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Is the Homestay Business Profitable in India? Is homestay hosting in India profitable? With Homeyhuts’ no-commission model, many hosts are earning more than on Airbnb or Booking.com. Real stories, better margins, and full control see how it’s working.


If you’ve ever wondered whether turning your home, your family property, or your vacation house into a homestay is worth it the short answer is yes. But like any income-generating venture, it depends on how you approach it. At Homeyhuts, we’ve worked with hosts across India from Himachal and Uttarakhand to Goa, Kerala, and Rajasthan and we’ve seen firsthand how this business can become a solid source of income for those who do it right.

 

Now let’s be honest: profitability doesn’t come from just listing a property and waiting for magic to happen. It comes from knowing where your margins are leaking, where the real opportunities lie, and which platform actually supports your growth instead of eating into your earnings. 


What Makes a Homestay Profitable? 


Let’s begin by breaking the biggest myth many people think you need a luxury property to earn well. That’s not true. We’ve seen small, well-maintained homes in offbeat locations earning better than sea-view villas just because they offer warmth, cleanliness, and good guest reviews. A homestay becomes profitable when: 



And here’s where the platform you choose plays a huge role. Let’s compare. 


Why Most OTAs Make It Harder to Earn 


When you list on global OTAs like Airbnb or Booking.com, you’re not just opening your home to guests you’re also entering a system that’s stacked against independent hosts. 


These platforms typically charge 12% to 20% commission, and in many cases, guests also pay an additional service fee. Now this does two things: it reduces your take-home income, and it increases the total cost to your guest, which can discourage bookings. 


On top of that, the way listings are ranked on Airbnb or Booking is algorithmic. It rewards instant booking, price drops, free cancellations, or paid promotions. In other words, unless you’re playing their game (and paying more), your listing stays buried. 


We’ve heard this repeatedly from hosts: “I’m getting bookings, but I’m not making money.” And that’s the crux. A booking doesn’t equal profit when you're handing over 20–30% to the platform or using expensive third-party tools just to stay visible. 


How Homeyhuts Changes the Equation 


This is exactly why Homeyhuts was built to bring sanity and sustainability back into the homestay business. We don’t operate on commissions. You earn what you price. That one shift alone often saves hosts ₹15,000 to ₹50,000 per month depending on their occupancy. 


We don’t penalize you for not giving discounts. We don’t push last-minute bookings if they don’t suit your lifestyle. You set your rules, your calendar, your pricing and you keep your earnings. 


Plus, we provide free access to essential hosting tools that other OTAs leave you to figure out on your own. From a built-in channel manager to support with your listing copy and guest communication, we focus on helping you grow without needing third-party apps or agents. 


So when you ask whether this business is profitable the question really is, “On which platform?” 


Real Numbers from Real Hosts 


Let’s talk practically. A modest 2BHK homestay in Goa or Himachal, priced at ₹4,000 per night, with just 15 nights booked a month, earns ₹60,000 in gross income. On Airbnb, after a 15% host fee and around 12% guest fee, you're effectively getting around ₹45,000 to ₹48,000 after all deductions. 


Now take that same listing on Homeyhuts. You keep the full ₹60,000. That ₹12,000 to ₹15,000 gap is your profit margin. And it gets bigger the more you grow. 


For hosts who manage multiple properties or are scaling with staff, that difference adds up month after month. It’s not just about making ends meet it’s the difference between running a hobby and building a business. 


The Long-Term View 


Another thing to keep in mind is sustainability. Hosting isn’t about getting a few good months and then burning out. A lot of hosts who rely solely on high-commission OTAs get exhausted they’re constantly running discounts, dealing with demanding guests who come from the lowest price filters, and they lose sight of why they started. 


We’ve seen hosts leave platforms like Airbnb not because they stopped getting bookings, but because they stopped enjoying the process. Hosting became a burden instead of a joy. 


With Homeyhuts, many of our long-time hosts say they’ve found breathing room. There’s no pressure to slash prices. You attract the right kind of travelers those who value authenticity, personal touch, and real hospitality. And that directly affects your bottom line because happy guests mean better reviews, more word-of-mouth, and less stress. 


So, Is It Worth It? 


If you’re thinking about starting a homestay in India and wondering whether it’ll actually earn for you, the answer is this: yes, if you do it smartly. 


Work with a platform that protects your income. Keep your operations lean. And focus on guest experience over gimmicks. 


At Homeyhuts, we’ve built an ecosystem where your profit isn’t an afterthought it’s the starting point. No commissions. No algorithm games. Just fair hosting with the tools and support that make it worthwhile. 

Whether you’re starting with one spare room or managing a portfolio of villas, the opportunity is real. The profits are real. But only when you partner with a platform that puts you first. 


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