The main feature of Taiwan Bed and Breakfast (B&B) accommodation industry are that they clustered in several famous destinations. In addition, B&B also operates along with the surrounding environments, which result in the diversifying features of B&B among destinations. The B&B operators should realize what competitive advantages they owned, so that they make more efficient marketing strategies. The main purpose of this research attempts to explore the competitive advantages for B&B operators based on the destination image theory by using the techniques of both factor analysis and cluster analysis. Severn famous and B&B clustered destinations were selected as target for empirical research, and the results indicated that the seven B&B destinations can be clustered into four types of competitive groups, the first one is named as B&B services oriented, which means that in these destinations, the competitive advantages came from the service quality of B&B itself rather than the surrounding resources. The second type is names of B&B diversity oriented, which most of the competitive advantages came from both the quantity and diversified features of B&B. The third type is named Cultural resource oriented B&B, which the competitive advantage rely mostly on the cultural resources of B&B surrounding areas. The fourth type is similar to the third one, where the competitive advantages also rely on the B&B surrounding areas with many tourists' attractions. The managerial implications were also provided.