Luxury B&B April 2018 Issue

AL FRESCO DINING GET READY FOR SUMMER

BY UPGRADING YOUR OUTDOOR FURNITURE

PLUS! ENHANCING ATTRACTION LITTLE TOUCHES CAN MAKE A BIG DIFFERENCE TO THE ATTRACTION OF YOUR PROPERTY

WEDDING PLANNING Automate your venue’s wedding planning process by using specialist software

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this month...

Welcome

NEWS

4

The resounding success of B&B Day on 24 March this \HDU GHPRQVWUDWHV ZKDW DQ HÎ?HFWLYH WRRO WKH PDUNHWLQJ event can be for the bed & breakfast market.

The positive reactions to the inaugural event were all WKH PRUH VSHFWDFXODU VLQFH LW ZDV RQO\ ȴUVW DQQRXQFHG six months earlier at a conference staged by the B&B Association in London. Chairman David Weston tells Luxury Bed & Breakfast magazine that the association will be talking to all the participants and to B&B owners XS DQG GRZQ WKH FRXQWU\ DQG ȴQGLQJ RXW ZKDW ZDV most successful, and what can be done better next time. Thus in 2019 the momentum from this year's B&B Day can be built upon to give it a permanent ȴ[WXUH ZLWK D OLIH RI LWV RZQ If you haven’t already done so I’d urge owners of luxury B&Bs to consider participating in the event next year, the whole purpose of which is to heighten public awareness of the great service and accommodation experience of B&Bs as an alternative to hotels.

More good news for B&B owners last month came when the government announced it was looking into WKH WD[ DÎ?DLUV RI WKH VR FDOOHG JLJ HFRQRP\ ZKLFK includes airbnb. More details can be found on page 6.

Meanwhile on page 42 we feature an article illus WUDWLQJ KRZ % %V PD\ ȴQG WKHPVHOYHV RXW RI SRFNHW GXH WR GHQLDO RI DFFHVV RZLQJ WR WKH VWRUP ȾRRG RU snow which hasn’t resulted in any physical damage to the property. My own background was as an insurance journalist for a number of years and I echo the sugges tion in the article that B&Bs are in a good position to negotiate a deal with a specialist underwriter result ing in a policy suitable for B&Bs to cover against the eventuality of guests being unable to turn up due to ȾRRGLQJ RU VQRZ GULIWV RU HYHQ DLUSRUW FORVXUHV RU WUDLQ service cancellations. Insurance policy terms are often open to negotiation. As I say in the article, if you get anywhere let me know and I will share the information with the rest of the luxury B&B market.

10 12

Industry news from around the UK

18

22

COMMENT Bed & Breakfast chairman David Weston

WEDDING PLANNING If your B&B doubles as a wedding venue the complexities of planning and preparations for the guests’ perfect day can be alleviated with specialist wedding planning software

KITCHEN RENOVATION David and Anne MacLehose, owners of Beechgrove B&B in Perth, reveal they hired a company to renovate their entire kitchen in just 12 hours

POINT OF SALE SYSTEMS The table linen on which you serve your guests is important to the overall impression they will form

AL FRESCO DINING

LITTLE TOUCHES FOR A BIG DIFFERENCE

26

34

38

40

Get ready for summer by taking a look at outdoor dining furniture and gazebos to maximise your revenue

Out of Eden’s Holly Alderson reveals simple ways to enhance your B&B

STEERING CLEAR OF FAILURE A guide to best practice dealing with your accountant and SUHYHQWLQJ Č´QDQFLDO SUREOHPV IURP VQRZEDOOLQJ

DENIAL OF ACCESS Standard insurance cover provides no cover if you lose revenue from guests unable to reach your property during or after severe weather – so try to negotiate an appropriate deal with your insurer

26

Bill Lumley

Editor

12 Luxury Bed & Breakfast - 3 - March 2018

- News -

Ludlow eco-guesthouse wins European Design Award Annie’s Cabin, a hand-built Finnish-style log cabin in Ludlow, has scooped a European hospitality design award aimed at celebrating stylish hotels, B&Bs and guest houses.

The awards are aimed at celebrating interior design and style across a range of hospitality YHQXHV DQG KDYH EHHQ GHVLJQHG WR Č´QG WKH most stylish ‘hidden escapes’ from across Europe across a range of categories.

The Vision Style Awards, organised by global textiles giant, Vision Support Services, opened for entries back in August with 13 categories to choose from and garnered hundreds of entries from Kosovo to Ibiza.

Annie’s Cabin’ is a Finnish-style log cabin, FRQVWUXFWHG IURP ODUJH 'RXJODV ȴU ORJV ΖQ the heart of the Shropshire countryside, it is crafted from organic, sustainable materials; sawn timbers of the windows and doors contrasted against the hand-scribed lines of joints between the logs.

After awarding the prize for ‘Picture-Perfect B&B or Guest House’, the judges said: “Nestled in a glorious meadow, a trip to Annie’s Cabin is the ultimate postcard-perfect holiday break. The result of the Finnish-inspired design is a cosy yet adorable venue that also EHQHČ´WV IURP /(' OLJKWLQJ ZRRG SHOOHW VWRYH and solar water-heating. Staying here would almost be reminiscent of being in a fairytale!â€?

They added: “An ideal stay when you’re looking to get away from it all, this impressive ecolodge is brimming with personality – charming and peaceful yet completely unassuming.�

Judging the awards were a range of indus-

try experts and commentators from across the travel industry including Robin Sheppard, CEO of Bespoke Hotels, Sharron Livingstone of The Travel Magazine, Angie Silver, Blogger at Silverspoon London, Richard McCready-Hughes, Creative Director at Goddard Littlefair, Andrew Linwood, Head of Hospitality Design at Areen, Laurie Thomas, Managing Director of Vision Support Services and Jacqui Hurst, Sales Director for UK Hospitality at Vision Support Services, as well as Luxury Bed & Breakfast editor Bill Lumley.

The award trophies were presented at a ceremony at Boyds Grill in central London last month. Laurie Thomas, managing director of Vision Support Services, said: “Our one-of-aNLQG DZDUGV DUH QRZ LQ WKHLU Č´IWK \HDU DQG LWȇV been fantastic to uncover so many exquisite entries from across the hospitality sector.

We’ve had some outstanding entries which PDGH WKH MXGJLQJ DOO WKH PRUH GLÉ?FXOW “Looking forwards, it’s clear that travellers’ needs are changing every day which is why it’s incredibly important to look at how the GHVLJQ FRPIRUW DQG VW\OH RI D YHQXH FDQ LQČľXence someone to visit – particularly in a world where a photo can be shared to thousands in a matter of seconds.â€?

3UL]HV LQFOXGH D JODVV WURSK\ FHUWLČ´FDWH D luxury hamper, cash voucher and a double-page spread in the 2018 Vision Style Guide. The guide is an annual look-book aimed at uncovering hospitality trends and will be published in April.

Since the 18th century Vision Support Services has been a supplier and distributor

of specialist, luxury and performance textiles to leaders within the global accommodation provider, hospitality, laundry, retail, government and public sector markets. It has over 6,500 customers in 84 countries.

The Vision Style Awards are described as a ‘feel-good’ awards incentive, the Vision Style Awards provide truly free exposure for hotels, B&Bs, spas, bars, restaurants and retirement residences which excel in their inspiring design choices.

Beginning as the Hilden Style Awards five years ago, the newly rebranded Vision Style Awards are an online awards programme which aims to highlight spectacular, striking and surprising design across a range of venues.

Originally only open to UK venues, the Awards returned in 2017 with a brand new design, name and looked to accept projects from across Europe as well as increasing the categories from three to 13.

The other winners of this year’s Vision Style Awards are: • Vivood Landscape Hotel in Spain for ‘Most Beautiful Bathroom’ • Soho House in Barcelona for ‘Europe’s Best Dressed Bed’ , ‘Dreamiest Bedroom’ and ‘Style Winner of the Year’ • No Entry in Paris for ‘Most Intimate Bar’ • Pink Mamma in Paris for ‘Most Romantic Restaurant’ • Nolinski Pairs for ‘Hottest Hotel’ • At Six in Stockholm for ‘Most Innovative New Venue’ • 3 Glens in South-West Scotland for ‘Eco-Champion of the Year’ • Lime Tree Village in Warwickshire for ‘Inspired Retirement Living’ • La Villa de Mazamet in the South West of France for ‘Greatest Night’s Sleep’

Luxury Bed & Breakfast - 4 - April 2018

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- News -

EDITOR

Bill Lumley bill.lumley@jld-media.co.uk 01737 852 345 CONTRIBUTING EDITOR

Caroline Sargent 07076 362082 CONTRIBUTING EDITOR

Matthew Attwood 01737 852 345 NORTHERN IRELAND EDITOR

Francis Higney 01737 852 345 SALES MANAGER

Dywayne Ramsundar dywayne.ramsundar@jld-media.co.uk 01737 852 342 DESIGN & PRODUCTION

Stuart West stuart.west@jld-media.co.uk 01737 852 343 DESIGN & PRODUCTION

Ryan Goble 01737 852 341 PUBLISHING DIRECTOR

helen.richmond@jld-media.co.uk 01737 852 344 No part of this publication may be reproduced, or transmitted in any form or by any means, electronic or mechanical including photocopying, recording, or any information storage or retrieval system without the express prior written consent of the publisher.

We regret we cannot be liable for the safe custody or return of any solicited or unsolicited material. Contributors are advised to keep copies of all materials submitted.

The opinions and views expressed in Luxury Bed & Breakfast are not necessarily those of JLD Media.

Being subject to the Advertising Standards Authority guidelines in place at the time of going to press, all data submitted by advertisers and contained in their advertising copy is accepted by JLD Media in good faith.

Luxury Bed & Breakfast is available on subscription. UK & Ireland ÂŁ65; Overseas ÂŁ98.

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Luxury Bed & Breakfast JLD Media, 25 Clarendon Road, Redhill, Surrey RH1 1QZ Tel: +44 (0) 1737 852 100 www.luxurybbmag.co.uk All rights reserved Š JLD Media 2018

Channel Four B&B show seeks new series participants Channel 4's series Four in a Bed is looking for B&B owners to participate in its latest series. The daytime show captures B&B owners battling it out to be crowned best value for money each week. Four in a Bed shines a spotlight on the unique and varied DFFRPPRGDWLRQ WKH 8. KDV WR RÎ?HU IURP OX[XU\ B&Bs to inns, campsites and guest houses.

In the most recent series the show recorded its highest ever ratings, with over 1 million views.

Executive producer Mark Wildash told Luxury Bed & Breakfast magazine: “We are delighted to announce that Four in a Bed is back this year for another 75 episodes and the team are looking for owners who are interested in taking part, especially people who are really proud RI WKHLU % % :H KDYH YDULRXV Č´OPLQJ GDWHV IURP -XQH until September 2018 and would love to speak to you.â€?

