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Everything about Homestay Business

by Tandava Krishna


Traveling carefree and without the fear of missing the checkout timing and feeling like home even when visiting the most exquisite places in the world. This sure sounds like a dream we live for. Although the availability of hotels is almost everywhere, there are always a few inhibitions involved. What if we could actually get to stay at home and enjoy our trip? We now have the option to do that! Homestay is one such great business innovation where people rent their unused property to the travelers and guest them for days or a few weeks. These are charged almost like the hotels i.e., on the basis of the amount per night but the infrastructure requirements and the facilities such as restaurant services and 24/7 availability of room service are not available. The guest is left on their own and all you need to ensure is whatever facility you are providing in at your homestay are working well. It can be wifi, television, geyser, gas stove, etc. There are also options such apart from letting the whole house, you can avail of a room at the property you are living and invite guests to stay with you and share your home and its resources with them during their stay.
The demand for Homestays is higher than ever before. Travelers love to have an authentic experience and thus the demand for them is high. We have AirB&Bs and many such rentals make a huge profit just on commissions. If you are one who has a spare property or has a knack for meeting new people and engaging in conversation with them, homestay business is just right for you!

There are numerous Homestay businesses existing in the market, then why should a potential customer choose you? Before planning and taking any initial steps, it is very important to educate yourself and understand how Homestay works. If you are starting a business, you also need to have good management skills. Opening a Homestay business will require you to be extra vigilant with ongoing requirements and trends in the market and provide your client with facilities based on that. Have an understanding of hospitality and marketing as well. There are a lot of things to cover, so do your thorough research on this, learn what are the skills required, and be an expert! Look at the prerequisites given below to have a profitable homestay business

Do the research

To open start up a business, as easy as people make it look like, is sure a big deal. You have to do a lot of research about how the market functions and what is the demand and supply chain in this business. Do thorough research about your competitors in the market and develop a strategy to advance them and create a bigger brand. You need to have great conversational skills and a compassionate personality. 

Decide the size of your business

When you have knowledge about what are the various aspects and concepts of Homestay be it hospitality, facility, fund, you must have understood the scale at which you can manage your business. As a Homestay Business, you can provide numerous services but analyze how big your facility is going to be and how are you going to manage those services. Finding the right size at the beginning will help you find a direction for your business before setting up.

Understand your customer

Any business needs you to be focused on their target audience. In the homestay business, your client’s comfort is very important. Take notes of their requirements, what are the new facilities offered by other homestay businesses, and how you would like to inculcate them for your guests, etc. If your customers are not satisfied, your hard work is bound to fail.  Take their reviews sincerely and focusing on the target audience is very important in this business so keep that in mind.

Decide your services

Depending on the location of your business, decide the services that you will be providing and how you are going to arrange those resources. Go for the resources which are available to you locally. From décor to the staff. It will be easier for you to arrange and will cost you a lot less. Do not compromise on comfort and attention to detail of your facility. There should be the comfort of home but the facilities should be maximum.

Generate funds and make the right investments

If you already have the infrastructure available with you then all you need is to spend on facilities, décor, and marketing but if you don’t have the building or room available with you, your investment will be bigger. You will have to look for the right location and build the facility according to your budget.
If you are converting your own house to a homestay, make sure you are satisfied with the changes you make and there are no problems regarding them in the future with your client.

Take Permits and License

To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get your GST registration, and all sorts of licenses and permits are done. Make sure you are ready with all the paperwork and to take multiple rounds of government offices because opening any business in India calls for this.


It is a prerequisite. You cannot have a homestay business without having the proper equipment for your guests. So, make a list of the equipment of the facilities that you will be providing such as geyser, refrigerator, television unit, any gym equipment, etc. Remember, this is not something that you can compromise on. From a big refrigeration unit to a simple mixer, all are of prime importance. 

Create a brand name and logo

Although this sounds very common, if you are going to start any business, you will need a name by which you will be known. Understand that a brand name is very important in this industry. Make sure once you decide the name and logo of the brand, get a patent for it!

Go online

Setting up any business requires a strong local connection and communication so that the business can propagate but with the rise in the use of e-commerce, things have become a lot easier. Make a website for your Homestay Business to attract potential customers. Market your facilities and show off your infrastructure. Use various models and tools which are available online to make your website catchier and more attractive. Give all the contact details and booking references on your website so it is easier for your potential customers to book you for services

Focus on Marketing 

Make use of social media as it is almost certain that at least one person in your locality must be using any social media platform. Putting up pages on Facebook and Instagram and asking youth in youth in the locality to share it amongst friends, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your homestay business. Putting up ads with discounts and amazing offers are always a plus. Along with online, spending on offline methods to propagate business is necessary. Since you have an offline store and most customers will save your number for future reference, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one-to-one messaging which has become one of the best provisions of converting prospects to customers. Remember to greet them nicely and make them feel important. 

Opening a homestay business is a great opportunity to get involved and meet with people of different lifestyles and sharing our culture with them. If you have the right resources and impress the first few guests, you are all set to make a profit in this business.


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