Business in the European Union

SWOTS Analysis Bed and Breakfast/ Airbnb

By: Alexandra Jernigan

Professor Marco Spiezia

28, July 2017

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Table of Contents

Introduction…………………………………………………………... Page 3

SWOTS Analysis……………………………………………………...Page 4

Strength………………………………………………………………. Page 4

Weaknesses…………………………………………………………...Page 5

Opportunity……………………………………………………….......Page 7

Threat…………………………………………………........................Page 9

Sustainability…………………………………………………………Page 13

International difference…………………………………….……….Page 16

Bed and Breakfast around the world…………………………......Page 18

Conclusion………………………………………………….………....Page 19

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INTRODUCTION

Bed and Breakfasts which are commonly known as B&B’s are internationally

known as a small lodging establishment that offers overnight accommodations and

breakfast. Bed and Breakfasts are often private family homes and typically have around

five to twelve rooms, depending on the size and location of the lodging. These types of

lodges normally have a host that supplies for the needs of the guest while they are

staying there. The significant growth of bed and breakfast establishments has been

called one of the most “influential innovations in the style of U. S. travel since the motel

boom of World War II” (1). Today, it's known for its upkeep in private stays and easy

access for traveling, but it’s come a long way. After the Post war economy during the

years 1945-1960, many Americans feared that at the end of world war II the drop in

military spending would bring back the hard times of the great depression, also known

as what brought a severe economic slump in North America, Europe and other

industrialized territories, which started in 1920 and lasted until around 1935. (2) While

WWII had severely hindered the US housing market, the travelling and tourism industry

still managed to pull through. The economic boom of the 70’s and the gradual advent of

globalization went hand in hand with the development of leisure travelling, and whilst

the hotel industry boomed, the “smaller players” also gradually found their place. Whilst

B&B’s in general were not regarded as a main competitor of the hotel industry, with the

advent of Internet from the 90’s onwards things began to change. Finding lodging got

easier, setting up a B&B remained a fairly easy task and a quick way to increase one’s

family revenue, and tourists looking for a more “home like experience” began rising and

consequently so did this niche trend in the hospitality sector. These days, platforms

such as Trip Advisor or Airbnb are changing the way tourism shifts at an incredibly fast

rate. The purpose and the essence of a B&B are even being re-invented as this tourism

sector finds new forms. In order to be able to grasp the variety of changes happening,

this paper will apply a SWOTS analysis to the B&B sector. To offer guests an

unforgettable experience, people around the world have created a place where travelers

can come and go as they please while still having the feeling that they are at home.

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SWOTS ANALYSIS

This research will demonstrate the significance that B&B’s have to the economy

as well as developing a SWOTS analysis to establish the strengths, weaknesses,

opportunity, threats, and relationship with sustainability, a much talked about trend of

the past two decades. The geographical focus will be global with an outlook on Italy and

the Campania region.

“A SWOT analysis is a planning tool that is used to understand the strengths,

weaknesses, opportunities, threats and sustainability involved within a company. It

creates a better understanding to the objective of the business or project and identifying

the internal and external factors that are either supportive or unfavorable to achieving

the objectives. SWOT analysis is often used as a part of a strategic planning process”.

(3) For the purpose of this study, the analysis is being implemented on the B&B sector.

STRENGTHS

The first aspect to the SWOT analysis are the strengths which are also seen as

clear advantages in this sector as well as selling points that attract customers over

competing sectors; some of these are:

- Personal Touch: B&B’s are known to have a personal touch in every room,

allowing the guests to feel welcomed and feel like they are at home when

they are staying miles away. The rooms are clean and modern.

- Unique high quality establishments: A typical feature of B&B’s is that they

can be located within the walls of graded listed buildings with historical

significance. This is normally something difficult to find in hotels or other

similar types of accommodation. As a result, the customers may be attracted

by the history behind a venue.

- Understanding the different needs from customers: Running a B&B

means accommodating to the needs of all the customers and understanding

and addressing their concerns when needed.

- Personalized Service: Staying in a B&B’s gives the opportunity of catering to

the needs of the guest by giving attention to the needs of the guest with

attention to personal service and ensuring the satisfaction of their stay.