Tony and Lisa (pictured), who run The Guesthouse East in Eastbourne, winners of Four in a Bed last 1RYHPEHU DIWHU D WHQVH Č´QDOH UHFRPPHQG % %V SDUticipate in the show. “The show was hard work but great fun and we were very proud of our stunning grade II listed guesthouse, which looked great in the Eastbourne sunshine along with the fabulous views of Beachy Head and the surrounding countryside,â€? said Tony, pictured with Lisa at the Four in a Bed stand at the inaugural BeMyGuest show in Southampton in February.

ΖI \RX ZLVK WR SDUWLFLSDWH LQ WKH VKRZ ΖQ WKH ȴUVW instance email fourinabed@studiolambert.com for further information.

B&Bs welcome HMRC tax investigation B&Bs and guesthouses in the UK have welcomed JRYHUQPHQW PRYHV WR WD[ RQOLQH ERRNLQJ FRPSDQLHV DV D VWHS WRZDUGV D OHYHO SOD\LQJ Č´HOG In his Spring statement last month Chancellor Philip Hammond launched a call for evidence of the way in ZKLFK ZHE FRPSDQLHV DUH RÎ?HULQJ VHUYLFHV LQ WKH VR FDOOHG JLJ HFRQRP\ +H GLG QRW QDPH DQ\ VSHFLČ´F FRPSDnies, but providers of economy services such as B&Bs’ DUFK ULYDO $LUEQE DV ZHOO DV WD[L Č´UP 8EHU DUH XQGHUVWRRG to be targeted under a digital crackdown by HMRC proposed by the government.

Hammond’s call for evidence said: "Many of those earning money through a platform may never have previously made money without an employer to act as an intermediary between them and HMRC." He said that a number of European countries have already introduced measures to tax income from companies that used technology platforms to avoid paying their fair share of tax.

Luxury Bed & Breakfast - 6 - April 2018

In his column in this issue (page 10) B&B Association chairman David Weston welcomed the development. +H VDLG Ȋ:KHQ % %V SD\ WD[ RQ WKHLU SURȴWV ZKLOVW WKHLU neighbours using sites like Airbnb may choose not to bother, perhaps it is encouraging that they may not be able to get away with it so easily for much longer.�

The B&B sector has had many concerns about the operation of Airbnb properties, erties, among them the lack of health and safety regulation and d the fact they can operate unchalhallenged by the authorities when B&Bs face being forced out ut of business if they fail to comply. mply.

David Weston said it is not ot the operators using the Airbnb nb platform who are at fault but the regulators who need to follow through.

- News -

CORNWALL AND THE ISLES OF SCILLY TOP FAMILY-FRIENDLY B&B RANKINGS Cornwall has been revealed as the UK's top county for family friendly B&Bs, in an AA study to mark National B&B Day and to help families prepare for the Easter holidays.

AA data reveals Cornwall and the Isles of Scilly are the number one destination for family holidays, with 72 B&Bs registered with the $$ RÎ?HULQJ DGGLWLRQDO VHUYLFHV DQG IDFLOLWLHV WR suit families with children of all ages including children's menus (33%), baby-sitting services (6%), safe play areas (4%) and children's entertainment (1%).

Devon is a close second, with 68 B&Bs catering for families of all ages, and a high proporWLRQ RÎ?HULQJ FKLOGUHQ V PHQXV 6RPHUVHW FRPHV LQ WKLUG ZLWK % %V RÎ?HULQJ IDPLO\ friendly extras, while North Yorkshire is fourth ZLWK DQG &XPEULD LV Č´IWK ZLWK RYHU KDOI RI ZKLFK RÎ?HU FKLOGUHQ V PHQXV In total, 1,226 B&Bs registered with the AA are family friendly, taking bookings from

families with children of any age, and 1,215 of WKHVH RÎ?HU VRPHWKLQJ H[WUD WR PDNH IDPLOLHV

OLYHV HDVLHU 7KH PRVW SRSXODU EHQHČ´W LV WKH option of a children's menu which can be found at over 40% of the UK's family-friendly B&Bs, followed by safe play areas (7%), baby-sitting services (3%) and children's entertainment (1%).

1LQH % %V UHJLVWHUHG ZLWK WKH $$ RÎ?HU HYHU\ IDPLO\ IULHQGO\ EHQHČ´W PHDVXUHG • Double-Gate Farm in Wells, Somerset • Cottage in Hope Cove, Devon • Stoke Gabriel Lodgings – Badgers Retreat in • Totnes, Devon (pictured) • The Commercial in Tarland, Aberdeenshire • The Coppleridge Inn in Motcombe, Dorset • The Crown Inn in Boroughbridge, North Yorkshire • The Haughmond in Upton Magna, Shropshire • The Royal Oak in Chichester, West Sussex • Trecarne House in Liskeard, Cornwall Isles of Scilly

Luxury Bed & Breakfast - 7 - April 2018

AA Hotel & Hospitality Services managing director Simon Numphud said: "British families have a wealth of choice when it comes to booking a family friendly B&B this Easter. It's great to see B&Bs across the country going the extra mile to ensure families have everything they need to make their stay even more enjoyable, and it's wonderful to mark National B&B Day to celebrate the incredible variety of B&Bs throughout the UK."

- News -

Industry welcomes sharing economy report

Industry association welcomes Brexit progress Industry bodies have welcomed the recent progress announced in negotiations with the European Union for the UK’s GHSDUWXUH +RVSLWDOLW\ FKLHI H[HFXWLYH Kate Nicholls said: “The plan will provide businesses with more peace of mind and give employers a chance to begin drawing up their plans for their businesses SRVW %UH[LW “A full right to remain during the transition period with a chance to work towards full status, will provide non-UK EU workers with an opportunity to come to the UK with a sense of security and stability. With D VLJQLČ´FDQW SRUWLRQ RI WKH 8.ȇV KRVSLWDOLW\ workforce coming from outside the UK, this is the clarity and assurance that we have been calling on the Government to deliver. “The Government needs to now communicate this message as widely as possible to reassure businesses and their employees and to make sure that EU citizens are aware of the opportunities that still exist to them. The next step is for the Government to begin, in earnest, putting in place the framework for the future immigration policy at the soonest opportunity.â€?

The Wine and Spirit Trade Association has also welcomed the progress. Commenting on the EU27’s agreement to negotiating guidelines recommending a transitional

Brexit deal chief executive Mike Beale said: “We welcome the latest progress in negotiations between the UK and the EU. The agreement to a draft legal text has demonstrated goodwill on both sides and is a decisive step towards providing the certainty that businesses in the wine and spirit sector crave. The WSTA has long called for a transitional period. “We also welcome the agreement of the EU27 to negotiating guidelines on the UK’s future relationship with the EU. Since October 2016 the WSTA has argued in favour RI FRQWLQXHG WDULÎ? DQG TXRWD IUHH DFFHVV WR and from the EU’s single market - which the text rightly aims to deliver.â€?

However, he warned: “It is imperative that politicians do not stop here or rest on their laurels. As the UK is being constantly reminded, nothing is agreed until everything is agreed. This means that politicians on both sides of the Channel must, as a matter RI XUJHQF\ Č´QG D PXWXDOO\ DFFHSWDEOH solution for the island of Ireland and agree detailed, practical customs arrangements on which the movement of goods to and from the rest of the EU rely. “It is only in this way that businesses in the wine and spirit industry will have the FHUWDLQW\ WKH\ QHHG WR SODQ HÎ?HFWLYHO\ IRU the future.â€?

Luxury Bed & Breakfast - 8 - April 2018

UKHospitality has welcomed a report from a group of MPs that has investigated the impacts of the sharing economy.

The interim report from the All Party Parliamentary Group for Tourism, The Sharing (FRQRP\ 0D[LPLVLQJ %HQHČ´WV ZKLOH 5HGXFing Adverse Outcomes, has been heralded as a step towards better understanding of local and national economic and social impacts, to inform measures to ensure a more OHYHO SOD\LQJ Č´HOG EHWZHHQ FRPSHWLWRUV The ‘home sharing economy’ has grown rapidly and regulations have failed to keep up as a consequence, according to the report’s authors. The UK is lagging behind its European counterparts, who have LQWURGXFHG UHJXODWLRQ LQ DQ HÎ?RUW WR HQVXUH compliance with safety measures as well as protect traditional housing stock. UKHospitality provided oral and written evidence to the report, raising concerns that the hotel sector is unfairly taxed compared to sharing economy platforms, giving these providers DQ XQIDLU Č´VFDO DGYDQWDJH Chief executive Kate Nicholls, said: “UKHospitality has been calling for action in a number of areas that the Government must address. “Many online platforms are headquartered abroad and pay comparatively little UK Corporation Tax as a result. They often pay far less in business rates, given that they do not own many physical assets, compared to traditional accommodation providers, who are also subject to a rate of VAT of 20% amongst the highest in Europe and making UK hospitality businesses uncompetitive compared to their European competitors. “Visitors and communities are being put at risk when legal safety requirements are reliant on the goodwill and compliance of hosts rather than independent checks and enforcement. “We are pleased that this report highlights these disparities and recommends a level SOD\LQJ Č´HOG IRU DOO DFFRPPRGDWLRQ SURYLGers in terms of regulatory compliance and taxation. We look forward to liaising with policymakers to make this a realityâ€?.

- News -

Inaugural B&B Day proves a hit Bed & Breakfasts across the UK celebrated B&B Day on 24 March, receiving widespread support from MPs, celebrities and the media.

Chairman and organiser of the event B&B Association chairman David Weston told Luxury Bed & Breakfast magazine: “We are absolutely GHOLJKWHG E\ WKH KXJH OHYHOV RI VXSSRUW ZH VDZ RQ WKH Č´UVW HYHU 1DWLRQal B&B Day. It just shows how close to people's hearts the British B&B really is. There were so many enthusiastic comments from the public, and recognition from many MPs, who visited B&B owners in their constituencies on the day, and even of course our Minister of Tourism, Michael Ellis, who joined me to visit Rick Wilson of Hillview Guest House in Northampton to mark B&B Day. "We said B&B Day was to recognise the 'unsung heroes' of British hospitality - but after Saturday, maybe they are now deservedly a little less unsung!

"We will be talking to all the participants and to B&B owners up and GRZQ WKH FRXQWU\ DQG Č´QGLQJ RXW ZDQW ZDV PRVW VXFFHVVIXO DQG ZKDW ZH FRXOG GR EHWWHU QH[W WLPH VR WKDW LQ ZH FDQ EXLOG RQ WKLV \HDU V VWDUW DQG PDNH % % 'D\ D SHUPDQHQW Č´[WXUH ZLWK D OLIH RI LWV RZQ B&B Day was trending in the top 10 on Twitter, which was awash with positive tweets on the day. Croxton House B&B tweeted a picture of local MP Martin Vickers providing his support (picture right).

