III. Industry Analysis
[Company Name]directly or indirectly competes with all Bed and Breakfasts nearby our Bed and Breakfast locations. Competition will come from inns, motels and hotels.
Industry Statistics & Trends
The Bed and Breakfast industry is expected to grow over the next five years. The resurgence of travel rates since the recession is expected to continue, while travel spending is projected to increase over the next five years as the economy improves. Consumer spending is expected to increase 2.4% per year on average over the next five years. IBISWorld estimates that over the same period, international arrivals will increase at an average rate of 4.4% per year, while domestic travel will increase an average of 1.6% per year. The influx of tourist dollars will likely bolster revenue for bed and breakfasts (B&Bs) and hostels. Over the next five years, revenue is forecast to increase an annualized 1.9% to $4.2 billion.
