How to start your own Homestay business

Updated: Jul 13, 2019

Tourists have changed their tendency of accommodation in recent years. Instead of staying in luxurious or elegant hotels, more and more travelers have chosen to stay in homestays.

Why homestay is a new trend of tourists?

It is because it offers tourist a homely atmosphere and meets their demands of real experiences about customs and culture of inhabitants.

For doing homestay business, you need to plan how to set up it.

About location:

The first step is finding a house or apartment located in favorable transportation, nice view and convenient for travelling to tourist attractions. Example, if your business is in Ho Chi Minh city then you need to choose places located near Art Museum, shopping malls like An Dong plaza, Mrs. Indian temple, War Museum or international airport…

About law:

After choosing location, the next step is going to people’s committee of district where you set up business for business license and tax payment registration.

About space inside homestay:

If you aim to offer guests a homely atmosphere, you are encouraged to prepare basic equipment and facilities. Decorating based on your business concepts and depending on your customer target. Always keep space clean, fresh and natural.

About homestay marketing:

  • If you are planning on tacking your business online, taking a good photo is essential. Picture speaks a thousand words and attracts more customer attention. Spend time on taking great photos besides advertising on social channels such as Facebook,

  • Diversify your services to satisfy all demand of customers. You need to have dormitory rooms and private rooms. Because some customers prefer bustle and friendly atmosphere then they can choose stay in dormitory rooms, while some like quiet and privacy then they can choose private rooms.

  • Homestay business is more and more competitive in recent year. To get more booking and meet your guest satisfaction, you need to create more engaging promotion. It can be started by simple but attractive services such as: discount price rents, free breakfast, free water, lower laundry price or free laundry under 3 kg, hot shower, parking, and terrace for exercise….

  • Maximum your revenue by providing more services besides room rent, like selling local drink or food, souvenirs… or add-in travel or air ticket agency...

About check in and payment:

  • Greeting guests first and then asking about reservation. If they have reservation already, double check their information (Name, booking number, stay time…) and confirm on computer. If they don’t have reservations then introduce which service available and suitable with them.

  • Request customer’s payment before staying, customers can pay in cash or credit card payment depend on each homestay. Confirm available services which are free or will be paid.

About check out:

When customers check out, checking furniture is fully or not and asking them return key if staying private room. Request customer’s payment and make sure that you return their ID and passport. After that clean rooms and change new pillow, blanket… for new customers coming.

Temporary residence declaration is very important:

Always register temporary residence declaration when guests check in. Because this step helps prevent your business from law-related violation, such as shelter national or international crime, terrorism…

  • With Vietnamese, use ID for temporary residence declaration in police station managing your location.

  • With foreign visitors, use passport and can register temporary residence declaration online on website: (You need to create account on website first) then police can know who staying in your homestay. If any doubt about customers, it is necessary to report police for observation and supporting.

Always remember “Keep safe first for you and for other customers”.

About storage asset:

During the period of staying, remind customers don’t leave their belongings unattended. Not receive any value assets. If receiving, then seal in place and request customer’s signature and get storage tickets back when returning asset.

About manage review:

Get customer feedback about their experiences during the period of staying to improve your customer service. Remember, it’s always have good reviews and bad ones

  • Good review: This will help attract more potential customers. Reply by saying thanks for choosing your homestay and wishing customers have nice trips.

  • Bad review: All bad reviews will decline prestige of your homestay. Potential customers will look on these reviews for booking in your homestay.

  1. If having bad review but it is true, you should reply by saying thanks and learning from it as experience to make your business become better.

  2. If having bad reviews but it isn’t true or star rating low but customers don’t tell reasons or details. That time you need strongly reply or feedback for OTA review and delete worst comments if it appears on your homestay channel. If they have messy activities during time staying, then write email for website admin that they booked and explain clearly situations

Homestay rules:

You need to provide rules in writing and request all customers follow it for assuring asset in homestay and compensating if destroy asset. These rules also help enhance respect between guests and owner during staying period.

Those are my experience of homestay business, and it’s my pleasure to share it with all of you.
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