Tourism Minister Michael Ellis visited Rick Wilson owner of Hill View Guest House in Northampton, pictured together with B&B Association chairman David Weston (picture below).

Celebrity former MP, writer, actor and broadcaster Gyles Brandeth tweeted: “I like either a very grand Grand Hotel or a really cosy B & B ZLWK D SURSHU EUHDNIDVW WKDW LVQ W D EXÎ?HW WKDW V EHHQ XQGHU WKH KRW lights too long ... Well done @BandBassoc creating #BandBday - check out National B&B Day.â€?

Initiative sponsor Eviivo tweeted: “Thanks to everyone - MPs, destinations, broadcasters, newspapers, sponsors, guests and all the independHQW KRVWV DQG KRWHOLHUV ZKR KDYH PDGH WKH Č´UVW HYHU %DQG%GD\ VXFK a great success. You've been AWESOME!â€?

And Gordon Marsden MP tweeted: “Today I am celebrating #BandBday and it was very nice to meet with Kath and Rick who run the Old Coach House in South Shore. Blackpool has over 860 B&Bs, higher than anywhere else in the country, and serve the millions of visitors who visit throughout the year on their hols.�

TripAdvisor tweeted: “Today is #BandBday, celebrating the best Bed and Breakfasts in the UK. These B&Bs have been named the best of the best, but which one takes your fancy?�

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Luxury Bed & Breakfast - 9 - April 2018

- Comment / David Weston -

Tax must be paid by our new competitors too

Taxes should ideally be low and fair, but everyone must pay their fair share says David Weston Chairman of the Bed & Breakfast Association.

w

e all hate paying tax. Yet we also feel angry and deprived when we hear about other people not paying their taxes. The only answer is fairness and consistency – we must all play by the same rules.

6R ZKHQ % %V SD\ WD[ RQ WKHLU SURȴWV whilst their neighbours using sites like Airbnb may choose not to bother, perhaps it is encouraging that they may not be able to get away with it so easily for much longer “Homeowners who rent out their property on sites such as Airbnb face having their income automatically declared to the taxman under a digital crackdown proposed by ministers” The Times reported the other day.

As part of a consultation launched on 13 March the Treasury said that it was considering forcing online platforms to provide details of users’ income directly to HM Revenue & Customs, or even taking the money at the source. It claimed that the proposed measXUHV ZRXOG PDNH LW HDVLHU IRU SHRSOH WR IXOȴOO their tax obligations while cracking down on a “dishonest minority”.

The notion that the online world exists in a parallel universe with no tax or regulations has clearly stuck – amazingly, HM Treasury said its research showed that more than half of people using “sharing economy sites” did not regard the income they made as taxable.

They clearly think tax is only for other people

– like traditional B&Bs, no doubt.

Some might unkindly comment that the same mindset applies to the platforms themselves – the Sunday Times reported this month that Airbnb (currently valued at $31 billion) “paid under £200,000 corporation tax in Britain” in 2016, “despite generating more than £650 million for landlords”.

All this while honest, hard-working small, independent hotels and B&Bs pay thousands in taxes on their modest turnover (£1 in every £5 of which may go to HM Treasury as VAT, and often another £1 or so in every £5 to OTAs in “commissions”). It is not fair: if more avoiders and evaders were paying their taxes, our tax rates could be lowered.

The All-Party Parliamentary Group on Tourism (APPG) released its Interim Report into the “Sharing Economy” on 21 March. It Luxury Bed & Breakfast - 10 - April 2018

says: “The APPG heard concerns that the use of these platforms made it easier for people to avoid paying the correct level of taxation, and that VAT being payable only on the commission charged by the company providing the platform meant that this form of accommodation had an unfair price advantage over traditional tourism businesses.” It adds: “The lack of information regarding the level of tax paid by people using the sharing economy does, again, highlight the issue of transparency within the sector. This is something that needs to be resolved.”

Tax is a necessary evil. After all, it funds all those good things we need – the NHS, roads, defence, etc. We don’t exactly enjoy paying it, but we do so willingly as long as we know that everyone else is too.

That gives the last word to the APPG – in the unimprovable words of its No. 1 recommendation: 1. As a principle, all businesses offering accommodation in the visitor economy, whether existing ones or new ones enabled by the sharing economy and its platforms, VKRXOG FRPSHWH RQ D OHYHO SOD\LQJ ȴHOG Hear, hear to that!

The Bed & Breakfast Association is the UK trade association for B&B and guest house owners, and exists to inform, support & represent owners.

Membership costs £60 a year. www.bandbassociation.org

- Comment / David Weston -

Luxury Bed & Breakfast - 11 - April 2018

- In Depth / Wedding Planning -

Luxury Bed & Breakfast - 12 - April 2018

- In Depth / Wedding Planning -

Wedding Venues

Weddings have forever been associated with churches, religious buildings and places of worship. However, reflecting the age we are living in, now is the time to be part of an emerging diversification.

Bill Lumley reports.

w

edding celebrations can provide a fantastic revenue stream for a bed & breakfast, according to WeddingDates UK sales manager Alix Matania-Allerton. She tells Luxury Bed & Breakfast: “There is always a need for wedding venues and people are always looking for them, often seeking something new and GLÎ?HUHQW +RZHYHU WKH\ QHHG WR EH SUHSDUHG and to understand that it will take a lot of HÎ?RUW 6KRUW RI EX\LQJ D KRXVH SD\LQJ IRU D wedding is the biggest sum of money that most people will ever spend in any one go.â€?

WeddingDates provides web-based software and online marketing to wedding venues and suppliers across Ireland and the UK. It helps wedding venues and suppliers LQFUHDVH WKHLU ZHGGLQJ UHYHQXH E\ Č´OOLQJ unsold inventory. The company works with top wedding service providers across, with a system that provides real-time revenue reporting and benchmarking for the sector. “Some brides and grooms are relaxed and don’t need a lot of attention,â€? she says. ČŠ+RZHYHU WKHUH DUH VRPH RXW WKHUH WKDW almost need to have their hand held. They have never done it before, never organised a big event, and they need somebody to be able to answer questions for them and give them some advice on what works and what doesn’t work.â€? :KRHYHU Č´OOV WKLV FDSDFLW\ QHHGV WR EH somebody that understands the venue as well, she says, because there is obviously no RQH VL]H Č´WV DOO ČŠ7KH\ QHHG WR EH DEOH WR XQderstand the logistics of the venue,â€? she says. +HU DGYLFH WR % %V FRQVLGHULQJ VHWWLQJ XS a wedding reception venue is that the venue owners need to be realistic and honest with themselves about what would work and

just as importantly what would not work at their particular venue. “There is no merit in a % % YHQXH VHWWLQJ DQ XQUHDOLVWLF QXPEHU RI weddings and other kinds of event if they are simply not set up for it,� she says. “They will be setting themselves up for a failure.�

The key is about looking at your venue, thinking what you would be happy with, and DV D % % RZQHU FUXFLDOO\ KRZ PXFK \RX DUH prepared to put into it. For instance, do you really want a wedding every weekend or is that going to impact the rest of your business? Or do you just want one a month? “Any % % RZQHUV FRQVLGHULQJ ZHGGLQJ IDFLOLWLHV must be quite realistic with themselves as to what they are looking for,� she stresses.

Luxury Bed & Breakfast - 13 - April 2018

Despite the strong appeal of both the opSRUWXQLW\ WR VKRZFDVH \RXU % % DQG WR JHQerate revenue, before embarking on any such plans you must bear in mind that wedding venue businesses are relatively slow to grow, owing to fact that the lead time for a wedding averages at about 12 months. “You do get couples who are looking for a venue at short notice for example six months but generally it is about a year,� she says.

If you decide to develop your business to incorporate a wedding venue It is therefore all about getting events booked and knowing it will be a year or so before that first one takes place.

The role of the wedding coordinator varies. Most venues will have a wedding coordinator or an events manager or similar, but most venues don’t have a wedding planner, she says. “A wedding planner would be involved with absolutely everything to do with the wedding: help coordinate and liaise with all the suppliers and literally be involved LQ HYHU\ VLQJOH SDUW RI LW %\ FRQWUDVW D wedding coordinator is specifically just for anything venue related such as menus and they tend to make suggestions on suppliers, but they wouldn’t be expected to get involved on that side of things.�

Matania-Allerton has been both a wedding planner and coordinator in the past and has therefore seen it from both sides.

She says: “Some brides are very laid back and you hardly hear from them and every so often they drop in and let you know what is going on, while others – sometimes along with the grooms prospective mother in law – are very highly involved,� she says. “Weddings can be a fantastic opportunity

- In Depth / Wedding Planning -

IRU YHQXHV SDUWLFXODUO\ OX[XU\ % %V WKDW aren’t the run of the mill kind of hotel and RÎ?HU VRPHWKLQJ D OLWWOH ELW GLÎ?HUHQW EXW there is a great deal of work that goes into it. Where people might fall down is when

they try to put too much on their plate and Č´QG WKHPVHOYHV QRW DEOH WR GHOLYHU LW Č‹ % % RZQHUV PXVW DOVR GHFLGH LQ DGYDQFH if they are going to be the one overseeing the occasion the whole way through, including the show-arounds, answering the questions and so forth. “You have to ask whether you are going to be the one there on the day doing the operations side of things or whether there is going to be a team in place that is going to help out and look after this.â€? :HGGLQJ'DWHV SURYLGHV OX[XU\ % %V ZLWK a platform from which to promote their venue via the company’s website, www.

ZHGGLQJ GDWHV FR XN Ȋ:H DOVR SURYLGH % % owners with technology and software that enables them to manage those enquiries, driving enquiries to the dates they want to ȴOO KHOS WKHP GHDO ZLWK WKH UHVSRQVHV VR our software is designed for client management as well as lead generation through our website,� says Matania-Allerton.

0DQ\ OX[XU\ % %V DUH ORFDWHG LQ WKH countryside and therefore lend themselves to more of the festival style wedding. “This style of wedding is becoming quite popular, stepping away from the very traditional Luxury Bed & Breakfast - 14 - April 2018

white wedding,â€? she says. “Of course, there will still be a high demand for that, but festival weddings feature teepees, food trucks and music. That is becoming increasingly popular.â€? Woodland weddings is another trend the company has been seeing surge in popularity in the last couple of years, she adds. “For people with woodland on their ODQG ZH FDQ JLYH WKHP EHDXWLIXO HÎ?HFWV such as lighting. Pinterest is essentially like wedding porn. You can look at weddings WKHUH IRUHYHU Č‚ WKHUH DUH VR PDQ\ GLÎ?HUHQW options out there now. Pretty much any venue can be a wedding venue provided they understand their limitations.â€?

