Michigan State University Extension
Tourism Educational Materials - 33420040
06/06/02
A Profile of South Carolina's Bed and Breakfast Industry
Source: Clemson University
Author: Potts, Thomas; Amos, Carole
The following is a summarization of responses to a survey
conducted by The Clemson University Operative Extension
Service, Department of Parks, Recreation and Tourism
Management and The South Carolina Department of Parks,
Recreation and Tourism.
METHODOLOGY:
SURVEY: In May of 1990, a five-page questionnaire was
sent to all 131 bed and breakfasts thought to be in
operation at that time. After two follow-up mailing 41
surveys were received completed, 12 were returned
undelivered for a response rate of 34%. A complete copy
of the survey questionnaire may be obtained by contacting
Dr. Tom Polls, Tourism Specialist, Department of Park,
Recreation and Tourism Management at Clemson University.
WHAT IS A BED AND BREAKFAST?
A Bed and Breakfast (B&B) is generally a owner-occupied
home that provides overnight accommodations and breakfast
to its guests for a set price. Bed and Breakfasts
generally have few bedrooms (1-8), and some may share
baths. They may be located in a metropolitan area on a
farm or plantation or in a small towns, and can be
located in any type of home, not necessarily a historical
one. A Bed and Breakfast enterprise is usually considered
a source of supplemental income for the owner.
An Inn is generally more commercially oriented than a
B&B, and may be in a building other than a residence. As
in a B&B, breakfast is usually included with the cost of
accommodations. The owners may hire professional
innkeepers, often have restaurants that serve meals to
the public, and are usually located in a commercially
zoned area of town. The innkeeper hopes to make a high
return for the investment.
NOTE: The common feature between Bed and Breakfasts and
Inns is personal service, hospitality and amenities.
There remains much discussion as to the number of rooms,
meals served, etc.
CHARACTERISTICS OF SOUTH CAROLINA B&B's.
The greatest concentration of B&B's in South Carolina is
in Charleston, however the growth of the industry in the
state has spread to almost every county. Thirteen new
B&B's opened in 1990, and several more are under
development. They are located in all types of
surroundings. South Carolina has B&B's located in
metropolitan cities, rural areas on the coast, in the
mountains on plantations, lakesides, and in small towns.
Each is uniquely different from the other. The styles of
the houses include: ranch, Spanish, condominiums,
historic Charleston dwellings, carriage houses,
plantation homes and lake cottage's, to name a few. Many
are on the National Register of Historic Places and some
are brand new. There is no "average" B&B locations and
styles of the houses are diverse as well as the
furnishings, amenities and the personalities of the host.
Each one is an individual offering with a different
experience.
Background
While over half of the B&B's in South Carolina existed
prior to 1985, these enterprises are becoming more
popular. For example, 22% of the current operating
businesses began in 1989. Eighty one percent of those
reported are in structures that were previously utilized
for other purposes such as one- family residences. Most
of the current B&B's (81%) also serve as residences for
their owners. These owners have varied reasons for
operating a B&B. When identifying their number one reason
for being in the business, 38% reported financing the
home. Thirty-three percent reported that reason to be the
provision of additional income. Meeting people was
identified as the primary reason for being B&B owner for
19% of the respondents. Only 17% of the respondents are
in the business for primary income. Tax advantages are
the most important for 18%. Surprisingly, in only 17% of
B&B operations is restorations the number one reason for
business.
Twenty-two percent of the responding businesses began
in 1989.
The majority of B&B's (81%) serve as residences for
their owners.
Financing the home is the primary reason for so
business for 38%.
Home/building
There is a great variety in the type of home/building
that is being used to provide B&B amenities to the
tourist. Over 75% are located in historic homes.
Thirty-seven percent of the total reported B&B's are on
the National or State Register of Historic Places and an
additional 10 percent are reported to be in the
application process. Contemporary homes are utilized by
14% of the survey respondents. Almost 5% of the reported
B&B's are in structures that were originally
nonresidential in use. Currently, farmhouses represent a
minority with only 2.4% of the survey returns
representing that category.
Over 75% are located in historic homes.
Farmhouses represent a very small minority.
