Choosing between exiting or innovative solutions for bed and breakfasts

Choosing between an exit and innovative solution are discussed in responding to the issues of oversupply and homogeneity facing bed and breakfast businesses in Taiwan. A grounded theory using semi-structured interviews was used to identify the form of stewardship-based exit strategy, as well as factors that determine the success of B&Bs. Face-to-face interviews with 30 B&B owners identified eight factors: personal values, thanksgiving, sense of happiness, dedication to community, family identity, provision of family-oriented and fun environment, experience of thematic B&B, and eco-tourism travelers. A competitive differentiation strategy drawing on one or many elements of these factors may be implemented, depending on the preference of B&B owners and the unique destination resources that they can integrate and reconfigure. Grounded theory helps clarify the innovative solutions with differentiation strategies that are important for sustainability of B&Bs when the market is in the saturation or decline stage of the product life cycle.