Michigan State University Extension
Tourism Educational Materials - 33420025
06/06/02
The Minnesota Bed and Breakfast Market: A Guest Profile (Research Summaries)
Source: Minnesota
Authors: Koth, Barbara A.; Norman, William C.
ID: CD-FO-3843
Format: Full Text
Year: 1989
"Archived Document: This Extension Bulletin is no longer
available from the publishing state and may contain
outdated information."
Tourism Center
Minnesota Extension Service University of Minnesota
Research Summaries
The Minnesota Bed and Breakfast Market: A Guest Profile
Introduction
The growth of the bed and breakfast (B&B) concept has been
called one of the most significant innovations in the
style of U.S. travel since the post World War II motel
boom (Van Benthuysen 1983). In Minnesota, as elsewhere,
the B&B industry is experiencing a dramatic growth. From
1987 to mid-1989 the number of operations more than
tripled to the present 100 properties now open for
business. This expansion has brought significant changes,
such as the addition of a new clientele base, yet there is
a considerable lack of information about B&B guests.
A market research study of guests who stayed overnight at
Minnesota B&B's was undertaken in the late summer of 1988,
funded by the Minnesota Office of Tourism. The goal was to
collect baseline market data to be used by (1) B&B
establishments in planning marketing strategies and
developing services, (2) B&B associations and tourism
organizations in creating cooperative promotional efforts,
and (3) potential or existing B&B innkeepers in working
with local government in regulatory matters or with
neighborhood residents in building support for a B&B. A
description of study methods appears at the end of this
report.
Description of Guests
The profile of B&B guests confirms widely held impressions
that this is a middle-aged, well-educated, moderately high
income, professional market. On the last reported B&B
trip, couples comprised two thirds of the travel parties.
Eighty-two percent of those sampled are married, and about
half (44 percent) have children living at home. Average
age for a travel party (respondent and spouse/partner ages
are merged) is 40 years, with 60 percent under this age
(Figure 1). This indicates that many B&B guests are at a
mid-point in the traditional family cycle, when raising
children is a primary activity. Newlyweds and "empty
nesters" account for a smaller proportion. In fact, only 9
percent of the market is attributed to adults over 59
years of age.
____________________________________
FIGURE 1. Age of travel party*
20-29: 21%
30-39: 39%
40-49: 21%
50-59: 11%
60-69: 7%
70 and up: 2%
*Respondent and spouse/partner ages are merged.
_______________________________________
Education levels are high, with the largest response
category being completion of a college degree (31
percent). In addition, another one third had some graduate
school or an advanced degree. It follows that the
occupational profile is dominated by professionals and
managers (Table 1). Note that several categories such as
business, health, education, and science are large enough
for B&B's to consider promotion aimed specifically at
these segments.
The higher education levels of the respondents correspond
to higher income levels: 45 percent have gross family
incomes that exceed $50,000 (Figure 2).
Minnesotans comprise the majority of respondents (72
percent). Non-resident use is widely distributed, but
border and regional states provide the most significant
visitation: Wisconsin, 5 percent; Iowa and Illinois, 3
percent each; and Michigan and South Dakota, 2 percent
each. High population states such as California, New York,
and Florida round out the top ten (all under 2 percent).