Amenities
The amenities that are being provided to the guise
through these establishments are quite varied. Over 80%
of the reported facilities have a porch/patio; sitting
rooms/parlors are almost as prevalent at over 78%.
Forty-six percent of the B&B's have fireplaces and 19%
have outdoor cooking facilities. Nearly 15% reported
swimming pools and over 9% provide access to a hot tub,
sauna, or jacuzzi. Tennis courts, fishing and boating
were the next three most prevalent amenities reported as
being provided at approximately 7% for each of these
categories. Less than 3% of the respondent B&B's offer
hiking or beach access. Almost 88% of the reported type
of bathroom facilities were private. Over 27% have
either shared bathroom arrangements or a combination of
shared/private arrangements at their facility. The type
of food service provided was almost evenly split with a
full breakfast representing 44% of the food service, and
a Continental breakfast being offered at 41% of the
B&B's. The cooking facilities were described as a
household kitchen in over 75% of the returned surveys. A
little over 14% of the responding managers indicated that
they provide other food services to the general public.
GRAPHICS DO NOT SCAN SEE ORIGINAL BULLETIN FOR GRAPHICS.
Over 80% of the reported facilities have a porch or
patio.
Sitting rooms/parlors are almost as prevalent at over
78%.
Full breakfast was provided by 44% of the to be the
operations.
Marketing efforts and strategies
This survey revealed several surprise's in the areas of
promotion and advertising. For example 73% of the
respondents indicated that they spent $750 a year or less
for promotion and advertising during the 1989 calendar
year. Even more surprisingly, over 61 reported that they
did not use direct mail and almost 27% reported spending
no money for promotion and advertising. Neither radio nor
television ads were utilized by any of the respondents.
When asked to identify "highly effective" forms of
promotion: 62% indicated brochures, 50% Reservation
Service Organizations (RSO), 37% guidebooks, 24% welcome
centers and 24% direct mail. Approximately 44% of the
owners reported belonging to a RSO and 31% belong to some
other type of professional association. Nearly 71% of the
RSO members report that 75% or more of their guests come
from a RSO. Over 61% of the B&B operators belong to
either the Chamber of Commerce or a regional tourism
group.
Seventy-three percent of the respondents reported that
they spent $750 or less for promotion and advertising.
When asked to identify "highly effective" forms of
promotion: 62% indicated brochures, 50% reservation
Service organizations.
Operations
The majority of B&B's in South Carolina are small
operations. Approximately 75% have five bedrooms or less
and of this group, 45% have 2 bedrooms or less. Over 90%
are open 7 days a week and over 90% reported to be open
during all seasons.
Forty-five percent of the B&B operations have 2
bedrooms or
less
Occupancy
Due to the small sample size and the wide variations in
the responses to seasonality occupancy questions, it is
impossible to determine average rate by season. The
survey revealed a mean range of 16% to 64% occupancy.
Spring and fall seasons appear to be the times of highest
occupancy. Winter and summer seasons appear to be the
lowest. Week day occupancy rates on the average are lower
than weekends. Thirty-three percent indicated that
occupancy increased in 1989. Thirty percent reported a
decrease for this period and approximately 17% felt that
occupancy had remained the same. A little over 17% were
new and unable to comment on 1989.
The survey a mean seasonal range of 16% to 64%
occupancy.
Spring and fall seasons appear to be the times of
highest occupancy.
Rates
Owners/managers were asked to provide low and high room
rates for their establishments. Reported low single room
rates ranged from $20 to $90 with 50% of the respondents
reporting $47 or less. High single rates ranged from $35
to $200 dollars with 50% of the respondents reporting
rates of $55 dollars or less. Reported low double rates
ranged from $30 to $200. High double room rates ranged
from $35 to $200. High rates of $75 dollars or less were
charged by 50% of these B&B's. The majority of the
reporting businesses (68%) did not report a profit on
their 1989 taxes. Forty-six percent of the survey
population reported utilizing outside employment. Over
75% of those B&B's that responded reported that they did
not operate other businesses such as gift shops or
catering out of their B&B's.
Fifty percent of the respondents report $47 or less for
low single rate.
