Companies in this industry provide short-term lodging in private homes or small buildings converted to hotels; full breakfast is included in the room rate. No major companies operate in the industry.
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% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
The major offering of B&Bs is rental of guest rooms (about 80% of revenue): other sources of revenue are gift shop sales, food and beverage sales, and spa services. Some B&Bs also rent their facilities for meetings or events.