Difference Between Homestay and Hotel? Tips for Choosing the Right Stay

Also check out: Difference B/w Hotels, Motels & Resorts

What are Homestays?

Homestays are a type of budget accommodation that connects travelers with local culture and the beauty of a place. The host lives inside the accommodation alongside travelers and can introduce tourists to local culture, traditions, and popular attractions. 

When guests arrive at your homestay and wake up, they get freshly brewed coffee along with a home-cooked breakfast. Though they're away from home, they still get a home-like feel and a local experience. 

By renting out their space, hosts can earn an extra income stream. Typically, homestays in India range from simple guest rooms to luxurious homes or villas. 

While these stays are considered an affordable option for travelers, that doesn't mean they're always about low-cost stays. Homestays make travel more meaningful by blending local culture, community, and hospitality together. 

What makes a homestay different from hotels? Homestays serve customers beyond commercial purposes and create authentic experiences, connecting travelers with locals. 

Pros and Cons of Staying at Homestays

Pros

• Creates Culturally Immersive Experiences

Beyond just affordability, homestays offer unique travel experiences that give travelers space to connect with local culture and experience local activities, people, and traditions. 

A survey from Booking.com states that 73% of Indian travelers prefer accommodations that create local experiences or connect them to local culture. 

From the travelers' perspective, staying in a homestay means they live those experiences, not just visit the property. They get a local feel that provides a home-like experience even when away from home. 

For Gen Z and Millennials, homestays are a worthwhile investment as they prefer experiences over amenities. They're tired of cookie-cutter hotels that offer standardized services and want something more personalized. 

• Budget-Friendly Accommodations

Homestays don't just provide a homely feel, travelers can afford them, and their expenses will be significantly lower than staying in a hotel. If guests want to stay longer, a homestay is the suitable option. 

• Perfect for Long-Term Stays

As the workcation trend increases, the demand for long-term stays has risen, giving birth to the homestay option. These accommodations now provide facilities to guests such as work desks, calm environments, and free Wi-Fi. 

Hotels become an expensive option for long-term stays. 

Cons

• Limited Facilities

Though homestays are a good lodging option for budget travelers, especially when they want to know the cultural beauty of a place, they don't come with a plethora of facilities like hotels do such as restaurants, spa, or wellness centers. 

There are no in-room entertainment options compared to hotels. 

• Privacy Concerns

As the host lives in the same villa or homestay, this can make the travel experience uncomfortable for some travelers. This means guests are staying in someone's private space, not a commercial establishment. 

• Not Ideal for Business Travelers

Business hotels are specifically designed to meet the needs of business travelers with facilities such as multiple workspaces for conducting client meetings. 

They also want decent room service with a restaurant that can tantalize their taste buds when they arrive late at the hotel. But homestays lack this. 

What is a Hotel?

A hotel is an establishment that offers a wide range of amenities to travelers. These range from budget-size properties to luxury hotels that focus on providing high-end amenities to guests such as housekeeping, fitness centers, spa treatments, concierge services, and more. 

They provide convenience to guests that's why they're more expensive for travelers. Unlike homestays, hotels fail to provide authentic local experiences. 

Pros and Cons of Staying at Hotels

Pros

• Comfort and Convenience for Guests

Hotels are located near popular tourist attractions and provide a high level of comfort. These accommodations enhance the traveler experience by providing amenities such as 24/7 front desk support, room service, and concierge services. 

• Luxurious Feel

From the moment guests enter the hotel to waving a final goodbye, choosing the right stay matters most for travelers. Hotels do it exceptionally well with stunning architecture, mesmerizing interiors, and an ambience that guests love to cherish. 

What makes hotel stays different from homestays? The true beauty of a hotel isn't just about the glamorous building or interiors but about how well the staff treats their guests. That's where personalization comes into play. 

From choosing the type of pillow for better-quality sleep to providing spa treatments that match guest preferences, hoteliers aim to provide a sense of luxury, comfort, and unforgettable experiences. 

