Having your visitors stay overnight and therefore spend even more money with you seems a natural progression to the hospitality you offer them as day visitors, doesn't it? And, since you have stayed in so many wonderful little chalets, guesthouses and five star hotels throughout your own journeys, you know what customers want, don't you?

The answer to both of these questions is a big 'MAYBE'. Like all business propositions, entering into the accommodation market is not a simple progression, and it does require a whole lot of careful planning, hard work and ongoing marketing to really pay dividends.

The first big question you need to ask yourself is this: "Will I be happy to get up and deliver a teaspoon to a guest at 11.30pm at night, simply because they want one"? That is the level of disruption to your personal life that may occur and you had better be sure it's what you truly desire.

Following are some of the motivations for establishing an accommodation business:

• An inspirational location
• A desire to add to a visitor's experience
• Easily converted buildings
• Lack of existing accommodation in the area
• A chance to supplement your revenues.

There are just about as many reasons not to do it as there are to jump in, so be very alert, do your research to understand the region's visitor behaviour (including spending patterns), create a business plan to evaluate true viability and think carefully about how this will impact on your own lifestyle and your ability to focus on your core business.

The Mantra
First, here is the mantra of the accommodation industry. For a successful business and happy life, you must master:

• Room Rate
• Room Occupancy.

These factors provide the necessary ingredients for your success, measured by:

• Adequate profit
• Sufficient liquidity
• Controlled growth.

Establish a Plan
An Accommodation Business Plan is essential to ensure this - and so is the advice, at key stages, of an accountant. Terms like 'Operating Margin', 'Yield Management', 'Capital Planning' and 'Profit Margin' need to be understood and factored into your plans. Mastering these will help ensure survival and growth.

Other items, where industry and professional advice is required, include:

• Food standards
• Public liability and property insurance
• Fire safety/Risk management
• Building standards
• Operators Code of Conduct
• Agents and tour operators' commissions

So check in to our Reception, settle into that comfy chair, read our menu and make a selection. We hope you enjoy your stay!

In this Section:

• Identify the requirements of your target market
• Gain an understanding of guest requirements
• Establish an effective business and marketing plan
• Conduct an accommodation audit
• Use the revenue calculator to establish financial goals, and
• Learn how other wineries have successfully incorporated accommodation into their business mix.