High double room rates of $75 or less were charged by
50% of the B&B's.
Policies
All B&B managers have to determine policies on children,
pets and reservation requirements. This survey revealed
that while most allow children (83%), pets are not
normally allowed (80%). Reservations are required by over
73%. It is not standard practice to require guest to stay
both Friday and Saturday nights on busy weekends; only
19% reported doing so.
Pets are not allowed by 80% of the B&B's.
Reservations are required by over 73%.
Zoning
Zoning and licensing are important considerations when
initially planning a B&B. Seventy-eight percent of the
respondents reported being licensed as a Bed and
Breakfast. Residential zoning was the principal type of
zoning at 68%. Twenty-five percent reported that zoning
changes were required. Slightly more than half (51%)
reported that their communities had a special B&B
ordinance. A little over one third (36%) were not allowed
to place a commercial B&B sign outside their property.
Seventy-eight percent of the respondents reported being
licensed as Bed and Breakfast.
Insurance
There is not a uniform approach to insurance. Half of the
reporting establishments utilize a homeowners policy and
39% have commercial coverage. Forty-one percent carry
$1,000,000 in liability protection and unfortunately 51%
have $500,000 or less in coverage. Only 21% carry
protection to cover the loss of guest property.
Forty-seven percent of the reporting B&B's are paying
less than $1,000 per year in insurance premiums.
Half of the reporting establishments utilize a
homeowners policy.
Five percent have $500,000 or less in coverage.
Conclusions
Bed and Breakfast operations in South Carolina are very
similar to B&B's across the nation. The beginning of our
B&B industry was centered in Charleston and we have seen
a rapid growth in the number of properties opening in the
state recently. There are over a hundred B&B's in
Charleston County. Most of these offer only one or two
rooms. Beaufort County is second in the number of B&B's
with eleven, and Aiken has ten. None of the other
counties have over five. Thirty-three of the forty-six
counties have B&B's.
It is certain that B&B's are here to stay as a well
established integral part of the lodging industry.
Amenities, personal service, and hospitality make B&B's a
desirable alternative for both pleasure and business
travelers. The growth of this industry indicates that at
this time, an association of B&B's would be beneficial to
all. The association could address common issues of the
members and allow them to speak with one voice on issues
of legislation and statewide policies, particularly in
relation to zoning and food service. Joint marketing
through the association could enhance occupancy during
slow periods. The association could also provide an
avenue to lower cost for supplies through joint purchase
agreements. Many associations obtain insurance at reduced
rates. Perhaps most importantly, an association would
provide a forum where ideas could be shared.
SOUTH CAROLINA BED AND BREAKFAST PROPERTIES BY COUNTY
GRAPHICS DO NOT SCAN SEE ORIGINAL BULLETIN.
Authors
Thomas D. Potts Ph.D. Carole Mullis Amos
Extension Specialist Rural Development
Coordinator
Cooperative Extension Service S.C. Dept. of Parks,
Clemson University Recreation & Tourism
Graphics:
Mary G. Shirley
Dept. of Parks, Recreation & Tourism Mgt.
Clemson University
Survey instrument: adapted from previous work by the
Minnesota Extension Service.
The Clemson University Cooperative Extension Service
offers its programs to people of all ages, regardless of
race, color, sex, religion, national origin, or handicap
and is an equal opportunity employer. Clemson University
with U.S. Department of Agriculture, South Carolina
Counties, Extension Services, B.K. Webb, Director,
Clemson, S.C. Issued in Furtherance of Cooperation
Extension Work in Agriculture and Home Economics, Acts of
May 8 and June 30, 1914.
This information is for educational purposes only. References
to commercial products or trade names does not imply
endorsement by MSU Extension or bias against those not
mentioned. This information becomes public property upon
publication and may be printed verbatim with credit to MSU
Extension. Reprinting cannot be used to endorse or advertise
a commercial product or company.
This file was generated from data base TD on 09/30/03.
Data base TD was last revised on 06/06/02.
For more information about this data base or its contents please contact
alexande@msue.msu.edu . Please read our
disclaimer for important
information about using our site.