Also growing in popularity is exclusive use and the ability to secure a whole venue just for the wedding party and their guests. Ȋ/X[XU\ % %V DQG ERXWLTXH KRWHOV DUH D SHUIHFW ȴW IRU WKLV EHFDXVH WKH\ DUH QRW RGG EHGURRPV DQG WKH\ ȴW ZLWK WKDW PDUNHW UHDOO\ ZHOO +DYLQJ DOO WKH SHRSOH WDNLQJ SDUW in a wedding taking over the accommodation, having the venue for yourself for the day or even the weekend, has great appeal.�

She recalls working in a boutique hotel with 37 bedrooms, a spa and a beautiful

- In Depth / Wedding Planning -

Luxury Bed & Breakfast - 15 - April 2018

- In Depth / Wedding Planning -

garden. “Exclusive wedding parties became our most popular option. It does take some managing: you need to be sure you are going to get the revenue in, that you aren’t going to block off a weekend when you would have gained more from individual guest accommodation, but generally that’s not going to happen if you are booking a wedding.�

People usually want a two-day package with access to the space where the weeding is taking place, she adds. “They will probably want help setting up for example tables and chairs. Depending on how involved they want the venue to be, they could do it themselves or it could be part of a dry hire option where they pay for the venue and then get a catering company to come in and do everything else. It depends very much on the facilities at the venue and whether they have in house catering. “There are limitless options with weddings. It’s a fantastic job to do but it is very demanding,� she says.

TOP TIPS: • Get some really strong imagery. “t’s all very well putting together a lovely brochure and telling people about what you can do but if there are no images in it then it is not going to draw prospective couples in,â€? says Matania-Allerton. • For new venues that haven’t really got that portfolio of images yet is to get in touch with VRPH ORFDO VXSSOLHUV Č‚ ČľRULVWV FDNH PDNHU photographer. “Get together for a day and do a staged wedding shoot. Often suppliers will do so for free because of the associated promotion and the fact that they will be able to use the images for their own promotional purposes. It’s a great way to get to know other people in the industry in your area and therefore to get recommendations. There are KXJH EHQHČ´WV WR JHWWLQJ WR NQRZ RWKHU ORFDO VXSSOLHUV VR GHČ´QLWHO\ EH D SDUW RI WKH ORFDO wedding community.â€? • Communication. “Couples are generally exLuxury Bed & Breakfast - 16 - April 2018

pecting a response to their initial enquiry within 24 hours. Sometimes you can get away with 48 hours, but if you are going to get into the wedding industry be prepared to spend time answering emails. It is a very fast-paced industry, and brides, grooms, mothers-in-law won’t be particularly impressed if they have to wait days for a response to something,� she warns.

5RQDQ .HOO\ LV &(2 RI %HVSRNH &KRLFH ZKLFK provides software that showcases a wedding YHQXH +H WHOOV Luxury Bed & Breakfast that KH KDV QRWLFHG D ULVH LQ WKH QXPEHU RI % % owners moving into the provision of wedding hosting facilities. “It’s not as daunting as they might expect it to be,� he says. “They can ensure they have a full house every night of wedding. The technology is there now to help manage these weddings. It’s not as rigorous a task as it used to be."

SELLING THE WEDDING VENUE The software is not just there to showcase the venue, but also the food it can offer

- In Depth / Wedding Planning and any other wedding related facilities it may provide.

7KHUH DUH VWLOO FKDOOHQJHV EXV\ % % RZQers face when they need to handle both the task of keeping their guests happy and help accommodate a separate wedding party, he says. “The key challenges the software helps with are the ability showcase their venue on line and being able to attract customers in and ensure they have the appropriate facilities there for the customers,â€? says Kelly. “They need to be there for example with Wi-Fi and smart TVs, and to be visible, whether through wedding booking websites as well as their own website. They really need to get webVLWH VDYY\ Č‹ KH VWUHVVHV ȊΖI D % % LV KRVWLQJ a wedding, our software will help showcase their venue to potential clients and help them to tailor it the package online. “The software is perfect for use by the RZQHUV DQG PDQDJHUV RI OX[XU\ % %V DQG boutique hotels. This is a very big growth market for us.â€?

Many alternative venues are emerging in the wedding world, with couples choosing these rather than the traditional hotel venue.

There has been a growth in the number of glamping site or a marquee for example DWWDFKHG WR D % % KH VD\V ČŠ7KLV LV ZKHUH RXU software comes into its own. They wouldn’t have to buy a big system such as those used by hotels, and it allows the whole wedding ERRNLQJ SURFHVV IURP VWDUW WR Č´QLVK ΖW DOORZV the customers to go in and see the site, to take a tour of the site, to go through any interactive package and simultaneously manage the back-end such as manage couple enquiries and any follow-ups. ȊΖW PDNHV OLIH D ORW HDVLHU IRU WKH % % RZQer or innkeeper as they don’t have to worry about managing that event. The system looks after it all,â€? he explains. .HOO\ DGYLVHV DQ\ % %V ORRNLQJ WR PDNH a move into hosting weddings is to take the trouble to do the necessary research and essentially check whether there is a valid market there. “From then look for the technology that is out there, as it can make life a lot easier than trying to do it with diaries or function sheets. ȊΖWȇV DOO DERXW VKRZLQJ RÎ? ZKDW \RX KDYH online and attracting the modern customer.

So, search for technology like my system but there are other technology systems out there WKDW KHOS WR VKRZ RÎ? \RXU YHQXH DQG PDNH them more attractive to the modern customer,â€? he concludes.

Luxury Bed & Breakfast - 17 - April 2018

- In Depth / Kitchen Renovations -

Luxury Bed & Breakfast - 18 -April 2018

- In Depth / Kitchen Renovations -

Bed & Breakfast is given new lease of life – in time for check-in!

The owners of a Perth B&B underwent an entire kitchen renovation with virtually no business interruption. Bill Lumley finds out how they managed it.

a

s your luxury bed & breakfast gets older you find yourself noticing features that require more and more attention. You may well have had to confront the notion that you are going to have to close up shop for a certain period of time to allow renovations to take place, such as the installation of a new kitchen. Here we describe a B&B in Scotland whose kitchen underwent renovation in the space of just 12 hours.

David MacLehose and his wife Anne have been the proud owners of the Beechgrove Bed & Breakfast in Perth since 2011. The Victorian-era property, a former vicarage, houses six guest suites. Due to the B&B’s semi-rural location in a beautiful part of Scotland, thousands of guests frequent it every year.

As such a sought-after location for a weekend getaway, it should come as no surprise that Beechgrove B&B is subject to a certain amount of wear and tear. As any other successful business owner will know, closing up shop to make time for any sort of property renovations can significantly impact revenue and client engagement.

After seven years of continual custom, it became clear to David and Anne that significant ‘sprucing up’ was needed.

David tells Luxury bed & Breakfast magazine: “We use the kitchen for so much more than just preparing meals. Much like other

people’s homes, we spend most of our time here. The worktops were becoming tired and, as the kitchen acts as such a multi-purpose space, we both decided that replacing

Luxury Bed & Breakfast - 19 - April 2018

the worktops was our first priority. Ripping out the entire space and starting all over again would have been a non-starter.

We would have been without a kitchen

- In Depth / Kitchen Renovations -

completely for at least a couple of weeks, during which time we would have had no choice but to close the B&B. “Luckily, we were introduced to Robert Campbell and the team at TREND Transformations, a specialist business based in Perth. They made it all so easy. Within a few hours of visiting the team in the showroom, Robert was out at the property, providing us with a quote and explaining how it all worked. Once he described the innovative fitting process, it became clear that updating our kitchen with their help was a no-brainer.�

The family-run company is a home-renovation business that offers quality-minded home and business owners an extensive choice of makeover solutions, without the demolition, debris or, just as crucially, the Luxury Bed & Breakfast - 20 - April 2018

- In Depth / Kitchen Renovations -

disruption associated with conventional kitchen and bathroom installations. The renovation company’s exclusive ‘top that fits on top’ service allows beautiful highgrade work surfaces to be fitted directly over existing worktops, tiled walls and other finishes, eliminating the need for removal, dramatically shortening the project timescale and reducing costs.

“It’s why our product works so well for those who are working to a limited timescale,” explains company owner Robert Campbell. “The team really enjoyed working

on this project. David and Anne were so open to our ideas and made full use of our complimentary design process. Getting them back in the kitchen was of the utmost priority to the us, and we’re so happy they were both pleased with the result.”

With the entire renovation taking less than 24 hours, David and Anne were back in business and once again welcoming the many patrons of Beechgrove B&B – and David says he would recommend the process to any other like-minded business owner in the same predicament.

Luxury Bed & Breakfast - 21 - April 2018

“The entire process, from start to finish, was seamless. Nothing was too much trouble for the team, and they completely understood how multi-functional we needed the space to be. The notion that nothing need be completely ripped out and replaced is the perfect solution for any hospitality business, looking to modernise, refresh, or completely renovate. The work took no time at all and has made a significant impact on our productivity. It’s the best thing we did for our home and business,” he concludes.

- In Depth / Point of sale -

Luxury Bed & Breakfast - 22 -April 2018

- In Depth / Point of sale -

Show me the money

Developments in technology and changes in regulation mean luxury B&B owners should be looking closely at their point of sale systems to ensure they are both compliant with the law and getting the best deal they can.

Bill Lumley reports.

t

he EU Payments Services Directive 2 (PSD 2) became UK law on 13 JanXDU\ 7KH PRVW VLJQLČ´FDQW RXWcome for luxury B&Bs, as businesses that accept card payments, is that from this date any charges incurred processing a card payment can no longer be passed back to the customer. Up until that date reasonable charges incurred by a merchant could be passed back.

As this is no longer the case it means those businesses that used to charge for the cost of card transactions now have to either absorb the extra cost or increase prices to account for it (or often a combination of the two).

Paul Bothamley is partnerships manager at Card Cutters, part of Allied Irish Bank Merchant Services. He tells Luxury Bed & Breakfast: “There has never been a better time to review your merchant services' charges - and even more so with the peak holiday season now being upon us.

Switching providers is now much easier and quicker than it ever was, and there should be no disruption in your ability to process card payments.â€? “The payment services market is fast movLQJ DQG DOZD\V LQ ČľX[ DQG LV VR RQ VHYHUDO levels - be this in terms of technological advances such as the rise of contactless payment provision, market changes and expectations, or regulatory demands and enhancements set down by external bodies such as the card issuers namely Visa and Mastercard, the UK Government and the EU (see 'Payment Services Directive 2' above).