• Entertainment and Other Facilities

Staying at a hotel offers in-room entertainment options for guests, such as attending a live performance or streaming a Netflix show; anything that makes guests feel more satisfied. 

As hoteliers cater to diverse guests, each with their own preferences, a one-size-fits-all approach won't work. 

For some guests, VR headsets can be surprising enough, especially when they want to dive into immersive experiences such as a 360-degree tour of local attractions or virtual workout sessions. 

For wellness travelers, spa and therapy sessions matters the most as they rejuvenate their mind and turn an ordinary stay into an extraordinary one.  

With technological advancements, guests have become tech-savvy and expect hoteliers to be technically ready with smart TVs and voice-activated controls. 

These little things in the hotel makes the stay experience more immersive, comforting, and personal. 

Cons

• Expensive Option for Budget Travelers

Hotels are considered an expensive option for travelers as they don't just offer basic facilities and services. Rather, they have decorated rooms and provide additional high-end services such as conference and event facilities, swimming pools, fitness centers, and high-end restaurants.  

• Limited Flexibility

Generally, homestays are more flexible when it comes to providing meals to guests. Though hotels offer a diverse range of food and breakfast options, there's limited customization when it comes to serving a specific guest. 

Hoteliers tend to have fixed mealtime schedules along with buffet options. Also, they restrict the number of guests per room, which is not the case in homestays. 

• Extra Charges for Amenities

Sometimes the stay becomes more expensive for guests than they expect, possibly because of add-ons that guests request. These include minibar pricing, room service charges, Wi-Fi facility, and early check-in or late check-out access. 

How Homestays Are Different from Hotels

Though the terms hotels and homestays are interrelated, they differ in every aspect. 

• Location of Accommodation

Hotels are meant for travelers who want convenience, comfort, and other amenities. As these accommodations are in major cities or near tourism spots, they become center points of attraction. 

People who visit popular destinations for exploration need a space to relax and enjoy facilities such as restaurants, spa treatments, fitness centers, or yoga sessions. 

Homestays serve a different purpose. These are meant for people who need affordable accommodations and want to experience the local beauty of a place. It's like having a neighborhood feel where you connect with locals and learn more about their culture, food, and traditions. 

• Food Options

Homestays differ from hotels in how they provide amenities to guests. In homestays, everything looks personalized; you ask the host for special food items, and they provide them as per their availability. 

If a guest has dietary restrictions, the host will cook a homemade meal that's personalized per the guest's taste. That's not the case with a hotel. 

Hosts generally deal with limited food options, which is not the case with hotels. 

In hotel stays, guests get a standardized meal, and the food is decided per a pre-decided menu, not per what each guest wants. 

However, hotels have a separate restaurant that provides diverse food options customized per guest preferences, such as American breakfast, continental dinner, or farm-to-table options.  

They have highly skilled and passionate chefs who know how to tantalize the taste buds of guests. 

• Cultural and Local Experience

Homestays focus on creating authentic, lived experiences for guests as the host treats guests more like locals. The host cooks home-cooked local meals and guides guests about popular attractions they should visit. 

He/she shares their wealth of knowledge about local culture, helps guests learn cultural traditions, and teaches them about the culture prevailing in that area. Guests can join in preparing meals along with the local host. 

While hoteliers also plan cultural events and activities (folk dance shows, cooking classes) for their guests, that's tied within a commercial setup. They can create cultural experiences but don't live them with guests. 

A hotel organizes Rajasthani dance or theme dinners for the evening to highlight the cultural settings of the place for entertainment purposes. Such cultural experiences are curated. 

• Accommodation Type

Homestays are private villas or homes that have 4-5 rooms and are meant for family or friends' groups. Unlike hotels that have limited occupancy per room (in most cases), homestays don't have such member limitations. 

Hotels are bigger in size and have multiple rooms for guests, ranging from dozens to several hundreds, with limits on occupancy. 