_____________________________________________
TABLE 1. Most frequently mentioned occupation of travel
party*
_____________________________________________________
Occupation Percent
_____________________________________________________
Business manager, sales consulting,
banking 18.1
Health care delivery (e.g., medical
technician, physical therapist, nursing) 9.9
Professional (e.g., doctor, lawyer, dentist,
professor, architect, C.P.A., pilot) 9.6
Education 8.5
Engineering, science, computers, technology 8.4
Homemaker 7.3
Laborer, craftsman, construction, assembly 7.3
Clerical 5.3
Retired 5.1
______________________________________________________
*Respondent and spouse/partner occupations are combined
_____________________________________________________
FIGURE 2. Household Income
$10,000: 2%
$10,000-$24,999: 15%
$25,000-$49,999: 38%
$50,000-$74,999: 28%
$75,000-$99,999: 11%
$100,000: 6%
____________________________________________________
TABLE 2. Reasons given by respondents for staying at a bed
and breakfast
______________________________________________________
Not or Very or
slightly Somewhat extremely
Reason important important important
______________________________________________________
percent mean*
Personal touch of
B&B 6 14 80 4.08
Charm of building 5 17 78 4.08
A "getaway" 12 17 71 3.92
Nicely decorated
bedrooms 5 26 69 3.85
Alternative to
motel/hotel 10 29 61 3.71
Romance 18 21 61 3.63
A special occasion 21 23 56 3.52
Privacy 17 33 50 3.49
Try B&B experience 17 27 56 3.48
Good value 14 39 47 3.44
A "home away from
home" 26 31 43 3.20
Location to
recreational areas 33 34 33 2.98
Luxury 33 40 27 2.93
To learn about the
local area 35 34 31 2.87
Historic building 37 40 23 2.73
Family togetherness 46 21 33 2.68
To meet interesting
guests 57 26 17 2.31
To mingle with B&B
family 57 26 17 2.31
_____________________________________________________
*Based on the following five point scale: 1 = not
important; 2 = slightly important; 3 = somewhat important;
4 = very important; 5 = extremely important
____________________________
Choosing a B&B
The unique touches that distinguish a B&B are clearly a
primary reason for selecting this lodging option. Words
like "charm," ambience," "quaintness," and "atmosphere"
were often used by respondents to describe this intangible
appeal. Table 2 displays a set of reasons for staying at a
B&B, ordered from most to least important. It is
interesting to note that, while charm of the building and
pleasant decor are primary considerations, the B&B does
not necessarily have to be located in a historic building.
The importance of the "getaway" aspect demonstrates that
B&B's have been well positioned to take advantage of
shorter, more frequent weekend trips preferred by many
two-income families. The lure of B&B's as a more personal
alternative to the standard hotel/motel experience was
reconfirmed by the 10 percent who called this the single
most important reason for staying at a B&B, the most
frequent response to this open-ended question.
At the other extreme, few B&B guests ranked meeting other
guests or spending time with the host family as a major
consideration in their decision to visit. This contrasts
with European-style B&B's, which are often assumed to have
started for these reasons. Many American B&B's have
developed as luxurious retreats, significantly altering
the traditional concept.
When B&B guests arrive, they have very distinct
preferences and expectations (Table 3). Again, in contrast
to the European market, private bathrooms are considered
very desirable, and a full (vs. continental) breakfast
appears to be a major feature of product appeal. Amenities
such as porch/patio, fireplace sitting room, and
sauna/whirlpool score high, illustrating the luxury aspect
of B&B's. Even where the B&B is an attraction in itself,
opportunities for destination activities such as shopping,
dining, and visiting historic and recreation sites are
important. In an age of "charge it" convenience,
acceptance of credit cards should be the industry
standard.
Management rules on smoking, children, and pets are
generally not perceived as overly restrictive by present
guests. However, remember that these guests have already
self-selected B&B's for their unique ambience, and are
most likely to support policies that assure a special
environment. New customers may be different. Remember that
it is these reasons and preferences that are likely to
vary most dramatically among specific market segments-for
example, business travelers, groups, seniors, first-time
B&B visitors-and to be most closely linked to B&B decision
making behavior. The results here are simply an overall
average. In an open-ended question asking for the most
important characteristic influencing selection of a B&B,
the top five responses were location (20 percent),
atmosphere/ ambience/charm (11 percent), private bathrooms
(9 percent), cleanliness (7 percent), and price or good
value (6 percent).
Trip Behavior
Potential guests are most likely to use multiple types of
information in their decision making; Figure 3 lists the
frequency of use of various sources. As with any other
tourism business or community, strong word of mouth from
satisfied customers tops the list. Potential guests then
cross check this information with written material, such
as the individual business brochure, the Office of Tourism
B&B directory, independently produced guidebooks, and
media write-ups. On-site information sources, such as
local business people and road signs, receive few mentions
(4 percent each), suggesting that most travelers have made
their choices prior to leaving home. However, local
contracts and signage may be more useful with certain
markets; for example, business travelers often ask for
lodging recommendations, and signs can help first-time
visitors find the B&B.