Keeping abreast of all of these changes and predicting future trends, product development and the direction of travel can be

demanding - and also very expensive for the merchant services' providers. “Above all else though it's good to know that the UK card processing market is amongst the most open, most advanced and most competitive in the world, and we currently rank third in the world in terms of cashless payment transactions - just behind Canada and Sweden - with 54% of all payments by volume being made by card in the UK last year.�

Payments processing is becoming less of a challenge for smaller hospitality business owners as the technology improves.

He says: “There is now a plethora of card payment processing solutions that simply weren't available to the smaller and more medium end of the SME market until relatively - or if they were they were usually expensive, slow, and often unreliable and not always fully data secure. Besides big steps forward in the three main payment solutions already mentioned, there are other, newer solutions that are coming onto the market all the time. “One example is the so-called 'micro termiQDO VROXWLRQV ZKHUH WKHUH LV XVXDOO\ D RQH RÎ? set up cost and then no terminal rental (but tend to attract much higher card transaction charges than conventional terminals). The

WHUPLQDO LV HÎ?HFWLYHO\ D FDUG UHDGHU DQG LV usually no bigger than a small pin pad.â€?

Another rapidly growing payment solution is known as 'mobile' phone payment systems, and is effectively a payment application embedded on a suitably compatible mobile phone. “The best known of these is probably Apple Pay; others include Android Pay and Vodafone Pay which allows payment via the customer's PayPal account... and PayPal itself is due to fully Luxury Bed & Breakfast - 23 - April 2018

launch its own mobile payments solution One Touch in the UK very soon. The main drawback with these mobile payment solutions is that they are in the same category as contactless payments, and so individual payments are limited to a maximum of £30 per transactions at the current time,� he says.

His advice to B&Bs looking to upgrade their PoS operation in the coming months is to take the time out of an extremely busy schedule to research the various payment solutions, and then try to compare often GLÎ?HULQJ DQG VRPHWLPHV D EHZLOGHULQJ array of charges. “This can frankly make the whole prospect of setting up or switching a merchant account can seem very unattractive. Many of the card processing providers actually rely on this sort of inertia and a better the devil you know attitude... it's what makes them a lot of money! Despite these understandable perceptions, making an informed decision based on the facts and then switching over to a better deal (and often a much better deal) is a lot easier than you might think. "Be wary of having selected rates and prices thrown at you - this market is notorious for not having a consistent pricing model and transparency can be an issue. For example one provider may well appear to save you a few pounds a month on, say, your terminal rental or a fraction of a percentage on a particular card type, but there may be some other charge or charges not mentioned that will more than account for any savings in one or two areas. Also, some providers charge for some things that others do not. Unfortunately you are rarely comparing 'apples with apples' in the card processing market.

- In Depth / Point of sale -

However, do not let this deter you, for there are still big savings to be made,� he says. He advises: “Ask for a like for like charge comparison against your current provider if you have one, and supply a recent merchant statement so this can be done. By doing things this way there is no hiding place regarding charges and it will be crystal clear whether or not you can make savings, and if so exactly how much they will be. Don't be taken in by the charges the merchant company want you to focus on, and instead look at what your overall savings might be,� he concludes.

Fidelity Payment has over 22 years' experience with providing payment solutions to B&Bs and other businesses in the hospitality industry. It helps reduce rates on card processing and streamline payment operations.

Marketing director Lucy Glickman tells Luxury Bed & Breakfast ČŠ:H RÎ?HU D UDQJH of industry proven countertop and portable Verifone and Ingenico card machines. :H DOVR RÎ?HU FRVWČ‚HÎ?HFWLYH HFRPPHUFH solutions for quick and secure online card payments for B&B websites.â€?

6KH VD\V )LGHOLW\ 3D\PHQW RÎ?HUV IXOO\ integrated software for most management systems and channel managers. “We also RÎ?HU XVHU IULHQGO\ '&& 7D[EDFN VHUYLFHV so that international card users can choose to pay in their own currency, rather than the domestic currency of the point of purchase. “For B&B owners processing payments from overseas guests our clients’ overseas customers will know how much their purchase costs in their home currency, eliminating any concerns over the latest exchange rates and they will receive a receipt Luxury Bed & Breakfast - 24 -April 2018

breaking down the tax rebate to help them claim tax back.�

DCC enables Fidelity Payment’s B&B FOLHQWV WR EHQHČ´W IURP WUDQVDFWLRQV PDGH by international customers by receiving back 1% of all transactions as standard from their total international cardholder turnover, she explains. ČŠ:H DOVR RÎ?HU PXOWL FXUUHQF\ DFFRXQWV through our partnership with AIB, so that our clients can process in over 200 currencies with full transparency on competitive foreign exchange rates and margins at the point of purchase,â€? she adds.

The undeniable and continuing major trend of the last decade has been e-commerce. UK businesses have been reasonably successful in jumping online and developing that channel. However, a high proportion RI EXVLQHVVHV KDYH VWXFN ZLWK WKH Č´UVW

- In Depth / Point of sale -

payment provider they selected and are paying premium fees for what has become a commodity service. Glickman says: “There is a considerable saving in reviewing these arrangements, especially if you are still with a Paypal or similar turnkey product.�

Payment transaction costs are another hot topic, she says. “When the European Union slashed card interchange rates in 2015/2016, most of the high street retailHUV GLGQȇW SDVV RQ WKH IXOO EHQHČ´W WR WKHLU SME customers. And already in 2017 we’ve seen Visa and MasterCard increase their card scheme fees which almost everyone in the market is passing onto merchants.

But unfortunately some of the high street processors are increasing costs by much more than the card scheme fee increases.

So it just highlights the need for merchants to constantly monitor their costs and shop around to get the best deal.

We conducted a poll on how businesses are dealing with the recent PSD2 ban on credit card fees. The majority of respondents (40%) said they will need to absorb the costs rather than say no to credit cards.�

Technological change in payments is always interesting. There’s a lot of change for example taking place in authentication and security led by MasterCard and Visa themselves, she says. “Pretty soon we’ll have more secure replacements for passwords and pin numbers such as fingerprint or facial recognition. Combining this with smartphone technology like Apple Touch will also help speed up online payments and make them more seamless than now. People don’t generally like 3D se secure but hopefully this will soon be replaced with something faster and easier.�

Fidelity Payment is competing against some large, established UK brands. But Glickman insists: ““We provide the sa same quality types o of solutions as the b big guys, just more ccheaply and with a be better service.�

There are three main card payment processing products:

for either dual or even just a single network, meaning in areas where these networks are weak the terminal either won't work or the service will be unreliable or intermittent.

VIRTUAL TERMINAL:

CHIP AND PIN TERMINAL: This is by far the most common and familiar way to process card payments in the B&B sector, and there are generally three types:

Sometimes referred to as MOTO (Mail Order Telephone Order), a 'virtual terminal' is basically a piece of software included on a web browser in order to take card payments over the phone without the need for a physical terminal.

It's a very good solution if all payments processed are Cardholder Not Present.

However it is not suitable if any payments are taken face to face.

i. The most commonly used terminal is the static or desktop that sits on your counter or desk, and i s connected to either a telephone line or broadband. ii. The second terminal type is known as portable; it has a base unit that is connected to either the 'phone line or broadband in the same way, but unlike the static terminal the hand unit part is separate and can be used to take card payments up to 20/30 metres away from the base unit; it transmits the card and sale data back to the base unit by either EOXHWRRWK RU ZLČ´ GHSHQGLQJ ZKLFK format you opt for. This terminal is most prevalent in areas like the restaurant sector, where the card machine is brought over to the table at the end of the meal for the payment to be taken. iii. The third kind of terminal is known as mobile or GPRS. Not to be confused with the 'portable' above this terminal HÎ?HFWLYHO\ ZRUNV LQ WKH VDPH ZD\ DV your mobile 'phone, and contains a SIM and works via the mobile phone network. It is mainly used for those businesses who take payments outdoors and therefore away from any telephone or broadband connection; some examples include farmers' markets and outdoor sports and adventure activities. It's very important to opt for a GPRS terminal with a truly roaming and multi network SIM, as PRVW PRELOH WHUPLQDOV DUH FRQČ´JXUHG

Luxury Bed & Breakfast - 25 - April 2018

ECOMMERCE: Also commonly known as online shopping, eCommerce is a way of paying for goods and services online via a secure 'payment gateway'. Selected goods are included in the online shopping cart or 'basket' and payment is made by card at the site checkout. The purchased goods are then either delivered to the customer or collected or redeemed later. All eCommerce transactions in the UK are further protected by being 3D Secure; this is where you are asked to provide certain characters from your unique password or PIN (this is not the same as the four digit PIN attached to your card). Visa's 3D secure service is known DV 9HULČ´HG E\ 9LVD DQG 0DVWHU&DUG V LV MasterCard SecureCode.

- In Depth / Al fresco dining -

Luxury Bed & Breakfast - 26 - April 2018

- In Depth / Al fresco dining -

Al fresco dining A trend for domestic outdoor living has given rise to a healthy and fast-growing market for outdoor dining at hospitality venues.

Bill Lumley reports.

a

fter carrying on well into March WKLV \HDU ZLQWHU QRZ VHHPV Č´QDOO\ to be turning into no more than a memory, and long-awaited Spring is here. As the evenings draw out, so too comes the need to prepare for the approaching busy summer season. If your own property is not up for major renovation, due or overdue, and if it is not facing unscheduled repairs resulting IURP ZLQWHU VQRZ RU ČľRRG GDPDJH QRZ PD\ well provide the perfect time to consider monetising your outdoor space.

B&Bs across the UK are increasingly

marketing their outdoor dining facilities, and there is a growing number of UK companies RÎ?HULQJ D ZLGH UDQJH RI RXWGRRU IXUQLVKLQJV from chairs and benches ans picnic tables portable gazebos. If you wish to extend the luxury inside your property to your outdoor space then you may consider investing in a premium gazebo or pavilion.

There is a wide and fast-growing variety of choice to be had for your outdoor dining facilities. If you want to put your toes in the water for outdoor dining at your venue and invest initially in the hundreds rather than thou-

Luxury Bed & Breakfast - 27 - April 2018

sands of pounds then you might be happiest going for a conventional table and bench, such as an eight-seater picnic table from Benchmark Picnic Tables. For less than ÂŁ300 you can try out the traditional pub-style garden option to determine what other changes you may need to make to your business to DFFRPPRGDWH SURČ´WDEOH RXWGRRU HDWLQJ If however you decide to go the luxury route then there are options aplenty. Adrian 'DQVRQ LV FKLHI RSHUDWLQJ RÉ?FHU DW &URZQ 3DYLOLRQV DQ 2[IRUGVKLUH EDVHG Č´UP RÎ?HULQJ high-end garden pavilions, luxury gazebos

- In Depth / Al fresco dining -

and outdoor rooms. He tells Luxury Bed & Breakfast ČŠ:H DUH Č´QGLQJ WKDW PDQ\ KRVSLWDOLty businesses want to use their outdoor space a lot more than just during the high summer months. We are following that trend by

providing a lot of our gazebos with heating in them, enabling innkeepers and bed & breakfast owners to get up to nine months rather WKDQ IRXU RU ȴYH PRQWKV SHU \HDU RXW RI WKHLU outdoor space,� he says.

