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Bed & Breakfast & Hostel Accommodations in the US - Market Research Report (2014-2029)

Thi Le Thi Le New York, United States Last Updated: October 2024 NAICS 72119

Revenue

$3.0bn

2024

$3.0bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

19,090

Businesses

4,420

Wages

$XXX.Xm

Bed & Breakfast & Hostel Accommodations in the US industry analysis

The bed & breakfast and hostel industry has evolved over the past several years, steadily expanding from budget-focused accommodations to form a vibrant cohort within the broader lodging sector. These establishments offer a one-of-a-kind, intimate hospitality experience, setting them apart from the uniformity and impersonality of larger hotels.
Despite sprawling within the crowded accommodation market, the bed & breakfast and hostel industry's steady, progressive strides have gained attention. These enterprises set themselves apart by tailoring to a niche market, championing affordability, authenticity, and personalized services amidst anonymous hotel clusters. Reaffirming this profitable nonconformity is a robust increase in revenue, which charted an annualized rate of 4.5%, climbing to $3.0 billion through 2024, with an exceptional spike of 3.1% growth in 2024 alone.
The industry has been particularly ravaged by Airbnb-style short-term sublease services. These platforms encapsulated a sizable share of budget accommodation clientele, principally targeting consumers aspiring for a more localized travel experience, which once housed this industry's unique selling proposition. However, optimism crackled for these small stalwarts arising from recent crackdowns on house-sharing services in major metropolitan areas. This unexpected regulatory shift has potentially swung open doors for bed & breakfasts and hostels, redirecting consumers back into their landscape.
The headwinds conjured by the pandemic have not been kind either. They prompted stern challenges and cast cloudy uncertainties for these small-scale entities. Yet, predictions regarding revenue escalation tinge optimism about the industry's future. Forecasts project the industry will rebound at an annualized rate of 2.7%, hitting an ambitious mark of $3.5 billion by 2028.
Amid fluid market dynamics and evolving accommodation preferences, changing regulations have inadvertently favored the bed & breakfast and hostel industry. Their unruffled agility in response to turmoil aids the prevalence of these often micro-scale businesses within the ecosystem. With an optimistic outlook regarding future revenue and a burgeoning demand for personalized experiences, bed & breakfasts and hostels may be well-positioned for continued success in their market niche, even if they cannot capture a wider share of the accommodation market from hotels.

Trends and Insights

  • Travelers' leisure time and incomes drive hostel and B&B demand. Thus, these sectors are closely tied to the pulse of broader macroeconomics.
  • Millennial travel is fueling the growth of US hostels. They're budget-conscious, appreciate hostels' affordability, and value the social spaces these accommodations afford.
  • Hostels and B&Bs cluster around tourist hot spots. This reflects the spread of travelers, both domestically and worldwide, shaping the location strategies of these accommodations.
  • In the accommodation industry, price wars are common due to similar services. Consequently, hostels and B&Bs enhance amenities and add extras to stand out.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 4.5 % over the past five years, to reach an estimated $3.0bn in 2024.

Trends and Insights

COVID-19 restrictions adversely reduced travel activities

  • Spending on recreational activities moves closely with per capita disposable income and leisure time. Therefore, before COVID-19, the industry benefited from a surge of retiring baby boomers who typically have ample leisure time and retirement income to travel.
  • Additional trends and insights available with purchase
Bed & Breakfast & Hostel Accommodations in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The industry will focus on catering to a niche market

  • Accommodations that find a niche, like establishments on farms or near tourist attractions, will fare better than others. To maintain their market share, hostels will offer significant competitive advantages like sightseeing and cultural tours, day excursions, bar crawls and other value-added services.

Biggest companies in the Bed & Breakfast & Hostel Accommodations in the US

Company
Market Share (%)
2024
Revenue ($short_0)
2024
Profit ($short_0)
2024
Profit Margin (%)
2024

There are no companies that hold a large enough market share in the Bed & Breakfast & Hostel Accommodations in the US industry for IBISWorld to include in this product.

Products & Services Segmentation

Bed & Breakfast & Hostel Accommodations in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Bed and breakfast accommodations, Hostels and other accommodations and Food and alcohol. Bed and breakfast accommodations is the largest segment of the Bed & Breakfast & Hostel Accommodations in the US.

Trends and Insights

The products and services provided by Bed and Breakfast make up the greatest share of industry revenue

  • B&Bs may have between two and 40 rooms, with eight rooms being the average. These rooms are either shared or private, with shared or en suite baths.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Bed and Breakfast and Hostel Accommodations industry comprises businesses that are primarily engaged in providing short-term lodging. Hotels, motels and casino hotels are excluded from this industry.

