The market is gradually becoming saturated, policies are becoming more standardized, and consumers are becoming more rational. The homestay industry is facing new challenges. As the peak season cools down, homestay operators are actively seeking changes. With the saturation of the market and the follow-up of policy regulations, the market environment of the homestay industry has shown many new changes. Nowadays, it is no longer the era where just by brainstorming, one can open a good homestay. Instead, higher requirements have been put forward for brand and operational capabilities. In previous years, summer vacation usually starts from early July and ends at the end of August, during which housing prices can increase threefold. But this year, the peak season was not prosperous, and it wasn't until mid July that there was some heat. After only about a month, housing prices only dared to maintain a 50% increase Liu Tong, the manager of the "Mountain Homestay" located in the Jinyun Mountain Scenic Area of Chongqing, said that with the Mid Autumn Festival approaching, the booking volume is still less than 10% of the same period last year, and it is feared that it may not even be enough to recoup the cost this year. From developed coastal areas to remote western regions, from the water towns of Jiangnan to the wilderness of the north, one often hears the sighs of homestay operators. The cold reception of homestays has become a major feature of this year's summer tourism market. The unit price is usually half off, and the significant decrease in passenger flow seems to be a common phenomenon. In fact, with the saturation of the market and the follow-up of policy regulations, the market environment of the homestay industry has shown many new changes. Since 2024, with the continuous increase of new entrants in the homestay market, the competition pressure in the industry has further intensified. In addition, consumers are becoming more mature and rational. How to break consumer aesthetic fatigue and provide tourists with increasingly refined, personalized, and diversified services urgently needs to be solved in the homestay market. In recent years, many homestays have become the fastest-growing and most popular new form of tourism in China, driven by the dual forces of urban renewal and rural revitalization. According to data released by China Research Network, the size of China's homestay market has exceeded 30 billion yuan in 2023. Our specialty homestays are very popular and often in short supply during holidays. On the one hand, the appearance and decoration style are very distinctive, attracting many tourists to come and check in. Another aspect is that the prices are affordable and the tourism facilities are complete. Our homestay bed rooms cost as little as 38 yuan per night, and our specialty homestays only cost around 100-200 yuan per night The person in charge of Meixin Red Wine Town Scenic Area located in Fuling, Chongqing said that with the Mid Autumn Festival and National Day approaching, the scenic area is currently planning to build more themed homestays, and will also work with nearby villagers to create a number of ecological farmhouse homestays and health homes, making homestays a beautiful scenery. A few happy and a few sad, Liu Hua, a resident of Chongqing, has been running a homestay on Xidao Island in Sanya for many years and deeply felt the changes in the market. "Summer tourists prefer Yunnan, Lijiang, Xizang and Xinjiang, rather than Hainan, which is unbearable in the heat. In addition, the external impression that Sanya tourism is' expensive 'has deterred many potential tourists Liu Hua said that the number of homestays in Xidao has surged from a dozen in 2021 to over 150 now. The price war caused by fierce competition is inevitable. Last summer, the house price could still be maintained at three to four hundred yuan per night, but this year it has had to drop to around two hundred yuan or even lower. Although the price war has attracted some customers in the short term, it has greatly compressed the profit margin. Influenced by the movie "Go to a Windy Place", Dai Qing fell in love with the poetry and distant places of Cangshan and Erhai Lake. She went to Dali and opened a "Windy Courtyard" homestay. In less than a year, she had already planned to sell it after National Day. The main reason is that the business is too poor. Although there are guests every day this summer, the prices are not much higher than usual, and the overall occupancy rate is less than half. "She said that nowadays in Dali, dissatisfaction with homestay stays is a common situation, and many homestay owners on social media are posting laments about the difficulty of doing business. According to recent official data released by Dali Prefecture, the number of homestays in the state accounts for nearly 5% of the national total, ranking among the top in the country. According to incomplete statistics, there are currently 8952 hotels and accommodations, 118500 rooms, 182100 beds, and nearly 170000 employees. The market has increasingly high requirements for business operations. In recent years, the registration volume of homestay related enterprises in China has been increasing year by year. According to Tianyancha data, as of August this year, there are 160000 homestay related enterprises in China. In the first eight months of 2024, more than 30000 new enterprises were added, an increase of 15% compared to the same period in 2023. There are currently over 3000 households in Chongqing. The development of the homestay industry to this day is no longer just about providing accommodation space with "one room, one bed", but has evolved into a complex vacation community with entertainment functions, with homestays as the core, giving rise to rich and diverse experience scenarios and consumption spaces. The