________________________________________________
TABLE 3. Characteristics important in the selection of a
bed and breakfast
____________________________________________________
Undesirable Desirable
or very or very
Characteristic undesirable Neutral desirable
____________________________________________________
Percent Mean*
Private bathrooms 1 14 85 4.37
Full breakfast 2 15 83 4.28
Shopping/dining
nearby 2 9 89 4.15
Porch/patio - 16 84 4.12
Fireplace 2 19 80 4.08
Credit cards accepted 1 28 71 3.99
Sitting room/parlor 2 19 79 3.92
Historic sites nearby 1 21 78 3.92
Licensed B&B 1 32 67 3.88
Recreational
opportunities nearby 2 24 75 3.88
Cultural attractions
nearby 2 22 76 3.86
Off-season rates 3 27 70 3.86
Weekday discounts 4 33 63 3.80
Whirlpool/sauna/
jacuzzi 6 34 60 3.79
Historic building 2 36 62 3.77
Small B&B (<5
bedrooms) 1 44 55 3.70
Other meals & snacks 7 47 46 3.44
Social drinking
allowed 15 49 36 3.22
Senior citizen
discount 8 66 26 3.21
Continental breakfast 25 37 38 3.15
Larger B&B (5+
bedrooms) 13 63 24 3.13
Commercial rate 11 73 16 3.03
Group discounts 13 70 17 3.02
Tennis court 18 69 13 2.91
Meeting room 31 63 6 2.64
Children under 12
allowed 47 37 16 2.51
Pets permitted 65 29 6 1.98
Smoking permitted 80 15 5 1.66
____________________________________________________
*Based on the following five-point scale: 1 = very
undesirable; 2 = undesirable; 3 = neutral;
4 = desirable; 5 = very desirable
______________________________________________________
When asked specifically about the, most important
influence in making a decision about their most recent B&B
trip, the response patterns and ranking mirror the
above findings. In addition, other items that received
more than five mentions include conversations with the
innkeeper, location, a gift certificate for a B&B, travel
agent referral, cross-selling by other B&B's, and specific
television advertising.
Average length of the last trip that included a B&B visit
was three nights, although almost half the stays were for
only one night. However, the average time spent at the
last B&B was 1.6 nights, suggesting that a B&B visit often
occurs in conjunction with overnight stays another forms
of accommodations. Total overnight stays by respondents in
the year prior to the study totalled 1,952, whereas only
940 B&B overnights were reported, reconfirming that B&B's
are utilized about half of the trip nights. It is not
known whether these guests would stay at B&B's on other
trip nights if the option were available. Eighty-eight
percent stayed at just one B&B on the trip, and another 10
percent visited two establishments. Short weekend trips
dominate the profile (34 percent of guests stayed on a
Friday night; 47 percent stayed on a Saturday night).
Only 12 percent had been a previous guest at the B&B
visited on the last trip. Half of the respondents drove
100 miles or less from their residence to the B&B.
Pleasure trips account for two thirds of B&B visits
(Figure 4). Business travelers, travel parties
celebrating a special occasion such as a wedding,
honeymoon, or anniversary, and university events that draw
visitors represent target markets that can be tapped to
fill slow periods or broaden a customer base. These
market segments have specific preferences and behaviors
that will be profiled in future publications in this
series.
___________________________________________________
FIGURE 3. Percent using information sources in selecting
B&B
Yellow Pages: 6%
Travel Guide: 9%
Reservation Service: 9%
Local Lure Book: 11%
Chamber of Commerce: 11%
Regional Lure Book: 14%
Magazine Story: 16%
Newspaper Ads: 19%
Newspaper Story: 19%
Magazine Ads: 23%
Other B&B Directory: 28%
MN B&B Directory: 37%
B&B Brochure: 44%
Family/Friends: 46%
___________________________________________________
FIGURE 4. Primary purpose of trip during most recent B&B
stay
Pleasure: 67%
Visit friends & family: 11%
Special occasion: 9%
Business: 8%
Medical: 2%
Other: 4%
____________________________________________________
FIGURE 5. Relation of B&B stay to trip purpose
B&B only trip purpose: 27%
B&B main, but not only purpose: 20%
B&B planned, but not main purpose: 45%
B&B stay not planned: 8%
____________________________________________________
FIGURE 6. When advance reservation was made for most
recent B&B stay
Under 1 week: 17%
1 week to 1 month: 44%
1 month to 3 months: 36%
Over 3 months: 3%
____________________________________________________
Figure 5 illustrates that the B&B experience itself is the
reason for the trip for one quarter of those sampled; that
is, the B&B itself has become the attraction. Conversely,
less than one out of 10 chooses to stay at a bed and
breakfast after leaving home, demonstrating limited
opportunities to capture the "pass-through" market. This
is further confirmed by the vast majority that selected
the B&B before leaving home (87 percent), with far fewer
waiting until the final destination/stopover (8 percent)
or making the decision enroute (4 percent).