7KH JD]HERV WKDW &URZQ 3DYLOLRQV VHOOV DUH designed to be used for private dining, he H[SODLQV VR SURSULHWRUV DUH Č´QGLQJ WKHPselves able to extend their opportunities for attaining a speedy return on their investment.

Exposure to the elements should not be a FRQFHUQ IRU SURGXFWV VXFK DV WKRVH VROG E\ &URZQ Pavilions, according to Danson, who explains that as high-end products they are all made with the Č´QHVW TXDOLW\ DQG GXUDEOH PDWHULDOV “Our products all come with a 30-year guarantee on their roof, and all the soft fabrics we use are marine-grade fabric, so they are incredibly hardy and completely weather-proof. They have all been tested on ocean-going yachts, so we know they can take extreme weather elements.â€?

Meanwhile the company’s pavilion and gazebo roofs are made from environmentally friendly cedar shingle roofs. This type of wood has been in use for this purpose for hundreds RI \HDUV DQG UHTXLUHV QR PDLQWHQDQFH KH H[Luxury Bed & Breakfast - 28 - April 2018

plains. “They just weather beautifully,� he says.

In the event of food or drink spilling on any surface, he maintains the materials used are all very easy to clean. “Food and drink just ZLSH RÎ? 7KH IDEULFV DUH ZDWHU UHSHOODQW DQG very low maintenance.â€?

As a further measure of the brand’s ČľH[LELOLW\ VPRNHUV FDQ EH DFFRPPRGDWHG LQ the buildings when the waterproof rolled up EOLQGV DUH UROOHG SURYLGLQJ VXÉ?FLHQW YHQWLODtion for guests to smoke in the gazebo. “The key thing is that they pay for themVHOYHV UHDOO\ TXLFNO\ Č‹ KH VD\V ČŠ9HU\ UDUHO\ GR you need planning permission as they are seen as temporary structures. We can install them within a day, so you can have the addiWLRQDO VSDFH YHU\ TXLFNO\ FRVW HÎ?HFWLYHO\ DQG with no planning upheaval.â€?

Ivyliving is a sister company of Ivyline, a company that supplies the UK’s largest retailers with home accessories, indoor and RXWGRRU SRWV ΖY\OLYLQJ LV DOO DERXW JDV Č´UHSLWV and facilitates outdoor dining for luxury B&B owners in a variety of ways. Marketing execXWLYH 0DLMD 6DNDODXVNDLWH H[SODLQV ČŠ:H RÎ?HU three main options, all ideal for their purpose.

The one for full scale dining is the Kenwood

- In Depth / Al fresco dining HLJKW VHDWHU ZKLFK RÎ?HUV WKH ORRN DQG IHHO of a top-class hardwood outdoor table with a long burner made of top-grade stainless steel and containing the special tempered glass EHDGV WKDW ORRN OLTXLG LQ WKH GDQFLQJ ČľDPHV

7KH ČľDPHV DUH KLJKO\ FRQWUROODEOH IURP D GDQFLQJ ČľLFNHU WR D WRDVWLQJ N: ČŠ7KHQ ZH RÎ?HU 7KH /DUJH D YHU\ SRSXODU garden chair height model that facilitates casual dining and relaxing with drinks and snacks with its wide ledge and sociable 15Kw FHQWUDO Č´UH )RU WKRVH ZKR ZDQW WR VRFLDOLVH DW bar stool height we have the Standing Table, which again has a ledge to hold drinks and VQDFNV DOO DURXQG WKH FHQWUDO Č´UH Č‹ She says there are a number of characWHULVWLFV WKDW PDNH ΖY\ /LYLQJ DWWUDFWLYH WR the small luxury hospitality market. “All our products are highly user friendly and blend well with their surroundings, but they are speFLČ´FDOO\ JHDUHG WR WKH FRPPHUFLDO PDUNHW ČŠ $V ZLWK WKH DSSURDFK WDNHQ E\ &URZQ 3DYLOLRQV 6DNDODXVNDLWH VD\V ΖY\ /LYLQJ V DLP is to enable venue operators to add revenue by extending their al fresco seasons by up to six weeks earlier in the Spring and six weeks later in the Autumn, in total up to three months. She says: “At these times, and through the summer, they also extend the outdoor experience considerably later into the evening and into periods of poorer weather. If they are under some kind of awn-

Luxury Bed & Breakfast - 29 - April 2018

LQJ RU ODUJH SDUDVROV WKH HÎ?HFW LV HYHQ PRUH enhanced. People just love being outside!â€?

She says that the relatively recent trend for al fresco living at home has led to a similar trend for outdoors dining at hospitality venues. “New roof terraces are being created, existing outdoor terraces and courtyards are being refurbished, and new ones are being created.�

Ands she cites a recent survey undertaken on behalf of Hotelympia last month, which found that an overwhelming 75.5% of diners preferred the option of eating outside. “Our customers’ experience is that this includes times of poor weather. They just want to JDWKHU URXQG WKH Č´UH SLWV DQG EH RXW WKHUH Č‹ she says.

Jan Dammis head of international sales at hospitality furniture supplier GO IN says: Ȋ2XWVLGH LV GHȴQLWHO\ ȆLQȇ $O IUHVFR GLQLQJ DQG outdoor restaurants have been booming right DFURVV (XURSH &DUHIXOO\ GHVLJQHG WHUUDFHV JHW SHRSOH ȾRFNLQJ LQ DQG DUH DQ H[FHOOHQW VRXUFH RI UHYHQXH &KRRVLQJ WKH FRUUHFW outdoor furniture and creating an attractive RXWVLGH VSDFH ZKLFK ȴWV \RXU RYHUDOO FRQFHSW is the key to success.�

2XWGRRU VSDFHV DUH PRUH WKDQ MXVW D ȆPXVW

- In Depth / Al fresco dining -

have’ add-on, he stresses. “They should be designed to complement the visual style of the rest of the restaurant or bar. In order to maximise the potential of outdoor spaces and WR DWWUDFW GLÎ?HUHQW JURXSV RI JXHVWV LWȇV RIWHQ helpful to divide terraces into zones. Groups of tables and chairs stand in the centre as a place for table service and dining. These can be comELQHG ZLWK EDU WDEOHV DQG VWRROV IRU D TXLFN FRÎ?HH RU VQDFN 7KHQ WKHUH DUH ORXQJH DUHDV where guests can enjoy a relaxing cocktail.â€?

Developments in technical outdoor fabrics KDYH KHOSHG VKDSH WKH GHVLJQ DQG TXDOLW\ RI

today’s trendsetting outdoor furniture. For example, the outdoor lounge furniture Tuxum really catches the eye. “The beautifully shaped VRID DQG FKDLUV LQ D VLPSOH Ȇ6FDQGL VW\OHȇ VWDQG out thanks to their light look and mix of technical outdoor fabric, aluminium and wood HÎ?HFW 7KHVH DUH SHUIHFW IRU WKH FRFNWDLO DUHDV of outside terraces,â€? says Dammis.

New chairs, including the Elias, exude a feeling of lightness and summertime. The retro-style chair has small proportions and comes in simple white, as well as popular brick red and olive green. It’s available with a closed or perforated backrest. The frame is made of powder-coated steel; the comfortable seat shell is polypropylene. &RPIRUWDEOH VWDFNDEOH DQG OLJKWZHLJKW WKH Elias is a practical all-rounder, sure to be ORYHG E\ JXHVWV DQG VWDÎ? DOLNH “If your outdoor furniture needs to be FOHDUHG DZD\ TXLFNO\ DW FHUWDLQ WLPHV RU stored through the winter then folding or VWDFNLQJ FKDLUV DQG WDEOHV RÎ?HU D GLVWLQFW advantage. They save space and they are Luxury Bed & Breakfast - 30 - April 2018

TXLFN DQG HDV\ IRU VWDÎ? WR PRYH DURXQG *2 Ζ1 RÎ?HUV D ZLGH UDQJH RI IXUQLWXUH WKDW PHHWV WKHVH UHTXLUHPHQWV Č‹ KH VD\V Uneven ground, a lack of shade or shelter, SRRU OD\RXW DQG LQDGHTXDWH DFFHVV FDQ DOO UHduce guests’ enjoyment of your outdoor area - and that’s before the furniture is considered.

Fortunately these problems are easily overcome with a bit of forward planning, he says. “First, give some thought to choosing the ULJKW ČľRRULQJ 7KLV LV FULWLFDO EHFDXVH LW FDQ not only help make the outdoor area look attractive, but it also allows furniture to be organised and accessed in the best possible ZD\ $ ORRVH VXUIDFH VXFK DV JUDYHO RÎ?HUV a clean, easily maintained and generally well-drained area but can be unsuitable for SXVKFKDLUV DQG ZKHHOFKDLUV *ULW UHTXLUHV PRUH PDLQWHQDQFH EXW RÎ?HUV EHWWHU DFFHVV Flagstones and paving need a small gradient to help drainage but, if well laid, give an attractive and lasting surface. Wooden decking can be an option but is not recommended for shady areas where slippery moss can form.

- In Depth / Al fresco dining -

Luxury Bed & Breakfast - 31 - April 2018

- In Depth / Al fresco dining -

Luxury Bed & Breakfast - 32 - April 2018

- In Depth / Al fresco dining -

GO IN’S TOP TIPS FOR SUCCESSFUL OUTDOOR AREAS Tip 1. First impressions are everything, so use your outdoor area as your business card make it a good or even better representation of your style indoors.

Tip 2. 2Î?HU IXUQLWXUH ZLWK FRPIRUW VW\OH DQG TXDOLW\ 0DNH FRVW VDYLQJV E\ SXUFKDVLQJ IURP the right supplier, rather than compromising these important standards.

Tip 3. *R IRU ČľH[LEOH DUUDQJHPHQWV VR WKDW FKDQJHV FDQ EH PDGH TXLFNO\ DQG HDVLO\ )RU example, go for small tables, which can be arranged individually or used together for larger groups.

Tip 4. 0DNH VPDOO EXW VLJQLČ´FDQW JHVWXUHV towards additional comfort. For example, RÎ?HU VHDW FXVKLRQV DQG ZDUP EODQNHWV IRU chillier evenings.

