Bed & Breakfast Inns
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.
The global hospitality market is forecast to reach about $7 trillion in 2026 at a compound annual growth rate (CAGR) of 10.2%, according to the 2022 Hospitality Industry statistics reported by EHL Insights. Hotel occupancy is expected to increase to 63.4% in 2022. The demand for hotel rooms and revenues are expected to reach pre-pandemic levels in 2022.
The US bed and breakfast (B&B) industry includes about 3,000 establishments with a combined annual revenue of about $1 billion.
Competitive Landscape
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 in the US is highly fragmented: the 50 largest companies account for about 15% of revenue.
B&Bs compete for overnight accommodations with other hospitality establishments such as hotels, motels, extended-stay inns, country inns, RV parks, campgrounds, and youth hostels. They may also compete with short-term vacation rentals from private home owners, some of which may be unlicensed. Distinctions between country inns and B&B inns aren't always clear, but typically a country inn has more rooms than a B&B 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 90% of revenue); other sources of revenue are gift shop sales, food and beverage sales, and
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