In recent years，the living standard of Chinese residents has been continuously improved and the concept of cultural consumption has been infiltrated in the accommodation industry，which has led to the rapid development of the Bed and Breakfast industry. The Internet impacts the changes of the needs and consumption habits of residents，which shows growing influence on the development of the Bed and Breakfast industry. In this paper，the status quo of scale，structure，innovation and financing of China's Bed and Breakfast industry in the Internet era was first analyzed，followed by the analyses of the challenges of service supply，marketing，customer，operation and risk of the Bed and Breakfast industry. Suggestions were also given on the healthy development of China's Bed and Breakfast Industry in the Internet era.