Running a bed and breakfast (B&B) can be a rewarding and profitable business, but many owners struggle to maintain occupancy and profitability. Unlike traditional vacation rentals, a B&B requires a personal touch, great service, and strategic marketing to thrive. If your bed and breakfast isn’t performing well, here are three common mistakes that could be hurting your business—and how to fix them.

1. Choosing the Wrong Location

Just like with vacation rentals and corporate housing, location is a key factor in a B&B’s success. However, B&Bs have unique challenges because they often rely on repeat guests, weekend travelers, and special event tourism.

Common Location Mistakes:

Too Isolated Without a Draw: A quiet countryside retreat can be great—if it’s near wineries, hiking trails, or event venues. Without a compelling reason for guests to visit, it’s hard to stay booked.

Not Close to High-Traffic Attractions: B&Bs in cities need to be near historic districts, business hubs, or cultural landmarks to attract travelers.

Overlooking Local Tourism Trends: If an area lacks consistent tourism demand, a B&B may struggle with seasonal slumps and low occupancy.

Solution: If your location isn’t naturally high-traffic, consider hosting special events, such as retreats, workshops, or exclusive dining experiences. Partnering with local attractions, wedding venues, and event organizers can also help drive guests your way.

2. Poor Pricing Strategy

B&B owners often struggle with pricing, either undervaluing their rooms or failing to adapt to market changes. Unlike hotels, B&Bs offer a unique, personalized experience, which means you can charge premium rates—if positioned correctly.

Common Pricing Mistakes:

Setting Prices Too Low: Cheap rates may attract budget travelers who don’t appreciate the boutique experience of a B&B.

Failing to Adjust for Peak and Off-Peak Seasons: Static pricing leads to lost revenue. If you’re fully booked in high season, you might be priced too low. If you struggle to fill rooms in the off-season, you may need seasonal promotions.

Not Offering Upsells or Packages: Many B&Bs don’t take advantage of add-ons like romantic packages, private tours, or gourmet dining experiences, leaving money on the table.

Solution: Research competitive B&B pricing in your area and consider using dynamic pricing tools. Offer tiered packages that include dining experiences, local tours, or exclusive amenities to increase revenue per guest.

3. Failing to Build Business Partnerships & Community Connections

Many successful B&Bs thrive because they are deeply connected to their local communities. A B&B isn’t just a place to sleep—it’s an experience. Without strong partnerships with local businesses, event venues, and tourism boards, you could be missing out on valuable guests.

Missed Marketing Opportunities:

Not Partnering with Local Wedding Venues: Many B&Bs are perfect for wedding guests, honeymooners, or bridal parties, yet owners fail to connect with local wedding planners.

Ignoring Business Travelers and Small Retreats: Some B&Bs could offer corporate retreat packages or exclusive spaces for remote workers, but they don’t market to this audience.

Lack of Visibility on Local Tourism Boards: If your B&B isn’t featured on state or city tourism websites, you’re missing a major opportunity to attract guests.

Solution: Reach out to event planners, wedding venues, and local businesses to create mutual referral partnerships. Offer special discounts or commission incentives for referrals. Connect with local tourism boards and list your B&B on travel blogs, destination guides, and experience-focused platforms.

Final Thoughts

A successful bed and breakfast is more than just a place to stay—it’s a memorable experience that keeps guests coming back. By choosing the right location, setting strategic pricing, and building strong local partnerships, you can turn your B&B into a highly profitable, high-demand destination.

Ready to Take Your Bed & Breakfast to the Next Level?

If you want to build a thriving B&B business, join AP Hospitality Planning on Skool! Inside, you’ll find in-depth blogs, courses, and expert guidance to help you start, grow, and scale your short-term rental or hospitality business the right way.

Don’t let pricing mistakes, poor location strategy, or missed partnerships hold you back—learn how to build a sustainable and profitable B&B today!

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