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- Peace and Quiet: A Typical B&B’s are often private family homes and that

generally have a host that caters to the needs of each individual, that has a

home feeling, that and creates peace and quiet for those who are traveling

with families or for work/business work-related.

- Breakfast: Very often breakfast is an extra charge in hotels and for hotels

below 4 stars the quality is often extremely bad. Alternatively, a B&B normally

tends to offer a continental breakfast included in the rate, thus making the

offer much more attractive to those not concerned with the typical services or

features of a hotel.

- Location: Location of a bed and breakfast can have a significant influence on

the cash flow that can make or break a business. Having a bed and breakfast

that is easy to find for guests, and offering a peaceful atmosphere will

influence people to visit the B&B. The location could be in a historic place,

close to a shopping center or even close to the city for families to have easy

access to events they want to do while during their stay.

- Wi-Fi: internet access will be discussed in various parts of the paper because

the way it is used can be seen as a strength but also as a weakness or an

opportunity. As a strength, Wi-Fi can work out really well in B&B’s because

fewer people will be using it so an internet connection may be more than

enough. On the contrary, larger competitors often need internal network

systems that can fault often, not work properly and ultimately give the client a

negative experience.

WEAKNESSES

The second aspect to the SWOTS analysis is weaknesses which are seen to be

a clear disadvantage for the industry. This sector demonstrates the internal threats that

results when things are done poorly within the organization. In the Bed & Breakfast

industry, any weaknesses may cancel out benefits for the customer. Some of the

weaknesses may include;

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- Other competitors: There are many competitors to B&B’s such as Airbnb,

hostels, hotels, apartments, and others that are competing for a similar type

of customer. This competition can hurt the B&B’s business in a variety of

ways.

- Limited number of rooms means limited amount of sales: Typically, a

B&B is a small private family home that ranges from having four to eleven

rooms with six being the average. This may not be ideal for families who have

more than three members. B&B’s are known to be more intimate for “couples”

because the arrangement may be a room for two but can mean shared space

of up to six in a bedroom and a bed and breakfast is provided in a shared

dining room for all guest and often the host family at a competitor like Airbnb it

is a rented space that travelers lease for a short-period of time. The space is

often a flat or apartment with several rooms that would accommodate a whole

family.

- Limited growth in the economy: Unlike big hotel chains and other

accommodations, B&B’s are not being supported much by the government or

any financial aid. In contrast, unlike the B & B, hotels or other

accommodations in areas that have rich historical background may qualify for

monies from the government since they are bringing in more tourists.

- Financial constraints: There are many financial issues in the B&B industry

including building up the awareness of a B&B and its reputation, finance costs

such as management cost, fixed costs, variable costs, energy costs,

marketing cost, and labor costs if there is more than one host or additional

employees. For instance, In Sorrento Italy, costs for construction and

renovation of extra rooms are paid for with external funding and seldom with

monies from the government because the government limits money that goes

into a Bed and Breakfast because it is generally a family run business. The

same limitation applies for the US sector of government financial constraints.

(18)

- Customer perception: While some owners may have a good understanding

of the hospitality industry, this understanding is not always extensive and may

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need to be improved on to include knowing what the customer’s subjective

personal reaction and feelings might be when using the services included at a

B&B. Unlike the B&B, hotel chains allow for a joint effort with other hotels to

do field market research. This will allow the sectors to better understand

consumer trends. By comparison, a B&B owner has very limited recourses

outside of his own knowledge or the time he or she can spend searching for

the information on the internet.

- Seasonal Sector- Most of the travelers only come during specific seasons. In

the United States, travel usually coincides with a change in the weather and a

desire to find a place where the weather is different than at home. For

example, in Italy the high season for most tourist to come is in the month of

“May and covers June and July skips August and finishes in September” (18)

Easter is a popular tourist time in Rome because of the events in and around

the Vatican City. (18) In the United States sector most people leave the

States during the months of May-August and December through January, as

well during major holidays.

