Companies in this industry provide short-term lodging in private homes or small buildings converted to hotels; full breakfast typically is included in the room rate. No major companies operate in the industry.
The US bed and breakfast (B&B) industry includes about 15,000 establishments (single-location companies or units of multi-location companies), most of which are family-owned and operated. About 3,000 B&Bs have paid employees on staff; those establishments generate combined annual revenue of about $1 billion. Industry-wide revenue is more than $3 billion annually, according to the Professional Association of Innkeepers International.
Demand is driven by personal disposable income. The profitability of individual establishments depends on occupancy rate and operational efficiency. Larger B&Bs may have advantages in providing a range of offerings and prices to suit a variety of traveler budgets. Small establishments can compete effectively by offering superior customer service to target markets. The industry is highly fragmented: the 50 largest companies account for about 15 percent of revenue.
B&Bs compete for overnight accommodations with other hospitality establishments such as hotels, motels, extended-stay inns, country inns, RV parks, and campgrounds. Distinctions between country inns and B&B inns aren't always clear, but typically a country inn has 10 or more rooms and operates a restaurant on premises, while B&Bs average about six rooms and serve only breakfast.
PRODUCTS, OPERATIONS & TECHNOLOGY
The major offering of B&Bs is rental of guest rooms (about 80 percent of revenue): other sources of revenue...