By XIE Kexin
Luxury breakfast and bed (B&B) is the latest big thing for China’s domestic tourists. The number of luxury B&B rooms increased by more than 30 percent last year, and the number of bookings by more than 45 percent.
Luxury B&Bs provide guests with unique experiences and butler-style services. During the off-season, the average room price is about 1,800 yuan (US$270) per night. In the peak season, the price could rise to 2,000 yuan per night.
Compared with previous occupancy rates of more than 90 percent, the current 30 to 40 percent is a significant decline. So, do luxury B&Bs have any future?
The beautiful environment, high-quality services, and supporting projects require a lot of capital. Investment is comparable to that of standard hotels, but smaller B&Bs are often less profitable than hotels. Many B&Bs have cut their room prices by more than half and sold local products to boost their incomes.
Some B&Bs have been bought by chain hotels such as Huazhu and Hilton mainly seeking access to business users. Making the best use of natural and cultural resources is crucial and B&Bs need to establish and maintain connections with customers, agencies, and influencers in the long term.