- Dependent on tourism- Tourism is one of Italy’s fastest growing and most

profitable industry sector with an estimated revenue of “189.1 billion euro”

(19) Along with the United States, they are both large industries that serves

millions of international tourists yearly. In the US it’s estimated revenue in

tourism and travel is 1.6 trillion which was 2.6 percent of its GDP. (20)

However, if a tourist or a traveler cannot afford a vacation it decreases the

probability of success of the sector since it will decrease their business.

OPPORTUNITIES

The third aspect to the SWOTS analysis is opportunities, recognized as an

external factor that B&B’s should look into to help increase their success in the industry.

Some of the opportunities for the industry are stated below.

- Advertising: As bed and breakfasts are shifting their attention to the

business traveler, they are moving their focus of their advertising to a more

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visible Web presence. (17) They are also advertising more around the

community to get the word out there, creating more attractions for families to

do and see to enjoy their stay. This allows for an increase in incomes in the

market. Another way is to support from the actual feedback to create a better

space and environment for their guests, while increasing the tourists that

come and go, as well as connecting with the retired baby boomers. Many

people don’t travel too far for their vacations so the Bed and Breakfast is the

perfect choice for many. Advertising in the local market is a kept to attracting

these local travelers who are staying closer to home to save on gas and other

expenses. Being able to expand the advertising outside of the area will also

increase the occupancy for the Bed and Breakfast. “Marketing has been

described as the process of pointing out the qualities, outcomes, creating and

fulfilling a customer needs and wants for the service” (4)

- Retired baby boomers: More than two-thirds of the retired are deciding to

travel more. Having a plan to market for the baby boomers should focus on

the appealing areas that interest them such as lifestyles, fitness, family

values, hobbies, and expenses. (5)

- Unique experience loyalty: Loyalty has also become a main focus to keep

customers in the industry. Companies will start to offer rewards for frequent

customer programs. Bed and Breakfasts can also make offers to frequent

guests to keep them coming back. All forms of media advertising can be

utilized when promoting these special offers for the Bed and Breakfast.

- Growing market: Staying at a Bed and Breakfast could become a little

cheaper for travelers compared to hotels. Guests receive the same treatment

as at a hotel but the visit is less formal and more “home-like.” When staying at

bed and breakfast you are a part of that family and when you stay there it has

that feeling of being at your comfort of your own home.

- Plant-based meat alternatives: There are a lot of B&B’s and other

associations that have a focus on sustainable living for those who want to

save the planet. For vegan eating movements, recent developments shown in

Italy in plant-based alternatives to meat might have been leveraged to make

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veganism seem much more attractive. This will push the movement. Many

B&B’s have the opportunity with the agriculture and climate to create stays

that incorporate this sector. (19)

- Emerging Economies: It is important to consider the economy of areas that

can be attractive to travelers. In Italy, especially in the Campania region and

Sorrento, the economy is good due to the strong tourist interest. In the United

States, there are also key area which have a strong economy due to the influx

of tourists – the Great Lakes with a variety of water-related attractions,

Southern California and Florida with Disneyland and Disney World, etc.

These sectors help grow the economy by assisting in providing services that

make travel affordable. This would boost the hospitality sector since there will

be increases in travelling and tourism. More B&B’s and others like Airbnb are

appealing to travelers by providing an easier and more affordable way to

travel which increases profits for the sector, and allows the sector to increase

globalization. Having an increase in travelers and tourism creates an increase

in demand on quality of service by the host. Travelers are not traveling to stay

in a cheap place that does not fulfill their needs; they are looking for a B&B

that fits everything they want including good service, breakfast, and

entertainment. Guest satisfaction will lead to longevity and success for the

B&B business.

THREATS

Several aspects of the SWOTS analysis address positive areas for consideration

by the B&B business. The fourth aspect to the SWOTS analysis, however, focuses on

threats which must be considered with the same level of attention as perhaps

sustainability. Some considerations include:

- Great Depression/Housing Crash: When the Great Depression started,

there was a slump in the economy which decreased income making it difficult

to travel very far from home. In order to overcome this outcome of the Great

Depression, small business owners gave up their homes or bedrooms and

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rented them to travelers. As a result, additional travelers were attracted to

these local areas. the great depression was small business owners giving up

there’s homes or bedrooms for rent for those who were traveling and then it

started to attract customers to the local areas. Great Depression not only

caused the crash in the housing market but also created an impact which

resulted in low revenues and profit which lead to not having enough money to

keep the businesses running. Because incomes were low, the cost of the stay

in a home was quite inexpensive.

