In recent days, a news item related to homestays has attracted attention within the industry: the operator of a homestay in a prime location in Chongqing admitted that in the past two years, the business was basically fully booked during the summer and winter vacations. However, this summer, only 3-5 of the 12 rooms were sold per day on average, with an occupancy rate of less than 50%, ultimately forcing the owner to transfer ownership of the business after three years of operation. After more than a decade of rapid development, the homestay sector, which was once "hard to find a room," is now facing a brutal market reshuffle.

According to relevant industry reports, the number of homestay-related enterprises nationwide increased from 19,000 in 2016 to 375,000 by the end of 2025, a nearly 20-fold increase in ten years. A large number of individual operators have entered the industry, and white walls, raw wood, floor-to-ceiling windows, and trendy photo-op settings have become mass-produced decoration templates.

Meanwhile, topics such as "vacant guesthouses in Dali" and "plummeting guesthouse prices" continue to gain traction on social media platforms. In popular tourist cities like Dali, Lijiang, and Chongqing, where guesthouses are abundant, reports of sluggish occupancy rates are not uncommon.

Looking back at the early days of homestay development, many people chose homestays not just for "cheap accommodation," but for a personalized, local experience. Back then, many homestays were places the owners had lived in and knew very well. The hosts, speaking from a local's perspective, would tell you which small restaurants were the most authentic, which alleys were worth exploring, and which viewpoints were the least crowded, creating a relaxed and warm atmosphere like that of family or friends. This personal touch was the core attraction that distinguished homestays from standardized hotels.

However, with the rapid expansion of the industry, more social capital and housing resources have flooded into the homestay sector, causing many homestays to lose their individuality and become standardized businesses. Housing resources are handed over to management agencies for bulk operation, and the original homeowners no longer directly participate in reception; instead, the management agency's staff are responsible for operating the homestays. Personalized local guide services have disappeared, and the boundary between homestays and ordinary hotels has become increasingly blurred.

Behind the explosive growth in supply lies the trap of homogenization. Many homestays simply copy trendy decor templates, piling on atmospheric furnishings while neglecting the core of the accommodation experience. With countless identical designs, tourists inevitably experience aesthetic fatigue. Once the novelty of photogenic spots wears off and tourists become more discerning, the shortcomings of homestays become glaringly apparent.

A quick glance at social media reveals a high concentration of complaints about guesthouses: hygiene is the most frequently mentioned issue, with many complaining about unpleasant odors in bedding, uncleaned corners, discrepancies between the actual property and promotional images, making the experience feel like "opening a blind box." Secondly, there's a lack of service and guarantees; many guesthouses lack standardized service systems, have strict booking, cancellation, and modification policies, and lack effective channels for seeking redress. Some listings have vague positioning, making it difficult to find accommodations offline, and responses from landlords are often delayed when problems arise. Safety hazards, inadequate facilities, and prices comparable to four- or five-star hotels are also significant deterrents for tourists.

In stark contrast, chain hotels and high-star hotels continue to enhance their competitiveness. With the same budget, chain and brand hotels offer standardized hygiene, relatively stable room service, and comprehensive amenities such as breakfast, parking, and charging stations. They also have established after-sales service channels to address any issues. For ordinary tourists, the appeal of standardized accommodations—offering convenience, controllability, and lower risk of problems—is steadily increasing.

Of course, not all guesthouses are in trouble. High-quality guesthouses with unique local experiences and standardized services continue to enjoy good booking popularity. Those that are truly abandoned by the market are the small, scattered, and disorganized guesthouses that rely solely on trendy packaging and cut corners on hygiene, service, and facilities.

After more than a decade of rapid development, the era of easily "winning" in the homestay industry by simply relying on location and trendy decor is over. For homestays to break through, in addition to creating a pleasant atmosphere, they must return to the essence of accommodation, uphold the bottom line of hygiene, safety, and service, and rediscover the "warmth of the host" and unique local characteristics. This is the key to success.

The market votes with orders. After the tide recedes, only guesthouses that truly prioritize the guest experience will be able to retain tourists in the long run. (Source: Jiefang Daily)