Understanding customers' needs is the key to provide satisfying products and services in business operations. Bed and Breakfast (B&B) differs from hotels on the ways of business operations since B&B emphasizes on interactions between hosts and customers, passionate and personalized services. Kano two-way model is useful on identifying quality elements and understanding customer's real needs and opinions on B&B product levels. In this study, we apply the Kano model to analyze B&B two-way quality and deliver suggestions to B&B proprietors. We also use improvement index to analyze how quality improvement effects customer's satisfaction. After investigation, we found that these quality elements reveal two-dimensional characteristics, including 17 must-be quality elements, 13 attractive quality elements, and 5 one-dimensional quality elements. B&B offering unique customized services attracts more tourists and is viewed as most competitive.