- Rates: Many people think that Bed & Breakfasts are high priced but satisfied

customers will return and will tell others about their good experiences.

However, with Airbnb, although the price is lower, customer satisfaction may

be lower also due to a lack of expected amenities.

- Competition within other industries: The instability in the economy along

with the number of hotels, Airbnb, hostels, and apartments located in an area

make it hard for the B&B’s to compete and have longevity in the business.

There needs to be ongoing research and comparative study of other Bed and

Breakfasts in the area in order to make good decisions about changes and

improvements. Other issues that people face are sufficient finances, the

distance needed to travel, family size. Traveling to a certain spot also

includes consideration of whether there are fast food chains, restaurants,

shops, and special events around the area to make it more convenient for the

guest’s stay. Of course the B&B’s ability to show such features prior to arrival

is very important in order to be able to keep the head out of water against

larger competitors who may be better informed and show constant up to date

info on the local area.

- Comparison between Airbnb and B&B’s: Airbnb’s offer additional benefits

for hosts and travelers. Hosts can meet people from around the world while

making a little extra money. Travelers can stay in numerous cities around the

world and pay much less compared to regular hotels. What distinguishes

Airbnb from other services is the guarantee of safety for hosts, which is now

$1 millions of insurance coverage per booking. (19) Airbnb has a lot of

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significant strengths which have a strong positive influence on the utilization

of their locations and, at the same time, on minimizing the impact of possible

threats. The traditional B&B in comparison is generally a single family home

or small flat meant for fewer people (2-4) and not all of them have the historic

draw like a remodeled Victorian home. However, in most B&B’s, the home is

not outdated but does have, special touches including warm and friendly

owners who love what they do and the guests they serve. The character of

the inn is a large reflection of the owner’s personality. Nowhere else will you

get the pampering that is available at B&B’s. There are differences between

the Airbnb and the B&B but there are also similarities that may cause a threat

in the B&B industry.

- Laws and regulations: The strict laws and regulations for establishing a Bed

and Breakfast are a type of threat for the business set-up and survival. There

are different regulations and laws that vary between jurisdictions in both

content and extent in the enforcement. The most common regulations that

B&B must follow is safety. In this case they are usually required by local and

national ordinance to have fire resistance a way to escape plan in place and

smoke detectors in each guest rooms to provide the safety that is needed. In

Hawaii it is legal for them to open a new B&B in Oahu as of 1989 the reason

is to force home owners with extra rooms to rent out their extra space to low

income residents that cannot afford (9)

- The introduction to a better alternative: For a B&B, the company has been

selling the attractions to tourist for years without ever making an effort to

interact with their customers and build trust. The introductions of a better

alternative to the B&B is considered a threat, because the portion of the

industry sectors market could switch to the alternative causing a decrease of

customer and revenue.

- More mobile-friendly social networks- The raised use of social media like

Facebook, Snapchat, Twitter, and Instagram by the population has raised the

focus on accessibility of the internet for mobile phones. Snapchat has already

replaced Facebook for social media communication and B&B guests are

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using these social media accounts to share their feedback and to read

reviews from past guests. For snapchat, each country or state has a certain

geo-filter that allows them to enjoy their visit by marking where they are. The

hosts of the B&B’s must have current networking in order to satisfy their

customers. The need to update and stay current for the small B&B owner may

cause a threat to the industry.

- Climate and health: This goes for the environment of the economy, if there

Is a storm bad weather conditions travelers and tourist will not be able to want

to travel which decreases profits for the industry. Also, If Europe is

experiencing unusual weather for their seasons it makes it less attractive to

travelers to want to come to those locations. Luckily for the area of Campania

and in Sorrento the weather is good all year long making it very appealing to

those travelers. In order for B&B’s to thrive and rise above the climate,

environment, and conditions of the economy must stay in good condition.