Tip 5. Make sure the furniture is robust, easy to maintain and well looked after to make sure it stays looking good. *DU\ 9DOH PDQDJLQJ GLUHFWRU RI (GHQ )XUniture, has advice for B&B operators on al fresco dining and getting ready for summer. “There are plenty of options when it comes to choosing outdoor furniture,â€? he says. “You’ll QHHG WR FRQVLGHU WKH ȆORRN DQG IHHOȇ \RXȇUH WU\ing to achieve, how you want to manage your outdoor space and the price you want to pay. “Often you’ll want your outdoor space to be a continuation of the design themes that your indoor areas convey. However, in some circumstances there’s an opportunity for your

outdoor area to make an eye-catchingly bold statement so that you stand out from local competition and draw customers towards \RXU RÎ?HULQJ %ROG FRQWHPSRUDU\ GHVLJQV and vibrant colours are an excellent way for your furniture to stand out, but there are new takes on classic styles that are well worth considering,â€? he says. &ODVVLF VW\OHV FRQWLQXH WR EH YHU\ SRSXODU conveying a comforting sense of reliability and trust, he syas. “The Parisian cafĂŠ look is always stylish, and these days stackable chairs and armchairs are available with robust aluminium frames and all-weather woven seats and backs. The vintage look has also been reinvented and given a makeover with a whole new range of colours.

The Salford stackable aluminium chair for H[DPSOH LV DYDLODEOH ZLWK DQ DQWLTXH SDLQW ȴQLVK LQ ZKLWH JUH\ OLJKW EOXH UHG JUHHQ RU \HOORZ 0LQLPDOLVW ȆUHWURȇ ORRNV VXFK DV WKH 1ROLWD UDQJH FRPELQH ȴQH FODVVLF OLQHV ZLWK D thoroughly modern colour range.�

Innovative new materials are constantly EHLQJ LQWURGXFHG WR LPSURYH WKH TXDOLty, design, maintenance and longevity of RXWGRRU IXUQLWXUH 9DOH VD\V ČŠ'HSHQGLQJ RQ ZKDW \RXȇUH WU\LQJ WR RÎ?HU \RXU FXVWRPHUV DQG \RXU RSHUDWLRQDO UHTXLUHPHQWV \RX FDQ choose furniture which is virtually maintenance free; is stackable or foldable; is lightweight or heavy; simple yet striking; classic, stylish and comfortable. “Non-wood can be made to look like real wood or can bring striking patterns and designs to tabletops. Metalwork can be powder- coated to provide a robust, weatherSURRI Č´QLVK LQ D ZLGH UDQJH RI FRORXUV :RRG in teak or redwood, is now available sourced solely from sustainable and environmentally Luxury Bed & Breakfast - 33 - April 2018

green plantations which ensures the longterm viability of these sources,� he adds.

When deciding how to make the most of your outdoor space, you’ll need to consider some practical aspects of furniture design.

You may be lucky enough to be able to keep furniture permanently set-up outside, but this does mean the furniture has to be able to cope in all weathers and stay looking good. “If it doesn’t need to be constantly moved and rearranged then it can be a more robust design and build; many solid PHWDO DQG ZRRG GHVLJQV PHHW WKLV UHTXLUHment. When furniture needs to be put DZD\ HDFK QLJKW RU ZKHQ LWȇV QRW UHTXLUHG then you’ll want lighter-weight designs and foldable or stackable options; these features DOVR PLQLPLVH WKH VSDFH UHTXLUHG IRU ZLQWHU storage,â€? he suggests. “If you have to leave your furniture outside during the winter months, we recommend that you cover it either with a purpose made cover or a tarpaulin. Make sure it’s clean and bone dry before you cover it up and that there is ventilation for air to circulate so that if moisture does get in it can also more easily get out on a dry GD\ 7LOWLQJ IXUQLWXUH DQG NHHSLQJ WKH IHHW RÎ? wet ground can help prevent rotting,â€? he adds.

Making the most of your outdoor areas is QRW MXVW DERXW WDEOHV DQG FKDLUV 9DOH VD\V “Other items will also contribute to the comfort and usability of these areas; for example, ORRN DW WKH ČľRRULQJ VKDGH DQG VKHOWHU \RX RÎ?HU *RRG ČľRRULQJ Č‚ SDYLQJ GHFNLQJ RU JUDYHO Č‚ LV D PXVW WR HQVXUH WKDW JXHVWV DQG VWDÎ? FDQ PRYH DURXQG FRPIRUWDEO\ ZLWKRXW tripping or slipping. If the outdoor area is exposed, you may want to provide either shade from the sun or shelter from wind and rain, depending on the weather. This can be in the IRUP RI QDWXUDO SODQWLQJ Č‚ WUHHV DQG VKUXEV Č‚ RU WKH EXLOW HQYLURQPHQW Č‚ ZDOOV VFUHHQV DQG pergolas. Outdoor heating and giant parasols can help extend the season for outdoor eating and drinking.â€?

Outdoor, dining is becoming ever more popular in the UK. Investment in outdoor furniture is an excellent way of generating additional revenue by making the most of all the space at your disposal. The balance between IXUQLWXUH SULFH DQG TXDOLW\ LV DOO LPSRUWDQW though. Inevitably, paying more does buy KLJKHU TXDOLW\ ZKLFK ORRNV EHWWHU IRU ORQJHU but of course the investment is greater and takes longer to pay back. A good supplier VKRXOG EH DEOH WR RÎ?HU VXÉ?FLHQW FKRLFH RI furniture and the expertise to guide you into making the correct investment decision.

- In Depth / Personal touch -

Luxury Bed & Breakfast - 34 - April 2018

- In Depth / Personal touch -

Little touches that make all the difference There are many simple ways you can enhance the attraction of your property to your guest, says Holly Alderson, Out Of Eden.

b

HOLHYH LW RU QRW \RX GRQȇW QHHG WR ȴW D KRW WXE LQ \RXU JDUGHQ RU ȴOO \RXU guest rooms with high-tech electricals to ensure your guests have an enjoyable, relaxing and positive stay in your luxury accommodation. Yes, these can be great additions and can even increase your occupancy and income, but they often require a huge investment. On the other hand, wouldn’t it be great to update your B&B, and add some more elements of luxury, without breaking the bank?

Just simply ensuring optimum cleanliness and comfort in your rooms, with attractive design & dÊcor, can guarantee a pleasant stay and a happy guest. With the arrival of spring and booming summer bookings due in the following months, what better time to update your B&B with a new look, a replenished stock of refreshments and toiletries and to rethink your guest’s sleeping experience?

thing slightly cooler? Togs, if you’re not entirely familiar with duvet terminology, indicate the warmth of your duvet. Togs usually range from around 4.5, which is fairly cool, up to about 13.5, providing optimum warmth. Consider what tog your duvet currently is – will this be suitable come the summer months? Why not invest in your guest’s comfort and provide an all seasons duvet? This option consists of two duvets, one a 4.5 tog and the other a 9 tog, which can easily be attached for extra warmth, or used separately to provide a cooler duvet, giving you three tog options to guarantee your guests have a comfortable sleep.

NEW LOOK FOR A NEW SEASON $Q HDV\ DQG DÎ?RUGDEOH ZD\ WR FRPSOHWHO\ transform your rooms is by adding some soft furnishings to your guest rooms. Cushions, for instance, are a lovely way to add a touch of luxury to your dĂŠcor, while allowing you to showcase your own sense of style. You could coordinate your cushions on the guest bed with a matching runner to add a pop of colour – tying into the summery season fast approaching – while incorporating textured or patterned FXVKLRQV LQWR \RXU GÂŤFRU LV DQ HÎ?HFWLYH ZD\ WR bring a sense of homely feel to your rooms.

To match a cosy, farmhouse dĂŠcor, use check patterned cushions in neutral tones. For a more modern look, use bright cushions with geometric patterns or print.

IS IT TIME FOR A NEW TOG? With spring in full swing, warmer climes are due to follow (or so we hope – it’s impossible to judge with our unpredictable British weather!) and with this warmer weather comes the question: is it time to swap your duvet for someLuxury Bed & Breakfast - 35 - April 2018

Combine your all seasons duvet with some crisp, fresh, luxury bedding and a comfy mattress to give your guests a restful sleep. Don’t forget to tick all the boxes in the bed, bedding and duvet department as this is one of the most important aspects of your guest’s stay.

REFRESH YOUR REFRESHMENTS It’s that time of year again when you should give your complimentary treats a bit of R & R – that is, replenishment and refreshment, of course!

With spring comes new beginnings and fresh starts, so naturally it is the perfect time to try VRPHWKLQJ QHZ &RPSOLPHQWDU\ WHD DQG FRÎ?HH

- In Depth / Personal touch are always going to be an essential for your room trays – so don’t forget to stock up! However you could also give your guests the choice of a cold drink too. More often than not, children or those that don’t like hot drinks will only have the option of water in their rooms. Squash Stix, available in blackcurrant & apple or orange, can simply be added to 200ml of water for a perfect cold-drink alternative. Spring is also the perfect time to try a new toiletry collection, something fruity and fun, so why not try adding something QHZ WR \RXU EDWKURRPV" 2XU %H 'LÎ?HUHQW toiletry range is bright and vibrant, a perfect collection for the young and young at heart.

Each change or update you make is solely a consideration for your guest’s experience and this will allow you to stand out from the competition. Swapping a thick duvet for something cooler to keep your guests from getting too hot in the night, trying out a new look with some soft furnishings and adding some new refreshments and toiletries are just some of the ways you can give your B&B a refreshed look and feel, just in time for the new season. www.outofeden.co.uk | T: 01768 372 939 | E: sales@outofeden.co.uk

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Luxury Bed & Breakfast - 36 - April 2018

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Contact helen.richmond@jld-media.co.uk

- In Depth / Accountacy -

Luxury Bed & Breakfast - 38 -April 2018

- In Depth / Accountacy -

Steering clear of failure

What best practices should B&B owners adhere to in order to prevent financial problems in the accounts arena from snowballing?

Bill Lumley reports.

I

t’s not straightforward to prevent financial problems getting out of control, but the best way to avoid them is quite straightforward, according to chartered accountancy firm Inn Control’s managing partner David Foster. “At the outset it is important to understand that while setting up a luxury bed & breakfast might be a lifestyle choice, it’s also a business,� he says.

In many cases people who are moving into the B&B sector have just been made redundant, and they are therefore essentially paying good money for a job. “Essentially if you don’t get a business right, it is akin to slavery, in the sense that you do an awful lot of work for very little return,â€? he tells Luxury Bed & Breakfast magazine. ČŠ1RERG\ ZRXOG WDNH D MRE ZLWK WKDW SURČ´OH VR why would they put themselves in the position where they are essentially running their RZQ EXVLQHVV ZLWK WKDW SURČ´OH"Č‹ KH DVNV The first way to prevent that situation arising is planning. "If you are about to buy a luxury B&B, or indeed any business, you have to understand at the outset what the outcome is going to be. You must look at a range of outcomes in terms of income and expenditure, so that you can plan before you get into something just what the out-

come is likely to be, and therefore whether you actually want to do it.�

With B&Bs, he says, a significant number of people have a romantic idea of running such a business. “They have dreamed of doing it for a long time – the easy life, getting people up and having the rest of the day to yourself,� he says. “That’s fine, just so long as the business of doing it works alongside, because if it doesn’t then it makes something you have always dreamed of doing frankly unsustainable.�

BUDGET FORECAST Foster’s strongest piece of advice to anyone considering entering the B&B market, or indeed for existing B&B owners diversifying within the market with a second property, is for them to produce a budget forecast. “If they haven’t already got one, they should get a forecast of where the business is going to be going forward. Don’t just do a best-case scenario. Produce a worst-case scenario too, so you know what you would need to try to do," he says.