• Affordability

Youngsters, friends, or family groups prefer staying in homestays as they're cheaper than hotels. Those who wish to stay for long weekends go with homestays as these budget-size accommodations fit their budget. 

Their popularity is growing as remote working has made long stays possible at homestays. 

They're a good value-for-money alternative as travelers get access to amenities such as room service, breakfast, and free Wi-Fi. They won't charge separately for these things. 

This way, guests can allocate their funds better and use them for activities or dining. 

Hotels ranging from budget-size properties to luxury accommodations charge separately for additional services such as Wi-Fi access or breakfast. Couples, business travelers, or those who prefer short stays go with hotels as these can be quite expensive. 

• Technology Usage

Homestays don't consider the need to invest in hotel management software such as a PMS. Often, they're not listed on OTAs, so they suffer from limited online visibility, which brings limited bookings and less revenue for homestay owners. 

As they deal with a limited number of guests, they don't consider the need for having a PMS and channel manager. 

Hotel owners use a PMS to manage their day-to-day operations such as check-in/check-out, reservations, or housekeeping requests, all using a single dashboard. 

Two-way integration (PMS with a channel manager) ensures that whatever room rates and inventory information hotels update on one channel gets updated across other OTAs in real time. This means presence across different OTAs gives more visibility and more bookings. 

• Facilities and Amenities

Homestays can be budget-size or luxury, and the type of amenities they provide includes comfortable rooms along with home-cooked meals. 

A luxury homestay can have a lavish setup with facilities including an inviting garden, a fireplace, a barbeque, or a dining area. 

A 5-star hotel will have a greater number of facilities such as fitness centers, swimming pools, and spa treatments. 

Hotel or Homestay: Which One to Choose?

The choice of deciding which property to choose hotel or homestay depends on various factors such as seasonality, traveler preferences, and their budget. 

• If the traveler has a tight budget, choosing a homestay would be a suitable option. Though hotels come with premium pricing, they offer a bunch of extra amenities and facilities that can increase the total bill. 

If you want a value-for-money stay for a longer duration, go with the homestay travel option. 

• The size of the group also decides the choice of stay. Homestays are generally ideal for families or group travelers, while hotels typically attract solo travelers or couples. 
• A homestay provides a comforting, home-like feel to guests and provides essential amenities such as a caretaker for providing 24/7 service, home-cooked meals, and a kitchen. 
• But if you want comfort and convenience, hotels are the perfect stay option as they provide a pool of additional services such as a restaurant, gym, spa, pool, and other in-room entertainment options. 

How BOTSHOT Can Enhance Traveler's Experience for Hotel or Homestay Owners

Choosing a hotel or homestay boils down to factors such as your budget, preferences, and the size of your group. 

If travelers prefer a comfortable bedding experience with basic amenities (bed with a bathroom), going with a homestay would be the most suitable option. But at the same time, it depends on the traveler's priorities, preferences, and current budget. 

No matter whether you run a homestay or hotel business, we believe tech integrations can you create exceptional experiences for guests. 

Here's How BOTSHOT Can Help You in Two Ways:

• Provide Automated Check-in Experience to Your Guests Through eFrontDesk 

• Manage reservations, housekeeping tasks, guest profiles, billing, and get insights on your occupancy, revenue, and the sources from which you're getting most bookings through a single dashboard. 

Frequently Asked Questions (FAQs)

Q. Is a Homestay Safe for Solo Travelers?

Yes, homestays are safer for solo travelers as it provides a family like atmosphere and cultural immersion. 

Q. Is Food Included in Homestays?

Yes, food is included in homestays. Besides that, there’s a separate cook that takes care of food preparation and guests can access kitchen as well.  

Q. What Is the Cancellation Policy Like for Hotels vs Homestays?

Majorly, homestays have a 24-hour cancellation policy while hotels have a 24-72 hour cancellation policy.