- Political Threats/Security: If there is an unstable political environment within

a country, travelers will avoid travelling in that areas. For example, Naples,

Italy has an active mafia presence that sometimes becomes actively violent

and may cause safety issues for guests. This would cause a big downfall in

the number of guests and is a threat to the industry

- Impact of 9/11- Among the many industries impacted by 9/11, the travel

industry was probably the most affected. “The subsequent economic

recession further hampered the industry as there was a sharp decline in the

number of people traveling. Interestingly enough, however, PAII reports that

while most B&B’s suffered a 7% decline in occupancy, bed and breakfasts

only saw a decline of 4%. Despite the drop in demand, there was an increase

in the average daily rate paid by guests that had a net result of 2.8% growth

in total revenues”. (21) This continues to be a threat because the thinking of

people has changed due to what happened on 9/11. However, research has

shown that more people are traveling and using accommodations such as

B&B or Airbnb.

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SUSTAINABILITY

The last aspect to the SWOTS analysis is sustainability. Sustainability “is the use

of resources in a way and at a rate that enables the current generation to meet their

needs and desires without compromising the ability of future generations to meet their

own needs and desires”. (8) Sustainability is often connected to those things that are

eco-friendly, but sustainability also has to do with those things that will ensure longevity

of the business: Are there long-term benefits of opening up a bed and breakfast? Is this

industry going to bring in revenue in the next couple years? Is there a link between

sustainability and environmental awareness? Some of the aspects of sustainability

include:

- Time and dedication: Bed and Breakfast owners should take part in an

internet marketing association which provides sharing of the cost of the stay,

room rates and booking, references-FAQs, support, newsletters and more.

Owners would benefit from this software to allow them to see the current

status of how they are doing as a whole and keeping up with the maintenance

to continue to create a more sustainable industry. (10)

- Creating a greenhouse: This gives sustainable advantages to a Bed and

Breakfast allowing the host to provide fresh meals in the morning rather than

going out to the store and getting it from other possibly unreliable sources.

This limits the amount of waste while also contributing to the environment.

While staying at a Bed and Breakfast, the host normally prepares breakfast

which would include a continental breakfast consisting of coffee, tea, or

beverages, butter and jelly, bread and cereal. While Italy is known for their

organic produces and Europe as a whole is known for their fresh fruits and

vegetables Most areas don’t have access to fresh produce. By creating a

greenhouse to produce all the fresh products all around the world will allow

for less waste being distributed into the world and allow for an eco-friendlier

stay The B&B host would not need to purchase as much from the grocery

store which has processed produce and non-eco-friendly storage of the

produce. The guests will be pleased with the inclusion of an eco-friendlier

environment.

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- Creating awareness’s: The three pillars of sustainability are what helps

create a better understanding in considering the future and making decisions

about the present. To many industries, especially in bed and breakfasts these

three pillars help determine how their business will grow and if they have a

chance at keeping it running.

- Three pillars for sustainability: There are three main pillars or aspects for a

business to be sustainable. The first aspect is economic development, which

“proves the most problematic as most people want to disagree on the political

ideology what is not economically sound and how it will affect business and

by extension, jobs, and employability, as well as providing the incentive to

adhere to the sustainability guidelines beyond their legislative

requirements”(11) In order to have strong economic development for the Bed

and Breakfast, the host must focus on guest satisfaction, by giving the guest

what they want without compromising quality of life. The next aspect in the

three pillars is the social development: this is “the awareness of and the

legislation protection of the health of people from pollution and other harmful

activities of business and other organizations” (11) With that the social

development in having a bed and breakfast is developing ideas that could

incorporate things such as fresh zero miles food and produce in order to

minimize waste, support the local community and set a good example to

guests. Lastly, the third pillar for sustainability is environmental protection.

This is also known as “recycling, reducing power consumption by switching

electric devices off rather than using stand by, by walking short journeys

rather than using the bus and more.” (11) To create environment protection

when building a Bed and Breakfast can be easy with a good location. If the

lodging is in the center of the activities, it will allow the guest to be able to

walk wherever they need to go allowing for a safer less polluted environment.

