective businesses. Many suppliers are willing to give discounts in exchange for volume sales that such pools provide them. These include insurance companies, food retailers, office supply outlets, linen stores, heating oil companies, accounting firms, etc.

In the same vein, a number of inns and B&Bs that target the same clientele will join forces to launch a high profile advertising campaign that they cannot not afford individually. As a result, they are able to reach a broader market and convey a more appealing image of their establishment. Many also develop packages that involve stays at each establishment or organize activities the benefit each partner. Along with three B&Bs and half-a-dozen restaurants, we developed a five-day, mid-week screenwriting seminar in early spring when tourist traffic in our region was virtually non-existent. It was a success and brought in much needed cash for everyone.

While competition remains a major component of doing business, it must be tempered by an understanding that success is attained not so much by a businessperson acting alone but more often through the efforts of many players working together to achieve a common goal. In this context, these players come to regard themselves less as competitors and more as colleagues, and rightly so.

Dominique Lavigueur and Robert Chiasson are award-winning hosts of the 5-star B&B Moka & Pyjama located in the Charlevoix region of Quebec. They also teach, write and speak about the many facets of operating a B&B and, in their capacity as consultants, provide a wide range of B&B-related services to government officials, reporters and individuals. They can be reached toll free at 866-863-6060, by e-mail at info@moka-pyjama.com, or through their web site at www.moka-pyjama.com.