What's included in this industry?

Operating bed and breakfast inns Cabins, housekeeping Cottages, housekeeping Operating guest houses Operating hostels Operating tourist homes Operating youth hostels

Companies

Purchase this report to view all major companies in this industry.

Related Terms

BED AND BREAKFAST (B&B)HOSTELBACKPACKER HOSTEL

Industry Code

NAICS 2017

NAICS 72119 - Bed & Breakfast & Hostel Accommodations in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Travelers' leisure time and incomes drive hostel and B&B demand. Thus, these sectors are closely tied to the pulse of broader macroeconomics.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Millennial travel is fueling the growth of US hostels. They're budget-conscious, appreciate hostels' affordability, and value the social spaces these accommodations afford.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Hostels and B&Bs cluster around tourist hot spots. This reflects the spread of travelers, both domestically and worldwide, shaping the location strategies of these accommodat...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

In the accommodation industry, price wars are common due to similar services. Consequently, hostels and B&Bs enhance amenities and add extras to stand out.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The hostel and B&B industry is fragmented, with operators commanding below 5% market share each. These entities are typically smaller in scale, leading to limited growth ambi...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    Travel's comeback has hit a snag due to inflation and unemployment. After the initial recovery sparked industry growth, high inflation and unemployment rates have curbed dema...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2014-2029) 
    • Assistance historical data and forecast (2014-2029) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    B&Bs outperform hostels in terms of profitability. This higher profit is largely attributed to the innkeepers, who offer guests made-from-scratch breakfasts, plus snacks and ...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Investment vs. share of economy

    Data tables

    • Industry Multiples (2017-2022)
    • Industry Tax Structure (2017-2022)
    • Income Statement (2017-2022)
    • Balance Sheet (2017-2022)
    • Liquidity Ratios (2017-2022)
    • Coverage Ratios (2017-2022)
    • Leverage Ratios  (2017-2022)
    • Operating Ratios (2017-2022)
    • Cash Flow & Debt Service Ratios (2014-2029)
    • Revenue per Employee (2014-2029)
    • Revenue per Enterprise (2014-2029)
    • Employees per Establishment (2014-2029)
    • Employees per Enterprise (2014-2029)
    • Average Wage (2014-2029)
    • Wages/Revenue (2014-2029)
    • Establishments per Enterprise (2014-2029)
    • IVA/Revenue (2014-2029)
    • Imports/Demand (2014-2029)
    • Exports/Revenue (2014-2029)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2014-2029)
    • IVA (2014-2029)
    • Establishments (2014-2029)
    • Enterprises (2014-2029)
    • Employment (2014-2029)
    • Exports (2014-2029)
    • Imports (2014-2029)
    • Wages (2014-2029)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Bed & Breakfast & Hostel Accommodations in the US industry in United States in 2024?

    The market size of the Bed & Breakfast & Hostel Accommodations in the US industry in United States is $3.0bn in 2024.

    How many businesses are there in the Bed & Breakfast & Hostel Accommodations in the US industry in 2024?

    There are 4,420 businesses in the Bed & Breakfast & Hostel Accommodations in the US industry in United States, which has grown at a CAGR of 1.0 % between 2019 and 2024.

    Has the Bed & Breakfast & Hostel Accommodations in the US industry in United States grown or declined over the past 5 years?

    The market size of the Bed & Breakfast & Hostel Accommodations in the US industry in United States has been growing at a CAGR of 4.5 % between 2019 and 2024.

    What is the forecast growth of the Bed & Breakfast & Hostel Accommodations in the US industry in United States over the next 5 years?

    Over the next five years, the Bed & Breakfast & Hostel Accommodations in the US industry in United States is expected to grow.

    What does the Bed & Breakfast & Hostel Accommodations in the US in United States include?

    Operating bed and breakfast inns and Cabins, housekeeping are part of the Bed & Breakfast & Hostel Accommodations in the US industry.

    How competitive is the Bed & Breakfast & Hostel Accommodations in the US industry in United States?

    The level of competition is high and increasing in the Bed & Breakfast & Hostel Accommodations in the US industry in United States.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • Hotels & Motels in the US
    • Casino Hotels in the US
    • Campgrounds & RV Parks in the US

    Complementors

    • There are no industries to display.

    International industries

    • Motels, Hostels and Holiday Parks in New Zealand
    • Holiday Accommodation in the UK

    View all industries in United States

    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in the US include: 

    • US Census Bureau
    • US Bureau of Labor Statistics
    • US International Trade Commission

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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