Installation of a shower head that preserves the water, giving the guest smalls

amounts of toiletries in order to save on paper waste, using bedding and bath

towels are made from organic cotton and creating a better way to recycle by

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having separate bins labeled to help organize everything will all aid in

establishing a protected environment for guests.

- Sustainable economic growth: Economic growth can be sustained while

promoting stronger balance of employees, acknowledging the concept of

nature and the certain rights, managing the environment of the consumption

by reducing packing and wastes of food and promoting the use of recyclable

materials. Sustainability will be able to help the Bed and Breakfast industry

and help create a more secure future when dealing with the three pillars of

sustainability.

- Reduce cost increase profits: Typically, a B&B’s deal with the electricity,

power storages but by eliminating energy consumption, water usage, waste

and air emissions through environmental friendly equipment that will allow for

a decrease in bills that will save money all around and leave guests feeling

comfortable.

- Morals and the environment: This is simply showing the community that

B&B cares about the environment by creating safety for the host and guests.

This allows the host to help a good cause and help reduce the inflation of

waste in the community.

- Public Perception: This deal with tourists that are aware of the socio-

economical aspects of their travels. If guests are aware that the B&B is

focused on sustainability, it may increase the number of guests that come and

leave the company more stable.

- Increased Brand awareness and loyalty: B&B’s typically stay strong with

staying loyal with their customers. And with the new generation, customers

are demanding more and it's more than just providing good service; it's about

the overall stay and the accommodations that come with it.

INTERNATIONAL DIFFERENCES

Guest are accommodated in private bedrooms of their choice. Each room

generally includes their own bathroom with the toiletries needed but there are others

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where the bathroom is shared with other guests. Breakfast in the morning Is served in

either a dining room or in the bedroom. Most of the time the host that runs the bed and

breakfast prepares the breakfast and cleans the rooms but a lot of them are starting to

hire staff that prepare everything and wait on the needs of the guests. Most bed and

breakfasts operate as a vacation gateway, but many business people use this option for

a better place to stay while travelling. This leads to a focus on the triple bottom line for

the host. A triple bottom line is “a process by which companies manage their financial,

social, and the environmental risks along with obligations and opportunities” (12). These

are refereed to profits people and planet. Like spoken earlier in the paper the

sustainability in a bed and breakfast is important to keep the planet safe and to help

grow the industry by increasing profits after the great depression and making it an

affordable option for people to plan their travels.

United States

The work environment in the United States is different than in Europe. If a person

gets fired or leaves a job, it is fairly easy to find a new job. In Europe jobs may be

harder to find. A business may be more easily sustained in the US with this type of

workforce. In Italy, France, Germany, Brittan employees are given many rights so it's a

lot harder to get fired. In the United States the idea of opening up homes to travelers

started back to the colonial America. Creating a bed and breakfast allowed for people to

come and go and have an enjoyable stay. This began in the 20th century after the Great

Depression happened.

It's important to know that Bed and Breakfasts match other types of lodging in

terms of cleanliness and comfort, but they are than just a lodging. Bed and Breakfasts

are known to have a home-like atmosphere, a personal feeling that hotels do not offer.

Therefore, the big question lies in how can someone measure sustainability within a bed

and breakfast? How are they different in other countries such as the United States,

Europe, Italy? Bed and Breakfasts are like a hotel with regard to the best way to aid in

sustainability: Conduct a survey to collect reviews by providing them to guests before

they leave. Ask their opinion on their stay. This information will give the host a clear

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picture in order to help change or improve on. Today, in the United States there are

over 17,000 bed and breakfasts and Airbnb in the common areas.

Europe

Similar to the US, Europe Is large with a population of 743.1 million (14), making

Europe alone to have over 13,946 bed and breakfasts and Airbnb in the local areas.

(13) It's very easy for travelers to find the best bed and breakfast that will fit their

lifestyle and family. Since Europe is so large there are many major cities that will assist

people in finding the bed and breakfast that suits their needs. After the recession in

2007-2008 people from America went to Europe to travel and stayed in Airbnb and Bed

and Breakfasts and it struck them to want to build those in America. As a result, bed

and breakfast in Europe are similar to the US in the way they run things as well as with

the Airbnb’s.

