Do you want to optimize the management of your guest house? Or maybe you are wondering if this type of accommodation is right for you? In this handy article we have collected 5 tips from our experts for optimal management of your guest house. Read our tips, simplify your daily activities and increase your guest house’s earnings.
What is a guest house?
If you are still unfamiliar with the different types of short rentals, you might be wondering: what is a guest house? And how does this type of accommodation differ from a vacation home, a B&B, a hotel, or even a hostel?
Guest houses have slightly different official definitions depending on where they are located. In some parts of the world, they are hotel-like facilities. In others, they are private homes converted into lodging facilities.Guest houses can accommodate several guests, each of whom has a private room. Sometimes, but not always, even a private bathroom. The owner lives on the same property, in rooms that are not usually open to guests.
Difference between guest houses, hotels, hostels and bed and breakfasts
Clearly, guest houses, hotels, hostels, and B&Bs are all accommodations with multiple rooms that make services available to their guests. However, these accommodations are different in many ways:
- Capacity: while traditional hotels and hostels can accommodate many travelers, bed and breakfasts and guest houses have only a few rooms available for guests. In addition, hotels have private rooms with bathrooms. B&Bs and guest houses, being small establishments, do not always have en-suite bathrooms. Hostels offer different options: private rooms, en-suite bathrooms, as well as shared dormitories and shared bathrooms.
- Management: hotels and hostels are entrepreneurial businesses with several employees in charge of various services. Bed and breakfasts and guest houses are often family-run businesses. The owners live in the same building and take care of all activities with the help of family members or some employees.
- Location: hotels and hostels are usually more prevalent in large cities, while B&Bs and guest houses are often found in close contact with nature, in the countryside or at least in less frequented areas.
- Services: hotels offer a range of extra services, from daily room cleaning to breakfast, gym, swimming pool, cab service, and more. Hostels are cheaper and offer only basic services to their guests, a fully equipped kitchen and common areas. B&Bs, clearly, always offer breakfast. Guest houses may offer meals, such as a local dinner cooked by the guest for a small extra charge. Depending on regional regulations, they may also offer other additional services.
- Price: a room in a hotel has a higher cost because of the services and level of care offered. In second place are B&Bs, which offer a more familiar and intimate version of a hotel. Guest houses are usually inexpensive, as the level of privacy is lower than the first two options. Finally, hostels are usually the least expensive option, especially if the guest chooses a bed in a dormitory with a shared bathroom.
- Interaction: hotel guests, like B&B guests, tend not to mingle with each other. Hostels, on the other hand, are the perfect place for young people to meet other travelers and chat. In a guest house, guests have the opportunity to interact with both other guests and the owner of the property. In this way, they can have an authentic experience.
Why travellers choose guest houses
Many travelers like to stay in a guest house for two main reasons:
- They have the opportunity to live closely with the locals.
- The price per night is low
How to successfully manage your guest house
Now that we have gathered all the basic information, let’s see how you can optimize the management of your guest house.
1. Update your listings on booking sites
As several studies, such as Booking.com’s Travel Trends 2024, show, travelers are increasingly looking for experiences away from mass tourism. They want to connect with locals and, if possible, support local businesses. This is great news for guest house operators!
In your listings on online booking platforms, highlight the authentic experiences guests can have at your guest house. Imagine travelers comparing different properties on a booking site, such as Airbnb. They discover your property, see cozy photos, and read about the activities available: local cuisine, local crafts, guided walk, etc. By offering a one-of-a-kind experience, you have a better chance of standing out from the competition and attracting bookings.
Also remember to tailor the description and photos of your listing to the season: if it’s winter, don’t promise activities that are only available in summer!
2. Use a dynamic pricing tool
Dynamic pricing and revenue management tools help you set the best price for each night based on a number of factors. Seasonality, competition, events are all factors that can influence demand for your guest house.
With a dynamic pricing tool, you can adjust your prices accordingly and ensure that your facility always remains competitive. Without asking too much or too little of your guests, you can optimize your revenue in both high and low seasons.
3. Create a direct booking website
Many short-term rental hosts underestimate the potential of a direct booking website. This is because most travelers will discover your guest house on one of the major booking sites and not on your site.
So why is it worth creating a website for your guest house? Unlike other accommodations, as the host of a guest house you will have a way to interact directly with your guests, perhaps have dinner together and a chat. Simply put, you will be able to establish a friendly relationship. If they enjoy their stay experience, they will then be more likely to recommend you to friends and family. They may even decide to book your facility again, thus becoming repeat guests!
Therefore, be sure to create a website for your short-term rental business. By not having to pay commission fees, your guests will be able to book your guest house at a cheaper rate and you will earn more money. A win-win situation for everyone!
Social media such as Instagram, Facebook and TikTok can be the trump card for your guest house success.
Create posts and short videos (reels) on:
- Your guest house: history, architecture, details, news and renovations.
- The area: attractions, cuisine, customs, fairs, festivals and other local events.
- The locals: introduce yourself and the people who work around your guest house.
- The activities: highlight local businesses available, services offered, businesses you partner with, and sustainable projects you support.
Remember that social networks are a great tool for increasing your online visibility, but they require time, patience and perseverance in most cases. With luck, however, you only need one post to go viral to reach millions of potential guests in one fell swoop.
5. Use guest house management software
Guest house management software allows you to promote your rooms on multiple booking portals without the risk of overbooking. By using a channel manager that synchronizes your reservations across Booking.com, Airbnb and other platforms, you can reach a wider audience while reducing manual operations.
Smoobu: manage your guest house successfully
These 5 useful tips can help you attract more guests and optimize the occupancy rate of your guest house. But in order to run your business successfully, it is important that you choose the right management software.
Smoobu is a complete solution for guest house owners. In addition to channel manager and automatic synchronization of calendars across online platforms, its features designed specifically for hosts like you will allow you to:
- Optimize your booking management thanks to the centralized calendar.
- Increase your online presence while avoiding the risk of overbooking.
- Automate communication with guests with message templates and time triggers.
- Increase satisfaction and positive reviews with accurate and timely messaging and our dynamic guest guide.
- Create your own direct booking website with integrated booking engine.
- Reduce manual work and dedicate yourself to what matters most: your relationship with your guests.
Test Smoobu for free for 14 days and see how it can help you successfully manage your guest house.