Nine out of 10 make a reservation in advance, but of those
who make reservations, only 12 percent use a reservation
service organization (RSO) that books B&B stays for a fee.
Sixty percent reserve a room prior to departure one month
or less in advance, reflecting a fairly short planning
horizon (Figure 6).
Couples predominate in the guest profile, although almost
10 percent are alone (Figure 7). The activities these
individuals participate in most frequently are listed in
Table 4. Since results show that many guests consider
availability of things to see and do a major determinant
in their decision to visit, some of these more popular
activities could be emphasized in promotion. Community
activities like eating out, shopping, walking, and
sightseeing are most common and could be part of a package
deal, and unique opportunities like antique hunting,
attending theater, or availability of bike trails could be
a major lure.
_____________________________________________________
FIGURE 7. Composition of guest party during most recent
B&B stay
Couple: 65%
All family: 11%
All friends: 7%
Friends & family: 3%
Alone: 9%
Other: 4%
___________________________________________________
Customer Satisfaction
Customers were for the most part satisfied with their most
recent B&B experience, with 80 percent giving the
experience an .. excellent" rating and another 17 percent
calling it "good." Over 90 percent would both consider a
return visit and recommend the B&B to friends and family.
When asked to make recommendations for improving services,
over half say they "wouldn't change a thing." Table 5
offers a list of suggestions that may improve the B&B
product; B&B operators can evaluate their potential,
keeping in mind the distinctive features of their own
property.
TABLE 4. Activities participated in during respondents'
last Minnesota B&B trip
_________________________________________________
Activity* Percent
_________________________________________________
Dining out 80.3
Shopping 55.5
Walking 49.4
Sightseeing 41.9
Nature observation 31.5
Historical sights 27.0
Antique hunting 24.7
Visiting friends or family 18.3
Hiking 16.1
Museum 13.0
Festivals & special events 10.6
Biking 5.6
Theater 5.0
Canoeing 4.2
Swimming 3.4
Winery tour 3.2
Boating 3.0
Fishing 2.4
Golfing 2.4
______________________________________________
*More than one activity may have been identified.
TABLE 5. Guests' recommendations for improving B&B stay
_________________________________________________
Recommendation* Frequency
_________________________________________________
Private bathroom 27
Air conditioning 18
Lower rates (cheaper) 13
More privacy 12
Full breakfast 10
Improve breakfast (more food,
better tasting) 10
Improve bedroom decor 8
Improve bedding (bed size, linens) 6
Provide information about local area 5
Friendly hosts (more talkative) 4
Make beverages available 4
Improve reservation system 4
___________________________________________________
*Although some respondents gave more than one response,
only the first response is reported here.
Summary
Research findings support preconceptions about who visits
B&B's, but also add new information on service
preferences, trip behavior, and decision making
strategies, to provide a clearer picture of this market.
Overall, middle-aged professional couples dominate the
profile. Half of the guests stay only one night,
emphasizing the importance of the "getaway" aspect that
ranks so high in the appeal of B&B's. However, many others
stay one night at a B&B on a trip that may include
overnight stays with family and friends, or at other types
of accommodation. Quality personal service, and not
necessarily historic buildings, is the common feature that
guests look for. American clientele expect the convenience
of private bathrooms and associate a full breakfast with
the B&B image. In addition to word of mouth, print
material such as directories are very important to
potential guests in making a decision. A majority of B&B
visits are pleasure trips, but data suggest other new
specialized markets. Almost all guests make reservations
prior to leaving home.