Italy/Campania

In Italy, the regional law regulates that Bed and Breakfasts follow the national law

“Legge 29” Marzo 2001 this stated that “each region maintains specific regulations and

must observe the national law of tourism” (15) Regarding the SWOTS analysis with bed

and breakfast in Italy, there are a lot of strengths with the help of tourism and especially

in the area of Sorrento. Sorrento is a town that consists of a total of 5,869,000 residents.

Sorrento is a town that overlooks the Bay of Naples in southern Italy and is a city known

to be popular for tourists because of the main attractions of Pompeii, Mt Vesuvius and

much more. Bed and Breakfasts in Sorrento, Italy usually consist of small flat houses or

single family homes that rent out a small portion of their space to families that would like

to be near everything in Sorrento within the region of Campania. Campania Is a region

of Italy that is very popular and is big on the websites like TripAdvisor. TripAdvisor

allows for travelers to change the way the internet is perceived because of the major

changes and the advantages the website creates for people. Campania is the largest

region that attracts many tourists every year with its agriculture, climate, things to do

and people. Campania stretches along the Tyrrhenian Sea from the Garigliano River to

the Gulf of Policastro. “The mild climate, the beauty of the coasts, the richness of its art

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and history, and the love for food make Campania the fascinating territory that it is. This

region is made even more charming by the flourishing Mediterranean vegetation that

alternates with its small, charming towns that narrate the history and traditions of

Campania and make any stay here unforgettable.” (22) “Sorrento, a town that spreads

over a terrace of tufo, seems to tumble into the sea.” (22) “Throughout this

view paradisiacal panorama, indented and inaccessible coasts weave their colors with

those of small and hidden beaches, creating a unique and enthralling scenery. Here, the

work of man is truly monolithic. The roughest areas are now made up of a series of

terraces sloping down towards the sea, used for the cultivation of citrus, olive trees and

vines. These gardens give off heavy scents of oranges, lemons and orange-blossoms.

Music and entertainment, sun and sea, history and culture. Visiting places like Paestum,

Pompeii, Herculaneum, and Torre Annunziata.” (22)

Bed and Breakfasts around the world

Taking a look at other bed and breakfasts in other countries shows there is a

strong difference between every country. For instance, in Spain, Bed and Breakfasts

are known as the 21st phenomenon. The name of B&B in Spanish is “Habitation con

dereho a cocina” which meant “Room along with use of the kitchen area” (15) In Spain

B&B offers are provided by hotels, hostels, apartments, houses, and inns. They consist

of flat grounds that have 5-7 rooms but are not heavily regulated. For instance, in India

the “Government is promoting the concept of B&B the government is trying to increase

the tourism and keeping in the view of the demands that the hotels have during the

2010 commonwealth games in Delhi. They have classified the bed and breakfast in two

names ‘Gold B&B’ and ‘Silver B&B. All small owned B&B must be approved but the

ministry of tourism who will classify them in the correct category (15)”. In Cuba, they

opened up the market for tourism in the “1990’s after the financial support of the Soviet

Union ended. And the formation of a B&B which is called casa particular in Cuba known

as private homes became the main accommodation for the tourists (15)”. Moreover, in

Cuba various local governments have “regulations and inspect lodging establishments

for health and safety issues, membership in a state/provincial/national bed and

breakfast association can indicate a higher standard in hospitality. Associations

