If you’ve been thinking about turning your extra space into a homestay, you’re not alone. India’s homestay market has quietly become one of the most exciting opportunities for property owners and entrepreneurs. The Ministry of Tourism reported that in the last five years, domestic travel grew by nearly 60%, and a big part of that growth came from travelers who no longer want to stay in hotels. Instead, they’re booking homestays, guesthouses, and vacation rentals that feel more personal. In 2025, this trend is only accelerating. Several factors are coming together—rising disposable incomes, more digital nomads, and a hunger for authentic experiences—to make this the best time to start hosting.
One of the main reasons demand for homestays is surging is the shift in what travelers value. Ten years ago, most tourists were happy with predictable hotel rooms and buffets. But today, especially among younger Indians and international visitors, the priorities are different. People want places that feel unique. They want to meet locals, eat home-cooked food, and get recommendations for things that don’t appear in guidebooks.
A survey by Booking.com found that 73% of Indian travelers in 2024 preferred to stay in accommodations that offered some connection to the local community. This might mean a heritage haveli in Rajasthan, a cozy hillside cottage in Himachal, or a beach house in Goa where the host shares insider tips. This preference is a big reason why homestays have seen steady growth even as hotel occupancy has become more volatile.
Not all regions are growing at the same speed, so if you’re considering starting a homestay, it helps to look closely at where demand is strongest. Goa remains the most searched destination on Airbnb India, and guesthouses there often have occupancy rates of over 70% in the winter season. In Himachal Pradesh and Uttarakhand, hill stations are booming, especially among remote workers who come for long stays in cooler weather. Kerala has also seen a steady rise in domestic family travel, particularly in places like Munnar and Alleppey, where heritage properties and houseboats remain popular.
Meanwhile, the Northeast is emerging as a promising market. States like Meghalaya and Sikkim are finally seeing infrastructure improvements and better flight connectivity. If you can offer a clean, well-maintained homestay in these less crowded destinations, you’re likely to stand out in a market that is still under-supplied.
The pandemic changed how people work, and that shift hasn’t gone away. Even now, in 2025, thousands of professionals are working remotely full- or part-time. This is one of the biggest reasons homestays have become such an attractive alternative to hotels. Remote workers want fast internet, a desk, and a quiet environment, but they also want the flexibility and warmth of a home.
This demand has turned what used to be seasonal properties into year-round businesses. For example, a two-bedroom homestay in Manali that once only filled up during the summer now sees bookings even in the monsoon, with remote workers staying for a month or more. Long-stay discounts and “workation” packages are helping hosts maintain cash flow even when tourism dips.
Timing is often everything in business, and right now, India’s homestay sector has reached a tipping point. First, regulations have become clearer. States like Himachal Pradesh, Goa, and Kerala have formal homestay policies that spell out exactly what you need to register. This clarity makes it easier for new hosts to enter the market without worrying about unpredictable rules.
Second, listing platforms are investing heavily in India. Airbnb has expanded support teams and improved payment systems for Indian hosts. Homegrown platforms like MakeMyTrip and StayVista are adding new features to help smaller properties market themselves better. Even smaller niche sites that focus on luxury villas or eco-stays are driving demand.
Finally, technology is making hosting easier. You don’t have to be a tech wizard to set up a channel manager, sync calendars across platforms, or automate pricing. These tools help you avoid double bookings, adjust rates dynamically, and manage reviews without spending all day glued to your phone.
The old model of vacationing—two short trips a year, always in the same destinations—is giving way to more spontaneous, experience-driven travel. Younger couples, retirees, and solo travelers are taking more frequent trips, often to places that would have been considered too remote or inconvenient before.
Many are also willing to spend more per night if the stay feels special. This is why well-designed homes with small thoughtful details—local art on the walls, organic breakfast baskets, even board games—are commanding higher rates than plain rooms. A homestay doesn’t have to be luxurious to succeed, but it does need to feel personal and authentic.
If you’re wondering whether this is just a short-lived boom, it helps to look at global patterns. In mature markets like Europe and the US, short-term rentals have remained strong even as traditional hotel chains tried to win back business. In India, the shift toward homestays is even more pronounced because of the cultural emphasis on hospitality and the diversity of destinations.
That doesn’t mean it’s easy. Competition is also growing, and guests have higher expectations. But with a clear plan, realistic pricing, and good service, a homestay can be more than a side income. For many hosts, it’s becoming a full-time livelihood.
If you have a property that sits empty most of the year—or if you’re considering buying or renovating a place in a tourist area—2025 could be the ideal time to start. The combination of rising demand, supportive technology, and a maturing market means you can get in early enough to build reviews and reputation before the space becomes saturated.
Most importantly, guests are actively looking for the kind of warm, personal experience that only individual hosts can provide. You don’t need a huge budget or a hospitality degree to get started. What you do need is a commitment to quality and the willingness to learn as you go.
India’s travel landscape is changing faster than ever. If you’ve been waiting for the perfect moment to open your doors to guests, this is it. In a few years, you’ll likely look back and be glad you started when you did.
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.
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