Basic knowledge to Start a Homestay Business
What is Homestay? This type of accommodation is popular and chosen by young people and those who love experiences. Although it is no longer a new name, not everyone really understands it; Or for those who have never tried it, there are probably still many concerns.
The sharing information below will help you understand what homestay is, Different things that you will not be able to get when staying at other types of accommodation.
I- What is Homestay?
Homestay is a type of accommodation that is quite popular in the world for visitors from far away. Tourists instead of staying in hotels or resorts will choose to stay in apartments of local people to save costs and enjoy the local culture. They will live, eat and participate in daily activities with the indigenous people.
However, today the homestay model in accommodation has developed and changed compared to the original concept. There are many businesses operating in the field of homestay rental, they manage dozens of hundreds of different homestays, so the element of staying with a local family is no longer accurate.
Homestay that emphasizes local cultural experience, freedom of living and low cost is warmly welcomed by young people and is the first choice for their trips.
II- What's interesting about Homestay?
1- Homestay helps feel the most authentic local culture and life
Homestay is a form of community-based tourism; Tourists will eat, sleep and live together with local people (hosts). If you come here on the occasion of the festival, you will participate in the preparation, have fun and participate in regional cultural activities.
With localities with traditional beauty and many strange customs, your trip will certainly not be just sightseeing anymore.
2- Homestay helps learn new knowledge and know more about the beauty of the region
In another aspect, homestay is the way of doing business that the residential community will be the one to provide products and services to tourists: From staying, eating to even guiding tours or helping tourists learn about local life, culture and spirit.
This type of tourism is a very good bridge to help you expand your relationship; cultivate more knowledge about the beauty of life; sometimes you will even know more foreign languages and increase your communication skills; know how to connect with the community.
Not only young people who love to travel, but also families want to use this type of accommodation to help their children have more experiences in life.
3- Homestay offers reasonable cost, beautiful scenery and full facilities
Each homestay will be able to accommodate from 10 to 30 people (depending on the size).
Even though you only have to pay the not-expensive rental fee, you still get all the facilities from catering to relaxing service. With each homestay type, there will be a certain level of privacy.
4- Homestay features very good design, diversity and less duplication
Homestay is no longer just a place to stay; It seems that it is also a place for homeowners to express their artistic style and innovation in their home decoration. Each small corner will be an artwork that the owner is wanting to show off to tourists.
Depending on what the strengths of local tourism are and where the homestay is located, the homestay owner will come up with design ideas. Also because of two key factors, the homestays will be more diverse.
III- How to Start a Homestay Business?
Regarding of homestay business, it is impossible not to mention the business model of AirBnB, the world's No. 1 connecting business platform between tenants and homestay lessors (hosts). It can be said that AirBnB has raised the concept of homestay business to a new level, turning homestay into a competitive accommodation service that directly shares market share with hotel and resort accommodation.
1- Investment cost of Homestay business
The cost of investing in a homestay business is much lower than the investment cost of other types of accommodation. The level of investment will depend on number of rooms, customer segment that you target.
2- Homestay business cooperation
AirBnB is the largest platform currently supporting homestay business owners to find tenants. This platform fully supports all types of homestay from private room, shared room, villa, bangalow,...
If your target tenants are foreign guests, then Airbnb will be the number 1 choice today, beside Foonvass is a good choice next to AirBnb.
In addition to the two names above, you can sell homestay rooms on guest sites such as Booking.com, Agoda or Travoloka. These platforms are very strong in resort hotels, but the homestay market is also also get their attention.
IV- Popular types of Homestay
Currently, in order to meet the needs of tenants; homestays have been built in many different forms. Besides, depending on the tourist service and the scenery in that place, homestay will be designed to help tenants get a lot of practical experiences; easy to get acquainted with the local culture.
1- Villa Homestay
Homestay villa will often be present in places with such beautiful scenery, it is understood as a type of high-class accommodation. This place will meet the needs of relaxation such as entertainment and sightseeing of tourists.
2- Private houses and apartments Homestay
Homestay in the style of a private house will have the highlight of being separate and diverse in design. These housing units will usually be separate from each other. You can rent the whole apartment or rent a room to live with the landlord. Entertainment and relaxation services will always be integrated in the private space. At the same time, the cozy outdoor party will always make your family feel more exiting.
3- Studio Apartment Homestay
This type of homestay apartment is quite popular in big cities where rental space is limited. Studio apartments usually have a small area but are fully equipped with essential utilities such as kitchen, living room, bedroom, and toilet in one room space.
4- Bungalow Homestay
With tourist attractions with charming scenery or located in high hills or old forests; It is indispensable for the type of homestay Bungalows - tube houses. They are usually quite small in size and make young people crazy when choosing a place to stay here.
5- Dorm room Homestay
As a dormitory room type (like a dormitory), the room has many bunk beds in a large room. The owner will rent out each bed for each tenant. Tenants will share common facilities in the room or in the building.
The advantage of this homestay type is that the price is very cheap, the demand for services and utilities is not much, just a simple place to sleep. The downside is low privacy.
6- Private Room Homestay
The landlord takes advantage of some vacant rooms in the family to lease. Tenant will rent a private room and share common space such as living room, kitchen, parking space with the host.
V- Risks of Homestay business
The homestay business also has many possible risks for hosts. Here are the main servers at risk:
- Guest reviews bad and inaccurate about homestay.
- Tenants aren’t careful in using furniture in the room
- Tenants use banned stimulants during their stay
- Tenants booked but not use service.
- Being reclaimed house when the lease has not expired
- Homestay business without license
- Tourism market fluctuates and economy declines cause number of tenants decrease
The above information is the must-know basic knowledge for those who are learning about homestay services to start their own homestay business.