Linked to the financial plan, you must have an action plan outlining all the things that you are going to do, he says. You need to market the hospitality business, you need to do research of the market in which Luxury Bed & Breakfast - 39 - April 2018

you propose to operate, the location and so forth. Even if you have a successful track record, any business needs a track to run on. You need to look forward for the next 12 months. Have a look at the market: is it LQFUHDVLQJO\ FRPSHWLWLYH" $UH SHRSOH WDNLQJ more overseas holidays, for example. Once you have got a budget for the coming year then when you embark on the work itself, record it properly,� he stresses.

There is a great clichĂŠ that what you can measure, you can manage. Foster says: “You must measure what you do when you embark on running a bed & breakfast. In

- In Depth / Accountacy -

my view every business, in hospitality or elsewhere, should produce management accounts. They ought to be able to produce these pretty much at the press of a button, in order to understand the profitability of their business, and to understand what the solvency of their business is.

They must also have a target in their head of what they are aiming for: what do they ZDQW WR PDNH"ȋ Crucially they must allow for the inevitability of paying tax, working out how much to set aside and putting it away so it is not a surprise. “You are going to pay tax at the end of the financial year, so plan for it,” he says. “Have a chat with your accountant and find out what it is likely to be and put it away, because it wouldn’t be the first time that paying a tax bill has finished a business off, not having been allowed for.”

Experienced insolvency practitioners will always say the reason for the failure of any business is down to bad management.

Simply learning the ins and outs and skills of the kind of business practices a B&B owner needs to understand under the hospitality umbrella alone is not sufficient: for many this will be their first foray into business management. However, many B&B owners are unlikely to have mastered the art of business forecasting.

Forster presents a tip by which this can easily be remedied. “If they go online and put 'pro forma financial forecast' into virtually any search engine it will bring up no end of small business pages, with lots of tips and hints for doing forecasts.”

RIVER OF DESTINY He stresses that it is not just bad manageLuxury Bed & Breakfast - 40 -April 2018

ment that leads to businesses folding, but also bad planning. “Most people do not consider where they want to end up, and they will end up wherever this river of destiny takes them. Above whatever else I say to anyone wanting to start up in business, it is important to think about where they want to be, and then cut to the present day and work through it.

“We see lots of instances – both in the licensed trade and in general practice businesses – where, irrespective of the mistakes they make, some of the businesses that go bust are simply bad businesses. Some haven’t been managed property, some should never have been started in the first place. Sometimes you meet people, look at the business model and take a view that it really won’t last.

They may have been made redundant, put

- In Depth / Accountacy -

a whole load of money into opening the new business, only for it to disappear.”

Foster contends that the two key mistakes new businesses make that lead to their collapse are not listening, and not taking advice. “We could put our clients into two broad camps: we have the responsibility-takers that engage with us, that send us information when we ask for it. They get good and timely advice and they have the wisdom to ask questions.

“Then we have the other camp, who are the blamers, for whom any negative financial situation is always someone else’s fault.

They don’t take responsibility, and if we ask them a question they don’t come back to us,” he says.

Ultimately taking responsibility involves communicating with your financial advisor.

“Their job is to be there to help not to hinder,” he says. “A B&B owner should make sure at the outset of the relationship that they have some ground rules. For example, we fix our fees in real terms, so within an agreement that we have at the outset

clients understand exactly what they are buying; they are paying for certainty, in the same way that you go to a supermarket checkout having taken something off the shelf with the price on it you know how much it is going to set you back.”

The technolgy in the 21st century helps, he says. “If you get a good accountant they ought to fix their fees and offer good, up-to-date solutions. We work with a lot of clients now who engage with software on the cloud so they can keep their own books, or we can keep the books for them, and we can have a conversation looking at the same information on the cloud. If they have a problem or if they flag something up, they can have a conversation that will take five minutes, nice and efficient, and off we go.”

He concludes: “The modern way of engaging with professionals such as accountants can be very straightforward. They needn’t cost a fortune. Take advice, act on that advice, don’t waste your advisor’s time and they won’t waste yours.”

"Taking responsibility invloves communicating with your ÚfYf[aYd Y\nakgj

<Yna\ >gkl]j$ Aff ;gfljgd k managing partner.

Luxury Bed & Breakfast - 41 - April 2018

- In Depth / Insurance -

Lateral thinking

One of the risks faced by B&B owners is denial of access or the inability of customers to get to your establishment owing to flooding, snow drifts, or road or airport closures.

T

he actual impact of a bad weather on D % %Č&#x2021;V WXUQRYHU FDQ EH VLJQLČ´FDQW even if there is no physical damage caused by the related weather event LWVHOI <RX PD\ Č´QG \RXU EXVLQHVV FXW RÎ? ZLWK QR JXHVWV IRU D FRXSOH RI ZHHNV \HW EH XQDEOH to claim against that.

Any half-decent package insurance policy ZRXOG FRYHU \RX IRU VWRUP GDPDJH FODLPV EXW WKHUH LV OLNHO\ WR EH TXLWH D VLJQLČ´FDQW H[cess â&#x20AC;&#x201C; the portion of the claim that you have to bear yourself â&#x20AC;&#x201C; as it is simply not possible WR EX\ LQVXUDQFH FRYHU DJDLQVW VWRUP RU ČľRRG GDPDJH ZLWKRXW DQ H[FHVV +RZHYHU LW LV SRVVLEOH WR EX\ H[FHVV UHFRYHU\ LQVXUDQFH DFFRUGLQJ WR LQVXUDQFH FRQVXOWDQW DQG IRUPHU FKLHI H[HFXWLYH RI WKH British Insurance Brokersâ&#x20AC;&#x2122; Association Mike :LOOLDPV Č&#x160;Î&#x2013;I \RX KDYH DQ H[FHVV RI e IRU a premium of a fraction of that you can buy LQVXUDQFH WKDW ZLOO FRYHU WKH H[FHVV ZKLFK LV something worthwhile if you would rather pay SHUKDSV e WR DYRLG KDYLQJ WR VKHOO RXW WKH IXOO H[FHVV OHYHO HYHU\ WLPH WKHUH LV D PDMRU VWRUP Č&#x2039; KH WHOOV Luxury Bed & Breakfast.

You can also potentially negotiate a discount on the policy with the insurer if you YROXQWHHU WR KDYH D KLJKHU H[FHVV KH VD\V â&#x20AC;&#x153;Usually the discount youâ&#x20AC;&#x2122;d get is higher than the sum you would pay for the standalone H[FHVV UHFRYHU\ SROLF\ Č&#x2039; In reality there arenâ&#x20AC;&#x2122;t that many insurance EURNHUV ZKR ZRXOG RÎ?HU WKLV NLQG RI FRYHU DQG WKH SODFH WR ORRN IRU VXFK D RQH RÎ? SROLF\ ZRXOG EH /OR\GČ&#x2021;V RI /RQGRQ VD\V :LOOLDPV Č&#x160;7KH HÎ?HFW RQ \RXU WXUQRYHU DQG SURČ´W PD\ EH VLJQLČ´FDQW LI JXHVWV DUH XQDEOH WR PDNH their way to your B&B owing to inclement weather. The trouble is that in order to cover WKDW ORVV RI UHYHQXH MXVW DERXW HYHU\ SROLF\ will have a condition stipulating that there has to be a valid claim under the material damage

Bill Lumley looks for a solution.

VHFWLRQ RI WKH SROLF\ Č&#x2039; KH VD\V Î&#x2013;Q RWKHU ZRUGV \RX FDQČ&#x2021;W FODLP IRU ORVV RI SURČ´W IRU D VWRUP unless the storm has damaged your propHUW\ Č&#x201A; EORZQ \RXU URRI RÎ? RU VKXW \RX GRZQ EHFDXVH RI ČľRRGLQJ IRU H[DPSOH â&#x20AC;&#x153;If a neighbouring business goes up in ČľDPHV DQG WKH DXWKRULWLHV VKXW GRZQ WKH URDG UHVXOWLQJ LQ GHQLDO RI DFFHVV WKHQ \RX can cover that on a commercial insurance policy. But in the case of bad weather guests may be unable to turn up because WKH WUDLQV DUHQČ&#x2021;W UXQQLQJ WKH URDGV EORFNHG RU DLUSRUWV DUH FORVHG Č&#x2039; KH VD\V There is an opportunity here for an insurance company to see a chance to fill a gap in the market with a specialist one-off policy that would be useful for the hospiWDOLW\ LQGXVWU\ KH VD\V Č&#x160;7KHUH KDYH EHHQ any number of hospitality owners bemoanLQJ WKHLU IDWH RQ 79 RYHU WKH SDVW ZHHNV complaining they have had no customers IRU D IRUWQLJKW Č&#x2039; Bear in mind it is your responsibility under any insurance policy conditions to

Luxury Bed & Breakfast - 42 - April 2018

minimize the loss. If as happened with the Beast from the East in February there was ample warning and you knew it was likely VRPHWKLQJ ZDV JRLQJ WR KDSSHQ LI \RX GRQČ&#x2021;W take steps to try to prevent or minimise damage or loss it is always possible that your insurance company may turn down a claim because they do not cover inevitable loss or damage; it is therefore important you- do what you can to protect yourself. Î&#x2013;I \RX WKLQN WKHUH LV JRLQJ WR EH D ČľRRG IRU H[DPSOH JHW VRPH VDQGEDJV And bear in mind an insurance policy is not a maintenance contract. If roofs collapse because they have been there for donkeyâ&#x20AC;&#x2122;s years and wear and tear made the FROODSVH LQ HYLWDEOH WKH LQVXUDQFH FRPSDQ\ isnâ&#x20AC;&#x2122;t going to pay for that. Good advice is that you should always act as if you didnâ&#x20AC;&#x2122;t have insurance. $V UHJDUGV QHJRWLDWLQJ DQ H[FHVV GHDO RU ORVV RI HDUQLQJV SROLF\ VSHDN WR \RXU EURNHU and ask him these questions. And if you get DQ\ZKHUH SOHDVH OHW PH NQRZ

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Luxury Bed & Breakfast - 36 - March 2018