Conclusions
There is no such thing as an "average" or "typical" B&B
guest. Rather, the B&B market is composed of various
subgroups, each with different product preferences and
decision making styles, for example, business travelers,
weekend vs. weekday visitors, and those who stay for
special occasions. (These subgroups will be profiled in
future issues of these Tourism Research Summaries.)
Promotion should be designed to reflect these
distinctions. However, the general findings presented in
this report suggest some overall industry direction and
good business strategies for all. The results of a B&B
guest study recently completed in Michigan are remarkably
similar, and many of the recommendations are applicable as
well (Mahoney et al. 1989):
* Many guests have minimal experience with the B&B
concept. Part of the promotion strategy should be to
educate the general public and potential guests as to the
variety of B&B experiences available and the
considerations in selecting a specific establishment.
* Maintenance of high-quality, satisfying B&B experiences
needs to be an industry obsession. Much of the growth in
B&B's can be traced to recommendations and general
enthusiasm for the concept by past guests. A formalized
system of quality control may need to be developed by the
innkeepers themselves.
* B&B operators should take advantage of the effectiveness
of the print media by ad placements in the Minnesota
Office of Tourism Bed and Breakfast/Historic Inn directory
and other guidebooks, and work with travel writers for
story placement.
* Cultivate and encourage good word of mouth through
discounts or complimentary service referrals made by
current guests, and follow-up on contacts with their place
of business (midweek price reductions or corporate
retreats may meet some of their needs).
* Make sure relations with local residents are good, as it
appears many B&B stays occur as part of family visits or
special occasions. Build your reputation as an involved
member of the community who can provide quality personal
service at a fair price.
* B&B's capture only about half of their guests' trip
nights, and the average length of stay is short. Owners
should pay more attention to B&B networking, cross-selling
and other ways of making the B&B option always available
to travelers.
* The description of B&B guests shows them to be a
desirable middle-class market, with little need for
concern about lengthier stays and "rooming houses" in the
neighborhood, as some opposed to B&B's contend. The market
profile, and their economic impact, can be used in
negotiating establishment of a B&B in communities.
These strategies make cooperative efforts absolutely
necessary, through B&B operators affiliated on a regional
basis, statewide industry associations, membership in
community organizations like the Chamber of Commerce, and
links to other travel-related businesses. All involved
organizations will have to decide how best to use the data
to keep the B&B industry competitive in the marketplace,
and how to track changing guest profiles from the baseline
information provided in this report.
References
Koth, Barbara. 1989. A profile of Minnesota's bed and
breakfast industry 1988. Research Summaries. Tourism
Center, University of Minnesota.
Mahoney, E., N. Na, and D. Holecek. 1989. 1988 Michigan
bed and breakfast guest study. East Lansing: Michigan
Travel, Tourism and Recreation Resources Center, Michigan
State University. 61pp.
Van Benthuysen, P. 1983. Bed but not bored. Savvy (Nov.):
100-103
Methodology
The owners of a representative sample of 31 Minnesota
B&B's were asked to provide names and addresses of guests
who visited their property during the previous one year
period. Sample design was based on number of years in
business, number of bedrooms for rent, and location.
Sixteen B&B's cooperated, and, from the lists provided,
819 nationwide guests were randomly selected and mailed a
five page questionnaire. With two follow-up mailings and
prize drawings as an incentive, an 81 percent response
rate was achieved (number of cases = 623). Analysis of the
sampling matrix shows results can be generalized to the
larger industry.
Additional details, original data, and a full report of
the study are available from the authors.
This study was funded by the Minnesota Office of Tourism.
Authors: Barbara A. Koth, Assistant Extension Specialist,
Tourism Development, Minnesota Extension Service; William
C. Norman, Ph.D. candidate, Division of Recreation, Park,
and Leisure Studies
Graphics: Glenn Kreag, Tourism/Recreation Agent, Minnesota
Sea Grant Extension Program, Duluth
Editor: Louise Jones
Tourism Center, 48 McNeal Hall, 1985 Buford Ave.,
University of Minnesota, St. Paul, MN 55108; John Sem,
Director.
Copyright 1989 by Minnesota Extension Service, University
of Minnesota. All rights reserved.
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