Based on the consumption demand of the Bed and breakfast（B&B） product for the tourist industry transformation and upgrading of Yunnan Province. Through talking with the B&B owners，experts of the local association and the public official，this paper know about the latest industry development policy and obtaining the first hand data by the field visit and depth interview. Trough comparing and analyzing with the historic data，describing the B&B industry’s developing current situation and characteristic in Yunnan province. It is a very important period for Yunnan tourist industry transformation and upgrading. It’s B&B industry already has certain development base：good natural landscape and ecological environment；It has own development characteristics：colorful ethic cultural resource and biological diversity；finding out the problem of B&B industry：low entrance of the marketing，weak legislation，unclear business model etc. Thus giving the predictions of its growing trend：internationalization，high-end oriented，specialization，developed intelligence.