In Asheville, bed and breakfast warfare could put the nastiest of college sororities to shame. The founding members of the Asheville Bed and Breakfast Association (ABBA) were overthrown in a coup d'etat a few years ago, and left and formed their own association, Legendary Inns of Asheville. The biggest difference between the two groups is that although both are simply marketing alliances, ABBA pretends that its a legitimate trade association (like PAII or NCBBI) in order to restrict competition, while Legendary Inns doesn't.
Bill and Terry Erickson, the wonderful previous owners of Hill House didn't belong to either organization, telling me that they just preferred to steer clear of the vicious local politics. After I bought Hill House, I sought to join ABBA, as I had PAII and NCBBI, with whom I had each just filled out an application and written a check. ABBA, however, felt I first had to go through something like fraternity/sorority rush. On one visit, ABBA's membership chairperson, sat on the Hill House porch me, and one of our national/cultural windsocks was blowing in her face. She could have moved her chair 6 inches. But, she didn't. After a few months, ABBA denied Hill House membership without a reason, saying (just like a fraternity or sorority would) that the vote was secret.
One long time Asheville B&B advisor says that a couple of old, second-rate inns with declining business have gained influence in the organization and blackball any possible new city member who would threaten what business they have left. Welcome to Peyton Place, ahem, the world of Asheville bed and breakfasts.