booking rate for summer homestays is around 90%, with many guests from Chongqing, Shanghai, and Guangdong staying for two nights or more. Among them, parent-child guests account for approximately 60%. The overall situation is still good Liu Dezhang, the manager of Shuanghe Inn behind the Twelve Mountains in Suiyang County, Guizhou, said. Entering the inn is like being in a flowing picture, and this summer inn has attracted many parent-child guests. Liu Dezhang believes that nowadays, it is difficult for homestays to attract guests solely by selling rooms and designing space decorations. Guests are not only concerned about cost-effectiveness, but also about whether the homestay has local characteristics. For our inn, it's no longer just about selling rooms, but selling activities with emotional value. The core points of these activities are cool and trendy. Therefore, in terms of product packaging, we can weaken the homestay itself and highlight the combination of activities, experiences, and homestays Liu Dezhang admitted that the market has increasingly high requirements for homestay operations. In addition to having unique features in product design, marketing should also be done well. In addition, the Meixin Red Wine Town scenic area is surrounded by mountains and waters, relying on the natural tourism resources of mountains, waters, and fields, actively developing the homestay industry, continuously promoting the diversification, specialization, and refinement of homestays, and meeting the multi-level consumption needs of tourists. Through the diversified integrated development model of "agriculture, commerce, culture, tourism", it drives the construction of rural infrastructure and industrial development, injecting new vitality into the high-quality development of rural tourism. For many years, the scenic area has focused on red wine culture, blending Chinese and Western architectural features to create a diverse range of homestay clusters. Due to their unique design, beautiful environment, and affordable prices, they have received frequent praise from tourists. The reporter saw here that various types of hotels and homestays are scattered, including Mediterranean style castle homestays, nostalgic style train homestays transformed from old green train carriages, and European style castle colored hotels stacked like colorful building blocks, among more than ten other accommodation products. The environment here is very good, with mountains and water, and you can see the Yangtze River by opening the window. The child was particularly happy staying at the castle homestay, and the photos and check-in were also very impressive. Next time, I plan to experience the courtyard homestay on the mountain again. I heard it's also very interesting Ms. Liu, who brought her child to play, said. The homestay industry urgently needs innovation and breakthroughs. "Homestays need to keep pace with the times, constantly explore, and find their market positioning and characteristics," said Dai Bin, the president of the China Tourism Research Institute. Is homestay a simple experience or a long-term residency experience? The scope of product design and promotion is different. Is it the accommodation market or the tourism market? This is all worth considering. It is understood that chain hotels have mature management systems and operational teams, which can ensure transparency and standardization in various aspects such as booking, cancellation, and pricing. However, homestays are mostly operated by individuals with diverse management models. In addition, vague booking policies, unreasonable cancellation fees, and arbitrary price changes can easily lead to customer dissatisfaction and complaints. "At present, the B&B industry is characterized by foam, hollowness, and homogeneity. Many B&B industries have lost their profits and lost their investment. In the future, in order to achieve innovative breakthroughs in the homestay industry, it is necessary to further segment the market, and differentiation, customization, precision, and personalization are its development directions Researcher Mo Yuanming from the Chengdu Chongqing Economic Circle Collaborative Development Center at Chongqing Technology and Business University said that the homestay industry is a new form of cultural and tourism economy, and should focus on integrating with cultural and tourism development, resonating with the new track of rural revitalization, and seeking high-quality development. Wang Liantao, CEO of Xiaozhu Homestay, believes that the competitive pressure in the homestay industry will further intensify: the "roll" price, "roll" content, and "roll" innovation have put forward higher requirements for homestay owners. During the interview, the reporter found that chain and branding do not sacrifice individuality, but encourage each store or property to showcase unique regional customs and cultural characteristics while ensuring basic service standards, forming a win-win model of "standardization+personalization". The Huazhu brand under the Rulvyue Group is characterized by high-quality service and regional cultural integration, and has successfully signed contracts and operated more than 1700 stores. Zhang Shaoke, a senior homestay operator in Chongqing, believes that short-term setbacks do not mean that homestays have come to an end. In his operations, he constantly tries "homestay+study tour", "homestay+travel photography", "homestay+intangible cultural heritage", "homestay+entertainment" and other methods to enrich the experience content of homestays and create high value-added homestay services. If you don't want to be marginalized in the 'low price competition' of Overwatch, you must boldly innovate in the 'high-end competition', perhaps only then can you become a survivor in the 'cold wave of homestays' He said. (New Society)