If you’re considering turning your property into a homestay, one of the first questions you’ll have is simple: How much money can I actually make? I’ve met hundreds of new hosts who start off hopeful but underestimate the role of location, seasonality, and occupancy in determining their income. The truth is, homestay earnings vary widely, but once you understand what drives demand in different regions, you can set realistic expectations and build a strategy that works.
Goa has long been one of India’s most profitable homestay markets. The state attracts a steady stream of both domestic and international tourists, especially during the winter high season from November to February. In peak months, a well-appointed 2 or 3-bedroom villa in North Goa can earn anywhere between ₹10,000 and ₹20,000 per night.
On average, good properties maintain about 60% to 70% occupancy during the high season. This means that even if you rent out your villa for just 20 nights in December and January, you’re looking at gross earnings of ₹2–₹4 lakh per month. Of course, you must account for commissions to OTAs, housekeeping, and utilities. During monsoon and the slower months—June to September—occupancy can fall below 30%, and nightly rates drop by as much as 40%. Many hosts use this time to do maintenance and renovations or attract long-stay guests with discounted rates. Over a full year, an average Goa homestay could gross anywhere from ₹12–₹20 lakh, provided it’s marketed well and maintained to a high standard.
Manali’s homestay market tells a different story. Here, demand peaks in summer—April to June—and again around the New Year holiday, when travelers from Delhi, Chandigarh, and other northern cities escape the heat or come for snow. A cozy hillside cottage or homestay with 3 rooms can often charge ₹3,000–₹6,000 per night depending on amenities like private balconies, mountain views, or included meals.
Occupancy rates are highly seasonal. In May and June, it’s not unusual to see 80%–90% occupancy if you’ve priced correctly and earned good reviews. But in January and February, especially after school vacations end, you may struggle to fill even 20%–30% of your calendar. Some hosts offset the lows by offering packages for workations or long stays, often at steep discounts.
In terms of earnings, a modest homestay with consistent summer bookings can still bring in ₹1.5–₹2 lakh per month in peak season. But annual gross revenue often averages around ₹6–₹10 lakh once you factor in the slower periods. Unlike Goa, where international tourists extend the season, Manali is more reliant on domestic traffic, which makes marketing during lean months even more critical.
Kerala’s homestay income potential sits somewhere between Goa’s consistency and Manali’s volatility. Destinations like Munnar, Alleppey, and Fort Kochi draw year-round interest thanks to both domestic and foreign travelers, especially from Europe and the Middle East.
A mid-range homestay in Kerala—two or three rooms in a heritage property or a backwater villa—can typically charge ₹3,500–₹7,000 per night during high season (October through March). Summer occupancy remains steadier here than in the Himalayas, averaging about 40%–50%.
Many Kerala hosts benefit from slightly longer average stays. Travelers who come for Ayurvedic retreats, slow travel, or backwater cruises often book 5–7 nights rather than just a weekend. This not only reduces turnover costs but also leads to better relationships and repeat business.
Over a year, a Kerala homestay can gross ₹8–₹15 lakh depending on size, amenities, and marketing. The key difference here is that good properties see relatively consistent bookings in winter and early spring, which helps smooth out cash flow compared to more seasonal markets.
While geography sets the baseline for earnings, several other factors can raise or lower your actual income. Your property’s presentation and amenities—things like Wi-Fi quality, air conditioning, kitchen access, and views—will justify higher rates. A well-designed space with strong branding and professional photos consistently earns more.
Your responsiveness also plays a role. Platforms like Airbnb and Booking.com favor hosts who reply quickly and keep calendars updated. In my experience, even dropping your response rate below 90% can push you down search results and cost you bookings.
Then there are the intangibles: reviews, word-of-mouth referrals, and your willingness to adapt. For example, some hosts have embraced work-from-home travelers by offering ergonomic chairs, dedicated workspaces, and better internet, which helped maintain occupancy during slower months.
Almost every region in India sees seasonality in travel patterns. Goa’s occupancy can exceed 80% in December and January but fall below 30% in June. Manali is packed during summer holidays but empties out after Diwali. Kerala’s winter is high season, but the monsoon months can still attract niche guests seeking Ayurveda or nature experiences.
The smartest hosts plan for these swings. In peak season, you can charge premium rates and still get fully booked. During off-peak, offering long-stay discounts, bundled packages, or targeted promotions can help keep your calendar active. Remember: even if your nightly rate drops, a longer stay reduces cleaning, admin time, and vacancy.
Running a homestay in India can absolutely be profitable if you approach it like a business rather than a hobby. The average host in prime destinations earns anywhere from ₹8–₹20 lakh annually in gross revenue. Net profit margins, after all costs and commissions, usually fall between 20%–35%. That means if you gross ₹12 lakh, you may take home ₹2.5–₹4 lakh in profit, depending on how efficiently you manage expenses.
The most successful hosts understand that earnings are tied to constant learning and adaptability. They invest in better photos, refine their pricing, watch their competitors, and keep in touch with past guests. If you can master these habits and commit to offering consistent quality, your homestay can become a reliable source of income—and in many cases, a fulfilling way to meet travelers from around the world.
Ready to make the most of your hosting journey? Partner with Homeyhuts to simplify property management and maximize your rental potential. Our platform offers cutting-edge solutions to help you attract more guests and achieve greater success.
Visit: Homeyhuts | Homestays & Unique Vacation Rentals in India | Hosts Earn More with Us
Turn your property into profits with Homeyhuts
