Younger tourists value the unique design, integration of local culture, and immersion in local life within guesthouses. Expanding the "guesthouse+" business model and increasing non-room revenue is the future development direction of the guesthouse industry.

Located just a 5-minute walk from Chongqing's Jiefangbei and Shibatidi, this prime location should have been packed with guests during peak tourist season. However, until the end of the summer vacation, only 3 to 5 rooms were sold per day, with an occupancy rate of less than 50%. On August 31, the last day of the summer vacation, Yan Yekuan reluctantly decided to transfer the guesthouse he had been running for three years.

“In the past two years, we were almost fully booked every day during summer and winter vacations. For the May Day and National Day holidays, the rooms were booked out half a month in advance.” But this summer, Yan Yekuan was anxious and puzzled as he watched more than half of his 12 rooms vacant every day: “The tourism market is obviously booming, so why are the room bookings not going up?”

Similar questions are troubling some guesthouse operators in other cities. This summer, topics such as "Dali guesthouse rooms are empty," "Lijiang guesthouse owners are crying," and "Guesthouse and inn prices are plummeting" continued to circulate on social media, sparking widespread discussion. Are young people no longer interested in staying in guesthouses?

Tourists flocked to the area, but the rooms were empty.

Cheng Xu's guesthouse is located near Fairy Mountain and Nantian Lake, one of Chongqing's popular summer resorts. In previous years, during the summer holidays, tourists needed to book at least one or two weeks in advance. This year, even with lowered room rates, the occupancy rate is barely 50%.

On some social media platforms, many guesthouse owners said, "Local tourists are flocking in, but the rooms are hard to rent." He Jingming, who has been running a guesthouse in Dali for seven years, told reporters that business is indeed not as booming as in previous years. Throughout the summer, the occupancy rate of his guesthouse has remained at around 70%, a decrease of about 20% compared to last year.

According to combined calculations by several domestic online travel agencies (OTAs), the total number of domestic tourists reached 1.12 billion this summer, a year-on-year increase of 32.7%. Yan Yekuan told reporters that through the window of his guesthouse lobby, he could see the entrance to the Shibati area, which was bustling with people every day during the summer vacation. "Tourists were everywhere, but for some reason, the rooms in the guesthouse just couldn't be rented out."

More and more, and more and more like

A few years ago, homestays were very popular, and it was difficult to find a room during holidays. Yan Yekuan decided to run a homestay because he was moved by the booming market at that time.

According to the "2025 Homestay Industry Data Report", the number of homestay-related enterprises nationwide increased from 19,000 in 2016 to 375,000 by the end of 2025 - an expansion of nearly 20 times in 10 years.

"The total number of guesthouses has surged, but they are also becoming increasingly homogenized, leading to tourist fatigue and a gradual loss of interest," Yan Yekuan analyzed. He explained that many guesthouses adopt a "copycat" approach, featuring identical white walls, natural wood, floor-to-ceiling windows, small gardens, exquisite furnishings, and trendy photo spots… without any real thought given to differentiated design. He believes this is the main reason for the loss of bookings for guesthouses, including his own.

Yuan Lili, born in the 1990s, is a homestay enthusiast who chooses to stay in several homestays every year when she travels. In the past year or two, she has noticed that no matter which city or scenic spot she goes to, the layout, decoration, and service of homestays are all the same. "When it first became popular, everyone felt it was novel, but later they found that 'thousands of stores look the same,' so they naturally lost interest."

According to Yuan Lili, young tourists today value unique and distinctive design, the integration of local culture, and the immersion in local life when choosing a homestay. "I hope that when I open the door of a homestay, I can feel the owner's dedication," Yuan Lili said. If homestays are all standardized, young tourists would prefer to choose star-rated hotels, at least because their service standards and hardware quality are stable and reliable.

Zhang Zongjun, marketing director of a travel agency in Chongqing, believes that when hardware conditions are no longer the primary factor in attracting tourists, the industry falls into price wars—some homestays have lowered their prices to 100 to 200 yuan per night, and others are forced to follow suit. "Lowering prices means losses, and not lowering prices means no orders, which is why some homestays have high vacancy rates."

A guesthouse owner with five years of experience bluntly stated that the accommodation industry requires significant capital investment, and if profit margins continue to shrink, operators either grit their teeth and persevere or transfer ownership to cut their losses.

From "a room" to "a way of life"

A relevant person in charge of the Tourism Homestay Industry Branch of Chongqing Culture and Tourism Association pointed out that the homestay industry did not collectively suffer a downturn this summer, but is instead transforming from scale expansion to quality cultivation.

According to the "2026 Summer Homestay Consumption Report" recently released by Mumu Homestay, a leading homestay brand in China, searches for distinctive homestays increased by 120% month-on-month this summer.

"The era of traditional homestays with just a bed and a room is fading away. Immersive homestays with unique cultural themes, interactive experiences, and lifestyle scenes are becoming increasingly popular with tourists," said the relevant person in charge.

Zhang Zongjun believes that in the past, operators could make money simply by decorating rooms beautifully and uniquely. Now, having the ability to creatively design living scenarios is the key to attracting tourists to come and stay. "What homestays should provide is a living experience."

Wushan County, located in northeastern Chongqing, had long faced the problem of "tourists not staying." Since the county upgraded its homestays from simple accommodation to micro-vacation destinations, from last year's National Day holiday to this summer vacation, the homestay occupancy rate has remained at around 80%, and the average length of stay for tourists has increased from one day to three days.

Tourists in this small county town can not only enjoy views of the Yangtze River and autumn leaves from their guesthouses, but also experience cliffside swimming pools, wilderness theaters, and participate in activities such as hiking the Three Gorges Dragon Ridge and high-altitude via ferrata, significantly boosting tourism popularity.

In Fangniuping Village, Cizhu Town, Beibei District, Chongqing, a garden farmhouse guesthouse covering more than 500 acres is almost fully booked every day this summer. Here, adults can enjoy the refreshing tranquility of the courtyard and countryside, while children can experience the fun of a "one-day farmer" course. The guesthouse's intangible cultural heritage handicrafts, such as plant dyeing and papermaking, are also very popular.

"Modern homestays can't rely solely on room rates to survive; they need to develop into a multi-faceted business model encompassing entrance fees, experiential activities, coffee and afternoon tea, travel photography, and themed markets," said Luo Zibo, director of the Chongqing Tourism Development Research Center. He believes that expanding the "homestay+" diversified business model and increasing non-room revenue is the future direction for the homestay industry. (Source: Workers' Daily)