The Bed & Breakfast (B&B) Industry established itself in the U.S. during the 1960s. Today, there are over 20,000 B&B’s currently in operation across the country (Buchanan and Espeseth 1). The two main B&B’s defined by the Bed and Breakfast Association are B&B Homestays and B&B Inns. A B&B Homestay is a private, owner-occupied dwelling where B&B traffic is incidental to the use of the building as a private residence. A B&B Inn represents a commercially licensed business operation, in a building that is primarily for guest accommodations even if the owner resides there.
In the B&B Industry in Michigan and Indian, the Bed and Breakfast Association of Southern Michigan and Northern Indiana is responsible for promoting its 100 member B&B’s, each of who pay $200.00 annually for membership. The annual advertising budget for promoting tourism for the B&B’s in the region is $20,000. Advertising is a business expense just as much as the cost of labor, so the decision was made to use the percentage-of-sales advertising budget method to relate the advertising budget to the quantity of goods sold. As one B&B industry analyst notes, “The percentage-of-sales method avoids some of the problems that result from using profits as a base. If profits are low, it might not be the fault of sales or advertising. But if you stick with the same percentage figure, you will automatically reduce your allotment” (Plan 1).
For a marketing plan to offer the most success, the key to marketing is understanding the business and the types of consumers who wish to use it. Market segments for the B&B industry include travelers for business and/or pleasure, special occasions or events, friends or family visits, specialty markets (foreigners, instructors), and weekday/weekend business. Knowing the consumers is just as important as knowing how your B&B stands
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