B&B Hotel Life Cycle
B&B Hotel Life Cycle
Bed and Breakfasts Hotels were established in Europe many years back. The majority of travelers that frequented B&B’s in the 1800’s were pioneers, miners, 49’ers seeking gold or professionals traveling from one area to another. Most B&B’s offered an accommodation for the night along with a breakfast in the morning which many hungry travelers took advantage of before setting off on the next leg of their journey. As more inns, lodges and hotels were built in the 1900’s, B&B’s were seen as an affordable accommodation for people traveling through small towns or in areas that weren’t heavily developed.
In the later half of the 20th century, B&B’s enjoyed a renaissance in popularity, as many college students and young adults spent time visiting Europe. Most of these travelers spent time in small B&B type of pensions or private residences and came back to the states to either open their own B&B’s or sought them out as affordable accommodation options. They introduced in the U. S. in the mid to late 1960s. It is estimated that there are in excess 30,000 B&Bs at this time — that represents a jump from only 2,000 in the late 1970s.
The concept is now very mature — average number of rooms per property has increase dramatically, occupancy rates are up, and national, state, and regional associations are setting standards. There are even a myriad of newsletters, travel publications and guide books available. Today, B&B’s offer a warm and cozy alternative to the corporate hotel or motel. Most B&B’s pride themselves on being privately owned and operated, as well as offering accommodations in quaint and cozy homes in locations that offer historical, leisure or small town attractions. Current stage
The Bed & Breakfast and Hostel Accommodations industry is in the mature phase of its life cycle The industry, however, is relatively new, having grown significantly since the early- to mid-1980s. Overall, the industry is still evolving and matching the varying (and growing) needs of various segments of the domestic and international tourism market. The industry has developed its own niche in the accommodations industry based on specific market needs and demand. Over the 10 years to 2017, industry value added, which measures an industry’s contribution to GDP, will grow at an annual rate of 1. % per year, compared to GDP growth over the same period of 1. 9%.
The industry is still in a long-term mature phase, despite recent slow growth or contraction due to increased geopolitical tension from terrorist attacks and the declines in travel demand in response to the Great Recession. Over the ten years to 2017, industry value added (IVA), which measures an industry’s contribution to GDP, is expected to grow 1. 4% per year, while GDP is expected to grow 1. 8% per year. The Bed and Breakfast and Hostel Accommodations industry has fought declining demand over the past few years.
With the onset of the recession, all forms of travel accommodation experienced revenue drops as consumers became more concerned about finances and made cutbacks on luxuries, including travel. From 2007 to 2017, domestic trips will increase 1. 1% to 758. 4 million. However, over the same period, international visitor arrivals will rise from 56. 0 million to 86. 2 million, or 4. 4% per year, after a slump from late 2007 to 2009. Overall, however, each of the major industry components displayed an upward trend over this period that was roughly in line with GDP growth.
Future industry growth will increasingly correspond with rising global income, particularly in countries in East Asia and South America and an increasing propensity to travel internationally. Increasing incomes and the aging of the population are also expected to lead to significant growth in the domestic market. On the other hand, within the key industry segments, the Tourism industry will continue to display slow growth due to strong competition from internet-based, direct booking products. Lead time require for products The bed and breakfast (B&B) segment covers a variety of types of establishments and makes 69. % of industry revenue.
Homestay, farm stay or host homes, where guests share rooms and facilities with owners, are included within this segment. There are also home B&Bs, which provide a secondary source of revenue to the owner’s primary income and can be homes with four of five rooms converted to provide B&B services to guests. B&B inns or hotels are usually established as businesses to provide primary financial support for owner/operators. Breakfast is the only meal served to guests and the establishment can provide accommodations for between four and 0 guests. Quite often these are used for small weddings or business meetings. On the other hand, country inns are established as businesses with owners actively involved in its daily operations, and have between six and 30 rooms. They operate as a lodging place and have a restaurant with a liquor license. The accommodations may include lodging, dinner and breakfast included in the room rate. However, compare to other regular hotel, B&B hotel need less activities. It is need a short time to prepare new product, it’s easier for owners to improve it.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 20 September 2016
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