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BUDGET TRAVEL

Travel Trends Buoy Bed-And-Breakfasts

B&Bs Doing Better Than Hotels In Down Economy

UPDATED: 9:24 am PDT August 24, 2009

While the economy has the travel industry as a whole struggling, the bed-and-breakfast industry seems to be riding out the storm.

B&Bs have not suffered the same declines in business that standard hotels have, according to a recent study done by the Professional Association of Innkeepers International.

"We believe many of the trends in traveler behavior have moved people in our direction, which accounts for our segment of the lodging industry holding its own in a difficult time," said Jay Karen, president and chief executive officer of the association.

Tough economic times have many people turning to short vacations and long-weekend trips, often driving to their destinations instead of flying. And while business travel remains down, business travelers aren't the main source of guests for B&Bs.

The study shows that the median occupancy rate for B&Bs in 2008 was 44 percent, the same as it was in 2007 and an increase since 2005, when it was just 35 percent. The occupancy rate for the hotel business was 63 percent in 2007 and fell to 60 percent last year as the economy was tanking.

The large difference in occupancy rates between B&Bs and hotels is due to the average bed-and-breakfast caters to leisure travelers and is located in areas with brief high seasons.

The average B&B has just six rooms and has an average daily room rate of $150, considerably more than a typical lodging, according to the study.

The typical B&B provides a long list of amenities that are inclusive of the room rate. The report shows that 93 percent of B&Bs offer free high speed internet access in the common areas and rooms, and that a majority of B&Bs provide luxury bedding and linens, bath robes, premium toiletries, jetted tubs and televisions.

Hotels that depend more on business travelers, especially those at the upper end of the rate scale, have suffered the most in the recession, according to industry officials and analysts.
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