Bed and Breakfast Inns

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 2,800 bed and breakfast inns (BNBs) in the US with employees provide short term lodging, often in private homes or small buildings. As the industry’s name suggests, breakfast is included in the room rate. A large number of BNBs have no employees and about 95% are run by owners as a second career. The number of rooms a typical BNB has ranges from four to eleven, with an average of six guest rooms.

Sensitivity to Economic Conditions

Economic downturns and the corresponding decline in travel affect all types of lodging establishments, including BNBs.

Seasonality of Demand

Many BNBs are located in vacation destinations which experience peaks and valleys in tourist traffic.

Industry size & Structure

The typical bed and breakfast (BNB) operates out of a single location, employs 3-4 workers, and generates about $434,000 annually.

    • The actual number of BNBs in the US varies depending on the source. According to US government sources, the BNB industry consists of about 2,800 firms that employ about 9,500 workers and generate about $1 billion annually. However, the Professional Association of Innkeepers International (PAII), estimates 17,000 BNBs in the US. In some states, BNBs under a certain number of rooms do not require licenses. In addition, BNBs which are completely run by the owner (no employees) are not included in the Census count.
    • The BNB industry is extremely fragmented; the top 50 companies account for about 15% of industry revenue.
    • The BNB industry consists almost exclusively of single establishment firms.
    • According to the PAII, about 95% of BNBs are run by owners as a second career.
                              Industry Forecast
                              Bed and Breakfast Inns Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Nov 1, 2022 - Peak Travel Season Stretches into Fall
                              • US travel activity usually peaks in the summer before tapering off in the fall, but travel participation in September remained strong despite higher prices, according to Skift Research’s US Travel Tracker. In 2021, summer travel peaked in July, but US travel participation in September 2022 was 57%, up four percentage points over July. While Americans continue to spend on travel, 68% said they had experienced higher prices, which has affected their travel plans. About a third of those surveyed said they would spend less while traveling, such as cutbacks on food and activities. Nearly 31% chose a less expensive destination.
                              • Just under half of the consumers surveyed in eight countries said they plan to travel this holiday season to make up for time with family they missed last year due to COVID-19 variants, according to the latest Amex Trendex report by American Express Travel. Among consumers in Australia, Canada, India, Japan, Mexico, the UK, and the US, 48% are planning out-of-town trips this holiday season; 52% plan to stay closer to home in the weeks leading up to the holidays. About 58% of survey respondents said they wanted to start or restart the tradition of holiday traveling. For the 2022 holiday season, beaches are the top destination type, with 35% of US consumers, followed by mountains (29%), city centers (27%), local (27%), and desert (10%).
                              • While some consumers may cut back on travel amid inflation, others may plan trips to take advantage of lower airfares in the fall before travel demand picks back up for the holidays. Domestic, round-trip airfares are expected to drop by as much as 38% this fall compared to summer prices, according to travel booking platform Hopper. According to TripAdvisor’s 2022 Fall Travel Trend Index, some of the most popular domestic destinations for trips this autumn will include Las Vegas, New York City, Orlando, Honolulu, Key West, and Nashville.
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