Bed & Breakfasts in Italy: The case of the Emilia-Romagna Region
Alma Mater Studiorum
Università di Bologna
School of Economics Management and Statistics
Second Cycle Degree Programme in Tourism Economics and Management
Relatore: Manuela Presutti
Anno Accademico: 2015/2016
3.1 - Executive Summary
This business plan has been developed to analyze the environment in which the Bed & Breakfast “Villa Teresa” would operate. The B&B is a start-up business that sets its foundation on a 250 m2 house in the countryside of Ravenna (Emilia- Romagna). The house will be converted in an accommodation facility, maintaining its main structure while modifying just a few details on the inside (such as the decoration) and adding a swimming pool in the back part of the garden.
The owner of the house is Barbara Moretti - my mother - and I would be the “general manager”. We lived together in that house for 13 years before moving to the center of Forlì (she moved back there a couple of years ago), therefore we will run the B&B with love, passion and, of course, innovative spirit. The idea to start hosting basically comes from a desire of sharing and making people appreciate the “Romagna culture” while connecting with cultures from all over the world. Moreover, the B&B sector is currently expanding in Italy and the picturesque countryside of Ravenna is almost certainly the perfect place to develop our idea, offering a wide range of amusements. Moreover, forecasts report positive trends of demand for the area in the coming years.
Besides the perfect position, the B&B can take advantage of this market opportunity due to the field expertise of its founders and the distinct benefits of its offer. We mainly target the countryside lovers, but the wide choice of services offered in the surroundings makes it possible for any type of guests to enjoy the stay at Villa Teresa. Hence, the Bed & Breakfast Villa Teresa plans to take advantage of the opportunities for market development and penetration that its principals are confident exist. Based on the financial projections that we prepared, it is estimated that around €20.000 of equity investment is required to begin the company’s operations and it will be entirely financed with principals’ assets. Forecasts show that the business will be producing a positive net profit – even if very low - since the first year of operations.