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sometimes review their members' properties and tend to have additional standards of

care (16)”. However, In the US for example, each state has an inn keeping association

that exists to promote the industry and tourism. Within those state associations, many

city and regional bed and breakfast associations can be found. Many state, city and

regional associations have inspection criteria that often exceed government

requirements for safety and cleanliness. The various regulations end up creating many

different type of B&B in the world for bed and breakfast. Developing bed and breakfast

and Airbnb is becoming more and more popular as they are becoming a farther safe

environment for families, easy to travel and leave with no tie downs with the comfort of

feeling like you are at home. Starting a bed and breakfast is a way to create a

sustainable income for your family. The biggest thing in creating this kind of business

start-up is scoping the ins and outs of your competitors by doing research that will help

others understand the high potential. When planning a bed and breakfast, businesses

must create a lodging for guest/travelers, tourist, and visitors to stay in while meeting all

the needs for each guests. In the past, bed and breakfasts were seen as the ideal place

for a get ‘away for business travelers but now bed and breakfast all around the world

are becoming durable and shifting towards a strong profit in income and is still growing

despite the fact that there are many players in the industry. Bed and breakfast relies on

good hospitality and excellent service to keep up with their competitors.

Conclusion

SWOTS analysis often brings together qualitative and quantitative aspects to the

company’s strategy by analyses of the current conditions and probable future ones as

well. It delivers the picture of what’s happening at a specific point in time, but its value is

in providing strategic and long-term perspective on the industry. Therefore, the aim of

this SWOTS analysis was to reveal the competitive advantages while analyzing the

prospects for sale, profitability and product development as to prepare the industry with

any problems and allow for development of a contingency plan. During the Great

Depression tourist homes provided an economic advantage to both the host and the

travelers. “Back when the great depression arose many people stopped at houses that

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had signs reading guest or tourist and the room per night was approximately $2 dollars”

(12). This brought the needed incomes for families that were struggling through those

difficult times. After WWII middle-class American began to travel through Europe in

large numbers experiencing the European-style B&B’s. Post war housing development

spread steadily in the following few decades, until legislation started following the

popularity of the B&B trend. This brought to “two crucial pieces of legislation: the

national historic preservation Act of 1966 and the Tax reform act of 1976 which then

provided tax incentives for the restoration and reuse of the historic structures. Through

the years 1980 and 1990’s B&B increased rapidly by the numbers and evolved from

homestays. Many adopted historic properties. By the 1990’s internet was on the rise

and this gave the insensitive for owners to promote their properties worldwide; it

provides on-line reservations software which made it easier for booking and lodging,

while giving the travelers the opportunity to view detailed photos, videos and reviews of

the property before arrival. There are approximately 17,000 B&B; s in the united states.

B&B are founded in all states in major cities and rural areas and in restored structures

from schools to churches” (12). This research helped demonstrate the significance that

Bed and Breakfasts have to the economy as well as developing a SWOTS analysis to

establish the strengths, weaknesses, opportunity, threat and sustainability through

observation of the sectors of Bed and Breakfasts in the world, Europe, Italy and

specifically in Sorrento and Campania.

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Bibliography

1) https://www.thoughtco.com/the-post-war-us-economy-1945-to-1960-1148153

2) https://en.wikipedia.org/wiki/Great_Depression 3) https://www.mindtools.com/pages/article/newTMC_05.htm 4) https://en.wikipedia.org/wiki/Marketing 5) http://www.miamiherald.com/news/nation-world/national/article85981067.html 6) http://www.bed-breakfast-world.com/ 7) https://www.entrepreneur.com/encyclopedia/competitive-analysis 8) https://en.wikipedia.org/wiki/Sustainability) 9) https://en.wikipedia.org/wiki/Bed_and_breakfast 10) https://bnbowners.com/ 11) http://www.environmentalscience.org/sustainability 12) https://en.wikipedia.org/wiki/Bed_and_breakfast 13) https://www.bedandbreakfast.com/europe.html 14) http://www.worldometers.info/world-population/europe-population/ 15) https://en.wikipedia.org/wiki/Bed_and_breakfast 16) https://www.tripsavvy.com/bed-and-breakfast-rules-regulations-310114 17) http://www.sbdcnet.org/small-business-research-reports/bed-and-breakfasts 18) http://italyexplained.com/tourist-seasons-in-italy-high-low-shoulders/ 19) https://en.wikipedia.org/wiki/Tourism_in_Italy 20) https://en.wikipedia.org/wiki/Tourism_in_the_United_States 21) https://www.theguardian.com/commentisfree/2011/sep/05/9-11-impact-world-al-

qaida 22) https://en.wikipedia.org/wiki/Campania